07-12-15
Aims What is HR?
UNDERSTANDING AND MANAGING PEOPLE
Chapter 2: HRM – an overview
Mai Anh Linh
Faculty of Economics and Management
International School of Thai Nguyen University
Email: mailinh.mai7@gmail.com
Define HRM
• Torrington et al “ It is a series of activities which; first
enables working people and the organisation which uses
their skills to agree about the objective and nature of
their working relationship and secondly, ensure that the
agreement is fulfilled.”
• “HRM is management function concerned with hiring,
motivating and maintaining people in an organization. It
focuses on people in organization” (Aswathappa, 2008)
By the end of the session students will be able to:
1) Demonstrate an understanding role of HRM.
2) Understand the factors influencing the HRM.
Define HRM
• The Policies and practices in carrying out the
“people” or human resource aspects of a
management position including, recruiting,
screening, training, rewarding and appraising.
(Dessler G)
• The Charted Institute of Personnel Management
“ The design, implementation and maintenance
of strategies to manage people for optimum
business performance including the
development of policies and process to support
these strategies”
• Human Resources is the part of the organization that
deals with people
• Managing the human resource
• This means acquiring developing and supporting staff as
well as ensuring they fulfill their role at work
HRM Activities
• HR Planning
• Job Analysis and Design
• Recruitment and Selection
• Training and Development
• Remuneration
• Welfare
• Safe and Healthy Work Environment
• Industrial relations
1
 07-12-15

The Michigan School Model

Hard and Soft HRM Models of HRM The human resource cycle

Hard (instrumental) HRM approach: • The Michigan School Model:

• employees are viewed as a passive factor of production, an – Congruency with organizational strategy (matching
expense
• employees can be easily replaced and seen as disposable. model)
• Strategic, quantitative aspects of managing HRM as an
economic factor
• The Harvard School Model
(Harvard framework)
Soft (humanistic) HRM approach:
• stresses active employee participation – Integrated parts towards a strategic vision and with a
• gains employee commitment, adaptability and contribution of central philosophy
their competences to achievement of organizational goals
• employees are valued as assets
• emphasizing communication, motivation and leadership

Characteristics of HRM in Harvard

Elements of human resource cycle The Harvard Framework
framework
1. Selection: matching available human resources to jobs • 1) line managers accept more responsibility for ensuring
2. Appraisal: performance management the alignment of competitive strategy and personnel
3. Rewards: focus on organizational performance (most policy
under-utilized and mishandled tool) • 2) personnel has the mission of setting policies that
– short-term and long-term govern how personnel activities are developed and
implemented in ways that make them more mutually
4. Development – developing high quality employees reinforcing

2
 07-12-15

Personnel Management Vs Resource Personnel Management Vs Resource

Aims of HRM
Management Management
1. Organizational effectiveness (HRM makes a significant
impact on firm performance)
2. Human capital management (HC is the prime asset – the • The part of management that deals with the work force • In PM, the basis of job design is the division of work
aim is to develop the inherent capacities of people) within the enterprise is known as PM. The branch of while, in the case of HRM, employees are divided
3. Knowledge management (support the development of firm- management, which focuses on the best possible use into groups or teams for performing any task.
specific knowledge)
of the enterprise’s man power is known as HRM. • In PM, the negotiations are based on collective
4. Reward management (enhance motivation, job
engagement) • PM treats workers as tools or machines whereas HRM bargaining with the union leader. Conversely, in HRM,
5. Employee relations (harmonious relationship between treats it as an important asset of the organization. there is no need for collective bargaining as individual
partners) contracts exist with each employee.
6. Meeting diverse needs (stakeholders, workforce)
• HRM is the advanced version of PM.
7. Bridging the gap between rhetoric and reality (HRM is to • Decision Making is generally slow in PM but the same is • In PM, the pay is based on job evaluation. Unlike HRM,
bridge the gap – and to ensure that aspirations are comparatively fast in HRM. where the basis of pay is performance evaluation.
translated to effective action

The link between HRM and firm
Why is it Important?
performance
• Staff are the largest revenue cost of any organisation.
• Staff are a volatile resource, they can leave you any
time.
• Staff are a store of corporate knowledge and the means
of service delivery.
• Retaining and developing good staff allows you to use
skills and develop as a business.
• Individuals should contribute more than they cost.
• In the industry customer care critical and delivered by
staff as representatives.
The 'four C's' or HR policies that have to
be achieved
• Competence: How competent are employees in their work?
Do they need additional training?
• Commitment: How committed are employees to their work
and organization?
• Congruence: Is there congruence, or agreement, between the
basic philosophy and goals of the company and its
employees? Is there trust and common purpose between
managers and employees?
• Cost effectiveness: Are HRM policies cost-effective in terms of
wages, benefits, turnover, absenteeism, strikes, and similar
factors?

3
 07-12-15

Factors Affecting HR Legislation

• Legislation • Viet Nam Labor Code Chapter I - General Provisions

- Bộ Luật Lao động số 10/2012/QH13 được Quốc Hội Nước Cộng hòa
• The Economic environment xã hội Chủ nghĩa Việt Nam khóa XIII, kỳ họp thứ 3 thông qua ngày 18
• The global economy tháng 6 năm 2012;
- Nghị định 182/2013/NĐ-CP ngày 14/11/2013 của Chính phủ quy định
• The structure of the labour market mức lương tối thiểu vùng đối với người lao động làm việc ở doanh
• The Political environment nghiệp, hợp tác xã, tổ hợp tác, trang trại, hộ gia đình, cá nhân và các
cơ quan, tổ chức có thuê mướn lao động;
• Changes in technology - Nghị định 102/2013/NĐ-CP ngày 5/9/2013 Quy định chi tiết thi hành
• Need to constantly retrain staff một số điều của Bộ luật Lao động về lao động nước ngoài làm việc tại
Việt Nam;
- Thông tư số 33/2013/TT-BLĐTBXH ngày 16/12/2013 hướng dẫn thực
hiện mức lương tối thiểu vùng đối với người lao động làm việc ở doanh
nghiệp, hợp tác xã, tổ hợp tác, trang trại, hộ gia đình, cá nhân và các
cơ quan, tổ chức có thuê mướn lao động;
Chapter II - Employment
Chapter III - Labor contract
Chapter IV - Apprenticeship, training and retraining for vocational qualification and
skill improvement
Chapter V - Dialogue at workplace, collective bargaining, collective labor
agreements
Chapter VI - Wages
Chapter VII - Working time and rest time
Chapter VIII - Labor discipline and material responsibilities
Chapter IX - Occupational safety and hygiene
Chapter X - Separate provisions for female employees
Chapter XI - Separate provisions for minor employees and other types of
employees
Chapter XII - Social insurance
Chapter XIII - Trade unions
Chapter XIV - Settlement of labor disputes
Chapter XV - State management of labor
Chapter XVI - Labor inspection, handling of violations of labor law
Chapter XVII - Implementation provisions

Important Trends in HRM Meeting Today’s HRM Challenges HOMEWORK

The New HR Read case study 02 from Organizational Behaviour (P 64)

Managers The New Human Resource
Managers
Answer the questions provided.
Strategic High-Performance
HRM Human Work Systems
Resource You should write at least 300 words.
Management
Acquire broader
Evidence-Based Trends Managing Find new ways to
Focus more on business
HRM Ethics provide
“big picture” knowledge and
transactional
(strategic) issues new HRM
services
proficiencies
HR
Certification

Copyright © 2011 Pearson Education, Copyright © 2011 Pearson Education,

1–22 1–23
Inc. publishing as Prentice Hall Inc. publishing as Prentice Hall