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HRM History - Overview.pptx

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HRM History - Overview.pptx

  1. 1.  HRM, being a part of management discipline, has followed the pattern of development of management because of the interrelationship of the problems of both the fields.  Human Resource Management (HRM) is relatively a very recent term considered for managing human resources in an organisation.  HRM is still evolving to become an amalgam of:  organisational behaviour,  personnel management,  industrial relations and  labour legislation.
  2. 2.  The term “human resource management” is of recent origin. In its modern connotation, it came to be used mainly from the 1980s onwards. During ancient times and for a long period in the medieval era, production of goods was done mainly by skilled artisans and craftsmen. They themselves owned the tools and instruments, produced articles and sold these in the market.  As such, the question of employer-employee or master-servant relationship did not arise in their cases. They managed their affairs themselves and with the help of the family members. However, many effluent craftsmen also employed apprentices and certain categories of hired labourers. There existed a very close relationship between the master craftsmen and the apprentices, and they themselves took care of the problems facing the apprentices and their family members.
  3. 3.  After a prolonged period of training, many apprentices established their own enterprises, and many others remained attached with their master craftsmen on lucrative terms. During the medieval period, the skilled craftsmen also formed their guilds primarily with a view to protecting the interests of their respective trades.  These guilds also determined the price of their products, the wages of the journeymen and hired labourers, and regulated the terms and conditions of their employment. The ancient and a major part of the medieval period also witnessed prevalence of certain other distinct types of labourers. These comprised slaves, serfs and indentured labourers.
  4. 4.  Slaves comprised an important source of manpower in almost all ancient civilisations. They could be sold and purchased like commodities. Their main purchasers were the wealthy rulers, landlords, tribal chiefs and effluent businessmen. The purchasers of slaves had a rather complete control over their slaves.  The masters of the slaves took a variety of arduous work from them such as carrying heavy loads, rowing ships and boats, construction of buildings and forts, digging canals, cattle-rearing and tillage of soil. The remuneration or compensation for their efforts comprised mainly food, shelter and clothing. The slaves were dealt with iron hands. They were subjected to strict supervision, and non-compliance of the orders of their masters or supervisors was generally punishable with physical tortures, and occasionally with mutilation of their limbs and even death sentence for grave offences.
  5. 5.  Serfdom was widely prevalent in the feudal societies of the pre-and early medieval era. Serfs were engaged by landlords mainly in agricultural operations and allied activities. The landlords would usually give them a piece of land for their habitat and often, some land for their own cultivation. In many cases, a paltry sum of money was advanced to them in order that they could remain attached to their masters.  In lieu of these facilities, the serfs and their family members were required to serve their masters. The work assigned to serfs mainly comprised – tillage of soil, cattle rearing, domestic work and similar other activities. Many landlords would also give them a meagre amount as wages, whether in cash or in kind. Usually, serfs could become free after returning to their masters the habitat, the piece of land and advances with interest. They could also be transferred to some other landlord on payment.
  6. 6.  Although the management of serfs was based on the principle of authoritarianism, the element of human treatment was often found in their relationship. With the abolition of the feudal system, serfdom also came to an end. However, some remnants of the past can still be found even today, especially in rural areas. The bonded labour system in India is comparable to the system of serfdom prevalent in European countries during the medieval period.
  7. 7.  The system of indentured labour emerged primarily with the flourishing of mercantilism and advent of industrial revolution. The discovery of new lands through sea and land routes led to a substantial increase in the demand of European goods abroad, and at the same time, gave a fillip to the establishment of industries in the continent.  As a consequence, trade flourished leaps and bounds, and the mercantilists, taking advantage of the expanding markets, tried to accumulate as much wealth as possible. In their quest for maximizing wealth, the mercantilists would offer attractive inducements to the artisans and skilled craftsmen for accelerating production of goods in demand. The artisans and craftsmen responded and they started engaging an increasing number of apprentices and hired labourers to cope with the demand of the products.
  8. 8.  Even during the periods when slavery and serfdom were rampant, there were various categories of workers who enjoyed a certain amount of freedom in the relationships with their employers. They were mainly skilled craftsmen and artisans and experienced apprentices.  Industrialisation led to the congregation of a large number of workers at the same establishment owned by an individual employer or a company. The employers were generally interested in maximising their profits, and callously disregarded human aspects in managing the affairs of their enterprises.  The state also remained a mute spectator to the miseries and sufferings of the toiling masses of workers, primarily because of the widespread prevalence of the doctrine of individualism and laissez faire.
  9. 9.  Notable problems were low wages, excessive hours of work, hazardous and strenuous physical working conditions, instability of employment, and arbitrary treatment by supervisors and managers.  The industrial workers, sooner or later, came to realise that individually they might be dispensable to the employer, but collectively, they were indispensable as the running of the enterprise was in the interests of both. This realisation induced them to organise and pressurise the employers and the state to take positive steps to improve their conditions.
  10. 10.  The conditions, however, changed during the course of time. Certain notable developments relevant to the management of human resources included spread of democratic ideals and principles, growth of socialist ideas, emergence of the concept of welfare state, strengthening of workers’ organisations, efforts of social reformers, and changes in the size and composition of the labour force.  Resultantly,  The state started enacting labour laws with a view to ameliorating physical working conditions at the place of work, laying down minimum standards in specified areas of terms and conditions of employment.  The employers increasingly came to realise that their prerogatives of “hiring and firing” workers at their will and unilaterally laying down the terms and conditions of employment had been enormously encroached upon by union pressures and state intervention.
  11. 11.  Some of the more notable developments relating to human resources in modern perspective comprise – (i) substantial change in the composition of labour force with the entry of a large number of educated and highly skilled workers with specialisation, (ii) greatly improved status of all categories of employees, (iii) extensive state intervention in the domain of human resources, (iv) development of liberal attitude of employers towards employees with major attention on human aspects, (v) enhancement of strength and status of unions, and (vi) growing international deliberations and exchanges in human resources matters.
  12. 12.  Though HRM as a field of study has relatively recent origin, history of management of people in the organizations particularly in state administration, is quite old. However, these ancient developments could not create much impact on the recent development of literature and practices of HRM as these developments were concerned primarily to state administration.
  13. 13.  From industrial revolution era to the present era, various stages to development of management of human resource practices may be classified as follows:  1. Industrial revolution era— 19th century 2. Trade union movement era — close to the 19th century 3. Social responsibility era — beginning of the 20th century 4. Scientific management era— 1900-1920s 5. Human relations era— 1930s-1950s 6. Behavioural science era— 1950s-1960s 7. Systems and contingency approach era – 1960 onwards 8. Human resource management era — 1980 onwards
  14. 14.  The systematic development of HRM started with industrial revolution that started during 1850s in Western Europe and USA. The industrial revolution consisted, essentially, the development of machinery, the use of mechanical energy in production processes, and consequently the emergence of the concept of factory with large number of workforce working together.  In order to manage people in the factory system of industrial revolution, three systems of HRM were developed- recruitment of workers, training for workers, and control of workers. However, the basic philosophy of managing workers revolved around master-servant relationship.
  15. 15.  Shortly after the emergence of factory system, workers started to organize themselves based on their common interests to form workers’ associations which were subsequently known as trade unions. The basic objectives of these associations were to safeguard interest of their members and to sort out their problems which arose primarily because of employment of child labour, long hours of work, and poor working conditions.  These activities of the trade unions forced owners and managers to adopt employee grievance handling systems, arbitration as a means of resolving conflicts between owners/managers and workers, disciplinary practice, expansion of employee benefit programmes, holiday and vacation time, clear definition of job duties, job rights through seniority, and installation of rational and defensible wage structures.
  16. 16.  In the first decade of 20th century, some factory owners started adopting a more humanistic and paternalistic approach towards workers. Paternalistic approach to labour management is based on the philosophy that labour is just like a child and owner is just like a father and the owner should take care of his labour just like a father takes care of his children.  Many critics to paternalistic approach viewed that this approach was adopted to overcome the problems posed by labour union movement as plenty of trade unions emerged which frequently interrupted work performance. Employers observed that workers were going out of their control and to overcome this problem, they implemented welfare scheme. Thus, this was a compulsion rather than a philosophy.
  17. 17.  Around the beginning of 20th century, Taylor started to find out ‘one best way of doing thing’ based on time and motion studies. On the basis of his experiments, he was able to increase workers’ productivity considerably and wrote many papers based on these experiments and a book on scientific management.  The main principles of scientific management are: (i) Replacing rule of thumb with science, (ii) harmony, not conflict, (iii) cooperation, not individualism, and (iv) development of each and every person. Scientific management techniques relevant to management of workers are- functional foremanship, standardization and simplification of work, and differential piece wage system.
  18. 18.  Around 1920s, management researchers gave a close look at the human factor at work and the variables that affected people’s behaviour. Before that, Hugo Munsterberg wrote a book on ‘Psychology and Industrial Efficiency’ which suggested the use of psychology in the field of personnel testing, interviewing, attitude measurement, learning, etc.  This brief period was termed as ‘Industrial Psychology Era’. In 1924, a group of professors from Harvard Business School, USA, began an enquiry into the human aspects of work and working conditions at Hawthorne plant of Western Electric Company, Chicago.
  19. 19.  They concluded that in order to have better productivity, management should take care of human relations besides the physical conditions at the workplace. Consequently, the concepts of social system, informal organization, group influence, and non-logical behaviour entered the field of management of personnel.
  20. 20.  In contrast to human relations which assume that happy workers are productive workers, the behavioural scientists have been goal and efficiency- oriented and consider understanding of human behaviour to be the major means to that end. They have tried several sophisticated research methods to understand the nature of work and the people in the work environment.  Major conclusions of the contributions made by behaviouralists are as follows:  i. People do not dislike work. If they have been helped to establish objectives, they will want to achieve them. In fact, job itself is a source of motivation and satisfaction to employees.  ii. Most people can exercise a great deal of self-direction and self-control and generate more creativity than required in their current job. Therefore, their untapped potential remains unutilized.
  21. 21.  iii. Managers’ basic job is to use untapped human potential in the organization.  iv. Manager should create a healthy environment wherein all persons can contribute to the best of their capacity. The environment should provide a healthy, safe, comfortable, and convenient place to work.  v. Managers should provide opportunity for self-direction by their subordinates and they must be encouraged to participate fully in all important matters.  vi. Operating efficiency can be improved by expanding subordinate influence, self- direction, and self control.  vii. Work satisfaction may improve as a ‘by-product’ of subordinates making full use of their potential.
  22. 22.  Behavioural science era led to the development of two-way communication, participation of employees in decision making, joint goal-setting, group dynamics, management development, and management of change in the organization. These contributions of behavioural science era are backbone of behavioural approach of human resource management even in the present context.
  23. 23.  Systems and contingency approach has attracted maximum attention of thinkers in management in the present era. It is an integrated approach which considers management of human resources in its totality based on empirical data. The basic idea of this approach is that analysis of any object must rely on a method of analysis involving simultaneous variations of mutually-dependent variables. This happens when systems approach is applied in managing human resources.
  24. 24.  When the factory system was applied in production, large number of workers started working together. A need was felt that there should be someone who should take care of recruiting, developing, and looking after welfare of these workers. For this purpose, industrial relations department came into existence in most of the large organizations which was concerned mostly with workers.  With the increasing competition for market share, competition for resources including human talents, and increased knowledge in the field of managing human resources, people were not treated merely as physiological beings but socio-psychological beings as a prime source of organizational effectiveness and large organizations changed the nomenclature of their personnel department to human resource ‘department to reflect the contemporary view.
  25. 25.  Even the American Society for Personnel Administration, the largest professional association in the field of human resource management, changed its name to the Society for Human Resource Management in 1990. At the academic level, similar pattern was followed and the title of personnel management course was changed to human resource management. Since then, the expression is gradually replacing the hackneyed term ‘personnel management’.
  26. 26.  The history of modern Human Resource Management began with the efforts of Robert Owen. Owen is called the founder of Human Resource Management. In 1813, he wrote a book, A New View of Society. In it he propounded the need for better industrial relations and improvements in the service conditions. His attitude towards workers was very cordial, liberal and paternalistic.  He got good houses constructed for his workers by the side of his factory. He eliminated child labour and provided healthy working conditions. J.S. Mill, Andrew Yule and Charles Bewarage, contemporaries of Robert Owen, developed Human Resource Management as a science and supported the idea of wage incentives, profit sharing and labour welfare, etc.
  27. 27.  During the last year of the 19th century arrived the age of efficiency and productivity movement. The two decades from 1900 to 1920 were the years of scientific management movement. Taylor’s Scientific Management Thought was accepted during this period. Taylor opposed the idea of trade unionism and workers’ organization.  The main contribution of these two decades has been the increase in the size of units, introduction of scientific thinking into actions, job analysis, standards costing, scientific selection and training of workers and the idea of mental revolution.
  28. 28.  Up to 1925, the Human Resource Management had taken a definite form. Staff line organization became the basis of Human Resource Management. The opposition of scientific management movement by workers introduced the need of industrial psychology.  Industrial psychologists developed many new techniques like psychological testing, interviewing, workers training and non-financial incentives. They helped to give a professional form to Human Resource Management. The Human Resource Management began to be realized as a profession and a specialist’s function.
  29. 29.  When Prof. Elton Mayo and his companions conducted Hawthorn experiments, it was the beginning of recognition of the fact that human resources have greater influence on production than other psychical resources. A worker must be treated as a human being. His social, psychological and moral instincts should be fully recognized by the management.  Due to these experiments the commodity concept of labour changed to social concept. The decade of 1940-1950 was very important for the development of Human Resource Management. During that decade, many new techniques were developed for the selection, training and induction of workers. The human resource philosophy became people-oriented. Trade unions flourished and provision of fringe benefits for the workers became common.
  30. 30.  The history of Human Resource Management since 1950 up to current times is the age of modern developments. It is the period of the citizenship concept of labour where the workers have full right to be consulted in determining the rules and regulations under which they work.  After 1960, the Human Resource Management began to be realized as a behavioural science which centred completely on human elements with the study of organizational behaviour as its main crux.  After 1970s the belief of ‘open social and industrial system’ became very popular for business organizations. In modern times, Human Resource Management is fully recognized as a profession dealing with the management of human resources.
  31. 31.  1. Labour Welfare Stage: 2. Personnel Management Stage: 3. HRM Stage:
  32. 32.  Formal beginnings of HRM may have emerged from industrial disputes and conflicts. An enquiry on determining reasons for industrial disputes and conflicts gave light to several problems related to living and working conditions of employees across industries. This enquiry highlighted limitations of businesses that perceived human resources as machines for obtaining increased productivity and more profits at lower costs.  Workers worked long hours in strenuous working conditions that led to the formation of trade unions. These trade unions focused on protecting and promoting workers’ interests but faced resistance from the management of businesses thus leading to industrial disputes and conflicts.
  33. 33.  When labour welfare issues were provided legal assurances, organisations began focusing on behavior of employees at all levels at an individual, group and overall organisational basis.  A “Personnel” was appointed to manage the employee-employer relationship by managing issues related to human resource planning, recruitment and selection, training and development, performance and potential appraisal, promotions, transfers, quality of working life, compensation, compliances to labour laws and legislations.
  34. 34.  Human Resource Management or HRM is a mix of labour welfare and personnel management.  HRM aims at maximising employee performance in accordance to the objectives set by an organisation.  HRM is a result of increasing organisational size, changing social and cultural norms, easy access to information (via technology) and globalisation. Accordingly, it attempts to build worker-employees relationship more humanely through motivation, training and development, retention, worker protection, etc.
  35. 35. The field of Human Resource Management began, formally, in the early days of the 20th century. At the outset, research and practice in the field were virtually synonymous, and there were clear links between the two. But there seems to be consensus that research and practice have diverged over recent decades and there have been numerous papers that have pointed this out, and which have also suggested ways to bring the two sides into better alignment. The present paper joins the ranks of those who have noted this divergence, but we also propose a model of the forces leading to that divergence that deal with forces operating on both researchers and managers. This analysis results in some different conclusions about the nature of the divergence, as well as suggestions for how to bring the two sides back together.
  36. 36.  The first recorded modern case of dedicating a separate unit or department for HRM is from 1901 in USA. The National Cash Register Co. fought and won a battle with unions, but the president of the company realized that something had to be done to prevent such battles in the future. He therefore organized a personnel department dedicated to improving worker relations by properly handling employee grievances, discharges, safety and other employee issues.  Before 1914, Ford was paying its unskilled workers $2.34 for a nine-hour day of physically demanding work. First line supervisors were responsible for hiring employees, but the low wages and demanding work resulted in an annual turnover rate of 400%, which meant these managers were devoting a lot of time and effort to hiring.  When Ford raised the wages paid to $5.00 for an 8 hour day in 1914, the number of applicants became so overwhelming that Ford set up an Employment Department to handle hiring.
  37. 37.  Things began to change with the Hawthorne Studies (Mayo, 1933; Roethlisberger, 1934; Roethlisberger & Dickson, 1943), carried out by Western Electric between 1927 and 1935, at its Hawthorne plane near Chicago (by then, the First World War had already given birth to basic selection tests, but we will discuss that further below). The details of those studies are well-known and don't bear repeating here, but they gave rise to what became known as the Human Relations Era. What is important to note, however, is that the Hawthorne Studies and the resulting Human Relations movement argued that employee attitudes were related to productivity. Thus, major companies began to see some potential value in keeping their employees happy, and this task fell to the personnel department. Of course, by the 1930s organized labor began to grow in the U.S., and employers concluded (as did National Cash Register some years earlier) that, not only might “happy” workers be more productive, they might also less likely to join unions. Thus, by the 1940s, self-contained personnel departments were becoming much more common, and they were charge with hiring and developing employees, as well as making sure they were kept relatively happy.
  38. 38.  The Second World War brought renewed interest in finding ways to maximize the match between persons and jobs, and psychologists were employed to help screen, select and place soldiers. When the war ended, these practices were transferred to the private sector, and so personnel practices became more sophisticated.  The post-war growth of labor unions resulted in more complex benefits that had to be administered as well, and so the personnel function became even more sophisticated. But, for all that, personnel departments were seen as necessary evils rather than as valued contributors to the organization, and the “best and the brightest” rarely went into personnel.
  39. 39.  The 1964 passage of the Civil Rights Act was a game changer for the personnel function. Now organizations realized that they could be sued (for very large amounts) if they did not follow the law regarding how people were recruited, selected and then treated on the job (See, for example, Arvey & Faley, 1988, for a review of the major court cases involved). Companies could no longer use the personnel department a dumping ground for ineffective employees — now they needed trained professionals to make sure they obeyed the law while still functioning as a profitable enterprise.
  40. 40.  By the 1980s, more enlightened managers came to realize that, if they hired the “right” people, trained them and reward them properly, these employees could actually be the source of some competitive advantage. This resulted in employees being seen as assets, or resources, rather than simply as costs, and thus we began referring to them as human resources, and the personnel managers became known as Human Resource (HR) Managers.  The importance of these human resources grew in importance as global competition became more serious, until by the end of the 20th century, HR managers were finally being considered more as strategic partners rather than as simple compliance officers. Although there was still a way to go before they would all be considered true strategic partners, this is the role that more HR managers are moving into today (Lawler & Mohrman, 2003).
  41. 41.  Research in HR began in organizations, and was aimed at solving organizational problems. That is, not only was there no divergence between research and practice, the two were in fact in perfect alignment. Just prior to the First World War, Binet and Simon had developed the first standardized Intelligence tests in France, and in 1913, Hugo Munsterberg published his book (Munsterberg, 1913),which was the first to systematically apply psychological principles to the work setting.  When the United States prepared to enter the war the government hired psychologists to administer intelligence tests used to classify new recruits. After the war, research on performance appraisal began with field studies examining ways to reduce halo error in ratings (e.g., Rudd, 1921; Thorndike, 1920). Also, the Hawthorne Studies themselves were conducted by academicians trying to improve productivity.
  42. 42.  Studies conducted throughout the 1930s continued to be closely tied to practice and many were concerned with new ways to select employees (e.g., Strong, 1938; Wonderlic & Hovland, 1939). Early texts, such as Scott, Clothier, and Spriegel (1941) used findings from studies conducted in organizations to make recommendations for how employees should be selected, placed and evaluated, and World War II brought research and practice even closer. These close ties continued through the 1950s and early 1960s, with many studies continued to be devoted to developing new and better selection techniques (see, for example, Guion, 1965), improving interviews (e.g., Bolster & Springbett, 1961; Daniels & Otis, 1950), and developing better ways to measure performance at work (e.g., Kay, Meyer, & French, 1965; Taylor & Wherry, 1951).  These topics dominated academic journals such as Personnel Psychology and the Journal of Applied Psychology, and the vast majority of the studies conducted involved real employees in real organizations. It also seemed to be the case for research conducted primarily by scholars who identified themselves as being interested in Industrial Relations, and those who identified themselves as being
  43. 43.  Through most of the 1960s and early 70s, as noted above, it was the Civil Rights Act and various court cases arising from that law, which drove much of the research agenda (e.g., Gael & Grant, 1972; Humphreys, 1973; Moore, Mac Naughton, & Osburn, 1969), but this only served to strengthen the ties between HR research and practice. Also, during this period, researchers began investigating even more sophisticated methods for conducting job analysis(e.g.McCormick,Jeanneret,&Mecham,1972) for conducting interviews (e.g., Mayfield & Carlson, 1966) for training employees (e.g., Campbell & Dunnette, 1968; Moses & Ritchie, 1976), for assessing performance at work (e.g., Blanz & Ghiselli, 1972; Smith & Kendall, 1963), and, given the problems of establishing the job relatedness of selection systems which suffered from adverse impact, new and improved approaches to test validation also became quite popular (e.g., Pearlman, Schmidt, & Hunter, 1980; Schmidt, Ones, & Hunter, 1992).
  44. 44.  In most cases, the close relationship between research and practice remained and was fairly obvious. To illustrate this, we randomly chose a back issue of Personnel Psychology, and reviewed the contents of the March, 1966 issue. There nine articles, all dealing with selection, validation, or equal employment issues; there were twelve authors, and only one – Norman Maier – was an academician (from Michigan) and his paper was about attempts to deceive in interviews. This may have been an exception, but the next issue (June 1966), consisted of three papers on some aspect of performance appraisal, and four on some aspect of job satisfaction; of the thirteen authors involved, five were from industry or consulting, and eight from academia, including a paper co-authored by a consultant and Columbia University professor (also, see more detailed analysis in Cascio & Aquinis, 2008).
  45. 45.  Thus, historically, there was no gap between research and practice in HR. Many of the individuals writing scholarly papers were either practicing managers, or were academicians with close ties to management consulting. But, in 1959, two reports were published that, over time, would change things dramatically. The reports by Gordon and Howell (1959), and Pierson (1959) would have an enormous impact on Business education in colleges and Universities.
  46. 46.  Beginning sometime in the late 1970s, and escalating thereafter, HR research began to move away from HR practice. Some (e.g., Bennis & O'Toole, 2005) specifically blame to the two 1959 reports for this trend and for therefore leading Business Schools astray from their true mission. But, in any case, business research became increasingly theory-driven, and case studies were less valued at most schools. Many new faculty came from psychology or economics with strong theories, but no experience in management of HR. Business schools were gaining academic credibility within their University communities, but it came at the price of alienating them from practicing HR managers.
  47. 47.  Time Selling a new program to top management and then implementing that program takes time, and time is a very scarce commodity for most HR managers. A recent survey by ADP (No Author, 2010) indicated that HR managers spent as little as 14% of their time administering the human resource function. The other 86% was from various areas such as employment and benefits packages, while, as little as 7% of the HR managers time was spent on training and development. Given such a situation, where would the HR manager find time to sell a new program — never mind implement it? Therefore, HR managers would have to be very sure about a potential new program before they would be willing to invest time and effort into seeing it implemented, and so most potential contributions from the academic literature are likely to be ignored, regardless of their possible merits. Perhaps this situation would change if HR managers became true strategic partners.
  48. 48.  Money In addition to taking time, many potential contributions to HR practice would be expensive to implement. Proposals such as developing more structured interview formats and training interviewers (cf., Huffcutt & Culbertson, 2011) cost time and money. It is also costly to carry out a model predictive validity study to ensure that selection tests are job related (see discussion in Schmitt & Ruchi, 2011; also see American Educational Research Association, American Psychological Association, & National Council on Measurement in Education, 2009), even though there is a substantial body of research to support their effectiveness. As a result, firms are not likely to divert resources away from other activities to support these proposals, unless there is sufficient reason to do so. As noted above, sufficient reason may require the practices to be adopted by already legitimate firms.
  49. 49.  The Law Concerns over legal entanglements are another important factor limiting the potential adoption of HR practices from the academic literature. HR managers learn something about employment law, but top management typically relies upon corporate lawyers for legal advice rather than on the HR manager.
  50. 50.  The bottom line Organizational decision-makers also require clear evidence that a new intervention by human resource management will benefit the organization and the executive. Top management executives are not likely to be persuaded to adopt a practice simply because some academic research suggests it is somehow “better” — they need to see how it will impact the bottom line (and, perhaps, their pay). It is often easier to show how selection systems impact the bottom line and therefore there is more willingness by top managers to adopt new selection techniques — except when they also fear legal repercussions. We will discuss some proposals from academia that have been adopted, later in the paper, but many of these are directly linked to productivity and/or firm performance.
  51. 51.  Decision-making style The decision-making style of the senior management may also affect the likelihood that new HR suggestions are adopted for practice. For example, Brousseau, Driver, Hourihan, and Larsson (2006), found that the highest compensated CEOs adopted a flexible style of decision-making which included quick decision with an integrative thinking style which means to look at all information available to them for making that quick decision.
  52. 52.  International HR  Social Responsibility and Sustainability  Diversity
  53. 53.  It is clear that, as competition becomes global, and as multinational corporations (MNCs) become more important, there will be an increasing need for research dealing with international HR topics. Traditionally, this has translated into a focus on managing expatriate assignments and, although international HR must go beyond this (and is doing so), there is still a great deal we do not know about determinants of expatriate success. Interestingly, the first thing we don't know is how to define expatriate success. For many years, the measure of success was simply whether or not the expatriate completed his (or occasionally, her) assignment.  In addition, several scholars have begun focusing on the host country national (HCN) rather than on the expatriate alone (e.g., Toh & DeNisi, 2003, 2007). Host country national were seen as almost irrelevant for many years, and that view may have been somewhat justified by the assumption that a firm sent an expatriate because there was no one locally who could perform the job. But, as developing nations build their own workforces; this is not always the case.
  54. 54.  This may well be one of the most important areas for HR research in the future. U.S. firms have not been as concerned with social responsibility and sustainability as firms in other parts of the world — especially in Latin America, but this is changing.  We need to know much more about how to develop and sustain a culture of social responsibility in a firm. We need to understand how to select, train, and reward people so that they will behave in ways that support the goals of social responsibility and sustainability.  There is almost no existing research on these topics, and so this represents an exciting new direction for HR research. In essence, it would mean expanding the domain of criterion variables for staffing and compensation to include these additional outcomes.
  55. 55.  Managing diversity in the workforce will continue to be an area where more research is needed. But the nature of that research may be changing a bit. In the U.S., diversity research is mostly concerned with race and gender of the workforce and, while these issues will continue to be important, diversity is becoming a more complex issue in today's world. Surely, we will need more research on dealing with transgendered members of the workforce.
  56. 56.  In the Human Resource Management (HRM) field, review articles typically consider only some of the “trees”, but lack the scope to provide a synthetic overview of the “forest” of HRM scholarship. In particular, HRM review articles typically focus on examining the contents of a small number of articles on a specific topic or research question.  As such, scholars are likely to have a fragmented and incomplete view of the field overall, which may result in research silos, redundant research efforts, and lost opportunities for meaningful conversations between topic areas. Moreover, narrow, disconnected, and incomplete views of the HRM field can limit scholars' ability to detect research opportunities.
  57. 57.  This review is based on a rigorous analysis of 12,157 systematically identified HRM research articles published over >23 years.  HRM Map: a) 1702 topics in HRM scholarship, b) the number of articles on each topic, c) topic relations, trends, and impact, and d) five systematically identified, major HRM topic clusters. Systematically identify 100 specific topics with the greatest discrepancy in emphasis between HR practitioner-oriented writing versus academic HRM
  58. 58.  ..Readings1 Mapping HRM.pdf  The HRM Map has four different map views which each provide different information.  First, the “Network visualization” of the map indicates the five systematically identified clusters of related topics (i.e. topic areas) by the color of the topic nodes.  A second way of viewing the HRM Map can be seen by clicking the “density visualization” tab above the map image.  A third way of viewing the map can be seen by clicking the “Overlay Visualization” tab above the map image.  A fourth view allows the viewer to explore the citation impact associated with each topic