HR Basics: Overview of Human Resource Management

Definition of Human Resource Management (HRM)

• Formal systems designed to manage people and organizations.

Brief History of Human Resource Management

• Early 1900s: First personnel management department at National Cash Register Company.
• 1920s: Personnel departments emerged, focusing on technical functions.
• 1960s: Changes due to social legislation leading to evolution of HRM.
• 1970s: HRM developed in response to increased competition, deregulation, and technological changes.
• 1990s: Globalization required HR departments to focus on costs, planning, and HR strategies.

Roles of Human Resource Management in Organizations

• Depends on management’s expectations and HR staff competencies.
• Three Main Roles:
  1. Strategic Role: Defines business strategy relating to human capital and organizational results.
  2. Operational and Employee Advocate Role: Manages HR activities and serves as an employee champion.
  3. Administrative Role: Focuses on clerical administration, record-keeping, compliance, and policy implementation.

Evolution of HRM Roles

• Past Role: Highly administrative, focused on transactional activities (e.g., payroll, compliance).
• Present Role: Strategic contributions recognized, leading to human resource professionals providing technical expertise and championing employees.

Human Resource Management Model: The Pinwheel Model

• Eight Key Functional Areas:
  1. Human Resource Strategy and Planning:
     • Activities: Analysis, planning, effectiveness, metrics, technology.
  2. Compliance:
     • Activities: Equal employment opportunity, compliance with laws and regulations.
  3. Talent Management:
     • Activities: Recruitment, talent acquisition, selection, interviewing, onboarding.
  4. Training and Development:
     • Activities: Training, development, career planning.
  5. Performance Management:
     • Activities: Performance appraisal, improvement, intervention.
  6. Total Rewards:
     • Activities: Compensation, benefits, recognition, work-life effectiveness.
  7. Employee Safety and Health:
     • Activities: Employee safety, security, workers' compensation.
  8. Employee and Labor Relations:
     • Activities: Policy management, documentation, workplace investigations, labor relations, employee rights.

Conclusion

• Understanding the history and roles of HRM provides context for its importance in modern organizations.