Human Resource

Management

Mrs Preetila Seeam

1
What will we do today?
2

´  Discuss module structure as a whole

´  Introduce the topic of HRM

3 Aims of the course

´  Not prescriptive or ‘how to’ toolkit

´  Rather develops Analytical & Critical Skills
´  Will provide insights into HR function, and may help
with a job search…
Learning Outcomes
4

´  Definition of HRM

´  Importance , features and functions of HRM
´  Scope and functions of HRM
´  Models of HRM
 5 Additional Reading
´  Useful websites
´  www.cipd.co.uk
´  www.acas.org.uk
´  www.eurofound.europa.eu

Journals
´  Human Resource Management Journal
´  International Journal of Human Resource Management
´  Personnel Review
´  British Journal of Industrial Relations
´  Industrial Relations Journal
´  Work, Employment and Society
´  Equality, Diversity and Inclusion

´  A detailed reading list for each week is provided in the module
handbook
Important Stuff!!
6

´ Read university guidelines on bad/unfair

practice and plagiarism
´ No phone use during lectures
´ Question time in activity breaks or at the
end of lectures
´ Participation matters!! Learning is
cumulative!!
So7what is HRM?

´  Personnel Management?

´  Employee Relations?
´  Industrial Relations?
´  Organisation Studies?

https://www.youtube.com/watch?v=6WHAArzNkng
8 What HRM is not?

´ HRM is not purely a role for HR

specialists, but “HRM is an aspect of
all management jobs. Line managers
are intimately involved” – Boxall and
Purcell (2003:2)

´ “HRM is not simply about HR or

‘people practices’, it is about the
management of work and people in
the firm” - Boxall and Purcell (2003:2)
Focus today on Human Resource
Management
9
(HRM)

´ HRM = Many different definitions

´ “strategic approach to managing
employment relations”.

Key assumption:
Leveraging people’s capabilities and
commitment is critical to achieving
sustainable competitive advantage
or superior public services.
Management and HRM
10

Dual nature of HRM: A need to gain control

over and commitment from workers

Meeting operational goals and employee’s

personal goals requires cooperation between
the two parties.

An employment relationship

Control, cooperation and conflict

The legal contract is just the ‘tip of the iceberg’
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Understanding the nature of the psychological contract is vital for
effective performance
12
13 Activity

´  What do you expect from your employer?

´  What are willing you give in return?
´  How are your answers above affected by the legal
contract and the psychological contract. (Think about
the differences/similarities)
14 Evolution/History of HRM

´  (a) Concept of welfare of personnel

developed, prompted by human concerns
(Quaker tradition). Welfare concerned with
provision of schemes, sick pay, subsidised
housing, etc.
´  Continued up to World War II and later
manifested in terms of provision of canteens,
outings (today Health schemes and crèches)
´  2nd phase: Next phase is emphasis on
Personnel Administration – to support
management, and concerned with
recruitment, discipline, pay systems, training
and records keeping.
15 Evolution/History of HRM

´  (b) World War II to 1950’s:

´  Personnel Management incorporated wider range of
services – salary administration, training, advice on
Industrial Relations.
´  Focus was tactical and not strategic level
´  Organisations were growing; e.g. collective
bargaining from industry level to company
´  level was prominent, then the coming of Industrial
Relations specialists.
16 2 Evolution/History of HRM

´  (c) 1960’s – 1970’s:

´  Increase in staff of personnel department due to increase in
legislations (conditions of full employment) thus retaining of skilled
labour force and training.
´  Approach to the training was systematic and planned. There was
training levy
´  Other related activities: Performance Management (MBO),
Management Development, Manpower Planning. Bargaining
power of Trade Union was conspicuous, therefore an
´  increase in workload of Personnel Department.
´  Matters of Industrial Relations issues and productivity deals
elevated the strategic
´  concern of the organization – heralded Personnel Department to
deal with management and workers as well.
17 Philosophy of HRM

´  Respect for the individual – give dignity

´  Recognition of employee’s needs and expectations – a boost on own
personality, seek
´  Commitment
´  Justice in treatment – social/fair/give equal opportunity
´  Equitable reward system – equal opportunity
´  Stability of employment – develop and train the people for the
national dimension
´  Good working environment and conditions of service
´  Opportunities for personal development and career progression
´  Democratic functioning of the organization – workers are given the
opportunity to
´  express views, participate in decision making and offer suggestions
´  Observance of laws and codes of conduct
18 Goals/Objectives/Aims of HRM
system
´  Enabling management to achieve organisational
objectives through its workforce; i.e., the most valued
resource.
´  Utilisation of people to their fullest capacity and potential
´  Fostering commitment for the success of the organisation
and to enhance both individual and organisational
performance
´  Integrating HR policies with business plans and reinforcing
appropriate culture – meet business strategy based on
excellence of people – to retain the people.
´  Developing coherent set of policies (employment and
personnel) for reinforcing organizations strategies
´  Supporting individual creativity and innovation – thinking
out of the box by reading, research, cognitive process.
19 Similarities of Personnel
Management and HRM

´  Both deal with people

´  Employee relationship
´  Aim is to maximize performance and organizational
effectiveness
´  Responsive to democratic and persistent change
20 Differences between PM and
HRM?
Elements PM HRM
Employee Adversarial Development
relationship and collaboration

Orientation Reactive and Proactive and

piecemeal business faced

Change Management Management

Order and employee
Client
Value Equity and Problem focused
consistency solutions

Leadership / Regulatory and Problem solving

managers record keeping
Scope and Functions of HRM
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Subdomains of knowledge (Boxall et al., 2008)

•  Micro (MHRM): individual employees and small work
groups

•  Strategic (SHRM): links HR strategies with business

strategies and measures effects on organizational
performance

•  International (IHRM): management of people in

companies operating in more than one country
22 Relationship between
subdomains of knowledge

MHRM

SHRM

IHRM
23 MHRM

´  HR Planning
´  Job design
´  Recruitment and selection
´  Performance management
´  Training and development
´  Rewards
´  Many informed by psychological studies

´  How do they do it?

´  Technical, cognitive and interpersonal processes and skills (E.g.
coaching and mentoring)
´  Power
´  Legal procedures

´  Vary in their ability to do it; distinction between manager and leader
SHRM
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´  Linking HR strategies and business strategies

´  Measuring the effects on organisational performance

´  Fostering high levels of commitment

´  Concerned with creating a ‘sustainable’ workplace (e.g.

developing capacity; encouraging an adoption of
organizational ‘values’

´  Also influenced by national systems of employment

´  The stronger the framework the fewer ‘options’ a company may
have to impose its own regulations

´  Companies are ‘embedded’ within a particular society based

on economic and cultural norms
 25 IHRM
´ Management of people in companies operating in
more than one country

´ Global as well as local factors influence what

managers can do

´ Multi-national corporations (MNCs) have to operate

in differing environments

´ Can micro HRM practices be readily applied in

different national contexts?

´ Home and host country effects (Starbucks,

Renault)
26 Scope and Functions of HRM
Activity: In pairs discuss these
questions

What do you think HRM professionals do?

What affects what they do?
How do they do it?
27
 28 Theoretical Perspectives on
´  So far …
HRM
´  Meaning of HRM
´  How it varies in different organizations

´  Theories help us understand these issues

´  But there are lots of different ones!
´  Using, applying and critiquing theories is important for your studies
29 Theories and models

´  What does HRM mean and how, if at all,

does it vary from personnel management?

´  What core values underlie a particular HRM

model?

´  What is the difference between ‘soft’ and

‘hard’ versions?

´  Theories and models are useful heuristic

devices (learning tools) for organizing a
large body of facts and information
The
30
Evolution of HRM

´  https://www.youtube.com/watch?v=Kxc8KceOb14
31 Lots of different models

´ The Michigan/Matching Model

´ The Harvard model
´ The Storey model
´ Ulrich’s strategic partner model

´ Important: Read about each of

these in your own time …
32 Distinction between ‘Hard’ and
‘Soft’ HRM models
John Storey (1989)

´ Hard’ versions
´ Emphasises ‘resources’ and adopts a
‘rational’ approach to managing employees
´ Another economic factor – a cost to be
controlled

´ ‘Soft’ versions
´ Emphasise the term ‘human’
´ Advocates training and development,
commitment, competitive advantage of
skilled and loyal employees
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'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.’

Source: Human Resource Management, 4th Edition, by Alan

Price
34 Matching model/Michigan
35
36 2. Guest Model
HRM policy goals, David Guest (1991)
´  Strategic integration: the ability of the organization to
integrate HRM issues into its strategic plans, ensure that
the various aspects of HRM cohere, and provide for line
managers to incorporate an HRM perspective into their
decision making.
´  High commitment: behavioral commitment to pursue
agreed goals, and attitudinal commitment reflected in a
strong identification with the enterprise.
´  High quality: this refers to all aspects of managerial
behavior that bear directly on the quality of goods and
services provided, including the management of
employees and investment in high quality employees.
´  Flexibility: functional flexibility and the existence of an
adaptable organization structure with the capacity to
manage innovation.
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38 The Storey Model of HRM
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40 IMPLICATIONS OF STOREY
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42 ULRICH’S HR MODEL –
complete the model
Strategic Change
Partner Agent

Administrative Employee
Expert Champion
Implications of the Completed Model
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 44 Key terms to focus on in your
reading
´  Employment relationship
´  Commitment, Conflict and Control
´  Psychological contract

´  Micro HRM; Strategic HRM; International HRM

´  Personnel Management vs Human Resource Management

´  Pluralist and Unitary approaches

´  Soft and Hard HRM

´  Look out for different theoretical perspectives and paradigms

´  Make a list and compare and contrast their features and assumptions
45