Human Resource Management

Chapter -I
Framework of Human Resource
Management
By Prof
What is Human Resource
Management?

HRM is the study of activities regarding

people working in an organization. It is a
managerial function that tries to match an
organizations needs to the skills and abilities
of its employees.
Definitions of HRM
Human resources management (HRM) is
a management function concerned with
hiring, motivating and maintaining people
in an organization. It focuses on people in
organizations.
Continue
Human resource management is designing
management systems to ensure that human
talent is used effectively and efficiently to
accomplish organizational goals.
HRM is the personnel function which is concerned with
procurement, development, compensation, integration
and maintenance of the personnel of an organization for
the purpose of contributing towards the
accomplishments of the organizations objectives.
Therefore, personnel management is the planning,
organizing, directing, and controlling of the performance
of those operative functions (Edward B. Philippo).
Continue
According to the Invancevich and Glueck, HRM is
concerned with the most effective use of people to
achieve organizational and individual goals. It is the way of
managing people at work, so that they give their best to the
organization.
According to Dessler (2008) the policies and
practices involved in carrying out the people or human
resource aspects of a management position, including recruiting,
screening, training, rewarding, and appraising comprises of HRM.
Generally HRM refers to the management of people in
organizations. It comprises of the activities, policies, and
practices involved in obtaining, developing, utilizing, evaluating,
maintaining, and retaining the appropriate number and skill mix
of employees to accomplish the organizations objectives.
Continue
The goal of HRM is to maximize employees
contributions in order to achieve optimal productivity
and effectiveness, while simultaneously attaining
individual objectives (such as having a challenging
job and obtaining recognition), and societal
objectives (such as legal compliance and
demonstrating social responsibility).
In short Human Resource Management (HRM)
can be defined as the art of procuring, developing
and maintaining competent workforce to achieve the
goals of an organization in an effective and efficient
manner.
Nature of HRM
HRM is a management function that helps
managers to recruit, select, train and develop
members for an organization. HRM is concerned with
peoples dimension in organizations.
The following constitute the core of HRM
1. HRM Involves the Application of Management
Functions and Principles.
The functions and principles are applied to
acquiring, developing, maintaining and providing
remuneration to employees in organization.
2. Decision Relating to Employees must be
Integrated.
Decisions on different aspects of employees
must be consistent with other human resource (HR)
decisions.
Continue
3. Decisions Made Influence the Effectiveness of an
Organization.
Effectiveness of an organization will result in
betterment of services to customers in the form of high
quality products supplied at reasonable costs.
4. HRM Functions are not Confined to Business
Establishments Only but applicable to non business
organizations such as education, health care, recreation
and like.
5 . HRM refers to a set of programmes , functions and
activities designed and carried out in order to maximize
both employee as well as organizational effectiveness.
Scope Of HRM
Human Resource Planning
Design of the Organization and Job
Selection and Staffing
Training and Development
Organizational Development
Compensation and Benefits
Employee Assistance
Union/Labour Relations
Personnel Research and Information System
Performance appraisal
Industrial Relations
HRM Functions
 HRM Functions & Objectives
HRM Objectives Supporting Functions
Societal Objectives Legal compliance
Benefits
Union- management relations
Organizational Objectives Human Resource Planning
Employee relations
Selection
Training and development
Appraisal
Placement
Assessment
Functional Objectives Appraisal
Placement
Assessment
Personal Objectives Training and development
Appraisal
Placement
Compensation
Assessment
Strategic HR Management:
Strategy is originated from greek word strategia which means
the art & Science of being General. Effective Greek generals
needed to lead an army ,win and hold territory protect cities
from invasion, destroy the enemy and so forth
As a part of maintaining organizational
competitiveness, strategic planning for HR effectiveness
can be increased through the use of HR metrics and HR
technology. Human resource planning (HRP) function determine
the number and type of employees needed to accomplish
organizational goals. HRP includes creating venture teams with
a balanced skill-mix, recruiting the right people, and voluntary
team assignment. This function analyzes and determines
personnel needs in order to create effective innovation teams.
The basic HRP strategy is staffing and employee development.
Current Classification of HR
roles
Administrative
Continue on SHRM
SHRM refers to the proactive and organized alignment of human resource
systems, processes, policies and practices as a whole with the mission and
strategic objectives of the larger organization.

Primary objective of SHRM is to enhance employee-managerial &

organizational effectiveness and performance. It may be defined as an
integration of HRM with the strategic goals and corporate strategy so as to
improve business performance and achieve organization goals.

Focus of SHRM is to improve organizations competitive performance by

utilizing their human resources more effectively. It is based on belief that
human resources are uniquely important to sustained business success.

An organization can gain competitive advantage by strategical use of its

human resources. The aim of SHRM is to ensure that the culture, style &
structure of the organization and quality, commitment & motivation of
employees contribute fully to the achievement of objectives
Continue
By the mid-1980s, an increasing number of HRM academics were
emphasizing the need for HRM to focus on aligning the organizations
human resource function with its competitive strategy. In other words for
HRM to have a strategic role (Tyson, 1987).

In a management context, strategy denotes a specific pattern of decisions

and actions undertaken by the upper echelon of the organization, in order
to accomplish performance goals. Strategy can be distinguished as being
at a corporate level, at the level of a strategic business unit, or at the level
of functional activity (Porter, 1980/1985).

However, issues of debate attend SHRM and so matters are not clear cut:
The precise meaning of SHRM is unclear whether it constitutes an
outcome or a process.

SHRM also has roots in manpower planning.

Models of SHRM
Matching Model-:

A further area of debate is related to the fit of HR strategy

and business strategy. The concept of integration has three
aspects: The linking of HR policies and practices with the
strategic management process of the organization, the
internalization of the importance of HR on the part of line
managers, and the integration of the workforce into the
organization to foster or promote commitment or an identity
of interest with the strategic goals. This approach to SHRM has
been referred to as the matching model. The Devanna et
al. (1984) model, HRM strategy-structure follow and feed
upon one another and are influenced by environmental forces

The Resource-Based
Model
A second approach to studying strategic HRM is grounded in the degree to which
managers view their subordinates as an asset as opposed to a variable cost. The
perspectives on what is called the resource-based HRM model raise questions
about the inextricable connection between work-related learning, the mobilization
of employee consent through learning strategies, and competitive advantage.

The resource-based HRM model is influenced by the work of Selznick and the view
that organizations exploit a distinctive competence who conceptualized the firm
as a mixture of heterogeneous resources .

Also, the resource-based view is premised on the work of Barney (1991) who
argued that sustained competitive advantage is not achieved through an analysis
of a firms external market position but through a careful analysis of the skills and
capabilities possessed by people in the organization - characteristics which
competitors find themselves unable to imitate. He argues that three
characteristics are important in sustaining competitive advantage: rarity,
inimitability and non-substitutability
Continue
A distinction is possible between upstream or
downstream strategic decisions and this has
informed the SHRM debate. Upstream decisions
are primary strategic decisions like a takeover. HR
in contrast are deemed third order because they
establish parameters for people management. In
theory, strategy in human resources management
is determined in the context of first-order, long-run
decisions on the direction and scope of the firms
activities and purpose and second-order
decisions on the structure of the firm.
Models of HRM
These are Weberian-type ideal models. They illustrate something of
the uniqueness of the varying HR perspectives and show something of
the difference from the personnel management policies that preceded
them and they have important intellectual functions for those studying
the links between HRM and OB.

In summary, these models: Provide an analytical framework for

studying HR, legitimatize certain OB theories that underpin HRM
practices, provide a characterization of HRM that establish variables
and relationships between dependent and independent variables to be
researched, and to serve as a heuristic device for explaining the nature
and significance of key HR practices.

The Fombrun, Tichy and Devanna model of HRM was developed

in 1984 and emphasizes the interrelatedness and the coherence of
HRM activities. The HRM cycle in their model consists of four key
constituent components: selection, appraisal, development and
rewards (Figure 17.1 on slide 11).
Continue
The analytical framework of the Harvard model offered by Beer et al.
.consists of six complex components:

1)Situational factors which influence managements choice of HR strategy.

2) Stakeholder interests recognize the importance of trade-offs between

the interests of owners and those of employees and their organizations - the
unions.

3) HRM policy choices emphasize that managements decisions and actions

in HR management can be appreciated fully only if it is recognized that they
result from an interaction between constraints and choices.

4) HR outcomes are high employee commitment to organizational goals and

high individual performance leading to cost-effective products or services.

5) Long-term consequences distinguish between three levels: individual,

organizational and societal.

Continue
6) The Feedback Loop through which the outputs flow directly into the
organization and to the stakeholders.

This model serves as a useful heuristic device for explaining the

significance of HR practices. It incorporates an analytical base
(situational factors/stakeholders and strategic choice levels) but also a
prescriptive element (commitment/competence etc). It was initially
used at MBA level in the early 1980s (Noon, 1982).

The Warwick model extends the Harvard framework by drawing on

its analytical aspects. It was devised by Hendry and Pettigrew. The five
elements of the model are: outer context, inner context, business
strategy content, HRM context and HRM content (figure 17.3 on slide
13).

The model is especially useful as it shows interplay between

environmental contingencies or factors and those specific to HR.
Correlations with contemporary models by Porter in the area of
Industrial Economics, are possible.
 Questions
Q1) Define Human Resource Management.
Q2) Explain the various challenges faced by
HR Managers.
Q3) Describe the factors affecting HRM Practices
Q4) Discuss the strategic HRM concept.
Thank you