Evolution of Human Resource Management and Human Resource Information Systems The Role of Information Technology by Mohan Thite Michael J. Kavanagh

CHAPTER OBJECTIVES

After completing this chapter, you should be able to

Describe the historical evolution of HRM, including the changing role of the

human resources (HR) professional

Discuss the impact of computer technology on the evolution of HRM

Describe the three types of HR activities

Explain the relationship between strategic HRM and HRIS

Explain the purpose and nature of HRIS as well as the differences between

the types of HRIS

Discuss the use of information from an HRIS in decision making

Describe the central themes of the book and how they relate to managerial

decision making

Understand how HRM and HRIS fit into a comprehensive model of organizational

functioning

Introduction

Leading management thinkers suggest that “it is not technology, but the art of humanand

humane-management” that is the continuing challenge for executives in the

21st century (Drucker, Dyson, Handy, Saffo, & Senge, 1997). Similarly, Smith and Kelly

(1997) believe that “future economic and strategic advantage will rest with the organizations

that can most effectively attract, develop and retain a diverse group of the

best and the brightest human talent in the market place” (p. 200).

In general, to maintain a competitive advantage in the marketplace, firms need to

balance the resources available to the firm to achieve the desired results of profitability

and survival. The resources that are available to the firm fall into three general

categories: physical, organizational, and human. In discussing how to gain a competitive

advantage in the global market, Porter (1990) noted that management of the

human resources is the most critical of the three. The idea of treating human resources

as a means of gaining a competitive advantage in both the domestic and the global

marketplace has been echoed by other authors. As Greer (1995) states,

In a growing number of organizations human resources are now viewed as a source of

competitive advantage. There is greater recognition that distinctive competencies are

obtained through highly developed employee skills, distinctive organizational cultures,

Chapter 1 Evolution of HRM and HRIS 5

management processes, and systems. This is in contrast to the traditional emphasis on

transferable resources such as equipment. . . . Increasingly, it is being recognized that competitive

advantage can be obtained with a high quality work force that enables organizations

to compete on the basis of market responsiveness, product and service quality,

differentiated products, and technological innovation. (p. 105)

The effective management of human resources in a firm to gain a competitive

advantage in the marketplace requires timely and accurate information on current

employees and potential employees in the labor market. With the evolution of computer

technology, meeting this information requirement has been greatly enhanced

through the creation of HRIS. A basic assumption behind this book is that the management

of employee information will be the critical process that helps a firm maximize

the use of its human resources and maintain competitiveness in its market.

The first purpose of this book is to provide information on the development, implementation,

and maintenance of an HRIS. The second purpose is to demonstrate how an

HRIS can be used in HRM programs, such as selecting and training employees, to make

them more efficient and effective. The final purpose is to provide an opportunity for you

to apply your knowledge through the analysis of the cases at the end of each chapter.

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