Lecture 1: Human Resource Management Strategy and Practice

HRM
1. Has Its origins in the undelying problem facing employers
  1. Finding suitable workforce
  2. Managing workforce
2. HR differs from other factors of production
  1. not simply a commodity
  2. employees bring an ability to learn, skills, commitmemt to work
  3. variable and unpredictable
3. Management of human resources is thus focussed on"
  1. gaining control and commitment from workforce
  2. using capabilities for org
  3. Management of employment relationship
4. Definition
  1. long term perspective which focuses on the links between personnel functions and their contributions to organisational goals and objectives
    1. Human Capital: Skills, competencies and traights that people contribute
    2. does not focus on seeking compliance with rules and regulations from employees
    3. Objective- Seek employee engagment and commitment + Competitive advantage
Understanding HRM
1. Changing Employment
  1. Employment Relationship: set of overlapping Contracts (legal, social psychological)
  2. Legal: terms and conditions of work
  3. Social: Mutual obligations and expectations that employers, employees and society share for workplace relationships
  4. Psychological: Reciprocal expectations of individual employees and their managers (rights, privilidges and obligations) (fairness, trust and delivery of worthwhile relationships
2. Psychological Contract
  1. Set of expectations held by the employee specifices individual and organisation expectations
    1. Basis of day to dayrelationship between manager and employee
    2. Expecations of employer
      1. adequate training, equitable pay, quality work, contracted hours, treat property carefully
  2. Management responses
    1. policies for building accomodation and cooperation
      1. Survey feedback and engagement, focus on creation of a shared organisational culture, voice and representatioons in decisions affecting work
    2. An Equity Perspective
      1. Equity and Fair Labour Practices, Adequate Grievance Mechnisms
Scope of HRM
1. Extensive and far reaching
2. Micro: HRM effects individuals and small working groups
3. Strategic: Links HR stategies with business strategies and measures effects on Organisational performance
4. International: manahement of people in orgs operating in more than one country
5. 3 Important questions
  1. What do HRM Managers do?
    1. define threshold choices about the way the workplace is organisaed, define role of HR professionals vs Line Managers and undertake key funtions of HR
  2. What affects what they do?
    1. external include national laws, culture and instituations, orgnisational contingencies including organisational size and structure, tehcnology and market position
  3. How do they do it?
    1. Consider Managerial skills and what techniques and process should be used
HRM through Models
1. Fombrun Tichy & Devanna 1984
  1. Selection
  2. Appraisal
  3. Development
  4. Rewards
2. Warwick Model (extension of Harvard Model)
  1. Outer Context
  2. Inner Context
  3. Business strategy Context
  4. HRM Context
  5. HRm Content
3. Guest HRM Model
  1. Commitment not compliance
  2. HR Strategy
  3. Set of HR Policies
  4. Set Of HR Outcomes
  5. Behavioural Outcomes
  6. Performance Outcomes
  7. Financial Outcomes
4. Storey HRM Model
  1. Beliefs and Assumptions
  2. Strategic Aspects
  3. Role of Line Managers
  4. Key Levers
5. Ulrich (Strategic Partner) HRM Model
  1. Strategic Partner
  2. Change Agent
  3. Administrative Expert
  4. Employee Champion
6. Hardvard Model (beer et al., 1995)
  1. Situational factors
  2. Stakeholder Interests
  3. HRM Policy Choices
  4. HR Outcomes
  5. Long- term Consequences
7. Explaining HRM using Storey's Model
  1. Beliefs and Assumptions
    1. HR which gives competitive edge
    2. Aim should be employee commitment (not mere compliance to rules)
    3. Employees should be carefully recruited
  2. Strategic Qualities
    1. HR decisions are of Strategic Importance
    2. Top Management involvement is Neccesary
    3. HR policies should be intergrated into the business strategy
  3. Crticial Role of Managers:
    1. HR practive is critical to core activities it is too important to be left to oersonnel speciailists alone
    2. Line Managers expected to be closely involved both as deliverers and drivers of HR policies
    3. Much greater attention paid to managers themselves
  4. Key Levers
    1. Managing culture is more important than managing procedure & systems
    2. Intergrated action on selection, compensation , training, reward and development
    3. Restructuring and job design to allow devlolved reposonsibilty and empowerment
Hard vs Soft HRM
1. Soft Varients of HRM
  1. used to describe approaches aimed at enchancing the commitment, quality and flexibility of employees
2. Hard Variants of HRM
  1. Describes the emphasis on strategy where human resources are deployed to achieve business goals in the same way as any other resource
Topical Themes in HRM
1. Global Issues in HRM:
  1. Organisations must tailor their HRM efforts to the different values and needs of its people to attract, hire, motivate and retain the best employees globally
  2. Motivating employees in a multinational organisation can be particularly challenging and requires flexibility
  3. Importance of Ethical behaviour
Evolution of HRM
1. Welfare Officer (1890'S-1913
2. Labour Manger (1914-1939)
3. Personnel Management (1945-1979)
4. Human resource Management (1980-1990s)
5. Human Capital, HR Biz Partner & People

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