Download THE HRM SYSTEM Human resource

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=rByDmC0Sqt
M
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=FjfvvFg1
D14
FEATURES OF HRM
Strategic:
Coherent:
Commitment:
Integrate business
and HR strategy
Integrated and
mutually supporting
HR policies and
practices
Emphasis on gaining
commitment to the
organization’s mission
and values
People
treated as
assets:
Unitarist
approach:
Line managers
deliver HRM:
Management and
employees share
the same interests
Belief that HRM is
essentially the
responsibility of line
managers
Focus on developing
human capital
Task - FEATURES OF HRM in your own words
Strategic
People treated as
assets:
Coherent
Unitarist
approach:
Commitment
Line managers
deliver HRM:
Mini Plenary
Development
» Each group will research 1 of these models
and prepare an electronic presentation for
the class.
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˃
˃
˃
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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 and
conditions
• management
philosophy
• labour market
• unions
• task technology
• laws and social
values
HRM policy
choices:
• employee influence
• human resource
flow
• reward systems
• work systems
HR outcomes:
• commitment
• competence
• cost-effectiveness
Long-term
consequences:
 individual wellbeing
• Organizational
effectiveness
• societal wellbeing
Source: M Beer et al, Managing Human Assets, The Free Press, 1984
THE MATCHING MODEL OF HRM
The matching model of HRM as developed by Fombrun, Titchy,
and Devanna (1984) is illustrated below.
Rewards
Selection
Performance
management
Performance
Development
Adapted from Fombrun et al, Strategic Human Resource Management, Wiley, 1984
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
HR
effectiveness
Business strategy
HR practices
HR outcomes:
employee
competence,
commitment
and flexibility
Quality of
goods and
services
Financial
performance
Productivity
HR strategy
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.
THE BATH PEOPLE AND PERFORMANCE
MODEL
Training and
development
Recruitment and
selection
Pay
satisfaction
Performance
management
Career
opportunity
Job security
Ability and skill
Motivation and
incentive
Work–life
balance
Front-line
management:
- Implementing
- enacting
- leading
- controlling
Organizational
commitment
Discretionary
behaviour
Motivation
Job satisfaction
Performance
outcomes
Opportunity to
participate
Job challenge/
autonomy
Teamworking
Involvement
Source: J Purcell et al, Understanding the People
and Performance Link, CIPD, 2003
Communications
Common features – Model Analysis
Mini Plenary
Goals
GOALS OF HRM
Enhance
motivation,
commitment
and job
engagement
Achieve high
performance
through
people
Attract and
retain the
skilled,
committed and
motivated people
required
Improve
knowledge
sharing
Increase
capabilities
and potential
Achieve
human capital
advantage
Value
people
according
to their
contribution
Develop a
co-operative and
productive
employee
relations
climate
Mini Plenary
Diversity
VERSIONS OF HRM
Soft
Hard
Emphasis on the need
to develop a highcommitment, high-trust
organization – focus
on ‘mutuality’,
communication and
involvement
Treating employees
‘rationally’
as as a key resource
from which competitive
advantage can be
obtained
Using you knowledge of human
motivation theories which we
discussed last week. Suggest how
these approaches view human
motivation
Hard/soft
Using a mix of hard and soft
approaches
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.
Mini Plenary
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
Enhance
motivation,
commitment
and job
engagement
Achieve high
performance
through
people
Attract and
retain the
skilled,
committed and
motivated people
required
Improve
knowledge
sharing
Increase
capabilities
and potential
Achieve
human capital
advantage
Value
people
according
to their
contribution
Develop a
co-operative and
productive
employee
relations
climate
THE HRM SYSTEM
Human resource management:
philosophy, strategy, policies, processes
and practices
Human
capital
management
Corporate
social
responsibility
Organization
People
resourcing
Learning and
development
Reward
management
Employee
relations
Design
Human resource
planning
Organizational
learning
Job evaluation
and market surveys
Industrial
relations
Development
Recruitment &
selection
Individual
learning
Grade and pay
structures
Employee
voice
Job design
Talent
management
Management
Development
Contingent
pay
Communications
Knowledge
management
Health and safety
and welfare
HR services
Performance
management
Employee
benefits
Mini Plenary
• 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’.
Mini Plenary
» 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?
Mini Plenary
 List 3 things you have learnt today
 Identify 3 things you need to study in more
depth
 On a scale of 1-10 (10 being high) how
confident are you with your understanding of
today’s topics?