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Overview of Presentation
What is HRM?
What is HRM?
A management discipline: managing people
productive use of people through plans, processes & policies in achieving the:
Draws on a wide knowledge base e.g. psychology, management, sociology & economics
HRM System
HRM activities / practices
Activities: Key functions of HRM Practices: Actions aimed at achieving a specific HRM purpose or goal sequences of HRM practices combined to achieve more complex outcomes
HRM processes
HRM policies
formal written statements outlining an organisations stance on various HR activities, practices or processes
HRM procedures
HRM Activities
Staffing the firm Managing / Maintaining Employees
Human resource
Human resource
development Managing performance Employee motivation Remuneration / reward Health and safety (H&S) HR information systems (HRIS) Evaluating HRM
A Brief History
Early influences
Mid 1700s to late 1800s Industrial Revolution people as a resource; separation between managers and employees Late 1890s to mid 1900s Scientific Mgmt focus on job design, productivity, training Industrial Welfare early focus on employee welfare Then a movement from welfare to Personnel Administration Personnel Management (1960-1980) Human resource management (1980-1990)
Contemporary HR
Main Theories
Personnel Open system model (pre 1980s) Mgmt Functional view of HRM Porters Model (Porter, 1985) HRM as a support activity for key areas of business CA resides in activities of the firm; people viewed as a cost HRM Matching (Michigan) Model (Fombrun et al, 1984) Acknowledged impact of external factors on internal context Advocated best fit approach to HRM Harvard Model (Beer, 1984) Pluralistic - recognised different stakeholder interests More sophisticated than earlier unitarist models Resource Based View (RBV; Penrose 1959 & Barney 1991) Gained prominence in late 1980s/early 1990s Employees seen as valuable, inimitable resources SHRM Central theory in the shift from HRM to SHRM
Managers should create a common purpose and corporate culture Promotes employee-employer relationship ECA 1991 accelerated acceptance of this perspective; removed power of unions (characterised by conflict-based approaches)
Conflict Theories
Neo-unitarism
Radical Pluralism Conflict Inevitable under the capitalism system of class inequities Protects the interests of management Pluralism Unavoidable but can be mediated through structures and procedures. Provides the mechanisms to resolve conflict in the interest of public good and stability Co-ordinates different and divergent interest groups Stakeholders in the organisation with the right to challenge management The legitimate representative of the employees collective interests Unitarism Unwarranted and pathological to the well-being of the organisation Resists interfering unduly in the relationship between the employer and employee Controls employees through strong leadership A resource unified to achieve the organisations goals Unnecessary intrusion in the individual employment relationship.
The state
Management Employees
Exploits employees in the interest of profit Powerless and vulnerable to exploitation Inevitable as result of exploited workers protecting their own interests
Trade unions
Strategic HRM
Strategy The direction in which an organisation intends to move Drives operations SHRM focuses on the linking of all HRM activities with the organisation s strategic business objectives provides a strategic framework to support long-term business goals and outcomes HRM seen as critical to organisational effectiveness
Strategic HRM
To achieve this, HRM needs to be... A strategic partner Be involved at board / senior management level Be involved in strategic decision making Be able to demonstrate its contribution to organisation goals HRM activities must... Be vertically aligned & clearly linked with organisations strategic objectives Support culture, climate, and organisational processes Be designed to attract, motivate, deploy and retain the right people with the right skills at the right time to achieve organisations goals and, ultimately, competitive advantage
firms HRM practices and strategies into a coherent integrated system (Macky 2008) Both kinds of fit are necessary for firm performance, but require the capability of senior mgrs, HR managers, & employees
See Wei (2006)
Needs assessment for training; evaluation of training; planned career development; management development Use of 360` appraisals; links to employment decisions (e.g. promotion, training needs; reward) Employee engagement; skills training; use of work teams Use of quantitative and qualitative measures to assess processes and outcomes
Performance management
HRM evaluation
Large organisations are more likely to follow BP principles; SMEs less so. Why? Uninformed - Employers may be unaware of the practices Dont appear practical for SMEs Costly to implement, especially initially HR staff lack the clout to sell their ideas to the orgn Too busy focusing on short term objectives (profits) and managing constant change to think and be strategic Takes time requires employer & emplyee commitment & retention
Some BPs are more appropriate to SMEs than others HR practices must be aligned with organisation context
sustainable fit
Role of HR Manager
Primary role To help the organisation achieve its strategic goals/objectives
Storey, 1992; Caldwell 2003) Change Agent Ulrich (1997) Strategic partner Employee champion Change agent Ulrich (2005) Strategic partner Employee advocate -
Regulator
Advisor Service Provider
Administrative expert
-
Functional expert
Human capital developer Human resources leader -
Advisor
Change Agent Service Provider Regulator
82%
68% 49% 32%
13%
17% 26% 38%
5%
14% 26% 31%
Administration, 27%
critical and scarce knowledge, skills & abilities Creating a fair and just workplace Managing people respectfully and creatively Restoring trust lost through restructuring, downsizing and work pressures
team & corporate planning Gain and maintain credibility & professionalism
Understand the business Adopt a strategic approach Become bottom-line oriented Develop career as a professional training & development, networks, industry associations
QUESTIONS