Human Resource Management

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21st Century Human Resource Management Strategic Planning and Legal Issues:
The New Human Resource Management Process

Module 001
21st Century Human Resource Management
Strategic Planning and Legal Issues

In the present era, most of the organizations are competing globally for their
best reputation. HR managers invest in their employees in training and
empowerment and provide the best rewards resulting in their commitment
and loyalty.

At the end of this module, you are expected to:

1. Establish the roles of a human resource manager in the past, present, and
future
2. Identify the three biggest challenges that an HRM faces based on the
SHRM survey.
3. Determine the four critical dependent variables that the HM must control
to compete with the 21st Century organizations

The Past, Present, and Future of HR Management System

“Progress is impossible without change, and those who cannot change their minds cannot change
anything."
- George Bernard Shaw

Human Resource Management (HRM) is one of the most important business functions in any
organization. Glamorous as it may look today, it was far from those four decades back. HRM
process had come a long way from when they were first deployed.

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The Past View of HRM
HRM was initially called Personnel Managers. They are the so-called "people person". They are
considered less experienced managers.
In this environment, less is expected from the managers. Their job was limited to keeping
track of job applicants, maintaining the employee's records, and filing annual performance
evaluation.
Managers worked literally with papers and not with people.
In this kind of set-up, the Human Resource Department is considered the organization's cost
center.
Cost centers, revenue centers, and productivity centers are part of the divisions of
responsibility centers. We will not include investment centers and profit centers as human
resource is not a part of it.
Cost Center: A distinctly identifiable department, division, or unit of an organization whose
managers are responsible for all its associated costs and for ensuring adherence to its budgets.
Also called cost pool or expense center.

Cost center is an organizational subunit that does not directly contribute to the company's
profits; instead, it incurs cost. In fact, a cost center may not generate any revenues at all, but it
does not mean that it is not important.
Human resource may not produce direct profit and adds to the cost of running a company, but
it is equally important. Its role is to invest in empowering the workforce by providing
adequate training and development.
All organizations aim to profit. If one can help it, cost centers would be kept as minimal as
possible. Revenue centers are more ideal.

Revenue center: Distinctly identifiable department, division, or unit of a firm that generates
revenue by selling goods and/or services. For example, the rooms department and food-and-
beverage department of a hotel are its revenue centers.
Revenue centers have authority over sales, focus on its performance and strategies to
improve sales, and have very little control over costs. It’s a treasure to find a good revenue
manager who can play up with cost and revenue for the organization to gain even more profit.
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21st Century Human Resource Management Strategic Planning and Legal Issues:
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Productivity Center A revenue center that enhances the organization's profitability by

enhancing the productivity of the people within the organization.
Productivity is a measurement or the efficiency with which input can be converted into output
over some given period of time.
Productivity, in the simplest form, means doing things right at the least possible time and
providing your customers with a quality product at a very conservative price.

Present View of HRM

Tables have turned. With modern technology, records are kept as paperless as possible.
The "people person" managers now have time to be with "real people".
The modern business becomes more competitive. In the emergence of web-based human
resource management software, the workforce has to be equipped with the latest
technology techniques to be at par with business competitors in the 21st century.
In this environment, the manager focuses on maintaining a team of thinking individuals.

The Future View of HRM

Today’s youth call themselves as the” Millennials”. They are aggressive and
self-driven. Everyone wants to be engaged in the job.
When HRM has introduced the “Learning by doing “approach, students
discover things other than what they have read and learned from class
discussions. Students are not only studying human resources but learning to
be human resource managers. They started to think outside the box. Their
imaginations become limitless. Each has his own version of the task, and then
suddenly, the future looks promising.

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21st Century Human Resource Management

To ensure complete advantage of business in 21st Century, management

needs to focus its concern on any organization's most important part- the
human force.
Amidst the rapid changes in the business world, globalization, advanced
technology, and the fast-paced lifestyle of its customer, Human resource
manager has to empower its people with the skills and knowledge of the
latest technology and techniques.

With Great Power Comes Great Responsibility- Garson

It is expected that the HR manager will be able to manage issues and

challenges in splendid ways best.
To maintain an efficient staff with less supervision, HR managers were
trained and given basic tools to handle numerous human resource situations
such as interviewing, orientation, safety, violence and harassment,
discrimination, discipline, and termination.

The Three Biggest Challenges that the HRM faces:

Human resource management in the 21st century is gearing towards global
competitiveness. With advanced technology, almost everything has changed
to a great extent.
HRM is expected to face issues and challenges with production methods, the
process of recruitment, training techniques, and new equipment. The HR
personnel's ability to work with their functions effectively to best manage
the workforce will be challenged.

Let us discuss the top three of the most significant challenges that the HR
professionals projected for over the next ten years based on the recent
outcome of the Society for Human resource management (SHRM) survey.
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21st Century Human Resource Management Strategic Planning and Legal Issues:
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1. Retaining and rewarding the best employees.

In all organizations, retention has always been the biggest issue. A large
chunk of the annual budget goes to the employees' training and development,
yet most team members jump to any chance they get to work for a bigger
organization.
Steve Miranda believes that “Employees don’t quit jobs, they quit managers.” –
Therefore, good supervisors are crucial to retention.

Top performers drive business performance. Once you have identified

employees' worth keeping, then you need to make sure that they stay;
otherwise, you have to search for one again. Turnover is expensive.
When you think of employee motivation, many things may come to mind:
salary, a higher post, or a better quality of life.
The truth is, no matter how great the offer is, true motivation must come
from within. One has to feel that sense of belongingness that their views and
opinions matter, that they are allowed to think outside the box, to add
creativity to their task as long as it is still aligned with the company brand.
It is important to get the right balance in order to ensure that you have a
motivated workforce.

2. Developing the next generation of corporate leaders

The HR manager must discuss goal setting with the potential employee
during recruitment. Talking about how one can foresee himself in 5 years'
time will help the management prepare a glide path.
It is so encouraging when you know that the company is preparing
something big for you in the future. It motivates you to plan ahead in case
you haven't yet.

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You may be surprised that many employees, even top performers, have not
thought of planning their careers until such time that they are already
dissatisfied with their current job situation.
Regardless, how good the employee is at his job, if he has been doing it for a
long time already, boredom strikes. To remedy this, management should
provide a website for new opportunities that are accessible by all employees.
Not everyone can rise to the CEO, but every employee can be empowered.
Find a way to recognize those skills and challenge employees to gain even
more. That makes not only a better employee but one who feels a sense of
accomplishment and success.

3. Creating a corporate culture that attracts the best employee

Employees are the most treasured asset any hiring manager can possess.
It is important to make the right pick in as early as the recruitment
process. If you want the best line up for your team- go after them. Don’t
wait for them to come to you.
Outsource your hunt. Encourage your existing employees to refer a
colleague who is as efficient as they are. Provide a handsome referral
bonus on staggered payments that they can split with their referee. This
will ensure that both are thinking of long term employment.
Bear in mind that great employees often have multiple career options.
Expect that your competitor may also be chasing after them. Work on
your numbers and come up with a tempting offer and couple it with perks
that one can drool over.
Perks and incentives are often the difference between a good company
and a great company. It may be a gym membership, discounts on popular
establishments, scholarships, or child care. This is your version of the
extra mile you expect from your employee.
Keep your employees updated with their progress. They feel increasingly
motivated and responsible when you spot on their accomplishments and
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21st Century Human Resource Management Strategic Planning and Legal Issues:
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provide recognition in real-time. Underachievers can be provided with

appropriate coaching sessions to catch up in no time.
Provide an avenue for cross-training and skill-based mentorship
program. Continually challenge them to move up the leadership ladder.
This way, you can spot those who are ripe for a more complex task.

Critical dependent variables that the HM must control to compete in a

21st Century organization

Human resource management in the 21st century is gearing towards global

competitiveness. With advanced technology, almost everything has changed
to a great extent.
HRM is expected to face issues and challenges with production methods, the
process of recruitment, the training techniques, and new equipment. The HR
personnel's ability to work with their functions effectively to best manage
the workforce will be challenged.

Turnover: The rate at which employees leave a workforce and are replaced.
Voluntary turnover is when the employee quits his job. Involuntary
turnover is when employees are terminated from their contracts.
Choosing a manager or a supervisor fit for the job is vital. He plays a big role
in the success of the business. His leadership and management can make or
break the company he works for.
The happiest employees get along with their co-workers and even continue
to see them outside the workplace. An environment with unnecessary stress,
flexibility, an attitude of acceptance, and supportive supervisors make people
glad to come to work every day.

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When employees can respect and trust the leadership team, they feel secure.
Accessible leaders; can communicate well; give honest reports, and listen to
employees, are the key to job satisfaction.
How to avoid massive turnover? Know your employee based on facts and
data. Never judge your employee solely with what you hear about them.
Review their records and number. Use a universal measure.
No one is above the law. Everyone must follow the same rules.

Absenteeism:
People miss work due to many reasons, some are legitimate, and others are
not so. Absenteeism is an employee's intentional and habitual absence from
work. Excessive absences will mean a decrease in productivity that may
greatly impact the company's finances, morale, credibility, and stability.
Some organizations have included a forecasted number of workers for a
day's work when planning. If the numbers are lower than what is projected,
some workers, if not all, would have to fill in. Working for more than eight
hours a day may eventually cause overtime fatigue and stress.
Employers understand that workers may sometimes fail to report to work.
They have allotted a certain number of workdays each year for mandatory
paid sick leave.
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21st Century Human Resource Management Strategic Planning and Legal Issues:
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Employees may use the time off to recover from illness quickly.
On the other hand, employees who have not used their leave credits may be
able to convert them to cash by the end of the year. Attendance bonuses are
also given to employees who never missed reporting to work and never been
late on a calendar year.
The work environment plays a great part. An employee is always excited to
report to work, knowing that he is happy and contented with the people he
works with. The management is supportive and encouraging, more so, if the
workplace is safe and conducive.

Job satisfaction: The feeling of well-being that we experience in our jobs-

basically whether or not we like what we do and the immediate environment
surrounding us and our jobs.
What makes someone care about their job?
We have already established that organizations have to do better in keeping
the best employees.
If an employee is happy with what he does at work and is given equal
opportunity to challenge himself for the better, it is unlikely that he will look
for another place to work.
Employees understand that all jobs are not created equal, but they expect to
be paid the same when responsibilities are similar. If they are not, expect that
they will just put effort into the job worth your pay, nothing more.
Most managers are so focused on delivering what is expected of them.
Anyone who falls short of the expectations gets reprimanded, sanctioned, or
even sacked.
The truth is everyone plays a part in the company's success. “Small"
contributions can add up. Let them know that you appreciate them.

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A tap on the back, a word of thanks on a sticky note, or a rubber star award
can mean more than you know. Never hesitate to give credit to those who
deserve one. Micromanagement is a no-no.
If you hired well, trust your people to do their jobs. Allow them to do their
version of their task. It’s a good feel for the employee to know that they are in
charge. Just always be available if they hit a snag or want your input, but
otherwise, expect that they will deliver, on time, every time.

Productivity:
Workforce productivity is an important consideration for business; it assesses
the efficiency of a worker or group of workers.
The success of any organization relies upon the productivity of its workforce.
Most organizations have productivity as part of the metrics to determine
rewards and recognition.
In the aim to increase productivity, most organizations have opened access of
its employees to the latest technology in the workplace. Tablets,
smartphones, and laptops let users connect with colleagues anywhere at any
time. They use them to take down notes in a meeting, remotely discuss issues
while on a commute, or reviewing documents for the next day's agenda.
Employees are able to accomplish more things than when they worked on a
desktop. Simultaneously, however, access to social networking is more
tempting for employees to check personal accounts on social media. The rise
of social networking has provided equal opportunity to increase production
and waste time on the job. To prevent cyberslacking or online time-wasting,
some organizations have developed tools to monitor employees or limit the
sites they can access from the corporate network.

How to improve employee productivity

Contrary to one may think, you cannot enforce massive productivity when
you micro-manage your employees.
You have to create an environment when everyone enjoys their job so much
that it no longer becomes work.
Let us consider these steps that management can take to improve
productivity by putting employees in a more productive mindset.
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21st Century Human Resource Management Strategic Planning and Legal Issues:
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Design economic incentives within reach

Most organizations based their incentives on stack ranking.
Stacked ranking is an employee evaluation method that slots a certain
percentage of employees into several performance levels.
Employees are ranked in such a way that the top 10% are considered
performers. The mid 80% is the safe employees, while the bottom 10% are
subject to performance improvement management. The percentage may
vary.
Additional incentives may come in the form of attendance bonuses, good
customer reviews, most improved employee, and many more. This will
encourage the mid-range employees to work hard just the same.
Incentive need not be expensive; it may be in the form of a complementary
leave, gift certificates, free meal ticket, or a task immunity.

Touch base
Regardless of whether you are a senior executive or just starting out,
everyone wants to know how he is doing at his job. Feedback is an essential
communication tool in business performance management. One of the most
effective techniques is constructive feedback, but all feedback calls for giving
and receiving information. A frequent evaluation may ensure that everyone is
aligned by constantly comparing performance expected versus
performance exhibited.

Dignity and respect for one another

Regardless of position in the workplace, everyone deserves to be respected. It

may sound old, but the golden rule remains to be true- Do unto others what
you want others to do unto you. To earn respect in the workplace, you need
to follow the rules. No one respects someone who does not respect the rules

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most, especially if you are the boss. Do not create a rule that you cannot
follow. Work Hard and do it right. Come to work early and prepared. Don't
waste time at work. Put dignity in your work.

Training for all

It is unfortunate that most organizations spend for training open to top
performers when the people who really need the training are having a hard
time coping. Not all people are given a chance of advanced technologies. If we
cannot spend additional budget on training, then pair-up those who need
help to the ones with expertise.
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21st Century Human Resource Management Strategic Planning and Legal Issues:
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References:

Lussier, R. N. (2016). Human Resource Management Functions, Applications, & Skill Development
(Second Edition ed.). Sage, Singapore: Springfield College University of Arkansas at Little Rock.

Online Supplementary Reading Materials

Conerly, B. (2015, June 02). Quits Are Up: 7 Employee Retention Strategies Your Company Must Have.
Retrieved from https://www.forbes.com/sites/billconerly/2013/12/11/quits-are-up-7-employee-
retention-strategies-your-company-must-have/

Kukreti, A. (2015, April 17). 7 Most Effective Employee Retention Strategies. Retrieved from
http://www.thestaffingstream.com/2015/04/17/7-most-effective-employee-retention-strategies/

What is employee productivity? - Definition from WhatIs.com. (n.d.). Retrieved from

https://whatis.techtarget.com/definition/employee-productivity
Retrieved June 03, 2018

G. (n.d.). With Great Power Comes Great Responsibility. Retrieved from

https://quoteinvestigator.com/2015/07/23/great-power/
Retrieved June 03, 2018

George Bernard Shaw Quotes. (n.d.). Retrieved from http://www.brainyquote.com/

quotes/george_bernard_shaw_386923Productivity Concepts and Definitions; June 2,2018

Productivity Concepts and Definitions. (n.d.). Retrieved from https://www.scribd.com/

doc/31097394/Productivity-Concepts-and-Definitions; June 8, 2018

Online Instructional Videos

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Missing the obvious in employee recognition
• Missing the obvious in employee recognition; ; Claire McCarty\TEDxUWRiverFalls;
https://www.youtube.com/watch?v=JWlzc6x5u10; June 8, 2018

• Employee Retention, Motivation and Engagement Strategies;

https://www.youtube.com/watch?v=1axCFArnETY; June 8, 2018