Lecture-1 Concept of HRM

8/8/2019 Lecture-1 Concept of HRM

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HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE MANAGEMENT

DefinitionDefinition--1:1: (John Storey, 1995) Human resource(John Storey, 1995) Human resourcemanagement is a distinctive approach to employmentmanagement is a distinctive approach to employmentmanagement which seeks to achieve competitivemanagement which seeks to achieve competitiveadvantage through the strategic deployment of a highlyadvantage through the strategic deployment of a highlycommitted and capable workforce, using an integratedcommitted and capable workforce, using an integrated

array ofarray ofCultural, structural and personal techniques.Cultural, structural and personal techniques.

DefinitionDefinition--2:2:A strategic and coherent approach to theA strategic and coherent approach to themanagement of an organisation`s most valued assetsmanagement of an organisation`s most valued assets--the people working there who individually andthe people working there who individually andcollectively contribute to the achievement of itscollectively contribute to the achievement of itsobjectives.objectives.

Key Concepts:Key Concepts:

Distinctive approach to employment managementDistinctive approach to employment management Competitive advantageCompetitive advantage Deployment of committed & capable workforceDeployment of committed & capable workforce

A strategic and coherent approachA strategic and coherent approach


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VERSIONS OF HRMVERSIONS OF HRM

John Storey (1995), in New Perspectives on Human resourceJohn Storey (1995), in New Perspectives on Human resourcemanagement, made a distinction between two versions ofmanagement, made a distinction between two versions ofHRM.HRM.

1.1. HARD HRM: It emphasises the need to manage people inHARD HRM: It emphasises the need to manage people inways that will obtain added value from them and thusways that will obtain added value from them and thusachieve competitive advantage. Thus it concentrates onachieve competitive advantage. Thus it concentrates onquantitative, measurable criteria, control and performancequantitative, measurable criteria, control and performancemanagement. The hard approach emphasises:management. The hard approach emphasises:

The interests of managementThe interests of management Adopting a strategic approach that is closely integrated withAdopting a strategic approach that is closely integrated with

business strategybusiness strategy

Obtaining added value from people by the process of humanObtaining added value from people by the process of humanresource deployment and performance managementresource deployment and performance management The need for a strong corporate culture expressed in missionThe need for a strong corporate culture expressed in mission

and value statements and reinforced by communications,and value statements and reinforced by communications,training and performance management process.training and performance management process.


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VERSIONS OF HRM(CONTINUEDVERSIONS OF HRM(CONTINUED))

2. SOFT VERSION2. SOFT VERSION::The soft model of HRM is basedThe soft model of HRM is basedupon human relations school and is identifiedupon human relations school and is identifiedby Storey as involving `treating employees asby Storey as involving `treating employees asvalued assets, a source of competitivevalued assets, a source of competitive

advantage through their commitment,advantage through their commitment,adaptability and high quality.adaptability and high quality.

The need to gain commitment of employeesThe need to gain commitment of employees The interests of management and employeesThe interests of management and employees

should coincideshould coincide Integration and team workIntegration and team work


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DEVELOPMENT OF HRM CONCEPTDEVELOPMENT OF HRM CONCEPT

HRM CONCEPTSHRM CONCEPTS

US MODEL THE UK MODEL THE JAPANESE

MODEL

Matchin

g ModelHarvard

Model David Guest John Storey

?


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THE US MODELTHE US MODEL

1.1. THE MATCHING MODEL: the human resourceTHE MATCHING MODEL: the human resourcesystem and organisation structure shouldsystem and organisation structure shouldmatch with organisational strategy.match with organisational strategy.

2.2. THE HARVARD MODEL:THE HARVARD MODEL: HRM is based on central philosophy andHRM is based on central philosophy and

strategic visionstrategic vision HRM involves all management decisions andHRM involves all management decisions and

action that affect the nature of theaction that affect the nature of therelationship between the organisation and itsrelationship between the organisation and itsemployees.employees.

A longer term perspective in managingA longer term perspective in managingpeople and consideration of people aspeople and consideration of people aspotential assets rather than variable costs.potential assets rather than variable costs.

Mutual interests.Mutual interests.


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THE CRITICISMSTHE CRITICISMS

MATCHING MODEL: The concept of FIT has beenMATCHING MODEL: The concept of FIT has beencriticised on a number of fronts:criticised on a number of fronts:

A number of writers have commented thatA number of writers have commented thatbusiness strategy dictates HR strategy.business strategy dictates HR strategy.

Business strategy is formulated in a rationalBusiness strategy is formulated in a rationalway, by the top down approach.way, by the top down approach.

A perfect match between business strategyA perfect match between business strategyand Hr strategy might not be to theand Hr strategy might not be to theadvantage of the organisation as a whole.advantage of the organisation as a whole.

It ignores the complex nature of humanIt ignores the complex nature of humanbeings and the possibility that workers andbeings and the possibility that workers andtheir unions might influence strategictheir unions might influence strategicplanning.planning.


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THE UK MODELTHE UK MODEL

1.1. DAVID GUEST:has taken the Harvard Model andDAVID GUEST:has taken the Harvard Model anddeveloped it further by defining 4 policy goals:developed it further by defining 4 policy goals:

Strategic IntegrationStrategic Integration High CommitmentHigh Commitment High QualityHigh Quality

FlexibilityFlexibility2. John Storey; suggests four aspects which constitute the2. John Storey; suggests four aspects which constitute the

meaningful version of HRMmeaningful version of HRM

HRM is constellation of beliefs & assumptionHRM is constellation of beliefs & assumption The central involvement of line managersThe central involvement of line managers

A strategic thrust informing decisions about peopleA strategic thrust informing decisions about peoplemanagementmanagement Reliance upon a set of levers to shave the employmentReliance upon a set of levers to shave the employment

relationshiprelationship


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CHARACTERISTICS OF HRMCHARACTERISTICS OF HRM

It is top management driven and managementIt is top management driven and managementoriented activityoriented activity

It emphasises the need for strategic fitIt emphasises the need for strategic fit--thetheintegration of business and HR strategiesintegration of business and HR strategies

It is commitment orientedIt is commitment oriented It can take either hard or soft formIt can take either hard or soft form It is performance orientedIt is performance oriented Employee relations are unitarist rather thanEmployee relations are unitarist rather than

pluralist, individual rather than collective, highpluralist, individual rather than collective, hightrust rather than low trusttrust rather than low trust

Reward according to performance,Reward according to performance,competence or skills.competence or skills.

Lecture-1 Concept of HRM

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