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PART I
INTRODUCTION

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 Chapter 1:
Changing Perspectives of HRM

Topic Outline:
 Introduction and Overview of HRM
 Evolution of HRM
 Main Trends in the HR Profession
 Human Resource Information System (HRIS)
 Business Process Outsourcing in the
Philippines and HR
 HR Departments’ Organization Charts and
Structures

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 Overview of Human Resource
Management (HRM)

HRM
- a process that involves the acquisition, development,
maintenance, and utilization of valuable human resources
necessary for organizational success

The objective of HRM is to help make an organization more

effective by means of:
1. integrating comprehensive human resource policies with
overall organization plans and strategies; and
2. implementing responsive human resource programs with
a growing sensitivity to the economic and policy needs of
the organization as well as responsive to the changing
technology.

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 Evolution of HRM

 The first serious study of management practice during

the early years of the twentieth century was based on
scientific management by Frederick W. Taylor.
 Scientific management was concerned with:
1. standardization of jobs;
2. time and task study;
3. systematic selection and training of workers; and
4. pay incentives of employees to maximize
efficiency and productivity.

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 The Human Relations Movement era succeeded scientific
management as the dominant approach to management
during the 1930s—a concentrated effort by some managers
and their advisors to become more sensitive to the needs of
employees or treat them in a more humanistic manner.

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The Human Relations Movement
1. The Threat of Unionization
The Wagner Act of 1935 legalized union-management
collective bargaining, promoting the growth of unions,
and union avoidance by firms. Early human relations
thinking presented this possibility: satisfied employees
would be less inclined to join labor unions.
2. The Hawthorne Studies (Elton Mayo)
Reported that productivity was strongly affected by
workers ’ attitudes; turned management toward the
humanistic and realistic viewpoint of the “social man”
model.

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3. The Philosophy of Industrial Humanism
Douglas McGregor’s Theory X and Theory Y:
 Theory X: the management’s traditionally
negative view of employees as unmotivated and
unwilling workers
 Theory Y: the positive view of employees as
energetic, creative, and willing workers

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Evolution of the Human Resource Management Function
 As businesses grew bigger, specialized units were
created to cope with their hiring needs to deal with
government regulations and behavioral issues of
workers.
 During the 1930s and 1940s, these units gradually began
to be called Personnel Department, and gave rise to a
new type of management function: Personnel
Management.
 During the latter part of 1970s, human resource
management emerged as a reaction against the more
functional approach embodied in personnel management.

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 Top HR executives today have vice presidential or
executive vice presidential status and are fully
contributing member of the firm’s executive committee.
 Management no longer treated employees as costs but
assets. Human resources are the greatest asset of the
company.
 In the recent years, treating HR as assets has been
assailed by management experts. “Assets are passive—
bought, sold, and replaced at the whim of their owners.
Human capital in reference to workers now takes the
place of human resources” (Davenport 1999).

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Human Capital
 all present and future workforce participants who need to
develop to their full potential for the benefit of everyone
 refers to the attributes gained by a worker through
education and experience

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 Main Trends in the HR Profession

Human Resource and Information Technology (IT)

 60s: HR Information Systems (HRIS) and payroll

administration were computerized.
 70s: More powerful databases were introduced.
 80s: HR applications like time and attendance were
linked to payroll system.
 90s: As the cost of computerization dropped
dramatically, the rise in popularity of the PCs increased.
The advent of the Internet and the Web generated an
explosion of HR systems and applications.

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Information Technology (IT) Applications in HR
1. Use of job boards and e-recruitment
2. E-selection
3. Employment kiosk
4. E-learning
5. Electronic Performance Support System (EPSS)
6. Salary and payroll administration
7. Growth of social networking sites (e.g., Facebook and
Twitter)
8. Use of email
9. Use of IT to foster customer involvement
10. Telecommuting/teleworking

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Human Resource Information System (HRIS)

Purposes of HRIS

 To improve the efficiency with which data on

employees and HR activities are compiled
 To provide HR information more rapidly and more
easily to be used by management in decision making

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HRIS Applications

 IBM
IBM Europe utilized HRIS in order to connect their
340,000 global employees through revolutionary and
engaging new company-oriented social media.
 Toshiba America Medical Systems Inc. (TAMS)
By manipulating a streamlined and functional HRIS,
Toshiba America Medical Systems Inc. moved all of
their benefit information online.

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Some of the Benefits of HRIS Solutions
 Salary and payroll administration. Payroll
management is often a tedious process that requires a
high level accuracy, timeliness, and effective financial
controls.
 HR training. It provides control of internal organizational
training from delegating participants to projecting training
budget, course scheduling and enrolment, to training
assessments and individual performance appraisals.
 Self-service benefits transactions. Employees can
gain online access to their benefits package at their own
leisure so they can focus on more demanding tasks at
hand during office hours.

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 Business Process Outsourcing (BPO)
in the Philippines and HR
 Outsourcing is a proven tool that can help companies
improve service and better manage their operating costs
and cash flow.
 The business process outsourcing industry is
considered as one of the fastest business sectors in the
world including the Philippines. It is an economic force
that propels our country to be considered as one of the
emerging global leaders in the BPO industry.
 While our country produces a lot of graduates annually,
most of them do not have the skills needed in higher-
value business processes.

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 Considering the major concerns of BPO, HR department
needs to formulate strategies to control its human
resource for BPO.
 With regard to language proficiency, HR needs to design
training programs that would enhance the
communication skills of prospective recruits who wish to
enter in the field of business process outsourcing and
increase sources of applicants for the job.

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 HR Departments’
Organizational Charts and Structures

 Centralization – a centralized strategy that locates

the design and administration responsibility of the HR
in a single organizational unit. HR generalists handle
all HR activities rather than specializing in a single
area such as compensation or recruiting.
 Decentralization – gives each unit the responsibility
to design and administer its own personnel system.

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 Organization chart – a visual display of an
organization’s positions and lines of authority that is
useful as a blueprint for deploying human resources
 Line and Staff Positions
Line managers make decisions and staff personnel
provide advice and support.

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