The Nature of Human Resource Management

Words of wisdom
The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.

The whole emphasis on people demands that top management attract, cultivate and keep the best workforce they can possibly find.
The role of HR is becoming as important if not more than any other executive leadership function.

The Nature of Human Resource Management

Human Resource Management:

A strategic approach to managing employment relations which emphasizes that leveraging peoples capabilities is critical to achieving competitive advantage. This being achieved through a distinctive set of integrated employment policies, programmes and practices.

The Nature of Human Resource Management

Management: The science perspective The political perspective The control perspective The practice perspective

The meaning of management

The meaning of management

Science perspective:
Fayol (1949). Planning, Organizing, Directing, Controlling (PODC). Idealized image of management as a rationally designed and operationalized tool for realizing organizational goals.

The meaning of management

Political perspective:
Characterizes the workplace as a miniature society with politics pervading all managerial work. Individual managers viewed as knowledgeable human agents.

Reinforces the theoretical and practical importance of building alliances and networks of co-operative relationships.

The meaning of management

Control perspective:
Conceptualizes management as a controlling agent that servces the economic imperatives imposed by capitalist marketing relations. Management structures and labour strategies are instruments and techniques to control the labour process in order to secure a high level of productivity and profitability. Simultaneous desire for control over, and cooperation from, workers.

The meaning of management

Practice perspective:
Sees management as an activity aimed at the continual melioration of diverse, fragmented and complex practices. Incorporates the other three perspectives.

The Nature of the Employment Relationship

Describes dynamic interlocking relations that exist between individuals and their work organizations. Considers economic, legal, social and psychological relations.

The Nature of the Employment Relationship

Economic exchange of pay for work. Legal network of common law and statutory rights and obligations affecting both parties. Social social norms influence employees actions in the workplace. Psychological dynamic, two-way exchange of perceived promises and obligations.

employee

The Nature of the Employment Relationship

HRM Functions
What do HRM professionals do? Planning Staffing Developing Motivating Maintaining Managing relationships Managing change

Evaluating

HRM Functions
What affects what HRM professionals do? External context (economic, political and legal regulations, and social aspects) Strategy Organization (size, work and structure, and technology)

HRM Functions
How do HRM professionals do what they do?
Use technical, cognitive and interpersonal processes and skills.

Power, legal procedures and communication skills are important.

HRM Functions

Theoretical perspectives on HRM

Five major HRM models:
Provide an analytical framework for studying HRM.

Legitimate certain HRM practices.

Establish variables and relationships to be researched. Explain the nature and significance of key HR practices.

Fombrun, Tichy & Devanna

Emphasizes the interrelatedness and the coherence of HRM activities.

HRM cycle: selection, appraisal, development and rewards aim to increase organizational performance.

Fombrun, Tichy & Devanna

Fombrun, Tichy & Devanna

Prescriptive. Ignores stakeholder interests, situational factors and notion of strategic choice. Expresses the coherence of internal HR policies and the importance of matching them to external business strategy.

Harvard
Situational factors Stakeholder interests HRM policy choices HR outcomes

Long-term consequences

Harvard

Harvard
Classifies inputs and outcomes at both organizational and societal level.

Absence of a coherent theoretical basis for measuring the relationship between HR inputs, outcomes and performance.

Guest
Reflects view that a core set of integrated HRM practices can achieve superior individual and organizational performance. HRM differs from personnel management.

Guest

Guest

Warwick
Extends the Harvard framework. Maps the connections between the outer and inner contexts and explores how HRM adapts to changes in context.

Warwick

Storey
Demonstrates the differences between the personnel and industrials and the HRM paradigm by creating an ideal type. Characterizes HRM as an amalgam of description, prescription, and logical deduction.

Storey

Storey

Extent of HRM
How many organizations have adopted the new HRM model? Number of HR architects in the highest levels of decision-making is small.

Renaissance of individualism, fall in collectivism.

Disjuncture between knowledge of the HRM model and management practice. Few organizations have integrated HR planning into strategic business planning.