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LEARNING OUTCOMES
At the end of this chapter, you should be able to:
– Describe the fundamental purposes of human
resource management (HRM)
– Eplain the multidisciplinary nature of HRM
– utline the maor functions and roles of HRM
– Discuss the economic, political, legal, social,
technological and organisational contets in
hich HRM taes place
– utline the history and eolution of HRM in
Australia
– Discuss the different approaches to HRM and
their impacts on the employment relationship
– dentify the tentyfirst century challenges for
1 the HRM profession
CHAPTER OUTLINE
– ntroduction
– Defining human resource management
FOUNDATIONS OF – he contet of HRM
– HRM and organisational performance
HUMAN RESOURCE – A brief history of HRM
– he human relations era
MANAGEMENT FOR – Approaches to HRM
THE TENTFIRST – he HRM profession in Australia
– obs and careers in HRM
CENTUR – HRM challenges
– onclusion
MIE FAE AND PIETER NE
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1 FOUNDATIONS OF HUMAN RESOURCE MANAGEMENT FOR THE TWENTY FIRST CENTURY 3
ILLUSTRATIVE CASE
HUMAN RESOURCE MANAGEMENT IN A
GROWING BUSINESS
Roger’s hrubbery is a plant nursery inoled in
propagation and retail sales of plants and garden
accessories t has been established for seen years and
has gron steadily from a small family business to a
mediumsied business ith more than employees
he business has a simple structure: to managers
report directly to the oner, Roger ne manages the
propagation side of the business the other manages the
retail side
ntil no, Roger has looed after all orforce
related issues, but recently he has started to thin that
these issues are becoming too big and too comple for
him to handle by himself, especially as he has had no
formal management training n the earlier days of the
business, staffing as a fairly straightforard matter,
but as the business has gron and the orforce has and commercial deelopments he remainder of
gron ith it, Roger has begun to realise that managing the reenue comes from the general public (that is,
the orforce effectiely is not ust about administering eeend gardeners)
the payroll – orers’ compen sation premiums hae increased
he folloing is a summary of some of the releant maredly this year because of seeral claims in the
business issues that Roger is facing: preious year All ere for bac inuries caused by
– he orforce is uite dierse Employees are heay lifting
aged beteen and , but the maority are in the – Employees are paid in accordance ith the releant
age bracet eenty per cent are female and aard, hich is pretty basic he approach to
per cent male remuneration is pretty much ‘one sie fits all’
– Most employees are fulltime orers ith rostered n addition, there are seeral orforcerelated
fieday shifts coering seen days per ee issues that Roger nos he needs to deal ith:
– he business plan includes epansion into garden – An ageing orforce
design serices – An increased need for people ith horticultural
– ales are groing, albeit more modestly than in the sillsualifications
business’s first fe years of operation – An increased absences by orers in the past year
– ales leels tend to mirror actiity in the building – An increased staff turnoer in the past year
industry, as about per cent of the reenue comes Roger’s situation is typical of many businesses
from professional landscapers ho do ne homes here is a point at hich the olume and compleity of
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44 1 1 IINNTTRROODUDUCTCTIIOONN A ANNDD CCOONNTETEXXTT O OFF HUMHUMAANN R REESSOOUURRCCEE MMAANNAAGGEMEMENENTT
orforcerelated issues become too much for proprietors or general managers he things
that Roger is hoping to achiee in his business rely on him haing an effectie orforce
learly he has a fe emerging employee issues that he needs to deal ith he danger is that
the continued groth of Roger’s business ill be stifled by these issues Roger clearly needs
some human resource management epertise t ould, therefore, be smart for him to engage
a human resource management professional for his business
ource: aey : –
Etend our earning: isit ford Ascend for an additional illustratie case
INTRODUCTION
For as long as there have been organisations, there has been a need to effectively manage the
uman resource people who work in those organisations. Indeed, the effectiveness of the workforce is
managemen fundamental to an organisation’s ability to fulfil its role and achieve its objectives. In the
HRM is a twenty-first century, the role of human resource management (HRM) has become even
formal process more important as organisations grapple with complex economic conditions, rapid technological
hereby people in an advancement and a changing social landscape.
organisation ith the
appropriate attributes Effective HRM balances the needs of the organisation with an understanding of human
(sills, noledge behaviour. is requires the ability to explain the connection between people management
and attitudes) are practices and organisational performance and productivity. Our understanding of this
managed to bring connection has increased significantly as HRM has evolved and workforce-related research
about optimal has become more sophisticated.
organisational In modern-day Australia, the human resource profession is growing in status as organisations
achieement, hile
the needs of the recognise the importance of the human side of management. is has led to changes in the
people inoled are way the HR function is organised and how the work is carried out. As a result, the profession
also satisfied now offers a diverse and challenging variety of career options for practitioners.
DEFINING HUMAN RESOURCE
MANAGEMENT
Describe the So, what exactly is HRM? In broad terms, HRM is concerned with the acquisition, optimisation
fundamental purposes and development of the workforce. In other words, it’s about recruiting the right people,
of human resource making the most of those people, and developing their future potential. However, there is
management (HRM)
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1 FOUNDATIONS OF HUMAN RESOURCE MANAGEMENT FOR THE TWENTY FIRST CENTURY 5
more to it than that, as will become evident as you read the various chapters of this book.
e fact is, HRM is a complex fi eld with many diff erent aspects and perspectives. After all,
its main focus is people—the most complex things on the planet! HRM takes place within
an organisational environment, so it is ultimately about contributing to the success of the
organisation.
h e increase in diersity in Australia started in the ¡s ith an influ of migrants from C A S E
southern and eastern European countries ubseuent changes in immigration policy sa IN POINT
increased numbers of nonEuropean migrants arriing from the ¡s onards oday, IN POINT
Australia receies migrants from Asia, Africa, outh America and the Middle East, as ell Austraia’s
as from the nited ¢ingdom, reland, continental Europe and £e ¤ealand As our society
has become more dierse, so hae our orplaces anin
orfore
Mutidisiinar nature of HRM
HRM is an applied discipline that is informed by a range of fi elds of study. e complexity Eplain the
of HRM is illustrated by this multidisciplinary nature, as shown in Figure 1.1. It draws on multidisciplinary
fi elds of knowledge both within the sphere of business and outside it. nature of HRM
Law
Management Ethics
Economics HRM Behavioural
Sciences
FIGURE 1.1 DISCIPINES IMPACTING ON HRM
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