evolution of human resource management essay pdf

11.1 An Introduction to Human Resource Management

• What has been the evolution of human resource management (HRM) over the years, and what is the current value it provides to an organization?

Human resource management over the years has served many purposes within an organization. From its earliest inception as a primarily compliance-type function, it has further expanded and evolved into its current state as a key driver of human capital development. In the book HR From the Outside In (Ulrich, Younger, Brockbank, Younger, 2012), the authors describe the evolution of HR work in “waves”. 1 Wave 1 focused on the administrative work of HR personnel, such as the terms and conditions of work, delivery of HR services, and regulatory compliance. This administrative side still exists in HR today, but it is often accomplished differently via technology and outsourcing solutions. The quality of HR services and HR’s credibility came from the ability to run administrative processes and solve administrative issues effectively. Wave 2 focused on the design of innovative HR practice areas such as compensation, learning, communication, and sourcing. The HR professionals in these practice areas began to interact and share with each other to build a consistent approach to human resource management. The HR credibility in Wave 2 came from the delivery of best-practice HR solutions.

Wave 3 HR, over the last 15–20 years or so, has focused on the integration of HR strategy with the overall business strategy. Human resources appropriately began to look at the business strategy to determine what HR priorities to work on and how to best use resources. HR began to be a true partner to the business, and the credibility of HR was dependent upon HR having a seat at the table when the business was having strategic discussions. In Wave 4, HR continues to be a partner to the business, but has also become a competitive practice for responding to external business conditions. HR looks outside their organizations to customers, investors, and communities to define success—in the form of customer share, investor confidence, and community reputation. HR’s credibility is thus defined in terms of its ability to support and drive these external metrics. Although each “wave” of HR’s evolution is important and must be managed effectively, it is the “outside in” perspective that allows the human resource management function to shine via the external reputation and successes of the organization.

Catching the Entrepreneurial Spirit

Human resources outsourcing—entrepreneurial ventures.

Human resources is a key function within any company, but not all companies are able to afford or justify full-time HR staff. Over the last decade, HR outsourcing has become a good business decision for many small companies whose current staff doesn’t have the bandwidth or expertise to take on the risks of employee relations issues, benefits and payroll, or HR compliance responsibilities. This has led many HR practitioners to try out their entrepreneurial skills in the areas of HR outsourcing and “fractional HR.”

Human resources outsourcing is very commonly used by smaller companies (and often large companies too) to cover such tasks as benefits and payroll management. This is an area that has been outsourced to third parties for many years. More recent is the trend to have “fractional HR” resources to help with the daily/weekly/monthly HR compliance, employee relations, and talent management issues that companies need to address. Fractional HR is a growing industry, and it has become the service offering of many entrepreneurial HR ventures. Fractional HR is essentially as it sounds—it is the offering of HR services to a company on a part-time or intermittent basis when the company may not be able to justify the cost of a full-time HR resource. An HR professional can be available onsite for a specified number of hours or days weekly or monthly, depending on the company’s needs and budget. The HR professional handles everything from HR compliance issues and training to employee issues support. Also, for companies that are keen on development of employees, the HR resource can drive the talent management processes—such as performance management, succession planning, training, and development—for companies who require more than just basic HR compliance services.

How does a business leader decide whether HR outsourcing is needed? There are generally two factors that drive a leader to consider fractional HR or HR outsourcing—time and risk. If a leader is spending too much time on HR issues and employee relations, he may decide that it is a smart tradeoff to outsource these tasks to a professional. In addition, the risk inherent in some HR issues can be very great, so the threat of having a lawsuit or feeling that the company is exposed can lead the company to seek help from a fractional HR professional.

HR entrepreneurs have taken full advantage of this important trend, which many say will likely continue as small companies grow and large companies decide to off-load HR work to third parties. Some HR companies offer fractional HR as part of their stated HR services, in addition to payroll and benefits support, compensation, and other HR programmatic support. Having a fractional HR resource in place will often illuminate the need for other HR services and program builds, which are generally supported by those same companies. Whether you are an individual HR practitioner or have a small company of HR practitioners and consultants, fractional HR and HR outsourcing can be a very viable and financially rewarding business model. It can also be very personally rewarding, as the HR professional enables smaller companies to grow and thrive, knowing that its HR compliance and processes are covered.

• What do you believe is contributing to the growth of the fractional HR and HR outsourcing trend? Do you expect this trend to continue?
• At what point should a company consider bringing on a full-time HR resource instead of using a fractional HR resource? What questions should the company ask itself?

Human resource management provides value to an organization, to a large extent, via its management of the overall employee life cycle that employees follow—from hiring and onboarding, to performance management and talent development, all the way through to transitions such as job change and promotion, to retirement and exit. Human capital is a key competitive advantage to companies, and those who utilize their human resource partners effectively to drive their human capital strategy will reap the benefits.

Human resource management includes the leadership and facilitation of the following key life cycle process areas:

• Human resources compliance
• Employee selection, hiring, and onboarding
• Performance management
• Compensation rewards and benefits
• Talent development and succession planning

Human resources is responsible for driving the strategy and policies in these areas to be in accordance with and in support of the overall business strategy. Each of these areas provides a key benefit to the organization and impacts the organization’s value proposition to its employees.

Concept Check

• How has the function of human resource management evolved over the years?
• In what way do you usually interact with human resources?

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Introduction: The Evolution of Human Resource Management

• First Online: 06 November 2021

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• Yupin Aungsuroch   ORCID: orcid.org/0000-0001-9205-1814 4 ,
• Joko Gunawan   ORCID: orcid.org/0000-0001-6694-8679 5 &
• Mary L. Fisher 6 , 7  

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In this introductory chapter, the authors establish the context by describing the evolution of human resource management (HRM) and by providing an overview of why a partnership between nursing and human resource management in hospital administration is critical. This chapter will also give the reader an overview of individuals who have contributed to the development of the HRM context.

• Human resource management
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Evolution of human resources management – essay.

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Since the 1980s the nature of Personnel Management is undergoing change and personnel function is shifting the locus of its focus. Amongst personnel specialists, the term, ‘Personnel Management’ is being substituted by that of ‘Human Resources Management’.

Image Courtesy : askdevelopment.net/wordpress/4.jpg

It is felt that Personnel Management is being directed mainly at company employees and is not being completely identified with managerial needs.

Personnel men have all along been mediating in between the management and the employees communicating the needs of each to the other. To maintain credibility with employees mediating personnel men have to look after their welfare.

At the same time to justify their existence with management, they must show to their managers, a concern for the efficiency of labour utilisation as well as ensure that staff interests are always subservient to those of organisational effectiveness.

Human Resources Management, by contrast, is directed mainly towards managerial needs for people resources in organisations, with greater emphasis being placed on planning, monitoring and control rather than on problem solving and mediation.

Whereas traditional Personnel largamente is committed to the idea that employees’ needs should be looked after, since employees are effective only when their needs are satisfied, Human Resources Management reflects a different set of beliefs.

These are that deploying of human resources in correct numbers with the right skills at the right price is more important than a patronizing involvement with people’s personal affairs.

HRM (Human Resources Management) is significantly different from Personnel Management. HRM is proactive rather than reactive, is system- wide rather than piecemeal, treats labour as social capital rather than as a variable cost, is goal-oriented rather than relationship-oriented and is ultimately based on commitment rather than compliance.

Torrington has argued that Personnel Management has grown through assimilating a number of additional emphases to produce an ever-richer combination of expertise. HRM is no revolution but a further dimension to a multi-faced role. While Personnel Management is supply-driven, HRM is demand-driven.

Personnel Management is directed mainly at the employees of the organisation finding and training them, arranging their pay and contracts of employment, explaining what is expected of them, justifying, what the management is doing and trying to modify any management action that could produce an unwelcome response from the employees.

In contrast, the human resource manager starts not from the organisation’s employees, but from the organisation’s need for human resources; with demand rather than the supply.

At first sight, a revolution seems to be taking place in Personnel Management all over the world. Not only are there major changes in practice which go far beyond the choice of this or that technique, there is also said to be a paradigm shift occurring in the thinking on Personnel Management which shows a new theoretical sophistication.

The new paradigm seems capable of both describing and explaining the changes in practice and of providing the rationale for elevating Personnel Management or to use the more modern term, HRM to strategic importance in the running of organisations.

Basically, it sees management, faced with ever increasing competition in the context of the globalisation of the economy, forced to rethink the sources of competitive advantage and to make strategic choices about future directions.

No economy can compete with Japan; they would have to lower wages and living standards of the workers to socially and politically unacceptable levels which would not be possible.

Instead, they should place emphasis on the quality of goods and services. Quality goods and services require a quality workforce. From this it follows that people and the way they are managed, are the major sources of competitive advantage.

Related Articles:

• Staffing and Evolution of Human Resource Management – Explained!
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The Evolution of HR Management: How It Has Changed and Why It Matters

Team Kissflow

Updated on 25 Mar 2024 • 6 min read

Human resources (HR) management is one of the most important functions of any organization, offering a number of opportunities to contribute positively toward continued business success.

But, a key part of this is the ability of the HR team to provide services to the business that are efficient, meaningful, and value-adding. In this article, we will explore some key themes around HR management, as well as how you can ensure that your HR function is operating at the top of its game to support the work of the wider organization.

What is HR management?

Human resource management is an umbrella term that is used to describe activities that take place in business around the management and development of its employees. The function oversees all of the aspects relating to its people, from the point at which they are recruited to when they leave the organization, otherwise known as the full employee lifecycle.

Key operative functions of HR management

Because HR management covers so many stages of the employee lifecycle, there are consequently various functions within an HR department. The majority are firmly linked to each other and overlap in many respects. How the functions of an HR department are split very much depends on the size and culture of the business and much variety exists, but here are some of the most common areas:

1. Recruitment and onboarding

This area of HR management deals with the many activities that take place in the hiring of a new employee. The first step is scoping out a job description. Marketing the vacancy to source candidates may involve direct advertising online, with other media outlets, or working with a recruitment or headhunting agency.

Applicants are then screened and shortlisted against the job specification before interviews are carried out and an offer of employment is made to the successful candidate. Once a candidate has been made an offer, a contract of employment and other offer documents are generated and sent to the new employee. Next, the HR team works in conjunction with the new employee’s line manager to arrange their induction and training program.

2. Compensation and benefits

This includes administering and running payroll, calculating and paying bonuses, and administering the benefits schemes that the company offers, such as private medical insurance, pensions, etc. Some of these tasks involve detailed and ongoing liaison with third-party partners.

3. Performance management

Performance management involves creating simple yet effective performance management processes, template forms, and scoring systems. Managers must track performance levels across their teams and implement initiatives to improve poor work and drive good progress across the business.

4. Learning & Development (L&D)

The work of the L&D function of HR management includes sourcing or designing training courses to meet learning needs, organizing coaching, and mentoring programs and other initiatives to improve job performance across employees and teams.

5. Workforce management and succession planning

Strategic HR management involves working with the senior leadership team to identify future plans, opportunities, and challenges that may affect the business. The HR function can then implement an effective strategy to ensure that the people aspect of the company is able to meet these future changes.

This involves identifying the key roles that will be critical to business success in the future and how to best fill them using both internal and external candidates.

What are the differences between strategic HR management, core HR, and HR support systems?

The HR team is expected to wear many different hats, performing duties to meet the needs of the business in a variety of ways. Strategic HR refers to how the HR department works to add measurable value to the business.

Typically, the Head of HR or the HR Director works closely with the Managing Director to draw up a clear strategy aligned to the wider organizational one, with clearly defined goals. High-level goals within strategic HR management could include reducing employee turnover, cutting recruitment costs, etc.

Core HR, also known as operational HR, relates to the day-to-day tasks the HR function needs to perform to keep the business going. Examples include running payroll, producing contracts and offer documents, or arranging training courses.

HR support systems are the key areas in which HR works in direct partnership with other areas of the business to keep it running smoothly. This could be through employee training and coaching to improve performance, or via disciplinary and grievance procedures.

What are the objectives of HRM?

HR management can broadly be split into four main objectives as follows:

Organizational objectives

This is work done by the HR function to improve the efficiency and performance of the business. Examples include ensuring high levels of employee retention and providing training courses.

Societal objectives

This relates to the HR department’s efforts to comply with the ethical and social aspects of the business, such as ensuring high standards of equal opportunities for employees.

Functional objectives

The HR department needs to maintain clear guidelines to keep the organizational operating legally and effectively. An example could be ensuring that the resources of the HR team are being used to their full potential.

Personal objectives

These objectives relate to providing each employee with the opportunity to meet his or her individual goals, such as offering good learning and development initiatives and other ways of maintaining high employee satisfaction and motivation.

What are the best practices that can empower HR managers?

Considering the level of impact inefficient HR practices can leave on the organization’s bottom line, HR managers need to ensure they get it right. Getting to know and implementing field-tested best practices across a wide range of industries, can help HR managers achieve tangible savings faster.

Listed below are some of the widely-adopted HR management best practices:

• Properly document your HR processes and policies
• Draft clear HR policies and stick to them, always
• Automate your HR management processes
• Challenge and sell the idea of HRM to your management
• Offer relevant training programs to all stakeholders
• Avoid excessive rigidity but strive to be consistent
• Evaluate your HR processes frequently

Are standalone HR apps or cloud-based HR software best for your business?

The growth and popularity of HR software over the last decade have been staggering. As a result, many organizations have ended up with a number of standalone HR tools to manage different parts of the HR process. However, there is an increasing number of robust cloud-based HR systems that are able to handle the whole range of HR activities, from tracking applicants through the recruitment process to arranging training initiatives and managing the business succession plan.

Using one piece of software to handle all of this has distinct advantages. First, it means that all data held in the system can be integrated automatically, saving time and improving data integrity and accuracy. Second, it is often considerably cheaper to use one cloud-based HR system in place of a number of standalone apps — both in terms of system fees and time saved from employees working with one system in place of multiple ones.

Top 5 HRM software to manage the hire to retire lifecycle

With so many options in the HR software market, it can be hard to know where to start when looking to invest. Here are our top picks of HRM systems:

1. BambooHR

Well regarded web-based HR software that is ideally suited to smaller businesses, it offers an off-the-shelf format with built-in, simple-to-use functionality to implement it with minimum work. It, therefore, allows businesses to get started using it quickly.

2. Kissflow HR Cloud

Kissflow HR Cloud offers its clients a range of HR applications from recruitment and onboarding to performance and leave management. It features state-of-the-art built-in functionalities but also highly customizable options. These functions allow organizations of all shapes and sizes to design automated workflows that match their existing processes perfectly and replace laborious and time-consuming manual processes with streamlined, simplified automation.

3. Zoho People

Zoho People is part of the wider Zoho business applications system. It offers the entire range of HR functionalities such as performance management, time and attendance, and compensation and benefits administration.

One of the main advantages of this software is the fact that you can easily integrate it to the other business apps provided by Zoho to create a customized and smooth-running suite of functionalities across the whole business.

This software is a good choice for organizations of all sizes looking for a cloud-based HR tool with the functionality to manage the full spectrum processes, from applicant tracking to robust holiday and leave calculations and expenses logs. Customized workflows are easy to create in order to automate many of the more repetitive manual HR processes.

5. Lanteria HR

Ideal for medium to larger companies, Lanteria offers a comprehensive range of features across the full employee lifecycle, with several separate dashboards so you can compare performance across different HR areas such as attendance and recruitment.

With a high volume of quality reporting features available, it is quick and easy to evaluate performance across a range of HR metrics.

Get smart with the best HR management tool for your organization

HR Functions are more complex than ever, with higher expectations in terms of the value they offer. Thus, it is crucial to ensure that the HR management in your company is operating at the highest possible level, offering value-adding solutions that benefit the whole business.

HR software   can play a big role in improving the productivity, quality, and effectiveness of the whole function and is a vital way to stay ahead of the competition. If you’re on the hunt to find the best HR management tool for your organization, start with a free trial of   Kissflow HR Cloud   and see how effortless HR management can be.

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