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The Human Resource
Management
Function
Kehinde Olowookere and Katherine Sang
Organizations come in different shapes and sizes, from small convenience stores to large multinationals. However, one common element found in any organiza- tion, regardless of size, shape or purpose is people , otherwise known as human resources (HR). Organizational success is largely dependent on such human resources (Petrone, 2014). As Petrone argues, a company is only as strong as its people. People construct organizational goals, bring creativity, skills and competencies, and largely make up the organization. Organizations, however, need to manage their people. Indeed managing HR is a fundamental part of the relationship between an organization and its people. The Human Resource Management (HRM) function is often given this responsibility in organizations. Torrington et al. (2005) define HRM as a continuous balancing act between ful- filling an organization’s goals and objectives, and those of employees. Effective management of HR should merge the needs of individuals with the demands of the organization. This chapter will examine the particular ways through which the HRM function achieves these objectives.
Strategic role of HRM
The HRM function can be carried out at two levels, either operational or stra- tegic. At the operational level, there is a heavy emphasis on the organization of everyday tasks, such as supporting line managers, recruitment, selection, train- ing and development, serving as a channel for employees’ concerns, personnel record keeping, and managing/negotiating collective bargaining agreements. For the strategic level, there is more emphasis on relating everyday tasks to organizational strategy (Golding, 2004). Activities will often include facilitating
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and managing employees in order to ensure that organizational goals are met, and aligning HRM goals with organizational goals. This, for instance, could mean ensuring that the necessary skills are evident within the workforce, or ensuring there is diversity and opportunities for career development. Most HRM tasks can be performed at both the operational and strategic levels, although in modern organizations emphasis is often on the strategic role of HRM. HRM tasks would, therefore, usually be incorporated into overall organizational strategy. The main objective is to develop HR practices, policies and strategies to deal with the employment and development of employees, and the relations that develop between employees and the organization.
The role of HRM in modern organizations has, thus, extended beyond functions such as recruitment and selection or personnel record keeping, to encompass equality and diversity, welfare, health and safety, employee rela- tions, reward management, performance appraisal, training and development, and HR planning amongst other things. In addition, HR has the responsibility to conform to employment laws and legislation. The HRM role has therefore, come to be regarded as a ‘specialist’ role in organizations (Tracey and Nathan, 2002). It is nevertheless important to note that the HRM function is increas- ingly being outsourced and decentralized to line managers, in order to save costs. Beardwell and Claydon (2007) note that the majority of contemporary organizations have had to break down hierarchies and outsource several func- tions in order to save costs (e.g. we see catering and cleaning being outsourced within the National Health Service in the UK). These cost-cutting exercises yield short-term benefits, but they could result in the shortage of skilled staff. Even though the HRM function is increasingly being outsourced in organizations, it continues to play an important role in determining organizational success. Torrington et al. (2005) provide a simple illustration of the HRM function even further, suggesting that there are four major objectives for the function. The four objectives are illustrated in Figure 7.1, and discussed in the following sections.
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Change management objectives
Administrative objectives
Staffing objectives
Performance objectives
HRM
Function
Figure 7.1: Strategic role of HRM
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Selection is the process by which the full list of applicants is assessed, even- tually moving to the selection of the appropriate candidate to fill the vacant position. The complete list of applicants will be examined, possibly by the HR manager and the prospective line manager. This process may differ depending on the job to be filled. For senior positions, there may be a selection panel that will review all applications and identify a short-list. As Torrington et al. (2008) identify, a selection panel can reduce the chances that shortlisting decisions are made according to arbitrary criteria, such as the gender of the applicant. The shortlisting panel should select a shortlist based on those applicants who meet the agreed essential criteria of the position. A panel should then reach a consensus on the shortlist. Once the shortlist has been agreed, the HR team can then move to a detailed assessment of the shortlisted applicants. The recruitment and selection process is a key point at which equality and diversity should be considered (Analoui, 2007). Despite a range of equality legislation (covered later in this chapter), certain demographic groups are still discriminated against in the labour market. Holgersson (2013), for instance, revealed that managers prefer to recruit managers who are like them. This is called ‘homosociality’ and since most managers are men, this leads to a cycle of recruitment of men, by men. Women are thus excluded during both the recruitment and selection phases.
As at 2014, the proportion of women aged 25-65 in the UK, who work is 69%, while for men it is 82% (Azmat, 2015).
The HR manager is also in charge of setting up the employment contract. The employment contract comes into existence when employment is offered by an organization and accepted by a prospective employee. Such contracts form the legal basis of employment relationships, and would usually be adminis- tered by the HR manager. Recruitment and selection processes are increasingly being aimed at diverse employees, with several options being made available. Employees could be part-time or full-time, temporary or permanent. Having employment contracts helps an organization manage these various terms of employment.
The relationship between an organization and its employees is therefore based on an employment contract. Basic terms and conditions of the job are set out, and where needed, can be applied in a court. Once agreed on, the terms of a contract cannot be modified without the consent of both parties. Employers, for instance, cannot decide singly to increase an employee’s working hours, or reduce pay. Where this is necessary, both employee and employer need to be in agreement. When changes are made by employers without some form of agreement, either with union representatives or with employees themselves, there could be a legal case for unfair employment relations.
