HRM: Introduction

• Human resource management, in the

sense of getting things done through
people. It's an essential part of every
manager's responsibilities.
• But many organizations find it
advantageous to establish a specialist
division to provide an expert service
dedicated to ensuring that the human
resource function is performed efficiently.
• People are our most valuable asset" is a cliché which no member of
any senior management team would disagree with. Yet, the reality
for many organizations is that their people remain
• under valued
• under trained
• under utilized
• poorly motivated, and consequently
• perform well below their true capability

• HRM TAKES THE STOCK OF HUMAN CAPITAL AS GIVEN AND

TRIES TO OPTIMALLY ALLOCATE IT AMONG DIFFERENT
PROCESSES/ACTIVITIES SUCH THAT OUTPUT IS MAXIMISED.
• The ultimate aim of HRM function is to:
"ensure that at all times the business is
correctly staffed by the right number of
people with the skills relevant to the
business needs", that is, neither
overstaffed nor understaffed in total or in
respect of any one discipline or work
grade.
 HRM systems diagnostic
checklists

• The following check-lists present some

questions which may prove helpful for you to
think about when planning your development
programs for human resources (your people) in
your organization.
• The aim is to begin to explore how a considered
and planned approach to people management
can improve business performance, to the
benefit of all.
 Warning Indicators
Your organization is more than likely in trouble if
any of the following holds true:
• chronic industrial relations problems
• no means of resolving employee grievances
• increasing / erratic employee turnover
• increasing number of customer complaints
• no pride in the organization
• inter-group conflicts
• no career paths for ambitious talented employees
• dissatisfaction with pay and conditions
• unclear job roles
• no clear performance measures
• quality is unimportant
• bad product service / delivery records
• poor recruitment standards / practices
• no management development programs
• no induction training for new employees
• critical skill shortages
 Culture, organization, people, systems
(COPS), checklist

Culture
• Do your staff identify with the organization and 'the success of the
organization' as being of direct benefit to themselves?
• Do your staff see themselves as having common interests with their
work colleagues and group? Is there a strong team spirit?
• Is work allocated on the basis of individual expertise rather than
position in the organization?
• Are there sufficient skills / power bases in the organization?
• Are there appropriate leadership skills within the organization?
• Are your staff encouraged to say what they think about the
organization?
• Does your organization encourage innovation and creativity
amongst staff?
• Do your staff feel a sense of personal responsibility for their work?
• Is quality emphasized in all aspects of the organization?
 Organization
• Does the structure of your organization encourage
effective performance?
• Is the organization structure flexible in the face of
changing demands?
• Is the structure too complex? If so in what areas?
• Do your staff have clear roles and responsibilities?
• Does your organization structure tend to push problems
up rather than resolve them at the point where they
occur?
• Do your procedures and management practices facilitate
the accomplishment of tasks?
• Do you constantly seek to challenge your organization
structure?
 People
• Do your staff have the necessary skills and knowledge to
perform their jobs in the most effective manner?
• Do your staff understand their jobs and how they
contribute to overall business performance i.e. have
clear goals and objectives?
• Do your staff have a customer service orientation?
• Are people with potential spotted and developed for the
future?
• Are your staff encouraged to perform well through the
giving of recognition, feedback, etc.?
• Do your people know what their expected performance
standards are?
 Systems
• Do your organization's systems (e.g.
employee selection and recruitment, promotion,
planning, management, information and control)
encourage effective performance among your staff?
• Are these systems consistent across the organization?
• Are there clear rewards for effective performance within
your work group?
• Does the organization review its systems frequently and
ensure they mutually support each other?
 Maps and models of HRM
• Storey (1989) has distinguished between hard and soft
forms of HRM, typified by the Michigan and Harvard
models respectively.
• 'Hard' HRM focuses on the resource side of human
resources. It emphasizes costs in the form of
'headcounts' and places control firmly in the hands of
management. Their role is to manage numbers
effectively, keeping the workforce closely matched with
requirements in terms of both bodies and behaviour.
• 'Soft' HRM, on the other hand, stresses the 'human'
aspects of HRM. Its concerns are with communication
and motivation. People are led rather than managed.
They are involved in determining and realizing strategic
objectives.'
 The Harvard map of HRM
• Harvard Business School generated one of the most influential models of HRM. The Harvard
interpretation sees employees as resources. However, they are viewed as being fundamentally
different from other resources - they cannot be managed in the same way.
• The stress is on people as human resources. The Harvard approach recognizes an element of
mutuality in all businesses, a concept with parallels in Japanese people management.
• Employees are significant stakeholders in an organization. They have their own needs and
concerns along with other groups such as shareholders and customers.'

• The Harvard Map or model outlines four HR policy areas:

1. Human resource flows - recruitment, selection, placement, promotion, appraisal and

assessment, promtion, termination, etc.
2 .Reward systems - pay systems, motivation, etc.
3. Employee influence - delegated levels of authority, responsibility, power
4. Work systems - definition/design of work and alignment of people.

Which in turn lead to the 'four C's' or HR policies that have to be achieved:

• Commitment
• Congruence
• Competence
• Cost effectiveness
 Hard Model of HRM
• Associated with the Michigan Business School (Fombrun, Tichy
and Devanna, 1984).
• There are many similarities with the Harvard 'map' but the Michigan model
has a harder, less humanistic edge, holding that employees are resources in
the same way as any other business resource.
• They must be obtained as cheaply as possible, used sparingly, and
developed and exploited as much as possible.
• The Michigan model is also known as the 'matching model' or 'best-fit'
approach to human resource management.
• It requires that human resource strategies have a tight fit to the overall
strategies of the business.
• It limits the role of HR to a reactive,
organizational function and under-emphasizes
the importance of societal and other external
factors.
• For example, it is difficult to see how the current
concern for work life balance could be integrated
into this model.
 From personnel to human resource
management

• HRM-type themes, including 'human capital theory' and

'human asset accounting' can be found in literature
dating as far back as the 1970s.
• But the modern view of human resource management
first gained prominence in 1981 with its introduction on
the prestigious MBA course at Harvard Business School.
• The Harvard MBA provided a blueprint for many other
courses throughout North America and the rest of the
world, making its interpretation of HRM particularly
influential (Beer et al, 1984; Guest, 1987; Poole, 1990).
• Simultaneously, other interpretations were being
developed in Michigan and New York.
Why PM to HRM?
Human Resources Management
Functions
Recruitment
Selection
Training
Development
Discipline
Rewards Systems
Trade Unions
Productivity
 Measuring performance
• Appraisal
 Allocate Manage the Project planning
Budget Implement
Budget

Manage the team Monitor Liaise with

Development expenses Other Depts.

Schedule of
Appraisal implementation

Get strategy
Move the Committee
vetted by Board
Manager’s Mind Map
Sanction
Monitoring Report
Processing preparation
Outgo of funds Manage enquiries

Design appropriate Deal with Detailing

Instruments customers
 THE BUILDING BLOCKS

• REACTIVE AND SUPPORTIVE HRM

• INTEGRATIVE HRM

• INDEPENDENT HRM
REACTIVE AND SUPPORTIVE HRM
- ADMINISTRATIVE EXPERT

• MANAGEMENT OF EMPLOYEE
CONTRIBUTION/PERFORMANCE
APPRAISAL – JOB DEFINITION
• LISTENING AND RESPONDING TO
EMPLOYEES
• RECRUITMENT, SALARIES AND
REMUNERATION, RETRAINING,
SUSTAINANCE, GROWTH
• UNION/ASSOCIATION NEGOTIATIONS
• DATA BASE, COMPENDIUM
 INTEGRATIVE HRM
- STRATEGIC PARTNER

• WHAT WAS A FINE SOLUTION YESTERDAY MAY

NOT BE VALID TOMORROW.

• THE 7 S’s
STRATEGY, SYSTEMS, STAFF, SKILLS, STYLE,
STRUCTURE, SHARED VALUES

• GENERATE A LEARNING ORGANISATION WITH

KNOWLEDGE WORKERS
 INDEPENDENT HRM
- CHANGE AGENT/CONSULTANT
• OBSERVE THE ORGANISATION’S
MOVEMENT OVER TIME AT A CERTAIN
LEVEL OF ABSTRACTION AND PROVIDE
INPUTS FOR CHANGE – CORRECT
AGE/SKILL DISTRIBUTION
 KEY RESULT AREAS (KRAs)

• Delegation
• Output • Profitability
• Technical
• Quality
Knowledge
• Career • Business
Development development
• Customer Service • Teamwork
• Product • Budget
Development • Performance
• Time Management Management
• Business Volume
• Personal