Bachelor of Business

Administration
Fundamentals of Human
Resource Management
Lecturer: Johan Bekker UNIT 5 Revision Part 1
[email protected]
ONLINE SUMMATIVE ASSESSMENT

2
 PREPARATION FOR OSA
MAIN AREAS OF STUDY:
Define the sphere of responsibility of Human Resource Management.
Describe the components of a Human Resource Management system.
Evaluate the evolution of Human Resource Management.
Explain the relationship between Human Resource strategy and Business strategy.
Identify the challenges facing Human Resource Management.

1. Organise Summaries of Units (and clearly indicate relevant page nr’s in textbooks) .
2. Clearly Mark units in your textbooks (sticky notes).
3. Organise other reference material you already have on each unit (Including some of
the Prescribed / Recommended Readings).
4. Revisit feedback on your assignments to refresh the requirements of referencing
academic writing.
5. Find previous years’ assignments and other questions to assist with preparation. 3
THE PRESCRIBED TEXTBOOK/READINGS FOR THIS MODULE IS:
FOR EACH UNIT:
Prescribed book:
Wärnich, S., Carrell, M.R., Elbert, N.F. and Hatfield, R.D. (2015) Human Study all outcomes, assessment
Resource Management in South Africa. Fifth Edition. Hampshire: criteria and relevant content in
Cengage Learning EMEA study guide and Textbook /
Readings.
Journals:
Ashkanas, R. (2012) “Stop Bashing HR” Finweek. 2/9/2012, p 39 COMPLETE ALL:
(available from EBSCO) • Activities,
Ulrich, D. Younger, J. & Brockbank, W. (2012) “HR Competency.” • Case Studies and
Leadership Excellence. 29 (8), p 17. (available from EBSCO) • Knowledge Check / Revision
Ulrich, C, Brockbank, W. & Ulrich, M. (2010). “Capturing the Credible Questions
Activist to Improve the Performance of HR Professionals.” People &
Strategy. 33 (2), pp 22 - 30. (available from EBSCO)
FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT
Preface............................................................................................................. 2

Unit 1: Human Resource Management Fundamentals.................................... 9

Unit 2: The Evolution of Human Resource Management ............................... 32

Unit 3: Strategic Human Resource Management............................................ 54

Unit 4: Current Issues & Challenges in Human Resource Management......... 75

THE BROAD AIMS OF THIS MODULE (SUBJECT) ARE TO DEVELOP THE
LEARNER’S COMPETENCE SO THAT HE / SHE WILL BE ABLE TO:

 Define the sphere of responsibility of Human Resource Management.

 Describe the components of a Human Resource Management system.
 Evaluate the evolution of Human Resource Management.
 Explain the relationship between Human Resource strategy and business
strategy.
 Identify the challenges facing Human Resource Management.
UNIT 1:

SECTION 2: HUMAN RESOURCE MANAGEMENT FUNDAMENTALS

This section focuses on Human Resource Management Fundamentals.

 The definition of Human Resource Management.
 The key Human Resource functions of job analysis and job design, HR planning, recruitment and
selection, training and development, compensation, performance management and employee
relations.
 The roles and the responsibilities of the Human Resource department.
 Line authority and staff authority in Human Resource Management.
 The professional competencies required by a Human Resource practitioner.
 NB: Find
UNIT 1: page nrs in
your textbook
Definitions HRM Functions
Key
characteristics
of HRM

HUMAN RESOURCE
Roles & MANAGEMENT
Responsibilities: (HRM) FUNDAMENTALS
HR Department

Line vs HR Professional Competencies

Staff Line authority
Aspects Creates superior-
subordinate
relationship”

Staff authority.
Creates an
advisory
relationship
 UNIT 2:

SECTION 3: THE EVOLUTION OF HUMAN RESOURCE

MANAGEMENT
 The way in which the:
 Scientific Management approach,
 Human Relations approach and
 Human Resource approach
Influenced the evolution of Human Resource Management.

 The difference between Personnel Management and Human Resource

Management

 The impact that South Africa’s unique and complex history has had on the
evolution of Human Resource Management within this country.
 Personnel Management NB: Find
UNIT 2: Emerged during the 1960s. page nrs in
Organisations set up personnel
departments to deal with the your textbook
Scientific day-to-day issues of people
Management management. Human Resource Management
Followed principles from the Scientific
approach
One best way of working, Replaced Personnel Management - with the
Management as well as the Human
increase productivity: greater increasingly competitive global economy, with
Relations.
efficiency in production practices, advancing technology and better-educated
selection and training practices, workforces, it was not enough to manage
incentivized pay for working. people reactively and passively.
EVOLUTION OF
Human Relations HR
approach MANAGEMENT HRM within South Africa’s
historical context
Founded on the premise that
treating employees with respect
leads to improved employee
Human Resource approach
satisfaction which in turn leads Employees considered assets - will provide the
to improved productivity. organisation with long-term benefits.
Employment policies, programs & practices must
satisfy employees economic and emotional
Recognises the importance of needs.
giving focus to both Working environment must encourage & enable
organisational goals as well as employees to develop and apply their skills
the personal goals and needs of optimally.
individual employees. Programs and practices must support the
achievement of organisational goals and
employee goals
UNIT 3:

SECTION 4: STRATEGIC HUMAN RESOURCE MANAGEMENT

 Overview of Strategic Human Resource Management.
 Concept and practice of Strategic Management and Strategic Human Resource Management.
 What is Strategic Management?
 What is Strategic Human Resource Management (SHRM)?
 What is Involved in the Strategic Human Resource Management Process?
 The importance of aligning and integrating the Strategic Human Resource Management
process within the Strategic Management process of a company.
 NB: Find
UNIT 3: page nrs in
your textbook
STRATEGIC MANAGEMENT
A process or an approach to address the Strategic HR Management Training & Recruitment
competitive challenges an organisation
faces. It can be thought of as managing
(SHRM) Development & Selection
the pattern or plan that integrates an  A pattern of planned human
organisation’s major goals, policies, and resource deployments and
action sequences into a cohesive whole.
activities intended to enable an ALIGNMENT OF
organisation to achieve its goals.
 SHRM = the interface between
ORGANISATIONAL Compen-
HRM and strategic management. STRATEGIES WITH sation
STRATEGIES THAT MAY BE
 Systematically linking people with HR STRATEGIES
IMPLEMENTED
the firm.
Defender Strategy protecting the  Determines how organisational
organisation’s current market share.
goals will be achieved through it’s Table 3.1
Growth Strategy - expanding an employees by means of HR
organisation’s market share and revenue strategies, policies and practices.
aimed at reducing costs and expenditure.

Differentiation strategy - organisation

distinguishing itself from other
organisations through establishing
a unique brand or image.
ALIGNMENT OF ORGANISATIONAL STRATEGIES WITH HR STRATEGIES
ALIGNMENT OF ORGANISATIONAL STRATEGIES WITH HR STRATEGIES
 THE STRATEGIC MANAGEMENT PROCESS STRATEGY IMPLEMENTATION
3 distinct but interdependent phases: The process of devising structures and
 Strategy Formulation allocating resources to enact the strategy a
 Strategy Implementation company has chosen.
 Strategy Evaluation
Success of HRM depends largely on the
degree to which the HRM function is
STRATEGY FORMULATION involved in implementing the strategy.
Internal Analysis: When determining the existing strengths and weaknesses
within the company itself, HRM should consider the quality of the organisation’s
human resources, and whether there are sufficient and relevant skills to allow STRATEGY EVALUATION
the organisation to compete.
Final phase in the Strategic Management
External Analysis: When identifying opportunities and threats within the process. Organisation constantly monitors
external environment, it would be important for HRM to inform the organisation the implementation of the strategy and the
of the forecasted availability of specific skills within the labour market extent that implementation is providing for
the achievement of the organisational
Strategic Choice:
 In determining the organisation’s strategy, it is also important for a goals.
supporting HR strategy to be put in place. Enables companies to identify problematic
 The HR strategy should ensure that the organisation has the human capital areas, and to adjust or revise the strategy
necessary for the effective implementation of the organisation’s strategy. and supporting HR practices appropriately.
 HR DEPARTMENTS MUST BECOME MORE STRATEGIC
Through implementing measurement
systems which measure the extent to which
HR is fulfilling a strategic role.

Such measurement systems should monitor:

 Efficiency (e.g., cost spent per new
employee recruited; time taken to fill vacant
positions, etc.)
 Effectiveness (e.g., improved work
performance of employees following training;
improved motivation of employees due to
incentive programmes; etc.)
 Impact (e.g., the impact that specific training
and development programmes had on the
achievement of organisational strategic
goals)
 HR MANAGERS AND PROFESSIONALS SHOULD FOCUS ON THE FOLLOWING KEY
ACTIVITIES TO BECOME MORE EFFECTIVE STRATEGIC PARTNERS:

 HR should assess the organisation’s readiness to implement new business strategies.

 HR should also support the business in the implementation of these strategies.
 HR should use the information obtained from measurement/assessment systems to guide the
choice of HR (or talent management) strategies. Ensure that talent management strategies are
relevant and impactful.

 Business strategies and relevant data/evidence should be used to guide the selection of HR
strategies that are appropriate to the organisation’s specific needs.
 HR administration and legal compliance should not be neglected but should be given sufficient
attention – BUT administration and compliance work should not dominate HR’s focus to the
detriment of HR’s strategic activities
 UNIT 4:

SECTION 5: CURRENT ISSUES AND CHALLENGES IN HUMAN RESOURCE

MANAGEMENT
Three key categories of challenges:

 Sustainability,
 Global and
 Technology challenges.

Discuss the importance of Human Resource Management being proactive in the management of
these challenges, and tactics to do so.
 NB: Find
CHALLENGES FOR HR MANAGEMENT/ page nrs in
Sustainability
challenge
MANAGING ISSUES & CHALLENGES your textbook

Employee Changing Technology New global Global Foreign

Productivity Workforce challenge economies challenge investors

Customer Organisations’ ability

Changed the way:
Downsizing service & to compete globally
We play
quality
Plan our lives
Where we work PRO-ACTIVELY MANAGE
Government Employee ISSUES & CHALLENGES
& legal engagement
challenges concerns

High performance Maximise people

work systems & technology fit

Engaged Dis-engaged
Computer- Changing skill
integrated requirements
manufacturing & work roles

Increase
in training
IMPLEMENT HIGH PERFORMANCE
WORK SYSTEMS:
PROACTIVELY MANAGING HR USE EVIDENCE-BASED HR
MANAGEMENT:
To effectively compete both globally ISSUES AND CHALLENGES  Use the best-available evidence in
and locally in a difficult economic making decisions about HR management
environment, employers need to find issues you are focusing on.
ways of improving productivity and  Measure HR performance using facts,
performance. data and analytics to identify areas of
This can be achieved through putting superior performance, and under-
in a set of HRM policies and practices performance requiring intervention.
that produce superior employee  Measurement enables HR practitioners to
performance. objectively monitor progress made in
It is likely that high performance work implementing the HR strategy and the
systems will include human-machine effectiveness thereof.
collaboration (to successfully migrate
tasks from people to machines or
MANAGE ETHICS:
robots and use ‘big data’ to find the
Ethics =the discipline of dealing with what is
optimal human/machine balance).
good and bad, or right and wrong, or with moral
duty and obligation.
HR managers and HR practitioners must keep in
FOCUSING ON BIG PICTURE mind the ethical implications of their employee
ISSUES: related decisions.
HR practitioners must keep abreast of 6 of the 10 most serious ethical issues at work
global, political, environmental, social, fall within the ambit of HRM:
economic and technological IMPLEMENT STRATEGIC HR MANAGEMENT:  workplace safety,
developments and understand what HR practitioners must proactively manage HR  security of employee records,
these developments mean for the challenges such as the changing workforce and  employee theft,
strategic management of human globalization.  affirmative action,
resources. A sound HR strategy support the organization in  comparable work and
the achievement of its business strategy.  employee privacy rights.
 PREPARATION FOR OSA
MAIN AREAS OF STUDY:
Define the sphere of responsibility of Human Resource Management.
Describe the components of a Human Resource Management system.
Evaluate the evolution of Human Resource Management.
Explain the relationship between Human Resource strategy and Business strategy.
Identify the challenges facing Human Resource Management.

1. Organise Summaries of Units (and clearly indicate relevant page nr’s in textbooks) .
2. Clearly Mark units in your textbooks (sticky notes).
3. Organise other reference material you already have on each unit (Including some of
the Prescribed / Recommended Readings).
4. Revisit feedback on your assignments to refresh the requirements of referencing
academic writing.
5. Find previous years’ assignments and other questions to assist with preparation. 22
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