Traditional human resource management (HRM) was a department in organizations aimed at managing employees based on a rigid corporate structure. The department was tasked with the responsibility of recruiting new employees, managing employees as well as managing their exit from the company in case a contract period expired or was terminated by either party. This approach was seen by many scholars to lay more emphasis on safeguarding corporate interests and objectives. To achieve its objectives, the department would undertake performance appraisals with the employees subject to disciplinary actions in case they didn’t meet their work targets. T echnology , amongst other factors , disrupted the traditional HRM . This disruption was necessitated by the fact that modern employees are now more specialized, endowed professionally and sophisticated than their predecessors. The modern employee is technologically aware and can perform office duties on the go or in the comfort of their home. This flexibility makes th e modern employee sophisticated and requires a more robust management approach. This shift necessitated organizations to restructure the traditional HRM into a more modern version of the same ( Ployhart , 20 06 ). This paper seeks to explore the components, scope, and ethics in the modern human resource departments. It also briefly highlights the distinctions between the traditional and contemporary HRM approaches .
Factors that Necessitated Evolution of Human Resource Management
The modern HRM personnel are viewed as the people's managers. The role of a people ’s manager is distinct and employee - oriented. This has led to the disruption of the traditional human resource department into staffing, retention and payroll department among other aspects . Currently, i t is a typical scenario to see companies outsourc e recruitment and payroll responsibilities. This leaves the people ’s manager with the responsibility of managing the employee s’ welfare. This includes management of employee expectations as well creating a conducive environment where both the employee and the company objectives are mutually met (Gibb, 2011).
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The paradigm shift from the corporate objectives to focusing more on the human resource has been necessitated by a number of factors. Aided by technology, an evolution of the traditional business environment into a more liberal and competitive market - driven one is the primary factor driving the change. Modern economics has concentrated more on a service - based economy. This has necessitated organizations to follow suit so as to keep pace with the business environment a s well as keep their human resource productive and motivated (Gibb, 2011). The traditional technical and manufacturing sectors have also followed suit in order to keep up with the demands of the modern business environment. The paradigm shift has revolutio nized the traditional HRM which viewed employees only as agents of production to a more modern approach that prioritizes human resource .
Contrasting Traditional Personnel Management with Modern Human Resource Management
Having briefly discussed t he components of traditional personnel management and the modern HRM, it’s imperative to highlight the distinct factors that distinguish the two approaches. Traditional p ersonnel management placed more emphasi s on the administration of employees while addressing the fundamental workplace relation issues. The modern HRM, on the other hand , is more elaborate and focuses more on employee short listing, recruitment, morale and insurance. Mondy & Martocchio ( 2016) reckon that the prime focus on employee welfare is what distinctively constitutes the modern human resource management . The traditional personnel management was focused more on meeting a particular company ’s objectives and less on employee welfare. For instance, e mployees were not given opportunities to develop themselves professionally. In contrast, the modern HRM offers employees training and development opportunities in an effort to improve their productivity and morale while at work. Numerous modern-day companies have embraced this perspective. Subsequently, besides recommending it, they finance training programs that are aimed at improving their employees’ skill sets hence enhancing overall employee productivity . Moreover, these entities are constantly evaluating the strength of their employees in order to place them in positions that fit their skills, talents, and abilities . This is done with the aim of making the employees’ work more effective and enjoyable (Mondy & Martocchio, 2016).
The traditional personnel management expected employees to figure out what was right and wrong in regard to their actions and behavior in the workplace. Th is approach was not proactive in terms of maintaining a corporate norm or doctrine that govern s employee behavior. For instance, the personnel managers would wait for trouble and find ways of resolving it once it arose. In contrast, modern human resource managers employ their experience and industry best practices to formulate and distribute employee workbook with clear descriptions of the expected behavior ( Swanson et al., 2011) . This approach focuses more on preventing workplace problems rather than fixing them when they arise .
The traditional personnel management, when viewed from an external perspective , emphasized improving production and maintaining employees. The prime focus was the day- to- day running of the company processes with the aim of achieving a predetermined objective. The modern-day HRM, in contrast, focuses on creating a favorable work environment in a bid to improve the employee s’ effectiveness and productivity in meeting the set corporate objectives (Swanson et al., 2011) . The personnel manager s continually engage employees through well-laid feedback response mechanism s . These mechanisms ensure that internal issues and politics do not disorient employees and lower their productivity .
Another notable distinction between the traditional and modern HRM is the latter’s focus on the internal and external environments affecting the workplace. The traditional personnel management was tasked with the routine responsibility of coordinating the human resource factor of production. Consequently, it did not have the powers to explore the external factors that are likely to affect the employees. The modern-day human resource department , on the contrary, continually scans both the internal and external factors that may influence employee productivity and responds to them appropriately and promptly. Likewise, these departments can keep track of ongoing technological advancement s and implore the staff to undergo extra training in a bid to improve their productivity and efficiency. This feat ensures that the workforce is up to date with trends in the current business environment. It also ensures that organizations get a return on investment after employees under go training since the setrainings are anchored on the corporate needs and direction (Mondy & Martocchio, 2016).
The scope of Modern-Day Human Resource Management
The running of any organization is depend ent on the policies that guide the organization in meeting its objectives. As a result, every department is expected to formulate strategies to achieve the objectives based on the overall corporate policy. When coming up with these strategies , each department drafts processes that break down the goals into tangible deliverables. In formulating the HRM strategy , human resource managers evaluate some human resource process. Human resource planning is a process that guides the recruitment, induction, training, evaluation, promotion or retrenchment of an employee ( Noe et al. , 206 ). The human resource department further drafts the employee remuneration and benefits strategy . This process is closely related to the performance management process that serves to formulate employee job description and remuneration package. The employee relations process culminates with the requirements of HRM since it sets the norms and doctrines that employee s must uphold in order to meet the corporate ethical demands and objectives.
The modern HRM has revolutionized and influenced the traditional personnel management in several ways. For instance in employee management , it’s tasked with the responsibility of analyzing and planning for the needed workforce. The department then undertakes the hiring, induction, and remuneration of employees. The department further coordinates promotions, transfers, skills development, retrenchment as well as layofs . This function is aimed at ensuring human resource productivity, growth and development while meeting the company objectives . The department is further tasked with the responsibility of undertaking performance appraisals, disbursing employee remuneration, managing skill development initiatives, travel logistics as well as allowances (Gibb, 2011). Another essential task of HRM is the development and management of employee welfare. This includes but not limited to welfare fund, employee security, medical and social security services. The department further oversees the recruitment of safety personnel, installing firefighting equipment, cleaning, lighting, sanitation and eradicating all workplace hazards that may disrupt work environments .
The department further coordinates employee supervision, counseling, education, and training. Supervision , however , is merged with departmental line management. This approach ensures that both the employees and the employers are in continuous communication and their welfare and working environment are conducive for productivity. The department is further tasked with the management of canteen, cafeteria, transport, housing and rest facilities. They also coordinate recreation and team building activities to boost employee cohesion and cooperation . The department also plays the vital role of bridging employees and trade unions. This is targeted at addressing employee grievances and disputes so as to maintain law and order in the organization. It distributes employee handbooks, code of conduct and arranges disciplinary hearings to ensure that corporate policies and norms are respected and upheld. Also, it strives to understand employees while offering them advice and counseling services. Moreover, the department is tasked with the responsibility of supporting governance and democracy in employee relation s as stipulated in the laws of the country and trade unions (Gibb, 2011). This is aimed at ensuring that a working balance is attained with the aim of safeguard ing corporate and employee interests.
Ethics in Modern-Day Organizations
Ethics is a broad term that is used to describe the norms and doctrines that guide people or organization al behavior. Th ese norms and doctrines can be a set of rules, regulations or standards that an individual or an organization must subscribe to and abide by in running their affairs . In organizations, every department has a set of standards that guide their operations. These standards can either be internal or external. The external standards and regulations can be set by international bodies, governments, trade unions or local authorities to guide fair play or humane operational undertakings. These set of rules and regulations are referred to as ethics (Mondy & Martocchio, 2016). Ethics in organizations gained impetus after it emerged that most organizations were in existence for the sole purpose of making profits. Executives in these corporations had little or no consideration to the non-economic factors and values. This was against the ethos and expectations of the community that worked or supported the existence of such organizations. This prompted scholars, intelligentsia, and organizations to take a keen interest in the matter. In the 21 st century , many organizations have embraced this practice and are involved in various corporate social initiatives. These initiatives have been mainly influenced by regulations with the aim of breeding a culture of caring about the society, as well as fostering accountability and transparency (Mondy & Martocchio, 2016).
Through regulations and public awareness , business ethics define the sole purpose for the existence of a particular organization. This , however , has bred contradictory positions amongst executives and stakeholders since some prefer to focus more on the maximization of profits ( Mondy & Martocchio, 2016). Thus , they consider wealth creation as the sole purpose of the existence of an organization while others focus on creating value in their area of operations. Those in support of wealth generation consider social responsibility initiatives unnecessary and unethical. Those who strive to create value for the society, on the other hand, support the idea that being in business for the sole purpose of wealth generation is mean and unethical. This has been a contentious topic as others argue that organizations use these initiatives as marketing strategies instead. It is, however, indubitable that organizations have the responsibility of positively impacting the lives of the communities within which they operate. For them to meet this obligation, they have to subscribe to and implement ethical standards and regulations that guarantee fair play, conformance to the rule of law, fair competition and legitimate practices that improve the society. Abiding by these regulations as well as embracing ethical practices ensures mutual benefit to both the consumer and the organizations. Thus, there’s a need for heads of organizations to understand the importance of ethics in the society as well as its application at the organization al level with a keen interest on its significance in the human resource department .
Importance of Ethics
Ethical behavior in an organization can be traced to three distinctive pillars . These include laws, religion, and culture. The rules that govern organizations are unique to their area of operation. This means that each state or government all over the world uniquely influences the operations and behavior of organizations within its jurisdiction. Nevertheless, global ethical standards may not be easy to implement. This equally applies to the culture of a community. The world is comprised of thousands of cultural beliefs which dictate the norms and doctrines that guide the general conception of right or wrong. Religion also plays a vital role in shaping the ethics for a particular set of people. For instance, religion plays a vital role in influencing how people view the less fortunate in the society or how they involve themselves in the affairs of common good ( Conroy & Emerson , 2004).
Honesty and fairness towards other people characterize the fundamental nature of humanity. It guides individuals against being egocentric or insensitive about the plight of other people. Ethics , therefore , serves to satisfy the basic need of humanity. Organizations that commit to adhere to this noble call of safeguarding moral values, norms and doctrines are readily acceptable to the society. In this case, the organizations serve to unite people while setting a good example of leadership, credibility and good governance. A company subscribing to ethical ways of doing business builds a good rapport with the society and the employees since their welfare is at stake ( Schumann, 2001 ) . This makes decision making easier and ensures that everyone is focused on meeting the company ’s objectives .
Ethics in Human Resource Management
An organization’s HRM department must strive to create a standard set of rules and regulations for every employee irrespective of other designation, race, salary or stature. These policies must clearly outline such issues as the expected conduct and behavior as well as measures that ought to be taken against anyone that doesn’t adhere to the policy . This breeds fairness and reduces internal politics that pertain to favoritism and superiority. The department should then distribute the policies through favorable communication channels to all employees in the organization. This should be done transparently and training organized to ensure that everyone understands the policies.
The department should be flexible and must portray respect to all the employees. For instance, it should try to strike a work - life balance to allow employees to attend to pressing matters in their personal life. This ultimately benefits the company since employees will be equally willing to sacrifice their time to participate in corporate issues outside of their working hours. Employees should similarly be given ample time to relax as well as time to recover if they are unwell. Further, organizations must recognize that employee remuneration influences their motivation to work. Thus, all workers should be well remunerated to enable them to concentrate and to be productive in the work place . For instance, the organization should not hold salaries unless when under financial difficulties , which should be communicated in advance ( Conroy & Emerson , 2004). The human resource management department must develop a comprehensive leave and holiday schedule and share it to all employees. The organization should also allow employees to join their families during holiday seasons . This helps employees to relax and return to work with morale and renewed energy. The department should organize ceremonies in honor of this days before the employees leave for the holidays. The department should also organize and celebrate birthday parties for employees in a bid to enhance a sense of belonging and cohesion in the organization ( Schumann, 2001 ) .
An organization’s remuneration packages should be competitive and agreed upon in the absence of the employees . In pursuit of this, the human resource department should consider an employee ’s previous gross salary, the current job description and his or her level of experience. The responsibilities should be clear and communicated in the first days of employment. Performance appraisals should be transparent and based on merit and performance. The organization should recognize employees’ hard work and strive to be uniform in appraisal and promotion opportunities. Further, there should be no favoritism in appraisals and promotions as this may drain the morale of performing employees .
Effecting Ethical Behavior in Organizations
Organizations all over the world invest heavily in developing a unique corporate brand and identity. Likewise, they take years to create a reputation which is manifested in terms of beliefs, product offering and their role and purpose in the society. These ideologies, practices, and traditions are expected to be used as the guiding principles to employees on what image they should portray to the outside world. To maintain sanity, law, and order in the organizations , the HR department should draft a set of rules and regulations that guide the expected behavior in the workplace ( Schumann, 2001 ). T hese set of rules and regulations govern the employees’ behavior and are enshrined in an organization's code of conduct. During orientation , the managers are tasked with the responsibility of sharing, discussing and seeking consent from employees on this document. Managers are also expected to maintain a cordial relationship with their juniors while keeping a professional distance to ensure that they can manage junior employees effectively. The relationship amongst employees and behavior at the workplace should be stipulated in the code of conduct (Perrewé, 2011).
The code of conduct should stipulate the accepted dress code in the office as well as when on official duty outside the workplace. This is however unique to a company setting and the nature of business of a particular company. The code of ethics is also critical as it guides employees on behaviors that may impact the organization negatively. For instance, employees should be warned against gossiping, office politics and corporate espionage. Thus, the employees should be encouraged to utilize their time correctly and to focus working on productive matters only . It’s however worth noting that leaders in the modern corporate environment are expected to be role models . This aids in not only effecting ethical behavior but also inspiring adherence to the organizational code of conduct .
Summary
The 21st century has seen tremendous advancement in technology and the adoption of the internet. This has led to the development of small and powerful computing devices with little power consumption requirement. This advancement has disrupted the traditional business environment that was centered on an office setup where employees would work from workstations. These devices have enabled employees to work remotely. Consequently, the employees can respond to official communications on their phones while on the go or in the comfort of their homes. This advancement has undeniably disrupted the traditional personnel management approach which viewed employees as factors of production with the sole goal of the organization being to maximize profits. The 21st Century employee is technologically aware, and technology has afforded them flexibility in their approach to work . The modern business environment has also gone through massive transform ations due to intensified competition. Against this background, organizations have been forced to review their personnel management strategies , embracing a more holistic HRM approach that is employee - centered. This approach holistically takes care of the employee welfare from recruitment, remuneration, appraisal, promotion, training, welfare, retrenchment, health, social and union management services. The paradigm shift has also seen organizations align their activities to conform to the ethical standards set out by the culture, religion, and laws in their respective areas of operation. To instill this discipline and maintain an attractive corporate culture , modern organizations require employees to a bide by a code of conduct which guide s their behavior in line with the set ethical guidelines .
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