HUMAN RESOURCE MANAGEMENT

Concepts and Theories

This presentation has been adapted from part of a range of resources offered free to academics and/or students using Armstrong’s Essential Human Resource Management Practice as part of their course.

Assessment

•Exam•Report

THE CONCEPT OF HRM: Objectives

» Task: Find 2 (recent) definitions.

At the end of this session you will need to select 1 of these and explain why you think it is the best one

https://www.youtube.com/watch?v=rByDmC0SqtM

HUMAN RESOURCE MANAGEMENT DEFINED

Human resource management (HRM) is a strategic and coherent approach to the management of an organization's most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives.

https://www.youtube.com/watch?v=FjfvvFg1D14

FEATURES OF HRM

Strategic:Integrate business and HR strategy

Coherent:Integrated and mutually supporting HR policies and practices

Commitment:Emphasis on gaining commitment to the organization’s mission and values

People treated as assets:Focus on developing human capital

Unitarist approach: Management and employees share the same interests

Line managers deliver HRM:Belief that HRM is essentially the responsibility of line managers

Strategic Coherent

Commitment

People treated as assets:

Unitarist approach:

Line managers deliver HRM:

Task - FEATURES OF HRM in your own words

Mini Plenary

Development

» Each group will research 1 of these models and prepare an electronic presentation for the class.

˃ Definition of model˃ Purpose of model˃ Explain model˃ Give real-world example of model˃ Link to theories and information from last week

THE HARVARD FRAMEWORK

Stakeholder interests:• shareholders• management• employees• government• unions

Situational factors:• workforce

characteristics• business

strategy andconditions

• management philosophy

• labour market• unions• task technology• laws and social

values

HRM policy choices:• employee influence• human resource

flow• reward systems• work systems

Long-termconsequences: individual well-

being• Organizational

effectiveness• societal well-

being

HR outcomes:

• commitment

• competence

• cost-effectiveness

Source: M Beer et al, Managing Human Assets, The Free Press, 1984

THE MATCHING MODEL OF HRM

SelectionPerformancemanagement

Rewards

Development

Performance

Adapted from Fombrun et al, Strategic Human Resource Management, Wiley, 1984

The matching model of HRM as developed by Fombrun, Titchy, and Devanna (1984) is illustrated below.

This resource is part of a range offered free to academics and/or students using Armstrong’s Essential Human Resource Management Practice as part of their course. For more academic resources and other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.

THE DAVID GUEST MODEL OF THE LINK BETWEEN HRM AND PERFORMANCE

Business strategy

HR strategy

HR practices

HR outcomes:employee

competence, commitment and flexibility

Quality ofgoods and

services

Productivity

Financialperformance

HReffectiveness

Source: Guest et al, Effective People Management, CIPD, 2000

This resource is part of a range offered free to academics and/or students using Armstrong’s Essential Human Resource Management Practice as part of their course. For more academic resources and other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.

Work–lifebalance

Ability and skill

Motivation andincentive

Opportunity toparticipate

Front-line management:- Implementing- enacting- leading- controlling

Organizationalcommitment

Motivation

Job satisfaction

Discretionarybehaviour

Performanceoutcomes

Training anddevelopment

Performancemanagement

Career opportunity

Job security

Recruitment andselection

Paysatisfaction

Job challenge/autonomy

Teamworking Involvement

Communications

THE BATH PEOPLE AND PERFORMANCE MODEL

Source: J Purcell et al, Understanding the People and Performance Link, CIPD, 2003

Common features – Model Analysis

Mini Plenary

Goals

Achieve high performance

throughpeople

GOALS OF HRM

Enhance motivation, commitment

and jobengagement

Achieve human capital

advantage

Improveknowledge

sharing

Attract and retain the

skilled,committed and

motivated people required

Increasecapabilities

and potential

Value people

accordingto their

contribution

Develop a co-operative and

productive employee relationsclimate

Mini Plenary

Diversity

This resource is part of a range offered free to academics and/or students using Armstrong’s Essential Human Resource Management Practice as part of their course. For more academic resources and other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.

VERSIONS OF HRM

HardTreating employees

‘rationally’ as as a key resource

from which competitiveadvantage can be

obtained

SoftEmphasis on the need

to develop a high-commitment, high-trust

organization – focus on ‘mutuality’,

communication and involvement

SoftEmphasis on the need

to develop a high-commitment, high-trust

organization – focus on ‘mutuality’,

communication and involvement

Hard/softUsing a mix of hard and soft

approaches

Using you knowledge of human motivation theories which we

discussed last week. Suggest how these approaches view human

motivation

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Philosophy

The human resource gives competitive edge

The aim is to enhance employee commitment

HR decisions are of strategic importance

HR policies should be integrated into the business strategy. Storey (2001)

» In your groups research the underpinning theories and write a short paragraph about each one

» Link the Goal Model to the underpinning Theories

Achieve high performance

throughpeople

Enhance motivation, commitment

and jobengagement

Achieve human capital

advantage

Improveknowledge

sharing

Attract and retain the

skilled,committed and

motivated people required

Increasecapabilities

and potential

Value people

accordingto their

contribution

Develop a co-operative and

productive employee relationsclimate

THE HRM SYSTEM

Human resource management: philosophy, strategy, policies, processes

and practices

Organization

Design

Development

Job design

People resourcing

Learning anddevelopment

Reward management

Employeerelations

Human resourceplanning

Recruitment &selection

Talent management

Organizationallearning

Individuallearning

ManagementDevelopment

Job evaluationand market surveys

Grade and paystructures

Contingentpay

Employeebenefits Health and safety

and welfareHR services

Performance management

Industrial relations

Employee voice

Communications

Knowledgemanagement

Corporatesocial

responsibility

Humancapital

management

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•Guest (1991: 149) referred to the ‘optimistic but ambiguous label of human resource management’.

•‘The HRM rhetoric presents it as an all or nothing process which is ideal for any organization, despite the evidence that different business environments require different approaches’. (Armstrong, 2000: 577)

» HRM is simplistic - as Fowler (1987:3) wrote: The HRM message to top management tends to be beguilingly simple.

» Don't bother too much about the content or techniques of personnel management, it says. Just manage the context.

» Get out from behind your desk, bypass the hierarchy, and go and talk to people. That way you will unlock an enormous potential for improved performance.

•The unitarist/managerialist approach to industrial relations implicit in HRM prompted Fowler (1987:3) to write:

•At the heart of the concept is the complete identification of employees with the aims and values of the business - employee involvement but on the company's terms.

•Power in the HRM system, remains very firmly in the hands of the employer. Is it really possible to claim full mutuality when at the end of the day the employer can decide unilaterally to close the company or sell it to someone else?

•HRM is 'macho-management dressed up as benevolent paternalism' (Legge, 1998: 42).

•HRM is manipulative, Wilmott (1993: 534) asserted that: ‘any (corporate) practice/value is as good as any other so long as it secures the compliance of employees’.

•Oxterby and Coster (1992: 31) asserted that: ‘The term ‘human resources’ reduces people to the same category of value as materials, money and technology – all resources, and resources are only valuable to the extent they can be exploited or leveraged into economic value’.

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» Develop and successfully implement high-performance work practices, particularly those concerned with job and work design, flexible working, resourcing, employee development, reward and giving employees a voice.

» Formulate a clear vision and set of values (the ‘big idea’) and ensure that it is embedded, enduring, collective, measured and managed.

» Develop a positive psychological contract and means of increasing the motivation and commitment of employees.

Source: J Purcell et al, Inside the Box: How people management impacts on organizational performance, CIPD, 2003

» Formulate and implement policies that meet the needs of individuals and ‘create a great place to work’.

» Provide support and advice to line managers on their role in implementing HR policies.

» Manage change effectively.

https://www.youtube.com/watch?v=jWdovBCWTF0

Source: J Purcell et al, Inside the Box: How people management impacts on organizational performance, CIPD, 2003

At a meeting of trustees the chief executive of a medium-sized charity proposed that a director of human resources should be appointed.

Two trustees protested that the term‘human resources’ implied that employees would just be treated as factors of production not as people.

How would you respond?

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List 3 things you have learnt today Identify 3 things you need to study in more

depthOn a scale of 1-10 (10 being high) how

confident are you with your understanding of today’s topics?