Lecture 1: Human Resource Management Strategy and Practice

Lecture 1: Human Resource Management Strategy and Practice

1. 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

2. 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
       • Expecations of employer
         • adequate training, equitable pay, quality work, contracted hours, treat property carefully
     • Management responses
       • 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

3. 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

4. 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

5. 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

6. 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
     • Importance of Ethical behaviour

7. Evolution of HRM

   • Welfare Officer (1890'S-1913
   • Labour Manger (1914-1939)
   • Personnel Management (1945-1979)
   • Human resource Management (1980-1990s)
   • Human Capital, HR Biz Partner & People