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