SHRM Models and Concepts
description
Transcript of SHRM Models and Concepts
1
Session 2 – SHRM: models and concepts
2
What is HRM?
“The term personnel management [describes] the policies, processes and procedures involved in the management of people in work organisations..primarily concerned with employment regulation … the ways in which people are selected, appraised, trained, paid, disciplined” (Sisson, 1989)
“The main dimensions of HRM [involve] the goal of integration [with business strategy and between HR policies], the goal of employee commitment, the goal of flexibility, the goal of quality”(Guest, 1987)
3
Defining Human Resource Management
Generic approach: – Performs personnel management activities
Distinctive approach:– Carries out people-oriented organisational
activities.
4
The human factor
‘Managing people’ is an impossibility (Watson, 2001)
When people go to work their intentions are to use the organisation for their own ends as the organisation is concerned to use them
Negotiated Order and Contested Terrains (Edwards, 1983; Silverman, 1970)
5
The human factor (2)
“[PM] is concerned with assisting [senior management] to meet their purposes by obtaining the work effort of humans, exploitation of those efforts and dispensing with them when they are no longer required. Concern may be shown with welfare, justice or satisfaction, but only insofar as this is necessary for controlling interests to be met and always at least cost.” (Watson, 1986)
6
The human factor (3)
SHRM is “the means of aligning the management of human resources with the strategy of the business” (Walker, 1992)
“SHRM aims to provide a sense of direction in an often turbulent environment so that organisational needs can be translated into coherent and practical policies” (Armstrong and Long, The Reality of Strategic HRM, 1994)
Aligning the Organizational Strategy with HRM / HRD strategy
Aligning employee expectations with strategyAligning employee expectations with strategy
Defining human resource issuesDefining human resource issues
Developing human resource strategiesDeveloping human resource strategies
Managing the HR function
Sharing successSharing success
Enabling and evaluating performance
Enabling and evaluating performance
Developingeffectivemanagers
Developingeffectivemanagers
Designing the organisation
Designing the organisation
Definingstaffingneeds
Definingstaffingneeds
Strategicstaffing
Strategicstaffing
DevelopingcapabilitiesDevelopingcapabilities
Source: Walker, 1992, p. 12
8
Managing organisations strategically
Strategies are patterns that emerge over time (planned and unplanned) to allow the organisation to carry on into the future (Quinn, 1980; Mintzberg, 1994)
“The application of over-rationale, linear programmes of HRM as a means of securing competitive success is shown to be at odds with experience in the UK and elsewhere” (Whipp, 1992:33)
In short, integrating human resourcing with broader strategies is highly complex
9
Managing HR strategically
Leopold, et al (2005:21) suggest that “ … strategic human resourcing must involve the establishing of clear principles about ‘how people are to be treated’ and the shaping of practices that implement these values and principles”.
10
Generic term: HRM objectives
Organisation: Job design and role building Resourcing: HR planning, R & S Performance management: agreed objectives and
employment assessment HRD: Training and Development Reward management: pay and other benefits Employee Relations: communication, industrial
relations, employee involvement and participation.
11
HRM roles and objectives
staffing
Line mgrs
Consultantsadvisers
Sub-contractors
HRSpecialists
HRGeneralists
admin
Change mgt
performance
HRM
Models of the HR Function How should HR be organised as a function to be
most effective?
Karen Legge (1978) identified 3 types of ‘personnel’ practitioners:– Conformist innovator – helps the organisation
achieve its objectives through cost saving, increasing productivity and reducing conflict.
– Deviant innovator – stands outside the conventional organisation aims. Independent, innovative, challenging. Modern examples may be proposals on work-life balance, engagement, knowledge management.
– Problem solver – conventional role providing day to day assistance to line managers.
13
Personnel vs. HRM (Guest, 1987)
Personnel Mgt HRM
Time and planning perspective
Short term, reactive, ad hoc marginal
Long term, proactive, strategic, integrated
Psychological contract Compliance Commitment
Control systems External controls Self- control
Employee relations perceptive
Pluralist, collective, low trust Unitarist, individual, high trust
Preferred structures/systems
Bureaucratic/mechanistic, centralised, formal defined
roles
Organic. Devolved, flexible roles
Roles Specialist/professional Largely integrated into line mgt
Evaluation criteria Cost minimisation Maxi utilisation (human asset accounting)
14
HRM Roles (Storey, 1992)
Strategic
Tactical
Intervention Non-Intervention
ChangeMaker
Advisor
Regulator Facilitator(handmaiden)
15
HRM vs. Personnel Management
More strategic Integrated Managerial Unitarist Individualistic Aimed at achieving organisational goals and
maximising competitive advantage
The Development of Personnel / HRM
Key environmental developments– Internal developments External developments
Social system Economic globalisation
Technical system Technological development
The social reformer – mid 19C – Robert Owen – exploitation - managers
The acolyte of benevolence – Welfare Officer – Cadbury – commitment
The humane bureaucrat – Scientific mgt – maximise efficiencies – Personnel
The consensus negotiator - +WW2 – expertise – TU – collectives
Organisation man – late 60s – integration with mgt
Manpower analyst – 80s – manpower planning
HRM – 84 / Asset Mgt – 2000+
17
HRM Strategy development1. Separation Model
Torrington, et al (2005) point to 5 ways in which the relationship between business strategy and HRM strategy is played out:
1. Separation model: no relationship
OrganisationalStrategy
HRStrategyNo relationship
18
HRM Strategy development2. ‘Best’ Fit (Contingency) Model
OrganisationalStrategy
HRStrategy
Growing recognition of the importance of people in the achievement of organisational strategy.
(Unitarist) E.g., Fombrum, et al, (1984) [slides 17 & 18]; Schuler & Jackson (1987)
19
External Fit (Vertical Integration)(HR policies support business strategy)
EconomicForces
PoliticalForces Cultural
Forces
Mission and Strategy
OrganisationStructure
HRM
Trainingand
development
Appraisal
The Michigan HR resource cycle
Effectiveselection
Employeeperformance
Rewardsfor
performance
21
Internal Fit (Horizontal Integration)(HR policies are consistent with each other)
Selection Appraisal
Rewards
Training
Performance
22
HRM Strategy development3. Dialogue Model
OrganisationalStrategy
HRStrategy
This requires the need for two-way communication and some debate. Thus,
feasibility of the chosen strategy choice and alternative possibilities are analysed (pluralist)
23
HRM Strategy development4. Holistic Model
OrganisationalStrategy
HRStrategy
People in the organisation are the key to competitive advantage. HR Strategy is not just the means for achieving organisationalStrategy (the ends), but an end in itself. HR strategy becomes critical. Baird et al, (1983) ‘there can be no strategy without HR
strategy’. Boxall (1996) develops this idea in relation to the ‘resource based form’, Where mutual development of strategies
is key.
24
HRM Strategy development5. HR driven Model
OrganisationalStrategy
HRStrategy
If people are the key to competitive advantage, then we need to build on our people strengths. Here, if the potential of an
organisation's people affects the achievement of any plannedStrategy, it would be sensible to take account of this
When developing the strategic direction. Butler (1988/89), a shift from human resources as the implementors of strategy to the
drivers of strategy (resource based)
25
3 Theoretical Perspectives
1. There is ‘one best way’ (Universalist approach) of managing human resources in order to improve business performance
2. There is a need to ‘align’ (fit) employment policies / practices with the requirements of business strategy in order that the latter will be achieved. Thus, different HR strategies needed for different business strategies
3. Resource Based View – focus on the quality of human resources available to the organisation and their ability to learn and adapt more quickly than their competitors
26
Universalist approach(Guest 1989)
Strategic integration: ensuring HRM is fully integrated into strategic planning and that line managers use HRM practices
– Commitment: ensuring employees feel bound to the organisation and are committed to high performance via their behaviour
– Flexibility: ensuring an adaptable organisation structure, and functional flexibility based on multiskilling
27
Universalist approach(Guest 1989) (2)
– Quality: ensuring a high quality of goods and services through high-quality, flexible employees
One model of labour management – a high-commitment model – is related to high organisational performance, in all contexts, irrespective of the particular competitive strategy of the organisation
Is this too prescriptive / are goals attainable (Purcell, 1991) / what of internal tensions (Ogbanna & Whipp, 1999)
The Harvard model of HRM
Stakeholderinterests
Situationalfactors
HRM policychoices
HRoutcomes
Long termconsequences
29
Harvard Model of HRM (Beer et al. 1984)
Stakeholder interests
Shareholders
Management
Employee groups
Government
Community
Unions
Situational factors
Workforce characteristic
Business strategy & conditions
Management philosophy
Labour market
Unions
Task technology
Laws and societal values
HR policy choices
Employee influence
Human resource flow
Rewards systems
Work systems
HR outcomes
Commitment
Competence
Congruence
Cost effectiveness
Long term consequences
Individual well being
Organisational effectiveness
Societal well being
30
“Best Fit”: SHRM
Fit or contingency approach (Fombrun et al. 1984)– External or vertical fit: HR policies support
business strategy
– Internal or horizontal fit: HR policies are consistent with each other
31
Resource-Based Approach(Boxall, 1996)
Concerned with the relationships between internal resources (human resources are only one), strategy and firm performance. The focus is not just on the behaviour of human resources (fit approach), but on the skills, knowledge, attitudes and competencies which underpin this
Briggs & Keogh (1999): business excellence is not just about ‘best practice’ or ‘leapfrogging the competition’, but about the intellectual capital and business intelligence to anticipate the future, today.
32
Resource-Based Approach(Barney, 1991)
States that in order for a resource to result in sustained competitive advantage it must meet four criteria:
1. Valuable – matching competencies with needs of the firm
2. Rarity – cognitive ability
3. Inimitable – history and difficulty of duplication (culture)
4. Non-substitutable – over time may become unique and transferable across other products
33
Resource-Based Approach(Wright, et al (1994)
BusinessStrategy
ExternalForces
HRM Strategy& Practices
Employee Skills,
AbilitiesEmployeeBehaviour
BusinessPerformance
(Sustained CA)
34
Problems matching HR to business strategy (Armstrong & Long)
Evolutionary nature of business strategy The absence of a clear business strategy The qualitative nature of HR issues
– such as commitment, motivation
National Legal requirements– override any strategic requirements
Businessstrategy
HRstrategy
HR effectiveness
HRpractices
HRoutcomes
Quality of goodsand services
Productivity
Financialperformance
Possible links between HRM and business performance
Adapted from Guest et al (2003)
Role of HR
Organisational PerformanceThe Rational (Hard) – Emotional balance (Soft)
Corporate strategy
Results (Performance)
Successful HRM prescriptions6 key requirements for HR departments to add value and ensure organisational survival (Rucci 1997) :
Create change – eliminating unnecessary rules and encouraging flexibility and risk-takingDevelop principled leaders – courage and ethicsPromote economic literacy and ‘big picture’ thinking amongst managersCentre on the customer – external customer centred activity in performance reviews, promotion criteria and reward decisionsMaximise service/minimise staff – to internal customers at minimum costSteward the values – not just ‘values police’ but embedding values in R&S, training, performance management and reward.
See case study AEHN p71 Kew & Stredwick
39
References
Armstrong, M (2001) A Handbook of Human Resource Practice, 7th Edition, Kogan Page, Chapters 3 &19 Beardwell, I. & Holden, L. (2001) HRM: A Contemporary Approach (3rd edn) Harlow, FT/Prentice Hall Chs
1 & 2 Boxall, P. and Purcell, J. (2008) Strategy and HRM cited in Kew, J. and Stredwick, J. (2010, 4) Human
Resource Management in a Business Context. London, CIPD Collins, J. C. & Porras, J. I. (1998) Built to Last, London: Century Ltd Guest, D., J. Michie, N. Conway and M. Sheehan (2003) 'Human resource management and corporate
performance in the UK', British Journal of Industrial Relations, 41, 2, June. p. 291-304. Higgs, M,. & Dulewicz, V. (2002) Making Sense of Emotional Intelligence, ASE, Granada Learning Ltd Kew, J., and Stredwick, J., (2010) Human Resource Management in a Business Context, London, CIPD Mintzberg, H. (1998) The Structuring of Organisations in Mintzberg, H., Quin, J.B. and Ghoshal, S., The
Strategy Process. Hemel Hempstead, Prentice Hall Europe. Torrington, D, Hall, L and Taylor, S (2005) Human Resource Management, 6th edition, Prentice Hall,
Chapters 1&2 Walton J, (1999), Strategic Human Resource Development, 1st edition, Pearson Education, Chapter 5 Watson J, Harris L, Leopold J, (2005), The Strategic Management of Human Resources, 1st edition, FT
Prentice Hall, Chapter 1