Page 24 - DCOM207_LABOUR_LAWS

Unit 2: Labour Laws, Industrial Relations and Human Resource Management

product or service market, the political environment, environmental concerns, technological Notes
change, employment regulations, organisational psychology and social trends.
The Human Resource Management (HRM) function of an organisation manages the individual
aspects of the employment relationship - from employee recruitment and selection to international
employment relations, salaries and wages. HRM is a complex blend of science and art, creativity
and common sense. At one level, HR practice draws on economics, psychology, sociology,
anthropology, political studies, and strategic and systems thinking. At an operational level,
success depends on interpersonal relationships. HR professionals are often the “go to” people
in an organisation for advice and information. When things go wrong employees rely on the
integrity and ability of HRM staff to manage and advice on issues without taking sides. They
may also train and develop staff to ensure the business performs well, that it meets its goals and
continually improves within legislative frameworks. HRM practitioners also keep up-to-date
with legislation and analyse contemporary employment issues.

Industrial relations are also a multidisciplinary field that studies the collective aspects of the
employment relationship. It is increasingly being called employment relations (ER) because of the
importance of non-industrial employment relationships. IR has a core concern with social justice
through fair employment practices and decent work. People often think industrial relations is
about labour relations and unionised employment situations, but it is more than that. Industrial
relations covers issues of concern to managers and employees at the workplace, including
workplace bargaining, management strategy, employee representation and participation, union-
management co-operation, workplace reform, job design, new technology and skill development.
An IR expert will more usually work for a trade union in order to represent employees’ interests.
However, they may work for an employer in an HRM department, or for an employers’
association or consultancy, serving the employers’ interests. Major tasks of HRM and IR are:
hiring staff, negotiation of employment contracts and conditions, performance management and
reward systems, dispute resolution, disciplinary processes, ensuring health and safety of staff,
employee motivation, design of work, team and organisation restructuring, and training and
development.
HRM practitioners are responsible not only for the smooth running of processes but also at a
senior level for the bigger picture planning, strategising and policy-making as they affect staff
and employment relationships. Senior HRM practitioners can take a lead in advising on the where
and the how of an organisation’s direction - on the staffing, skills and training requirements to get
there and on the communication or influencing processes needed to pave the way. For example,
an organisation establishing online services will require a certain skill set to deliver this. The HR
function will assess current staff capability, their training needs, and the options if some staff
is unable to meet requirements. Managers in a company may also fulfill many HRM functions.
Smaller businesses may not employ HRM professionals. Instead they may use HRM consultants
as needed, or do it themselves with variable success.
Self Assessment

State whether the following statements are true or false:
5. Human resource management is about managing people so that businesses are competitive
and successful.

6. IR has a core concern with social justice through fair employment practices and decent
work.
7. HRM practitioners are responsible only for the smooth running of processes.
8. The Human Resource Management (HRM) function of an organisation manages the
individual aspects of the employment relationship.

LOVELY PROFESSIONAL UNIVERSITY 19