A Genealogy Of Human Resource Management: Traditions, Transformations, Optimization Through Information Technology

HRM Transformation

The modern philosophy of HRM, in its contemporary form, results from a series of phenomenon and evolutions that began after the Industrial Revolution of 1760 in England and continues to the present day. However, the emergence of the gradual development of HRM may even be traced back to much earlier times, the ancient era, as there is some evidence that the syndicates, unions and organized proletarian strikes had occurred in ancient Egypt and Rome. Industrial Revolution occurred in Europe almost at the same time with other massive scientific, philosophical and political discoveries and evolutions of the 17th and 18th centuries (Deadrick & Stone, 2014). The Revolution primarily brought about the replacement of human resources with machines in industries. Subsequently, a major and direct consequent of the revolution was the emergence of huge factories in industrial societies that facilitated, for the first time, the employment of centralization of a great number of workers in one place. The use of machinery, as well as expansion, development, and the wide-spread prevalence of factory-based production has fostered a great lunge in the production valence of the Mankind. Moreover, the utilization of the machinery in the production lines, has facilitated the division of major load of works into minor tasks and thereby has enabled everyone to play a part in the whole system of production (Dulebohn, Ferris, & Stodd, 1995). Such a division of labour in the production procedure is explicated through making of a simple pin, whereby he elaborates that the workers, instead of performing multiple tasks, only and simply operate one machine, concentrate more, and hence, expedite the production procedure. The establishment of a factory and relevant production system and the necessity of employment and gathering of a huge number of workers in one place, entails a creation of a new system that could make the supervision and monitoring of the group of workers possible. This new system initiated the emergence of a series of hierarchies consisting of factory owners, managers, supervisors and workers (Deadrick & Stone, 2014). Such a change in the workplace occurred in a time where there was not a big gap between the artisan and the apprentice. In other words, the Industrial Revolution, by widening the schism among different strata of the society constructed a new HRM system.

By using electronic systems, human resource department and the people in charge of it should be able to do all the work related to human resources of the organization by creating new patterns in the new managerial unit in a way that the least amount of time would be spent and the least amount of human resource stimulus is engaged. In other words, the new patterns should be designed in a way that the human resources would do their job without leaving the workplace and only through computers, could be informed of all the news, plans, and regulations of the organization, and could enhance their technical, scientific, and particular abilities. In the traditional method, the human resources, for all the employee-related works such as receiving the salary statement, participating in in-service classes, being informed of the new regulations and requesting for a leave, had to leave the workplace and refer to the human resource section, which, in turn, wasted time and reduced the efficiency rate in big organizations (Deadrick & Stone, 2014). Hence, it is crucial for the HRM to employ electronic, computerized systems, internal networks and other software and hardware facilities in order to achieve the goals of the organization. Investment in IT assist firms to enhance their productivity.

Effect of IT on HRM Process

Advancement of IT in various aspects of society has had extensive impact on people’s lifestyle as well as business operational environment. With adaption of IT and enhancement of relevant information systems, enterprises can have competitive advantage and grab the opportunity of working with external suppliers (Chang, Chang, & Lee, 2014) . New inventions such as Smartphone and network facilities have changed the modes of communication, methods of payment for various purposes (Song, Yang, & Wang, 2017), receiving healthcare services (Keikhosrokiani, Mustaffa, & Zakaria, 2018), education system, traffic system (Sohr, Brockfeld, Sauerländer, & Melde, 2016), commerce and trading, automation system (Domingues, Carreira, Vieira, & Kastner, 2016) and so forth. Moreover, organizational processes such as project management, finance, as well as HRM require sophisticated technologies to be modernized and be adapted with society. Innovations in technology has also changed the method of recruitment, selection, motivation, and retain of employees that are part of HRM (Stone et al., 2015). Various studies have been done to evaluate the impact of technology and transformation on HRM. Relevant information of human resources can be accessible by administrative personnel, managers, employees, applicants, etc. using technologies such as Internet, intranet, or web portal (Lengnick-Hall & Moritz, 2003; Parry & Tyson, 2011). IT can be used as tool in developing countries for developing the human resources needed to compete internationally (Williamsz, 2006). The principal engagement of technology in HRM, however, is in collecting, storing, using and broadcasting information related to the applicants and the personnel. Hence, human resource information system plays an crucial role in HRM of any organization, and in this regard, IT has been introduced as a mediator between individuals and organizations (Stone et al., 2015). HRM requires having more human resource tools such as open source software to meet the demands of the modern life. In the information age, IT can assist human resource managers achieve their managerial aims by analyzing information. Furthermore, evolving IT opens the horizon for HRM into electronic-HRM (e-HRM) era which includes self-service and intranet (Huang & Martin-Taylor, 2013; Lin, 2011; Marler & Parry, 2016).

Creation of Information Bank for Human Resource

At this point, the primary stages of recruitment and employment of human resource have already been passed and the need for the creation of information bank for the human resources to submit their details is foregrounded (Dineen & Allen, 2013). A human resource information system is proposed by Dorel and Bradic-Martinovic (2011) comprising collection and monitoring module, record keeping, payroll module, administration of benefits, training module, performance management, and employee self-service (Dorel & Bradic-Martinovic, 2011). The modules are integrated into the human resource information system to lessen the burden on the HRM team’s shoulder.

Association of new technology with human resource has opened a new horizon in the process of HRM such as e-learning, virtual recruitment, self service for employees, human resource portal, etc (Ömer, 2012). Electronic designing of the bureaucratic and organizational procedures is considered as another task of human resource information system. All the forms and guidelines must be put on the system to be available for the staff so that upon request, they could fill in the forms online and submit to the respected unit. Besides, human resource unit can notify the staff of recent changes in guidelines, news, and etc. by sending emails to all the personnel. Some of the works human resource unit is continuously engaged with are submission of leave request and reception of its results and notifying of other units; announcing the missionary assignments, appointments, promotions; issuing salary statement, premiums, and specifications; issuing premonition, promotion, and complaint notices; issuing references and other requested documents by human resource; notifying of the recent regulations and other news; online staff and service evaluation forms; forms of critics and suggestions and the follow-up of such cases; monitoring the attendance of the staff and all the other related duties that could be added to the list. By providing such services, the cost of an organization can be reduced (Lin, 2011), time can be saved (Asl, 2018a; Gardner, Lepak, & Bartol, 2003), efficiency increased (Ulrich, Younger, & Brockbank, 2008), better communication and collaboration enabled (Benson, Johnson, & Kuchinke, 2002), employees’ skills improved, (Tafti, Mithas, & Krishnan, 2007), competency and knowledge management is set (Hendrickson, 2003), and human resource strategies are structured (Ömer, 2012).

Proposed Seven Goals Model for Optimization of HRM

Organizations aim to attract, select, motivate, and retain talented employees to compete with other parties utilizing their employees’ skills and expertise (Hall, Feldman, & Kim, 2013). HRM is considered as a social value for entrepreneurship program to address the needs of social businesses and to create opportunities for them. Rapid growth of inventions in new technologies has transformed the process of HRM in collecting, storing, using, and disseminating data related to employees and applicants in every organization. Technology-based services such as virtual team, teleconferencing, web-based applications, e-learning, e-recruitment, and so on has reduced the impact of distance on the performance of that organization (Aguinis & Lawal, 2013). In line with such services, e-learning or e-training can be initiated to enhance the knowledge, skills, and proficiency of personnel and provide efficiency, flexibility, and convenience in comparison with traditional methods. In keeping with the factors associated with the advancement of new technologies, of the significant objectives of in-service education that can assist the organization in achieving its goals, the seven goals model could be proposed as illustrated in Figure 02 .

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As depicted in Figure 02 , the first goal which is “coordination of the staff with the organization” is important in realizing the overall objectives, policies, and pre-determined guidelines of the organizational institute. In addition, the advancement in individuals’ vocation in the organization is contingent upon the supervisor’s expectations and the way they require the job to be accomplished. Next goal is considered as “elevation of job satisfaction and betterment of the spirit of the staff” . Motivating the employees to do their job is of key factors that the managers are tackling with. In order to raise the spirit of the staff and their job satisfaction, different propositions have been suggested. One of these theories is Mazlow’s hierarchal pyramid that according to which the needs in the top part of the pyramid play a crucial role in motivating and elevating the job satisfaction of the employees. Thirdly, organizations aim to “Reduce incidents and waste products” . In many of the institutes, the vocational incidents occur due to the lack of knowledge and skill on the part of the workers. This is most true about those who work with dangerous and sensitive tools in factories. Other than those incidents, the waste products and the subsequent increase in the expenses emanates from lack of proper knowledge and skill of the workers. Hence, to avoid such incidents and the waste products and their consequences of punishment, reprimand, dismissal, and so forth that mainly happen because of lack of necessary knowledge of the policies, goals, expectations of the company, as well as lack of the required tools and machinery, it is important that the in-service training be taken seriously. The fourth goal of HRM optimization is “Modernizing the knowledge and skill of the human resource” . The increase in efficiency is necessarily contingent upon the increase in the knowledge of human resource and the avoidance of their knowledge being outdated. Literally, outdatedness refers to the reduction in the efficiency in a period of time as well as the lack of modern knowledge and skill. This causes the individual to be worn-out for a multiple reasons and hence unable to carry out the duties and tasks. Even though all the factors and outdatedness cannot be resolved through education, with no doubt, in-service training plays a crucial role in updating the staff by enhancing and modernizing their knowledge and skill. The next goal of organizations is to “assist the changes and transformations in the Organization” . The changes and transformations that occur in an organization necessitates the preparation of the personnel and human resources. A fundamental point in organizational transformations is the employees’ resistance against such changes. It is possible that the employees of the organization, for various reasons such as: concerns about success, their own position and financial status, concerns regarding their own inability in accomplishing the tasks, and etc. may oppose any changes. For this reason, other than the visual schemes to involve the employees in planning, transformation, and etc., their education is of great significance in the success towards any changes. Therefore, one of the key features of in-service training is preparing the staff for similar cases of changes and transformations. “Conformity with the Current Social Conditions” is the sixth goal in seven goal model of HRM optimization. Almost all contemporary organizations are working in an environment which has its own specific ideological and cultural values. The success of these organizations is contingent upon the recognition of and conformity with such specifies. The social environment of the organization, which could be called ultra-social-system, determines the domain of activity of the organizations. Hence, the realization of such a system is of great importance not only for the top managers and decision-makers but also for all the employees. Finally, organizations aspire to “Increase the Sympathy and the Rate of Cooperation among the Staff” as the final goal of the model. The Success of each organization, to a great extent, depends upon a state of mutual trust, understanding, and collaboration among employees, the rate of cooperation between employees and managers, and above all, the creation of unity in the way works are done in different units. It seems that one of the ways to boost the rate of sympathy and cooperation is through in-service training that on the one hand provides a common ground of interaction among employees in classes, and on the other, by enhancing their knowledge and understanding initiates a similar professional status in them. It has to be noted, however, that emphasis on any of these goals may vary according to the time and conditions, meaning that in some specific situations, some of these objectives may take greater significance. The proposed seven goals model can assist human resource department to set an apparent goal and move forward to their goal for the sake of optimizing HRM in their organizations.

Limitations and The Future Directions of HRM

Although new technology brings some pros in HRM such as enhancing efficiency, saving time, reducing cost, increasing focus on employee development and so on; it reduces the quality and accuracy of electronic methods in the management of human resources (Sulsky & Keown, 1998). As current technologies use static or one-way communication, some weaknesses appear in case of e-recruitment, and that the organizations may not be able to attract a diverse talented pool and job applicants. The applicants do not have a chance of posing their queries or interacting with managers face to face even though teleconferencing is available. Hence, the current recruiting system is extremely impersonal, passive, and it creates artificial distance between organizations and applicants. However, e-recruiting increase the overall effectiveness of every organization utilizing interactive technologies (Dineen & Allen, 2013). Computer proficiency can be considered as another limitation of current human resource system. If the applicants are not capable of using computer or other technologies, the computerized test may affect on their scores and instead of testing applicant’s cognitive ability, their computer skills and computer anxiety is tested as well. In spite of this, the applicants will try to improve their computer skills and be adapted with new technologies (Keikhosrokiani et al., 2018). Necessity of computer skills affects some groups such as older applicants, ethnic minorities, and people with low socioeconomic status. There are sexual and racial differences in computer anxiety that may distress the applicant and negatively influence the performance of computerized tasks. In addition, employees prefer face to face training in contrast to e-learning system because it creates a platform for interpersonal interactions and better communication.

Indicating rapid growth of technology in the past decades, HRM process will be influenced in the future as well. Discussing the pros and cons of current HRM, its future direction can be predicted. In addition to advancement of IT, other factors such as transformation in economy, globalization, and domestic diversity impact on the future of HRM. Shifting from manufacturing to a knowledge-based economy system can change the future of human resource process. A system providing something for others or buying and selling of services can be considered as an economy system. Economists believe on dominating industrialized nation by economy systems and service activities they consider knowledge-based systems and businesses as subset of overall economy system (Andersen & Corley, 2003; Karren & Gowan, 2012). Ascending of economy systems create a new demand in the organization goals and HRM as most of the human resource processes were planned during industrial era. Thus, the traditional human resource processes that were very common during that time are no longer fulfilling the demands of new services in organizations, and organizations require talented workers for knowledge oriented jobs. These changes draw the organization attention to alter their education systems to meet new job demands in their organizations. The next factor of changing HRM process in the future is globalization in which organizations function on an international scale (Sparrow, 2007). Global environment creates some challenges for the organizations in terms of culture, language, technology, variations in social, political and legal systems. Thus, HRM teams must prepare their employees to work in a diverse environment. Cultural differences influence the gaze of people for looking and being looked in the global environment. As scholars observe “Cultural homogenization, however, necessarily involves the construction of societal stereotypes which can be overturned through practices of individualism” (Asl, 2018b; Asl & Abdullah, 2017; Asl, Abdullah, & Yaapar, 2016). Moreover, globalization can provide various opportunities for organizations such as expanding markets for products and services, enhancing creativity and innovations to be adapted with diverse culture. Organizations may plan some new strategies such as new reward systems for their workers from various cultural background to encourage and retain them for the global market (Stone & Deadrick, 2015). Apart from economy and globalization, organizations confront with some other issues such as growing domestic diversity. Organizations may face multiple generations and more ethnically diverse members with different work value, skills, attitude and behaviours; therefore, they need to change their HRM processes to meet the primary goals of multiple generations of employees (Twenge, Campbell, Hoffman, & Lance, 2010). Organizations can utilize diversity as competitive advantage to attract various talents and skills to their workspace to move forward globally; however, they require developing new HRM system to meet the need of all members.