Human Resource

Management Theories
Part I

July 17, 2021

Submitted to: Gloria Almarez Bumanglag

Aaron Dale N. Villanueva

anvillanueva.amlc@gmail.com
I. HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is the practice of managing people to achieve

better performance. It is sometimes called talent management in most companies as it
involves overseeing all things related to managing an organization’s human capital/talent.

HRM is mainly focused on several major areas involving recruiting and staffing,
compensation and benefits, training and learning, labor and employee relations, and
organization development.

A. STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management (SHRM) can be defined as the linking of human
resources with strategic goals and objectives in order to improve business performance and
develop organizational culture that promotes innovation, flexibility, and competitive
advantage. In an organization SHRM means accepting and involving the HR function as a
strategic partner in the formulation and implementation of the company's strategies
through HR activities such as recruiting, selecting, training, and rewarding personnel.

Why is strategic Human Resource Management important?

It is because Companies are more likely to be successful when all teams are working
towards the same objectives. SHRM carries out analysis of employees and determines the
actions required to increase their value to the company. SHRM also uses the results of this
analysis to develop HR techniques to address employee weaknesses.

The following are examples of benefits from SHRM:

 Increased job satisfaction
 Better work culture/Work-life-balance
 Improved rates of customer satisfaction
 Efficient resource management
 Proactive approach to managing employees
 Boost productivity

B. HUMAN RESOURCE POLICIES AND PROCEDURES

HR policies and procedures are guidelines supervisors and managers use as a reference
for managing their staff. Basically, it states what employees can and cannot do. These
policies and procedures are set by the owner or management and are governed local
employment laws. The HR policies and procedures should be prepared with objectivity and
comprehensibly to make the documents standard and consistent in approach, as well as
free from any complexity or overlap. This is essential to remove any sort of differential
treatment with the company and ensure a smooth and conflict-free work within the
organization.

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 Organizations can hire an HR Consulting Firm for the preparation of both. An HR Consultant
can assist the organization in:

 Preparing new HR policies and procedures manual/employee handbook for the

organization
 Revise certain aspects of the documents or completely revise the HR policies and
procedures manual/employee handbook
 Check the documents for the ever-changing legal rules and regulations, and make
the necessary changes
 Audit the existing HR policies and procedures manual and/ or employee handbook
to make sure that the given details provided are relevant to the current
industry/market scenario.

II. HUMAN CAPITAL MANAGEMENT

Human Capital Management (HCM) transforms the traditional administrative functions

of human resources (HR) departments such as recruiting, training, payroll, compensation,
and performance management into opportunities to drive engagement, productivity, and
business value. HCM considers the workforce as more than just a cost of doing business; it is
a core business asset whose value can be maximized through strategic investment and
management, just like any other asset.

Key Benefits of a Powerful Human Capital Management

Attract and Retain  Increase hiring speed and quality by quickly sourcing
Talent and recruiting the right candidates. Increase
engagement with work-life solutions that help motivate
employees and deliver a superior employee experience.
 Retain and nurture talent by providing professional
learning and growth opportunities.
 Increase bench strength by proactively planning for
succession in leadership and other key roles.
Optimize  Increase hiring speed and quality by quickly sourcing
Workforce and recruiting the right candidates. Increase
Management and engagement with work-life solutions that help motivate
Spending employees and deliver a superior employee experience.
 Retain and nurture talent by providing professional
learning and growth opportunities.
 Increase bench strength by proactively planning for
succession in leadership and other key roles.
Respond with  Align people strategy with business strategy.
Agility to Change  Anticipate workforce attrition with powerful insights.
 Adjust the workforce quickly to organizational changes.
 Tailor HR processes to account for unique needs.
Streamline HR  Consolidate disparate HRMS.
Operations  Leverage analytics for more intelligent workforce

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 decisions.
 Automate manual processes globally and locally.
 Accelerate HR processes with self-service.

A. KNOWLEDGE MANAGEMENT

The classic one-line definition of Knowledge Management (KM) is a discipline that

promotes an integrated approach to identifying, capturing, evaluating, retrieving, and
sharing all of an enterprise’s information assets. These assets may include databases,
documents, policies, procedures, and previously uncaptured expertise and experience.

Why is Knowledge Management important?

The KM category represents solutions that streamline the process of capturing,

distributing, and effectively using knowledge. When an organization is able to easily access,
share, and update business knowledge, it can become more productive and cost-efficient.
The ability to access the right knowledge at the right time, via a robust knowledge
management system, informs accurate decision-making and stimulates collaboration and
innovation.

As your enterprise grows, so too will the need to access a reliable knowledge database
in order to effectively run your business, serve your clients, and increase revenue. Without a
knowledge management system in place, your employees will be forced to learn and relearn
processes and information. That’s an inefficient and costly practice. Plus, you may also run
the risk of losing those processes or information if a knowledge leader or legacy employee
leaves your company.

The following are examples of Knowledge Management systems:

1. D
‍ ocument management: These systems act as centralized digital filing cabinets
for company documents. They make retrieving documents easy, support
regulatory compliance, and enhance workflow. In addition, when a document
management system is enhanced with passwords and backup procedures,
document security is enhanced, but not thoroughly protected from outside
access. Many typical document management systems have functionality
limitations so custom upgrades can increase costs. This type of system does not
automatically capture data or analyze it.
2. Content management: Content management systems are similar to document
management systems, but store audio, video, and other media types in addition
to documents.
3. Databases: A database is a computer application that allows people to capture,
store, analyze, and interact with data. Databases are indexed in order to make
information more accessible. Data stored in databases can be very secure
because the system prohibits manipulation. However, they can be volatile and

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 are often costly to design and set up. They also require a high level of skill to use
and maintain.
4. Data warehouses: These enterprise-wide systems pull data from different parts
of your organization and can be highly effective for reporting and analysis. They
store current, as well as historic data and transform data into meaningful
information. However, data warehouses are typically high-maintenance systems
which require complex integration in order to provide a unified view of the data.
5. Intranets: These private computer networks built on searchable platforms can
provide an easily accessible resource for information that enhances
collaboration and social networking within your enterprise. But intranets do
have some risks, including easy access by unauthorized personnel. In addition,
they are costly and time-consuming to maintain.
6. Wikis: These web pages are easy-to-use collaborative tools that allow anyone to
publish and store information in a central location. They can be good places to
maintain business documents or product catalogues. However, because they
can be openly edited, wikis can often include wrong information. In addition,
they aren’t optimized to show what information within them is being viewed or
used or where knowledge gaps exist.
7. Social networking: Social networking allows people to connect with each other,
join groups, contribute information, and discuss issues they are interested in.
Social networking can influence organizational knowledge. Knowledge
management systems can apply social networking to identify, document, and
transfer knowledge.

B. CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR) is a broad business concept that usually describes a
company's commitment to carry out their business in an ethical way. This means managing
their business processes while taking account of their social, economic and environmental
impact, and considering human rights.

Why is CSR important?

CSR can help you improve your business performance, increase competitive advantage
and build trust with customers and employees. It can also help you achieve operational cost
savings, by avoiding costs of wasted energy or unnecessary fees. Perhaps most importantly,
CSR gives your company and your brand a positive image of a reputable ethical business.

Corporate responsibility can cut across almost everything your business does. It can
involve a range of CSR activities, such as:

 environmental management, e.g., waste reduction and sustainability

 responsible sourcing, e.g., using only fair-trade elements

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  improvement of working standards and conditions
 contributing to educational and social programs
 employee volunteering
 socially responsible investment
 development of employee and community relations

C. INTERNATIONAL HUMAN RESOURCE MANAGEMENT

International Human Resources Management (IHRM) can be defined as set of activities

aimed managing organizational human resources at international level to achieve
organizational objectives and achieve competitive advantage over competitors at national
and international level.

Why is IHRM important?

 Globalization of business leading to mobilization of resources

 Effective management of human resources
 To minimize the risk of underperformance or failure in overseas assignments
 Implementation of international strategies by competent managerial personnel to
man overseas assignments
 Movement from traditional hierarchical organizational structures towards the
network organization
 Plays significant role in implementing and control of strategies in an international
business

III. ORGANIZATIONS AND PEOPLE

For me, an organization is a consciously coordinated social unit, composed of two or

more people, that functions on a relatively continuous basis to achieve a common goal or
set of goals while People include employees, managers, executives, customers, supplier
employees, or anybody else who is involved in the creation or consumption of services.

Without people, there is no organization. Just as, without students, a school has no
existence as a living and functioning organization. Organizations are strongly influenced by
the people that form part of them.

A. ORGANIZATIONAL BEHAVIOR

Every business has an internal culture that is unique to their Company. Each employee
contributes not only a certain skill set but also a personality with inherent values and beliefs,
and those values and beliefs will determine how they will interact in work groups, with
other employees, and toward management. Organizational Behavior (OB) is the
multidisciplinary study of the employee interactions and the organizational processes that
seek to create more efficient and cohesive organizations.

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Why Is Organizational Behavior Important?

OB can help employees navigate a business’s culture as well as help managers better
understand how that culture helps or hinders employee productivity and retention. OB can
also help managers evaluate a potential job candidate’s skills and personality during the
hiring process, allowing human resources to find the best fit for departments within the
company. While there is never one exact way to assess these things, OB theory offers a set
of guidelines to help organizations create a positive and vibrant internal culture.

One of the main goals of OB is to understand what motivates employees. How

organizations measure job satisfaction varies, but most common metrics include a fair and
equitable reward system, compelling work, enjoyable working conditions and good
supervisors. By understanding what motivates employees, managers can adjust their
policies to increase job satisfaction, thereby increasing productivity. OB not only helps
employees understand themselves better, it also offers a roadmap for managers to improve
all aspects of their organizations:

 Improve job performance

 Increase job satisfaction
 Promote innovation
 Encourage leadership
 Improve customer service
 Encourage ethical behavior
 Create a positive work environment

Depending on the challenges and desired outcomes, managers may use different tactics
such as reorganizing workgroups, changing performance evaluations or modifying
compensation structures. Understanding what motivates employees also plays a large part
in how managers adjust company procedures or policies. Not only does organizational
behavior provide a roadmap for human resources and supervisors to manage more
effectively, it also helps employees navigate an organization’s culture.

When a strong model of OB is in place, employees can understand themselves better

and know how they can best flourish inside an organization. And managers are better able
to predict how employees might react under differing circumstances and adjust accordingly.

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