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ities, even in small firms, has received attention as well. Finally, growth in issues involving employee rights, such as drug testing and smoking restrictions, are affecting how HR activities are managed. The movement toward direct participation of HR executives in the strategic planning for the organization continues, with threequarters of HR executives in large panies reporting to the CEO. Further, many of those executives report major changes in their influence on strategic issues and organizational direction. TIME PERIODSUBJECT OF PRIMARY CONCERN TO MANAGEMENTMANAGERIAL PERCEPTIONS OF EMPLOYEESHR ACTIVITIESBefore 1890Production technologiesIndifference to needsDiscipline systems1890 to 1910Employee welfareEmployees need safe c onditions and economic opportunitySafety programs, Englishlanguage classes, inspirational classes1910 to 1920Task ef ficiencyEmployees need high earnings made possible with higher productivityMotion and time studies1920 to 1930Individual differencesEmployees’ individual differences consideredPsychological testing, employee counseling1930 to 1940UnionizationEmployees as management adversariesEmployee munication programs, antiunionization techniques1940 to 1950Economic securityEmployees need economic protectionEmployee pension plans, health plans, benefits1950 to 1960Human relationsEmployees need considerate supervisionSupervisor training(role playing, sensitivity training)1960 to 1970ParticipationEmployees need involvement in task decisionsParticipative management techniques ( MBO, etc.)1970 to 1980Task challengeEmployees need work that is challenging and congruent with abilitiesJob enrichment, integrated task teams, etc.1980 to 1990Employee displacementEmployees need jobs to replace those lost through economic downturns, international petition, and technology changesOutplacement, retraining, restructuring1990 to 2000Work force changes and shortagesEmployees need more flexibility in work schedules, benefits, policiesStrategic HR planning, employee rights, training, flexible benefits, puterization, etc.Figure 1 Changing Concerns of HR ManagementActivities of HR Departments Human resource management ( HRM) refers to the policies, practices, and systems that influence employees behavior, attitudes, and performance. Many panies consider HRM as involvingpeople practices. These HRM practices include determining human resource needs ( HR planning ) , attracting potential employees ( recruiting ), choosing employees ( selection ), teaching employees how to perform their job and preparing them for the future (training and development) , rewarding employees ( pensation) , evaluating their performance management and creating a positive work environment ( employee relations ). Only recently have panies looked at HRM practices as a means to contribute to profitability, quality, and other business goals through enhancing and supporting business operations. Table 1 .1 shows the activities of human resource departments. Since 1978, the average ratio of HR department staff to a total number of employees has been 1 .0 for every 100 employees severed by the department. Expenditures for HR departments have been relatively stable over the past few years. The median HR department expenditure per employee from 1994 to 1995 was $823, with education and government organizations spending the least ( $ 352 ) and transportation, munications, and utility panies the most ( $1 , 320 ). As with other business functions, HR expenditures relative to operating costs have been fairly stable over the past few years. Activities that the HR department is solely responsible for include outplacement, labor law pliance, record keeping, testing, unemployment pensation, and some aspects of benefits administration. The human resource department is most likely to collaborate with other pany functions on employment interviewing, performance management and discipline, and efforts to improve quality and productivity. Large panies are more likely than small panies to employ HR specialists, with benefits specialists being the most prevalent. Other mon specializations include recruitment pensation, and training and development.Table 1 . 1 Activities of HR DepartmentsEmployment and recruitingInterviewing, recruiting, testing, temporary labor coordinationTraining and developmentOrientationperformance management skills training, productivity enhancementCompensationWage and salary administration, job descriptions, executive pensation, incentive pay, job evaluationBenefitsInsurance, vacationleave administration , retirement plans, profit sharing, stock plansEmployee servicesEmployee assistance programs, relocation services, outplacement servicesEmployee and munity relationsAttitude surveys, labor relations, publications, labor law pliance, disciplinePersonnel recordsInformation systems, recordsHealth and safetySafety inspection, drug testing, health, wellnessStrategic planningInternational human resources, forecasting, planning, mergers and acquisitionsSource : Based on SH RMBNA Sur vey No . 60 ,Human Resource A ctivities , Budgets and Staf fs: 1994 1995 .Bulletin to Management, Bureau of National A ffairs Policy and Practice Series, June 29 , 1995 . Washington, DC: Bureau of National A ffairs. The HR function is in transition from an administrative function to a strategic business partnership. The percentage of time human resource departments are devoting to administrative roles such as maintaining records, auditing and controlling, and providing services has decreased. Advances in technology such as development of the Intranet have decreased the role of human resources in maintaining records by allowing HR services to be offered on a selfservice basis at substantially less cost than traditional facetoface services. Selfservice refers