{"id":25,"date":"2020-09-03T09:10:03","date_gmt":"2020-09-03T13:10:03","guid":{"rendered":"https:\/\/opentextbooks.concordia.ca\/hrmcanadian\/chapter\/1-1-what-is-human-resources\/"},"modified":"2020-09-03T13:26:30","modified_gmt":"2020-09-03T17:26:30","slug":"1-1-what-is-human-resources","status":"publish","type":"chapter","link":"https:\/\/opentextbooks.concordia.ca\/hrmcanadian\/chapter\/1-1-what-is-human-resources\/","title":{"raw":"Human Resource Management: An introduction","rendered":"Human Resource Management: An introduction"},"content":{"raw":"\n \n
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Learning Objectives<\/h3>\n
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  1. Define HRM and explain its evolution over the years.<\/li>\n \t
  2. Explain the role of HRM in organizations.<\/li>\n \t
  3. Define, discuss and explain the major HRM activities.<\/li>\n \t
  4. Explain the professional and personal skills needed to be successful in HRM.<\/li>\n \t
  5. Understand the role of the Quebec HR professional order.<\/li>\n \t
  6. Understand how the business context influences HRM.<\/li>\n<\/ol>\n<\/div>\n

    Every organization, large or small, uses a variety of capital to make the business work. Capital includes cash, valuables, or goods used to generate income for a business. For example, a retail store uses registers and inventory, while a consulting firm may have proprietary software or buildings. No matter the industry, all companies have one thing in common: they must view people as intellectual capital. This will be our focus throughout the text: achieving organizational effectiveness through the use of people\u2019s skills and abilities.<\/p>\n\n

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    1. What Is HRM?<\/h1>\n

    Human resource management (HRM) is an integrated set of processes, practices, programs, and systems in an organization that focuses on the effective deployment and development of its employees.  These processes include employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. It is, by most account, one of the most critical functions of an organization, because for an organization to be efficient, it needs employees and systems that support them. Think of an organization that you admire (you can use Fortune's ranking of the World's Most Admired<\/a> companies). If you look closely at these companies, you'll find that they are all built, without exception, around efficient, strong, and innovative HR processes.<\/p>\n\n<\/div>\n

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    1.1. HRM: A Short History<\/h2>\n

    As a field, HRM has a long history. It takes root in the study of psychology, organizational behaviour, and industrial engineering. The field has undergone many changes over the last twenty years, giving it an even more important role in today\u2019s organizations. In the past, human resource management (HRM) was called the personnel department. This department was in charge of hiring people and dealing with the paperwork related to employment. More recently, however, the personnel department has been divided into human resource management and human resource development, as these functions continue to evolve. HRM is not only crucial to an organization\u2019s success, but it should be part of the overall company\u2019s strategic plan, because so many businesses today depend on people to support their vision and accomplish their mission. Strategic planning plays an important role in how productive the organization is.<\/p>\n \n

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    Figure 1.1. Examples of Differences between Personnel Management and HRM<\/em><\/p>\n\n\n\n\n\n\n\n\n\n
    Personnel Management Focus<\/th>\nHRM Focus<\/th>\n<\/tr>\n<\/thead>\n
    Administering of policies<\/td>\nHelping to achieve strategic goals through people<\/td>\n<\/tr>\n
    Stand-alone programs, such as training<\/td>\nHRM training programs that are integrated with company\u2019s mission and values<\/td>\n<\/tr>\n
    Personnel department responsible for managing people<\/td>\nLine managers share joint responsibility in all areas of hiring and management of people<\/td>\n<\/tr>\n
    Creates a cost within an organization<\/td>\nContributes to the profit objectives of the organization<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    In the book HR From the Outside In<\/em> (Ulrich, Younger, Brockbank, & Ulrich, 2012), the authors describe the evolution of HR work in 4 \u201cwaves\u201d.1 <\/sup><\/a> (see Figure 1).<\/p>\n

    Early 1900: 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 (e.g., payroll). This administrative side still exists in HR today, but it is often accomplished differently via technology and outsourcing solutions.<\/p>\n

    1970's: Wave 2 focused on the design of innovative HR practice areas, such as, compensation, learning, 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.<\/p>\n

    1990's: Wave 3 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 HRM priorities to work on and how to best use resources. HR began to be a true partner to the business, and the credibility of HRM was dependent upon HR having a seat at the table when the business was having strategic discussions.<\/p>\n

    2000's: In Wave 4, HRM continues to be a partner to the business, but has also become a competitive practice for responding to external business conditions. Organizations get ahead of the competition with their HRM practices.<\/p>\n

    Although each \u201cwave\u201d of HRM\u2019s evolution is important and must be managed effectively, it is the \u201coutside in\u201d perspective that allows the human resource management function to shine via the external reputation and successes of the organization.<\/p>\n \n\n<\/div>\nFigure 1.2.<\/em>\n

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    2. The Role of HRM in Organizations<\/h1>\n
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    HRM is an 'umbrella' term for many different and interrelated functions. It is necessary to point out at the very beginning of this text, that every manager has a role relating to human resource management. Just because we do not have the title of HR manager it does not mean we won\u2019t perform all or at least some of the HRM tasks. For example, most managers deal with the selection, compensation, and motivation of employees\u2014making these aspects not only part of HRM but also part of management in general. Most experts agree on eight main roles that HRM plays in an organization. These roles are described in the following sections.<\/p>\n\n

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    2.1. Dealing with Laws and Setting Policies & Procedures<\/h2>\n

    Legislation and HRM<\/h3>\n

    It is very important that human resource managers are aware of all the laws that affect the workplace and they ensure that the processes in place abide by them. An HRM manager will work under the following legal frameworks:<\/p>\n\n