Managing the Human Resource in the 21st Century


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Introduction

This study guide provides an overview of the most important topics and current debates covered in Human
Resource Management (HRM) field at undergraduate level. Its aim is to help students in their
understanding of what HRM is, how it functions in organizational settings, why people are important as
organizational resources and how this resource can be effectively managed in the 21st Century.
The guide concentrates on the basics of organisational behaviour and Human Resource Management. The
guide approaches HR topics by laying down the basic organisational issues and factors that affect
employees at work. It is most likely that one can a write a book on each topic covered in this study guide;
however, I have tried to cover as many key points as possible to provide you with the necessary
foundations. In addition, I have written some questions at the end of each chapter for you to measure your
own understanding.
Chapter 2 of this study guide explains the nature of people and their role in organisations. Chapter 3
focuses on Human Resource Management, its definition, background and its importance as a strategic
organisation function. Chapter 4 covers employee motivation and commitment by giving their definitions,
looking at the main theories of motivation and commitment and factors that affect employees at work. In
Chapter 5 the importance of groups and teams in organisations are covered. Next, organisational culture,
role of HRM regarding culture and factors that shape organisations’ culture is examined in Chapter 6.
In Chapter 7, organisational structure is defined along with bureaucracy and its influence on structures.
Emerging structures, the importance of joining-up departments through the use of technology and the role
of HRM in this process are highlighted. Chapter 8 focuses on individual and organisational learning,
training and changing trends in training at work, while finally Chapter 9 sums up the main issues that
concern HR practitioners in today’s’ business environment, followed by the list of references.


People and Organisations

Humans are social beings; we seldom live and work in isolation. Whether consciously or unconsciously,
we are always in interaction with other people and we are continually planning, developing, managing and
ceasing our relations with others. These relations do not appear out of nowhere. They depend on our
actions and our ability to manage our actions. From an early age we gain knowledge and experience on
understanding others and the way people behave in certain situations. Later in life we develop on this
understanding further and carry it with us to our workplace.
However, dealing with people is probably the most difficult thing we will ever encounter in life. People
are very complex creatures. Not a single person thinks, feels, sees, hears, tastes, understands and behaves
the same way. We all come from different ethnic, cultural, national, religious and political backgrounds.
This makes each and every one of us unique with different set of morals, beliefs and values. This
complexity and variety also reflects on our everyday work lives. People’s characteristics, values and
beliefs form attitudes and behaviours that strongly influence their choice of employment.
Scientists argue that people’s genes and their environment affect their intellectual capacity, their intentions
and their tendencies which generate people’s actions and determine their behavior. People do things their
own way, for their own reasons. In other words, people have different agendas some of which are kept
hidden. Almost every day organization strategies on how to manage people effectively come and go at
lightning speed. We probably have more “management gurus” than A-list celebrities put together around
the world. The quest to establish a set of universally accepted policies and procedures of people
management in every organisation still seems to be a utopia.



Organisations
From the time we get out of bed we are involved in organisational life. For example, the minute we get up
and use the bathroom or make a cup of tea in the morning, we are engaging services such as electricity,
water, sanitation, etc. which are provided by organisations. Organisations are an important part of our
daily lives and it is hard to imagine a day without engaging in a task that does not have an input from an
organisation (e.g. schools, universities, hospitals, places of worship, local government, etc.)
Mullins (2005: 114) describes an organisation as “a consciously, coordinated unit created by groups in
society to achieve specific purposes common aims and objectives by means of planned and coordinated
activities”. Organisations are created by people who decide to work together in order to attain their
specific objectives. Organisations function through the division of labour and on a hierarchy of authority.
People and business processes are structured to achieve organisational objectives.
There are three main types of organisations in the business environment: private, public and non-profit
organisations. Private sector organisations are governed by the laws of capitalism. Their main aim is to
make private profit and they have no governmental component in their structure. McDonalds, Marks and
Spencer and Manchester United FC are some examples of private sector organisations.


People in Organisations
Organisations are created by the rules and resources drawn upon and enacted by people; and the nature of
organisations is a result of people’s actions. Thus an organisation’s behaviour reflects people’s
psychological, ethnic, racial, cultural, political and social make-up. People are the most important assets of
an organization.