KNOWLEDGE MANAGEMENT AND HUMAN RESOURCE MANAGEMENT: A THEORETICAL PERSPECTIVE
3.2 Human resource management (HRM)
Human resource management (HRM) refers to policies, procedures and practices that impact on employees’ behavior, performance and attitude to work related activities. The broad functions in human resource management entail human resource administration, human resource training and development, employee relations and human resource information systems. The human resource management strategy entails managing these functions to elicit
61 maximum organizational performance (Hitt et al., 1998:22) cited in Noe et al.,(2006:5).
Human resources are considered the most valuable, yet the most volatile and potentially unpredictable, resource of the organization. If an organization fails to place and direct human resources in the right areas of the business, at the right time, and at the right cost, serious inefficiencies are likely to arise creating considerable operational difficulties and likely business failure (Bramham, 1990).
The roles and responsibilities of the human resource function have changed significantly over the decades initially as an administrative function to the current strategic and critical role in the organization.
3.2.1 Roles and responsibilities of human resource
management (HRM)
A constant dilemma in human resource management is: Who is responsible for what? Human resource staff cannot be fully effective unless they know their functional areas of responsibility and the lines of authority. They need to known within which limits they may operate, over what activities they have authority, and to what degree they will be held accountable for performing those duties (Megginson, 1981:38).
Grobler et al., (2010:20) posit that in new generation organizations, the HR function is not only a HR Department prerogative. It is a joint responsibility of every manager at all levels in the organization. The HR Department designs HR policies and procedures and the line managers are responsible for its implementation. The implementation of HR policies and procedures lies primarily with line managers as they are responsible for the day-to-day supervision of subordinate employees.
62 All managers are responsible for performing the human resource functions. The responsibility of the human resources manager is to ensure that the performance of the human resource function is done satisfactorily. Human resource management is a staff as well as a line function.
According to White & Wolfe, (1979:3) the roles at the different levels of human resource management is as follows:
• Top management sets human resource objectives and policies and undertakes long range planning and organizing;
• Middle managers manage the operating procedures needed to achieve the human resource objectives and carry out the human resource policies of top management;
• First-line supervisors interpret the policies of the organization, influence attitudes, and direct and supervise operations.
The human resource function should be held accountable to the highest level in the organization. One person should be responsible for it, and that person should have the aggressive backing of top management. The human resource executive should be responsible to the chief executive officer for developing policies and procedures to permit the most effective use of human resources so that the organization’s needs and goals will be met (Megginson, 1981:39).
The 21st century has witnessed a transformation of roles and responsibilities to incorporate strategic attributes. Some of these roles are presented.
• Strategic partner: This role involves the alignment of HRM strategies to organizational strategies to help the organization achieve its goals and objectives (Ulrich & Smallwood, 2004:119).
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• Administrative expert: This responsibility requires the expert to design and deliver HRM systems, processes and practices that are effective and efficient.
Some of these systems include selection, training and development, performance management and reward policies (Ulrich: 1997).
• Employee advocate: This role requires the employee advocate to manage employee commitment and contributions so that these realize organizational objectives (Ulrich: 1997).
• Change agent: The change agent role requires HRM to transform the organization so that it is able to meet the demands of the volatile competitive markets (Ulrich: 1997).
Changes in the human resource environment demand corresponding changes to the organizational structures of human resource departments.
3.2.2 The structure of human resource departments
There is no one best form of organization, but if certain changes occur that affect the size and shape of the organization or the types of employees, then its structure should change accordingly. In more complex operations, the organizational structure becomes more extensive and specialized. The ideal organizational structure for a human resources department should consider the size of the organization, the type of industry, the complexity of operations, the importance assigned to efficiency and effectiveness and the management’s view of the importance of the human resource function (Megginson, 1981:45).
Noe et al., (2006:141) view HRM as responsible for the design and approval of organizational structures in organizations. Structuring organizations is about the way people are grouped and the way in which the work is coordinated and managed. Organizational structure is generally depicted through organizational charts with vertical and horizontal relationships and functional responsibilities.
64 Centralization represents authority being vested at the top of the organogram.
Departmentalization is the degree to which employees are grouped according to similarities in functions or similar work flow.
Schminke et al., (2000:294) posit two emerging configurations of organizational structures. Firstly, the functional structure which is based on departmentalization with high levels of centralization. Next is the divisional structure which is a combination of divisional departmentalization with low levels of centralization. Owing to effective work flow, the divisional structures are preferred as these are flexible and innovative.
Rebello (1999:114) states that functional structures are effective in stable environments where the supply and demand for services and goods are predictable. Functional structures in this type of environment lead to cost efficiency because of coordination between jobs and standardized repetition of activities. On the other hand, divisional structures are appropriate for unpredictable environments where the supply and demand for goods and services are uncertain. In these circumstances, flexible strategies are considered appropriate. In this instance, divisional structures are regarded as autonomous and able to respond more quickly to changes in the marketplace and technology.
Fowler, (1992) sets out options, which take into account the effects of decentralization. This leads to operational HR work being devolved to line managers. As a consequence, HR professionals may adopt one of the following roles:
• undertake a wide range of detailed day-to-day operational HR work on behalf of line managers;
• provide administrative support to managers who handle their own operational human resource work;
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• set quality standards for line managers’ operational HR activities, provide support to managers to help them meet these standards and monitor the results;
• retain HR specialists at the central level, but allow operational divisions to provide HR services at source;
• keep HR specialists executively responsible to the central HR manager, but post them to work within operational divisions where they establish close links with line managers; and
• maintain a small central HR department to deal with strategic issues, while the operational divisions have their own HR personnel (Fowler, 1992) .
Structures are dynamic and subject to change depending on several factors.
Similarly, human resource management has to continually deal with a variety of challenges in order to remain competitive.
3.2.3 Human resource management challenges
It is acknowledged that the quality of human resources in South Africa is a critical challenge from an international, African and regional perspective. Furthermore, the impact of the turbulent environment lead to additional challenges such as managing a diverse workforce and changes in legislation that have serious implications for the human resource function (Nel et al., 2004:27).
Some of the current and imminent challenges facing South African organizations are the following:
3.2.3.1 Worker productivity
South Africa has one of the lowest worker productivity rates in the world ever since its re-entry into the global arena. This is considered as a mammoth
66 challenge that faces the government and the business community (Grobler, et al., 2010:22).
New trading agreements such as the General Agreement of Tariffs and Trade (GATT) and international partnerships have led to international goods being imported in huge quantities which place local organizations under serious threat.
This is paradoxical in that whilst productivity has dropped significantly, salaries have increased substantially. As a result, South Africa faces stiff competition in the international sector (Grobler, et al., 2010:22).
In response, Hofmeyer & Rall (1995: 22) state that South African is ready for the challenge. Organizations’ are changing management practices that motivate the employees to improve productivity. Hierarchical organizational structures have been replaced with structures that promote self managed and flexible teamwork, thus impacting on productivity levels.
3.2.3.2 Impact of legislation
The human resource profession has been largely influenced by government policies and programmes through an extensive range of employment legislation enacted by the government. Employees and employers have a number of statutory rights and obligations defined in Acts of Parliament in South Africa such as:
The Constitution of RSA and the Bill of Rights;
Labour Relations Act 66 of 1995;
Basic Conditions of Employment Act 75 of 1999;
Employment Equity Act 55 of 1998;
Occupational Health and Safety Act 85 of 1993;
Unemployment Insurance Act 30 of 1966;
Skills Development Act 97 of 1998;
67 Skills Development Levies Act 9 of 1999;
Promotion of Access to Information Act 2 of 2000; and King III report on Governance (Grobler et al., 2010)
In essence such legislative frameworks, which are supported by a range of regulations and codes of practice, provide employees and employers with various rights in the employment relationship. The law also gives certain rights to prospective employees during the recruitment and selection process. The legal environment for human resource management has more importance in the 21st century than ever before. These laws regulate employer conduct in the way that employees are treated. The legislation is considered as an essential input in overall strategy formulation and consequently increased human resource management participation at the strategic level in organizations (Greer, 2001:79).
The legal-political environment sets the limits within which human resource management is performed. Therefore human resource policies and practices must be rational, objective and effective (Megginson, 1981:83).
The implications of legislation on human resource management pose a major challenge for human resource management in the 21st century organizational era.