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Historically, the HR Department was viewed as
administrative overhead.
HR processed payroll, handled benefits
administration, kept personnel files and other
records, managed the hiring process, and provided
other administrative support to the organization
The role of Human Resources is changing as fast as
technology and the global marketplace

The positive result of these changes is that HR
professionals have the opportunity to play a more
strategic role in the business.
The challenge for HR managers is to keep up to
date with the latest HR innovations -technological,
legal, and otherwise.
How HR managers can anticipate and address
some of the most challenging HR issues.

HRM Activities
Attract and
orient new

Compliance &
Human Resource compensation


Technological Changes And HRM

Technology includes tools, machinery, equipment, work procedures

and employee knowledge and skills. The impact of technology on HR
can be profound, as the following things clearly reveal:

New skills, knowledge, experience and expertise required to gain

the edge over rivals.
Downsize operations, cut organisational layers and cut the extra
fat to survive in a competitive world
Collaborate and achieve teamwork
Relocate work from the office to the home
Internet and intranet revolution


The workforce is becoming increasingly diverse now and organisations

are doing their best to address employee concerns and to maximise
benefits of different kind to employees with diverse educational,
cultural and religious backgrounds. The diversity issues, mainly,
include the following:
Composition In terms of age, caste, education, culture,
region, religion
Minority groups, Economically backward groups
Displaced persons
Child labour
Contract labour
Women employees

High-Performance Work Systems
High-performance work systems are organizations that have the best
possible fit between their social system and technical system.
Self-managed teams and decentralization of decision making
Selective hiring of new personnel
Comparatively high compensation including performance and
commitment incentives (e.g., financial incentives)
Management planning and measurement (e.g., improved systems to
measure employee performance)
Extensive training
More cooperative labour relations (e.g., a more consultative
partnership style of labour relations with unions)
Technology (e.g., better IT)
Employment security
Reduced status distinctions and barriers, including dress, language
and office arrangements
Knowledge Workers
Knowledge workers are
employees whose main
contribution to the
organization is specialized
The reliance on knowledge
workers affects
organizations decisions
about the kinds of people
they are recruiting and

Employee Empowerment
Employee empowerment means giving employees
responsibility and authority to make decisions regarding
all aspects of product development or customer service.
HRM practices such as performance management,
training, work design, and compensation are important
for ensuring the success of employee empowerment.
For empowerment to succeed, managers must be trained
to link employees to resources within and outside the
The use of employee empowerment shifts the recruiting
focus away from technical skills and toward general
cognitive and interpersonal skills.
Focus on Strategy
High Quality Standards: Mergers and Acquisitions:
To remain competitive in Mergers: Two companies
todays economy, becoming one.
organizations need to Acquisitions: One
provide high-quality company buying another.
products and services.
HR professionals have to
Total quality management
sort out the differences in
(TQM) refers to a company-
wide effort to continuously
the two companies
improve the ways people, practices with regards to
machines, and systems compensation, performance
accomplish work. appraisal, and other HR
TQM has several core
Focus on Strategy
Downsizing presents a

number of challenges and
opportunities for HRM.
All employees should be
Why the downsizing is necessary
What costs are to be cut
How long the downsizing will last
What strategies the organization
intends to pursue
HRM can provide downsized
employees with outplacement
services to help them find new
Focus on Strategy
Expanding into Global
In order to meet challenges,
companies must
Develop global markets
Keep up with competition
from overseas
Hire from an international
labor pool
Prepare employees for
global assignments.
Employees who take
assignments in other countries
are called expatriates.
Focus on Strategy
Reengineering: Outsourcing:
Reengineering is a complete Outsourcing refers to the
review of the organizations
critical work processes to practice of having another
make them more efficient and company provide services.
able to deliver higher quality. HR departments help with a
Reengineering affects HRM in transition to outsourcing and
two ways: many HR functions are being
The way the HR department outsourced such as:
accomplishes goals may Payroll administration
The HR department must
help design and implement Recruitment
change Selection
Traditional HR vs. Strategic HR
Point of distinction Traditional HR Strategic HR
Focus Employee Relations Partnerships with internal and
external customers
Role of HR Transactional change Transformational change leader
follower and respondent and initiator
Initiatives Slow, reactive, fragmented Fast, proactive and integrated
Time horizon Short-term Short, medium and long (as
Control Bureaucratic-roles, policies, Organic-flexible, whatever is
procedures necessary to succeed
Job design Tight division of labour; Broad, flexible, cross-training
independence, teams
Key investments Capital, products People, knowledge
Accountability Cost centre Investment centre
Responsibility for HR Staff specialists Line managers

Technological Change in HRM
Advances in computer-
related technology have
had a major impact on
the use of information
for managing HR.
A human resource
information system
(HRIS) is a computer
system used to acquire,
store, manipulate,
analyze, retrieve, and
distribute information
related to human