THE DEFINITION AND SCOPE OF HUMAN RESOURCE

MANAGEMENT
Approved at a plenary meeting of stakeholders on 27 September 1999

INDEX

• ORIGIN OF THIS DOCUMENT

• THE STANDARD-SETTING CYCLE
• PROCESS FOR INITIAL FIELD ANALYSIS AND STANDARD GENERATION
• PURPOSE AND STATUS OF THIS DOCUMENT
• INFLUENCES OF A CHANGING ENVIRONMENT
• DEFINITION OF HUMAN RESOURCE MANAGEMENT
• THE SCOPE OF HUMAN RESOURCE MANAGEMENT
• UNPACKING ROLES

o PLANNING AND ORGANISING FOR WORK, PEOPLE AND HRM

o PEOPLE ACQUISITION AND DEVELOPMENT
o ADMINISTRATION OF POLICIES , PROGRAMMES & PRACTICES
• LIST OF REFERENCES
• Annexure 1: Members of Sub-Committee
• Annexure 2: Stakeholders and Role-Players
• Annexure 3: Implications of findings by Terry Meyer 1998

ORIGIN OF THIS DOCUMENT

Top of page

On 13 August 1998 a plenary meeting of stakeholders in the education, training and development of the human
resource management sub-field competencies established a steering committee to drive the process of generating
education and training standards for this purpose according to the process and requirements set out by the South
African Qualifications Authority (SAQA) in the National Standards Bodies Regulations, 1998.

At its first meeting the Steering Committee clarified for itself that human resource management is a sub-field of
Business, Commerce and Management Studies, which is the organising field of National Standards Body 03.

The Steering Committee established a sub-committee to develop a conceptual framework within which the setting of
standards and design of qualifications for human resource management competencies as envisaged by the various
regulations and guidelines issued by the South African Qualifications Authority can take place. The sub-committee
also had to propose a process for the setting of standards. This document outlines such a conceptual framework and
process. It is the result of workshop meetings and comments by the steering committee members and selected
stakeholder groups on a first draft of this document. Annexure 1 lists the members of the sub-committee.

The next section briefly outlines the standard-setting methodology within which the sub-committee’s initial field
analysis is situated.

Top of page

THE STANDARD-SETTING CYCLE

The standard-setting methodology developed by the Education, Training and Development Practices Project is taken
as a departure point to devise an appropriate process for generating human resource management standards and
qualifications. The model has eight components:
 1. establishing the political and technical processes for standard-setting;
2. undertaking a field analysis
3. developing the qualification structure
4. developing the progression paths
5. determining the standards required
6. writing the standards
7. designing uses for the standards
8. revising the standards and qualifications.

Chapter 7 of the Final Report of the Education, Training and Development Practices Project (see the List of
References below) describes each of these components in more detail.

Figure 1

The components may be seen as a cycle (see Figure1): they follow one after the other and the last component
returns to the first. However, many components run in parallel once they have been started. For example, the first
component - establishing the political and technical processes to undertake standard-setting - is present throughout
the cycle. Also, there is a view in the sub-committee that work on components 5 and 6 could precede or run in
parallel with work on components 3 and 4. The work of the Standard Setting Groups proposed in this document will
clarify this through action research.

The next section discusses the steps to devise a framework through an initial field analysis (component 2), and to
prepare for the work required for components 3 to 7.

Top of page

PROCESS FOR INITIAL FIELD ANALYSIS AND STANDARD GENERATION

The sub-committee decided to undertake an initial field analysis through the following actions (which are not
necessarily to be done in sequential order):
 1. Define the HRM sub-field in the Business, Commerce and Management context and, more specifically, in
the context where HRM is practised.
2. Analyse the current HRM field.
3. Analyse the potential HRM field taking into account Transformation and Development issues. This activity
is likely to include national and international research to determine Transformation and Development issues
and best or preferred practice.
4. Identify stakeholders and role-players (see Annexure 2 for an explanation of how these terms are
understood in this document) for the listed activities. Pragmatically, it is not that all stakeholders and role
players will be involved in all activities, however, it is suggested that the whole HRM scope, in terms of
stakeholders or role players, is covered in carrying out all the activities.
5. Identify HRM roles (current and potential) requiring unit standards. Generalist and specialist roles should
be identified at various levels and within the different domains of HRM. This activity should keep in mind
career paths in the various domains of HRM and the potential to move from one HRM domain to others
6. Identify supportive HRM roles ( ancillary) requiring unit standards.
7. Describe the shift from current to future roles and the supportive competencies that HRM practitioners
should master.
8. Develop a work flow analysis ( project management) for the activities listed.

Top of page

PURPOSE AND STATUS OF THIS DOCUMENT

The purpose of this document is to provide a tentative framework for the definition of the field of HRM and
delineation of the field within which HRM practitioners work. Within the document, typical roles assumed by HRM
practitioners are identified, as well as sub-domains within each of the roles. The document is not intended to provide
a definitive description of HRM but rather an initial framework that can serve as a starting point for reaching
consensus on the definition and scope of HRM. The framework is for submission at the plenary session where
general input is invited. Once consensus is reached regarding a definition and description of key roles played by
either line management or by HRM professionals at different levels, the framework will be submitted for
registration as the definition and scope of human resource management. Once registration of the intended definition
and scope is complete, experts in each of the proposed roles will generate more detailed unit standards for each role.
In addition to the roles identified, transformation and development issues as well as generic human resource skills
have been identified.

In arriving at the definition and the scope, inputs were gathered from both academics and HRM practitioners, to
ensure that both theoretical and practical perspectives are reflected. Previous drafts were circulated amongst the
Steering Committee members and some HRM professionals. Their constructive comments are gratefully
acknowledged, and will continue to improve this initial framework in an iterative way.

Top of page

INFLUENCES OF A CHANGING ENVIRONMENT

To define and describe the scope of human resource management requires an understanding of the influences that
the changing environment in which human resource management is situated have on human resource management
systems and roles.

For this reason, a brief survey is given of aspects of the environment that were taken into account when compiling
the definition and scope of human resource management. The process followed in arriving at the definition and
scope will also be outlined.

The organisational context

The organisational context in which HRM finds itself at present is one of rapid change and
considerable uncertainty. As various views of HRM were placed on the table and discussed, it
became apparent that this sub-field of management is in a phase of transition. In the context of
traditional organisational structures, HRM was placed as a function within a "silo", as were other
organisational functions; for example finance, production and marketing. However, a turbulent
environment has brought a concurrent change in organisational structures and the nature of HRM
and its functions are in the process of change. Many organisations are now structured around
multi-disciplinary project teams with the HRM professional as one member of the team or as
consultant to the team, and where line managers take on various HRM roles. Figures 2 & 3
illustrate these developments. See also Annexure 3 for a summary of the results of a recent survey
by Terry Meyer (1998) on the future role of human resources management in South Africa.

Top of page

The nature of Human Resource Management Roles

Human resource management is also in the process of change with regard to the nature of the role
performed. In the past many functions were performed by HRM professionals themselves, the role
they are taking on, is one of consultant to line management, where line managers perform many of
the functions traditionally handled by HRM professionals. Similarly there is a trend in which
businesses are shedding all functions that are not directly related to core business, and in the
process many HRM functions are being outsourced. Hence the change in the nature of services
provided.

The activity of generating unit standards and designing qualifications can be used as an
opportunity to catapult HRM practices into the future. To do this, those issues which are going to
shape the future for HRM practices (termed transformation and development issues) need to be
identified and analysed, especially in relation to current roles that will still be required of HRM
practitioners. These issues are central to the activity of generating unit standards (e.g. outsourcing,
societal responsibility) and their impact on HRM roles (e.g. staffing, performance management).
In addition, supportive roles or functions required by HRM practitioners will also have to be
identified in order to complete the HRM practitioners qualifications design package (e.g.
Financial, IT). This description may be depicted as in Figure 4.

Top of page

Dimensions of Human Resource Management involvement

As part of the overall change in the nature of HRM, the extent of involvement by the HRM
function in the lives of individuals and the community is increasing. Traditionally the focus was
limited to employees in the organisation. However with a greater awareness of the importance of
well-being and the role of family and community in determining well-being, the Human Resource
Management function needs to be involved more widely than before. This impact reaching the
broader community and includes involvement in socio-economic activities and legislation issues.
Figure 5 illustrates the greater involvement required of human resource managers.
Now that the background against which the definition and scope have been developed, has been outlined, the
definition and scope will be discussed.

Top of page

DEFINITION OF HUMAN RESOURCE MANAGEMENT

It is proposed that we take human resource management to be that part of management concerned with:

• all the decisions, strategies, factors, principles, operations, practices, functions, activities and methods
related to the management of people as employees in any type of organisation (including small and micro
enterprises and virtual organisations);

• all the dimensions related to people in their employment relationships, and all the dynamics that flow from
it (including in the realisation of the potential of individual employees in terms of their aspirations);

• all aimed at adding value to the delivery of goods and services, as well as to the quality of work life for
employees, and hence helping to ensure continuous organisational success in transformative environments.

Top of page

THE SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of human resource management outlined below includes an outline of transformation and development
issues, tentative generic skills required in performing HRM roles, as well as the roles of a human resource
management practitioner (line management and HRM professionals). With regard to the latter, the assumption is
made that roles are inter-linked and interdependent, even though these relationships may not be expressly stated in
each case.

Transformation and development issues

• • Knowledge management which entails accumulating & capturing

 • • Knowledge in large organisations for future application & use (organisation
memory)
• • Reconciliation management
• • Work creation as opposed to job creation
• • Manage the transfer of HRM functions and skills to line management
• • Marketing of HRM to line management
• • Development of contextual approaches to HRM
• • Multi-skilling and /or multi-tasking
• • Increased societal responsibility
• • Managing people in virtual work environments
• • Focus on deliverables rather than doables
• • Develop additional means of assessing HRM
• • Appreciation and assessment of intellectual capital
• • Take HRM from a business partner to a business itself / Managing HRM as a
business unit
• • Adviser / consultant to line management

Supportive generic skills

This is not intended to be final outline of human resource skills but the following have emerged
during the process as important skills for human resource practitioner to possess. These are:

• • Project management
• • Consulting skills
• • Entrepreneurship
• • Self management
• • Communication skills
• • Facilitation skills
• • Presentation skills
• • Skills for transforming groups into self-directed mutually controlled high
performing work teams
• • Trans-cultural skills
• • Mediation & arbitration skills
• • Financial skills
• • Problem-solving
• • Diagnostic skills

Core roles in Human Resource Management

The core roles of human resource management are grouped below into four categories. The titles
of the clusters are tentative, and are open for comment.

  PLANNING AND ORGANISING FOR WORK, PEOPLE AND HRM

  Strategic perspective
  Organisation design
  Change management
  Corporate Wellness management

  PEOPLE ACQUISITION AND DEVELOPMENT

  Staffing the organisation
  Training & development
  Career Management
  Performance Management
  Industrial relations

  ADMINISTRATION OF POLICIES , PROGRAMMES & PRACTICES

   Compensation management
  Information management
  Administrative management
  Financial management

Top of page

UNPACKING ROLES
The roles listed above are now described in terms of broad functions, activities and outcomes to illustrate more or
less what the descriptions will look like once the Standard Generating Groups begin to work with each role in detail.

PLANNING AND ORGANISING FOR WORK, PEOPLE AND HRM

 STRATEGIC PERSPECTIVE
 Develop Human Resource plans and strategies aligned to the organisation’s strategic direction. and
business strategy. Provide tools and tactics to enhance execution of these strategies
 Integrate HRM with current and pending legislation and socio-political changes.
 Integrate Human Resource Management with general organisational management.
 Manage the interface between HRM processes and systems.
 Formulate and communicate HRM policies.
 Act as the conscience of employer with respect to people issues.
 Scan the environment (both international and national) and identify emerging trends that will affect the
organisation and the management of people therein.
 Assess the long-term impact of short-term decisions on people.
 Manage people related issues accompanying mergers, alliances and acquisitions.
 Express (embody) the philosophy and values regarding people management in the organisation.

 ORGANISATIONAL DESIGN
 Analyse work processes and recommend improvements where necessary.
 Recommend options for organisational design & structure.

 CHANGE MANAGEMENT
 Advise management on implications of change for employees.
 Co-ordinate & facilitate the change process.
 Facilitate changed relationships.
 Provide support structures for employees during change.
 Deliberate and proactive management of the changing environment and its implications for work and the
organisation.

 CORPORATE WELLNESS MANAGEMENT

 Develop and communicate policies and procedures with regard to the management of wellbeing
 Manage occupational health and safety
 Manage wellbeing (Employee Assistance programs & Health Promotion programs)

Top of page

PEOPLE ACQUISITION AND DEVELOPMENT

 STAFFING THE ORGANISATION

As an example, each of the functions of this role is further unpacked in terms of activities.
 Human Resource Planning (linked to strategic perspective)

• • Determine long-term human resource needs.

• • Assess current resources.
• • Identify areas of need.

Determining requirements of jobs

• • Appoint a representative committee with the task of conducting the job analysis.
• • Decide on the use of job analysis information.
• • Decide on the sources of job analysis information.
• • Decide on the method for job analysis.
• • Review the information.
• • Based on the outcomes of the job analysis, write job descriptions and job
specifications

Recruitment of staff for the organisation

• • Develop & implement recruiting strategy bearing in mind relevant legislation.

• • Decide whether recruitment will take place externally or internally.
• • Select methods of the recruitment (for example job posting, personnel agencies &
advertising)
• • Engage in recruitment.

Selection of human resources

• • Develop and implement selection strategy in line with relevant legislation.

• • Select appropriate tools for selection.
• • Validate selection tools in line with legislation.
• • Provide selection short list for line management to make a decision.

Placement of staff

• • Place staff in ways that will have the potential to benefit both organisation and
employee

Induction and orientation

• • Act as a facilitator for induction and orientation of new employees

Management of a-typical employment situations.

Management of termination

• • Advise management regarding the strategic implications of terminating employment

relationships.
• • Conduct exit interviews.
• • Develop a plan to replace competence lost.
• • Analysis of staff turnover and advise management on pending problems and
corrective action (where necessary).

 TRAINING & DEVELOPMENT

 Develop a training & development strategy according to the requirements of legislation and with the
improvement of productivity and delivery as outcome.
  Conduct a training needs-assessment including the assessment of prior learning and write training &
development objectives based on the outcome thereof.
 Conduct training & development.
 Evaluate training & development with regard to the return on investment.
 Promote training & development in the organisation.

 CAREER MANAGEMENT
 Design and implement a career management program aimed at integrating individual aspirations and
organisational needs & realities.
 Manage career-related issues in the organisation for example women, affirmative action and management
of diversity with attention to legislation in this regard.
 Manage career-related issues surrounding organisational restructuring, downsizing & outplacement
including provision of support.

 PERFORMANCE MANAGEMENT
 Design and implement a performance management system linked to relevant HRM systems and aimed at
contributing directly to the business strategy.
 Assess performance.
 Use outcome of performance assessment as the basis for decision-making in areas mentioned in point 1.
 Management of individual as well as collective labour (organisational) performance.

 INDUSTRIAL RELATIONS
 Develop and communicate industrial relations policies and procedures in line with legislation.
 Involvement in grievance and disciplinary hearings
 Lead negotiations (where necessary).
 Implement termination procedures
 Assessment and management of organisational climate and employee relations
 Liaison with trade unions
 Implementation of outcomes of collective bargaining and negotiation

Top of page

ADMINISTRATION OF POLICIES , PROGRAMMES & PRACTICES

 COMPENSATION MANAGEMENT
 Develop compensation strategies and policies in line with legislation and the organisation’s business
strategy.
 Attach meaningful monetary values to posts in the organisation ensuring that the organisation’s
compensation is in line with market forces (this may be by means of traditional job evaluation or other
methods such as skill or competency based pay).
 Develop appropriate compensation systems for the organisation.
 Manage overall labour costs.

 INFORMATION MANAGEMENT
 Provide current information regarding employees to be used in the decision-making process and
measurement of HRM’s contribution to the organisation.
 Advise management regarding trends emerging from the data.
 Conduct HRM research with the aim of solving problems in the organisation.

 ADMINISTRATIVE MANAGEMENT
 Provide integrated HRM administration that is speedy & cost effective to receiver & administrator.
 Integrated employee data management

 FINANCIAL MANAGEMENT
 Manage the budget for HRM functions (Training and development, IR compensation, Employment Equity).
  Negotiate maximal funds for HR.
 Add value to the organisation by demonstrating a sound understanding of the complexity of business.
 Measure the financial impact of human resource systems.

Top of page

LIST OF REFERENCES
Alvares, K.M. (1997). The Business of Human Resources. Human Resource Management, 36(1), 9-16.

Anderson, R.W. (1997). The Future of Human Resources: Forging ahead or falling behind, Human Resource
Management, 36(1), 17-22.

Bahrami, H. & Evans, S. (1997). Human Resource Leadership in Knowledge-Based Entities: Shaping the Context of
Work. Human Resource Management, 36(1), 23-28.

Beatty, R.W. & Schneier, C E. (1997). New HR Roles to Impact Organisational Performance: From Partners to
Players. Human Resource Management, 36(1), 29-38.

Becker, B.E.,; Huselid, M.A. Pickus, P S. & Spratt, M.F. (1997). HR as a Source of Shareholder Value: Research and
Recommendations. Human Resource Management, 36(1), 39-47.

Carrell, M.R.; Elbert, N.F. & Hatfield, R.D. (1995). Human Resource Management: Global strategies for
managing a diverse work force. Englewood-Cliffs, NJ: Prentice-Hall.

Carrell, M.R.; Elbert, N.F. ; Hatfield, R.D.; Grobler, P.A.; Marx, M. & Van der Schyf, S. (1996). Human Resource
Management in South Africa. South Africa: Prentice-Hall.

Education, Training and Development Practices Project (1998). Final Report October 1998. National Training
Board and German Technical Co-operation.

Kruger, S. J.; Smit, E. & Le Roux, W.L. du P. (1996). Basic psychology for Human Resource Practitioners. Cape
Town: Juta.

McLagan, P. (1998). The HR Output Menu. In IPM Member Brief. May 1998.

Mohrman, S.A. & Lawler, E.E. (III). (1997). Transforming the Human Resource Function. Human Resource
Management, 36(1), 157-162.

Pieters, M. A. (Ed.). (1997). Textbook for Human Resource Practitioners. Pretoria: Kagiso.

Sacht, J.; Baird, M.; Vetter, K. & Whyte, G. (1990). Generic competency model for human resource
practitioners. Paper published by the South African Board for Personnel Practice.

Ulrich, D. (1997). Judge me more by my future than by my past. Human Resource Management, 36(1), 5-8.

Ulrich, D. (1997). HR of the Future: Conclusions and Observations. Human Resource Management, 36(1), 175-
179.

Top of page

Annexure 1: Members of Standards Generation and Qualifications

Design Sub-Committee
Chairperson: Stella Carthy
Members: Anne Crafford, Frank Groenewald, Seddick Jappie, Dirk Lambrecht, Nomsa Mdakane, Thandeka
Mgoduso, Marianne Scott, Pius Nkonyane, Prof Dries Schreuder, Prof Ben Swanepoel

Facilitators: Dr Andries Lategan, Elsabé Smit

Top of page

Annexure 2: Stakeholders and Role-Players

The standard setting pilot projects in South Africa found it useful to use the terms stakeholder and role-player in the
way described below.

• Stakeholders represent all the various interested parties within the standard-setting project (and at a micro
level, within an organisation) and should include groups such as management, owners, employees, unions,
customers, suppliers etc. Their role is to make sure the proposed qualifications satisfy the needs of the
various groups within the project. It is vital that the Stakeholder group represents all stakeholders. The
process will collapse if some stakeholders are excluded.
• Role-players are practitioners in the field where the standards are to be set, as well as people on whom
their practice impacts, e.g. employees, those who are taught and those to whom human resource managers
report. The composition of role-player group should also satisfy the stakeholders (i.e. the stakeholders
should feel that they have some form of representation amongst the role-players). The role-player group for
a specific standard setting activity should not be more than 15 people.

Top of page

Annexure 3

The nature of HR management in the first

decade of the 21st century
Implications of findings by Terry Meyer 1998

The key findings are summarised as answers to four questions:

1. What are the key contextual issues facing business in South Africa?

• Business is under pressure to enhance individual and corporate performance

• Business has to position itself in respect of corporate citizenship and to influence government policy and
legislation
• People in business are faced by rapid change, ambiguity and complexity.

2. What are the major issues facing HR management/

• HRM people need to understand general management and the nature of the business, and line management
need to understand about HR management
• HRM strategy needs to be a guiding component of business strategy to provide competitive advantage
• Shifts in roles:

o line management take on HRM roles

o corporate HRM functions have shifted to national and sector policy development, corporate
strategy, compliance management, specialist services
o traditional HR manager replaced by performance consultant
 o staff become self-reliant re transactional HRM functions
o increasingly HRM functions are outsourced to SMME’s
o technology allows centralisation of "personnel department"
o the boundaries between traditional silo’s (functional divisions) are eroding with no clear
alternative demarcation – rather "virtual" teams with limited life span
o HRM practitioners inside organisations have to be generalists; specialist services are outsourced
o rigid HRM systems need to be replaced by leadership role

3. What are the primary HRM roles in South African organisations?

• Equal participant in corporate strategy process

• Facilitation of HRM strategy as integral part of corporate strategy
• Performance consultant
• Advisor to top management
• Change agent
• Facilitation of stakeholder management
• Counsellor to staff
• System and process designer
• Compliance manager
• Leader of people
• Administrator

4. What are the primary competency categories which could form the basis for a
competency model for HRM management in ?

• • A broad framework comprising four categories of competency clusters is suggested:

• • Contextual competencies
• • Functional competencies
• • Managerial and leadership competencies
• • Generic and process competencies