Chapter 12

Comparison in the Latest Development of Human Resource Management

Objectives:

 Review all the lessons discussed and utilize this to the current situation of HRM.
 Compare and contrast traditional HRM to Modern HRM.
 Distinguish the advantages and disadvantages of Traditional HRM to Modern HRM.
12.1. Introduction
The final chapter of the lesson discusses the synthesis of all the lessons learned utilizing
its implications in the traditional setting to the modern setting of Human Resource Management.
At present due to the COVID-19 pandemic, the trend of Electronic Human Resource
Management has been a huge since with the strict health protocols, companies made a huge
adjustment to ensure all business transactions and negotiations are all accessible at home. In the
previous discussion, we have tackled all aspects of the flow of E-HRM and its essence. However,
at present some companies are still adopting to the new normal life which unfortunately, some
did not succeed leading into force bankruptcy. Observation also exposes here that in the previous
lesson, expediting in the new normal setting is still a challenging for maximum labor efficiency
nevertheless, this discussion will expose the efficiency of which is more effective and recall how
this came again into existence.

12.2. Pre-Test
Reflect and answer the following:
1. What did COVID-19 impacted the new normal in terms of Human Resource Management?
2. Refresh and share what have you learned in all the lessons we have tackled?

12.3. Overview

Today, in the era of global competition, the importance of human resource function
cannot be denied. It started its journey as a primarily administrative function, and now HR
function is considered to be an essential ingredient of core strategic management policies.
The current review is an attempt to analyze that whether HR function has reached its
peak or still its journey is incomplete? HR scholars are looking for this answer and trying to
explore its function in modern organizational settings. A brief discussion on HR literature
followed by its evolution period is discussed.
It is discussed that which HR functions are needed to adopt inside and outside approach
to meet stakeholder’s demand. Based on the review of HR literature, it is found that
organizations not only need to follow inside/out approach but also outside/inside approach
should be practiced for value addition.

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

2
RESOURCE MANAGEMENT
 Furthermore, HR actions (at the individual, group and organizational level) are needed to
improve organizational outcomes and to strengthen the role of organizational leadership.

12.4. Recalling the Traditional Human Resource Management

HR function gained importance with the emergence of industrial and economic
revolution which took place back in the early 90s. During its earlier stage, HR function
revolved around solving employee problems and value addition.
During this phase, the HR function could not bring any fruitful development in HR
literature. That’s why management in the earlier 20th century was considered to be as
inefficient, haphazard and unplanned (Lescohier, 1935).
Near the end of the 19th century, professional engineers came into front and leaded
production processes. They introduced significant changes in management (Braverman,
1974).
They're aimed at solving low productivity and high turnover problems and also to enhance
developmental progress between humans and machines. Frederick W. Taylor, a renowned
management scholar, is known as the father of scientific management and has contributed a
lot in management literature (Drucker, 1955).
During the period of 1915-1920, business firms recognized the importance of centralizing
employee management to tackle all relevant issues and performing scientific management
practices effectively (Jacoby, 1985).
Besides adopting several scientific management practices, organizations started adopting
several industrial psychology practices to manage employee performance. All these
employee management activities, later on, were handed over to the HR department.
Later on, HR became a specialized profession; it had its policies and objectives aimed at
maximizing employee efficiency and adding value.
Organizations started rationalizing employment relations with the help of internal labor
markets (ILMs) which helped in simplifying the personnel management activities (Baron,
Jennings, & Dobbin, 1988).
These ILMs used to focus on staffing at entry levels primarily, job security, the seniority
system, promoting the employees internally, mechanized compensating systems and job
security (Dulebohn & Werling, 2007).

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

3
RESOURCE MANAGEMENT
 So, HR lost its importance and focused only inside approach with little concern for the
external environment. Though before this, HR was viewed as a necessary function for cost
control and employee management, at that time HR was not viewed as a value-added
function (cf., Ulrich, 1997).

12.5. The Modern Human Resource Management, the HRM Wave

During the 1980s, HR started changing its role from an administrative function to the
core business function whose merely focus was a value addition. Several organizational and
environmental factors contributed to the shift of HR roles.
These factors include a shift from manufacturing based economy to a knowledge-based
economy, demographic changes, decreased unionization, employment legislation,
international competition, and globalization. During this phase, personnel management (PM)
was replaced by widely accepted “human resources management” or “Human resources”
term.
Computer based element. Transformation of HR can be characterized by three waves.
Because, PM preferred administrative role.

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

4
RESOURCE MANAGEMENT
 Figure 12.1. Explaining the flow of HRM Wave
The first wave of HR is characterized by an administrative wave. This wave worked on
regulatory functions, delivery of HR services and administrative functions. This wave is
characterized by a core organizational function whose main focus lied in improving
administrative efficiency, pushing HR responsibilities to line managers.
The second wave of HR comprises of HR practices wave. It focuses on the design of
essential HR practices like hiring, career development, organizational structure and work
processes. The second wave of HR comprises of HR practices wave. It focuses on the design
of essential HR practices like hiring, career development, organizational structure and work
processes.
The third wave represents the HR strategy wave. It refers to the point where both HR
practices and business strategies are aligned. The third wave is characterized by the phase
where strategic HR connects HR practices to business success.
There is not the end of the destination of HR where HR experiences wave 3 and play the
role of any of the business strategy. There is another “so that” question in which HR can
move further from connecting HR to business (wave 3) to connecting HR with the broader
context of outside business (wave 4). For example, an HR leader saying that my ultimate
goal is to develop credibility with my line managers so that we can make an investment in
our business to its goals and that we can respond to external needs and add value to
organization and customers.
As a result of this, lots of innovative processes has been formulated inspiring to this
Human Resource Management Wave as per follows.

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

5
RESOURCE MANAGEMENT
Figure 12.2. Explaining the role of Stakeholders in Managing Human Capitals

Figure 12.3. Explaining the flow of 4 Domains of HRM

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

6
RESOURCE MANAGEMENT
12.6. At Present
With all the result of the modernization of HRM, add-on are even further enhanced which
Human empowerment and professional development are harmonized.
One proposal on the early 2000’s by Dr. Agnes A. Taguines (2005) is promoting side base
management as augment with all aspects of HRM. It is stated here that one major flaw of
managements is the lack of connectivity and morale boosting among individuals which
restraints the maximum potential or professional and personal growth.
Resulting, the recommendations occur that managers should also foresee one’s individual
perception of empowerment to individually perform significantly in the workplace and
efficiently assign individuals in their respective workplaces. Besides from Human
Empowerment, the last discussion also provides information of the utility of E-HRM which
at present during this pandemic is highly utilized.

12.7. Advantages and Disadvantages of Human Resource Management: Traditional Versus

Modern
As an overall synthesis, we can now evaluate what are the major advantages and
disadvantages between Traditional HRM to Modern HRM.

Advantages of Traditional Human Resource Management

1. Thorough analysis of one’s strength and weakness to face to face transactions.

2. Observing thoroughly coherence of one’s ability during recruitment, in the workplace
and post labor.
3. Concretely expedites one’s ability for easier decisions for labor efficiencies.

Disadvantages of Traditional Human Resource Management

1. Slow evaluation process.

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

7
RESOURCE MANAGEMENT
 2. Multiple considerations of labor efficiencies and alternatives upon evaluating the
current hired employees.
3. Prone to sometimes biases and favoritisms.

Advantages of Modern Human Resource Management

1. Fast Pace recruitment.

2. Easier transactions between the HRMO and the Employee.
3. Full accessibility of employee’s actions since the tasks are recorded digitally.

Disadvantages of Traditional Human Resource Management

1. Uncertainty of legitibility.
2. Inconsistency of understanding thoroughly the employee’s performances, attitude and
abilities since there is no human interaction.
3. Data manipulation can be quite a threat for individuals.

12.8. Conclusion
Human Resource Management has come from a long journey of development starting
from the fight against Labor Human Rights to technological adaptation. From start to finish
the major role of Human Resource is proper equity of labor at the same time human
treatment among all individuals in eradicating discrimination, underestimation and labor
gender roles. One major key factor Human Resource is aiming. Human Empowerment and
awakening of true potentials in the labor force.

12.9. Post Question

1. At present, is it possible to still utilize Traditional Human Resource Management? Why?
2. In 50 words, synthesize everything you have learned since the start of the class?

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

8
RESOURCE MANAGEMENT
 REFERENCES

Published Researches:
Taguines, Agnes A. (2006), Prediction Models School-Based Management, Teaching Behavior
and Professionalism. (Published Research), University of the Philippines.

Online Sources:
Baron, J. N., Jennings, P. D., & Dobbin, F. R. (1988). Mission control? The development of
personnel systems in U.S. industry. American Sociological Review. (Accessed
on:https://hrmars.com/papers_submitted/5160/Past_and_Future_of_Human_Resource_Fun
ctions_Are_We_Done.pdf)
Braverman, H. (1974). Labor and monopoly capital. New York: Free Press. (Accessed
on:https://hrmars.com/papers_submitted/5160/Past_and_Future_of_Human_Resource_Fun
ctions_Are_We_Done.pdf)
Drucker, P. E. (1955). The practice of management. New York: Elsevier. (Accessed
on:https://hrmars.com/papers_submitted/5160/Past_and_Future_of_Human_Resource_Fun
ctions_Are_We_Done.pdf)
Dulebohn, J. H., & Werling, S. (2007). Compensation research: Yesterday, today, and tomorrow.
Human Resource Management Review. (Accessed
on:https://hrmars.com/papers_submitted/5160/Past_and_Future_of_Human_Resource_Fun
ctions_Are_We_Done.pdf)
Jacoby, S. (1985). Employing bureaucracy: Managers, unions, and the transformation of work in
the twentieth century. New York: Columbia University (Accessed
on:https://hrmars.com/papers_submitted/5160/Past_and_Future_of_Human_Resource_Fun
ctions_Are_We_Done.pdf)
Lescohier, D. D. (1935). Working conditions. In J. R. Commons (Ed.), History of labor in the
United States, 1896–1932, Vol. 3. New York: Macmillan Publishing Company. (Accessed

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

9
RESOURCE MANAGEMENT
 on:https://hrmars.com/papers_submitted/5160/Past_and_Future_of_Human_Resource_Fun
ctions_Are_We_Done.pdf)

Masud, H., Daud, W. N. W., Zainol, F. A., Rashid, N., & Afthanorhan, A. (2018). Past and
Future of Human Resource Functions: Are We Done? International Journal of Academic
Research in Business and Social Sciences, 8(11), 1149–1171. (Accessed
on:https://hrmars.com/papers_submitted/5160/Past_and_Future_of_Human_Resource_Fun
ctions_Are_We_Done.pdf)
Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering
results. Cambridge: Harvard Business School Press. (Accessed
on:https://hrmars.com/papers_submitted/5160/Past_and_Future_of_Human_Resource_Fun
ctions_Are_We_Done.pdf)

CHAPTER 12: COMPARISON IN THE LATEST DEVELOPMENT OF HUMAN

10
RESOURCE MANAGEMENT