BMO5564 Human Resource

Management

Lecture 1 - Human
resource
management in
Australia
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Human resource management
(HRM)

Refers to the policies, practices

and systems that influence
employees behaviour, attitudes
and performance.
Many companies refer to HRM
as people practices.

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 HR Information Systems

Job Analysis & Design

HR Planning

Recruitment

Selection & Placement

Managing Diversity

Industrial relations

Performance Management

Learning and development

Strategic human resource management

Compensation

Measuring and Evaluating

Figure 1.1 HRM practices

Company
Performance

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The development of
theoretical bases for HRM

Theoretical perspectives of
HRM include:
Behavioural view
Resource-based view
Politically-influenced view.

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 Figure 1.2 The Harvard Analytical
Framework for HRM
Stakeholder Interests
Shareholders
Management
Employee groups
Government
Community
Unions HRM Policy HR Outcomes Long-term
Choices Commitment Consequences
Employee influence Competence Individual well-being
Human resource flow Congruence Organisational
Reward systems Cost effectiveness effectiveness
Work systems
Societal well-being
Situational Factors
Workforce characteristics
Business strategy
and conditions
Management philosophy
Labour market
Unions
Task technology
Laws and societal values

Source: M. Beer, B. Spector, P.R. Lawrence, D.Q. Mills & R.E. Walton, Managing human assets, Free Press, New York, 1984, p. 16.

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Features of the dominant
approach to HRM
Focus on enterprise or firm.
HRM is an investment in
human capital.
Reciprocal fit between
organisational strategy and HR
strategy.
All managers are responsible
for HRM.
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Role of HR
Role of HR has changed
dramatically over the last 50
years:
Personnel to Human Resource
Management (HRM)

HRM to Strategic HRM

(Dessler, et al, 2004, 11)

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 Table 1.1 Most significant changes in
HR (1990-95)
n* %
Integration & strategic focus of HR policies 120 37.3
Employee relations 118 36.7
Contribution of HR to company performance 77 24.0
Worker participation and team work 62 19.3
Quality issues 53 16.5
Training 41 12.7
Flexible work patterns 41 12.7
Devolution of function 40 12.4
Legislative changes 34 10.6
Economic rationalism
(*n=322; open-ended 33
data; respondents may have answered more than one suggestion) 10.3
Source: C. Fisher & P.J. Dowling, Support for an HR approach in Australia: the perspective of senior HR managers, Asia
Pacific Journal of Human Resources, 37 (1), 1999, p. 9.

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 Table 1.2 Issues with greatest impact on HR
(1995-2000)

n* %
HR role in change & strategic planning 90 28.0
Employee relations 64 20.0
Contribution of HR to company performance 62 19.3
Flexible work patterns 39 12.1
Legislative changes 30 9.3
Quality issues 28 8.7
Internationalisation 27 8.4
Training 25 7.8
Worker participation and team work 24 7.5
Technology 21 6.5
Performance management 19 5.9
Outsourcing 15 4.7
(*n=322; open-ended data; respondents may have answered more than one suggestion)
Source: C. Fisher & P.J. Dowling, Support for an HR approach in Australia: the perspective of senior HR managers, Asia
Pacific Journal of Human Resources, 37 (1) 1999, p. 9.

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HR Practitioner
With the change in role of HR
has meant a new breed of HR
Professional

Welfare officer Personnel

OfficerHuman Resource Officer
Human Resource Consultant
(Dessler, et al, 2004, 12)

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Roles performed by HR
professionals (Ulrich, 1997)

Administrative expert
Employee champion
Change agent
Strategic business partner

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 Figure 1.3 HR roles and
competencies
Evaluation Compensation
Benefits Strategic management
Audit Organisational development
Data management Analytical, Leadership Change management
fact-based Conceptual ideas
decision making Visioning

Compliance Interpersonal
Regulation team work
Administration Diversity
Industrial relations Control Counselling
Legal Employee development

Source: The Conference Board, Inc., The Changing Human Resource Function, The Conference Board, New York, 1990, p. 11.

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 Figure 1.4 Competitive challenges
influencing Australian companies

Competing through Competing by meeting Competing through

high-performance work systems
Change employees and
managers work roles
Integrate technology and
social systems
stakeholders needs globalisation
Provide a return for Expand into foreign
shareholders markets
Develop employees and Prepare employees for
create a positive work work in foreign locations
environment

Australian Business Competitiveness

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 The global challenge for
HRM

Development of global markets

Global competitiveness through
HRM practices
Preparing employees for
international assignments

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 The challenge of meeting stakeholders needs:
Table 1.7 The balanced scorecard

Perspective Questions answered Examples of critical indicators

Customer How do customers see us? Time, quality, performance, service,
cost

Internal What must we excel at? Processes that influence customer

satisfaction, availability of information
on service and/or manufacturing
processes

Innovation and Can we continue to improve Improve operating efficiency, launch

learning and create value? new products, continuously improve,
empower workforce

Financial How do we look to Profitability, growth, shareholder value

shareholders?

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 The challenge of meeting stakeholders needs:
Figure 1.5 The Australian Business Excellence Model

Source: Australian Quality Council Ltd., Success stories, www.aqc.org.au

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The challenge of meeting stakeholders
needs:
characteristics of the Australian workforce

Gender
Ethnic diversity
Structure of the economy
Skill deficiencies
Changes in the employment contract
Changes in the place of work
Employee values
Legislation
Ethical considerations

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The challenge of high-
performance work systems
(HPWS)

Change in employees work roles and

skill requirements
Increase in the use of teams to perform
work
Changes in the nature of managerial
work
Changes in company structure
Increased availability of HR information
bases
Competitiveness in HPWS

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 Figure 1.7 Examples of how HR practices can help
companies meet the competitive challenges

Global Stakeholder High-Performance Work

Challenge Challenge System Challenge

HR Practices
HR strategy is matched to business Continuous learning environment is
strategy created

Work is performed by teams Discipline system is progressive

Pay systems reward skills and
accomplishments
Selection system is job-related and legal
Work attitudes of employees are
monitored
Customer satisfaction and quality are
evaluated in the performance
management system
Skills and values of a diverse
work force are valued and used

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Next Generation HR
Professionals
Need to be:
More externally focused and skilled in
building and maintaining alliances and
productive relationships
More analytical and justify support for
progressive HR policies
More skilled in using information to
deliver and communicate HR policies

(Kochan, (2004), Restoring Trust in the human resource management profession, Asia Pacific
Journal of Human Resources, 2004 42(2), p144)

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