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HUMAN RESOURCE MANAGEMENT

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Title: HUMAN RESOURCE MANAGEMENT


1
HUMAN RESOURCE MANAGEMENT
BMG775J1A Week One Personnel and Human Resource
Management Norma Heaton Tel 90366632
Room1D14 Email
ne.heaton_at_ulster.ac.uk
2
OBJECTIVES
  • To understand the relevance of historical
    developments in personnel management
  • To understand the policy goals of HRM
  • To examine the theory and practice of HRM

3
Evolution of personnel management
  • Welfare 1915-1920s
  • Provision of facilities eg canteens
  • Administration 1930s
  • Personnel support to management
  • 3. Developing phase 1940s-50s
  • range of services provided eg negotiating with
    trade unions
  • 4. Mature phase 1960s-70s
  • sophistication of techniques
  • increasing importance of legislation

4
Evolution ctd
  • 5. Human resource management phase one
  • emerged from American writing
  • focus on value for money and reduced role
    for trade unions
  • 6. Human resource management phase two
  • teamwork, development

5
DEFINING HUMAN RESOURCE MANAGEMENT
  • a strategic and coherent approach to the
    management of an organisations most valued
    assets - the people working there who
    individually and collectively contribute to the
    achievement of its objectives
    (Armstrong, 20063)
  • Torrington, Hall Taylor (2005) argue that HRM
    is difficult to define, since it is used in two
    ways
  • to describe the generic activities of managing
    people (HRM mark 1)
  • to denote a particular approach to managing
    people which is clearly distinct from personnel
    management (HRM mark 2)

6
HRM mark 1 the generic term
  • This refers to the key objectives to be achieved
  • Staffing objectives planning, recruiting,
    selecting
  • Performance objectives training, developing,
    rewarding
  • Change-management objectives
  • Administration objectives compliance with
    legislation, arrangements for pay etc

7
Defining HRM via Roles and Objectives
Performance Objectives
Change-management Objectives
Staffing Objectives
Administrative Objectives
HUMAN RESOURCE MANAGEMENT
Line Managers
Human Resource Generalists
Human Resource Specialists
Consultants and Advisers
Subcontractors
8
Why the interest in HRM mark 2?
  • The 1980s business climate
  • Increased product market competition
  • Recession
  • New technology
  • Government desire to reform industrial relations
  • Firms encouraged to introduce new practices
  • Restructuring of the economy
  • Decline of old industries, rise in service
    sector
  • Recognition of the need to improve British
    management
  • Influence of the excellence literature

9
The Harvard Framework of HRM (US)
Stakeholders Interests Shareholders Management Em
ployee Government Community Unions
Long-term consequences Individual
well-being Organisational effectiveness Societal
well-being
HRM policy choices Employee influence HR
flow Reward systems Work systems
HR outcomes Commitment Competence Congruence Cost
effectiveness
Situational Factors Workforce Business
conditions Management philosophy Labour
market Unions Laws and values
10
Theoretical perspectives of Strategic Human
Resource Management
  • Is there one best way to carry out HR activities?
    UNIVERSALIST APPROACH/BEST PRACTICE
  • Should HR policies and activities fit
    particular circumstances? BEST FIT
  • Should the focus be on long-tem sustainability?
    RESOURCE BASED VIEW

11
UNIVERSALIST APPROACH Guests four policy goals
for HRM
  • Strategic integration
  • Ensuring HRM is integrated into strategic
    planning
  • Commitment
  • Ensuring that employees feel bound to the
    organisation
  • Flexibility
  • Ensuring an adaptable structure
  • Quality
  • Ensuring high quality goods and services
    through high quality, flexible employees

12
The Universalist Approach (UK) - Guest (1989)
13
Components of best practice HRM (adapted from
Marchington and Wilkinson,2005)
  • Employment security and internal labour markets
  • Selective hiring and sophisticated selection
  • Extensive training, learning and development
  • Employee involvement, information sharing and
    worker voice
  • Self-managed teams / teamworking
  • High compensation contingent on performance
  • Reduction of status differentials

14
HRM and performance the USA studies
  • Huselid (1995) survey of 1,000 organisations
    concluded that the magnitude of the return for
    investments in high performance work practices is
    high
  • Pfeffer (1998) argues that best practice HRM has
    the potential to have a positive impact
    irrespective of size, sector or country

15
HRM and performance studies in the UK
  • Wests (2002) research in the NHS shows three
    practices have a strong impact on performance
    training, teamwork and appraisal
  • Guest (2003) looked at the extent of adoption of
    best practice HR and its effectiveness and
    concluded that research methods used impact on
    results
  • Subjective measures lead to a positive message
  • Objective measures lead to a less consistent
    message

16
Critique of best practice in Beardwell, Holden
and Claydon (2004)
  • The validity of the research methods?
  • Problems associated with inconsistencies in the
    models
  • Direction of causality
  • Applicability to organisations in highly
    competitive markets
  • Underlying theme of unitarism

17
Best-fit HRM
  • Assesses the extent to which there is vertical
    integration between an organisations business
    strategy and its HRM policies and practices
  • Demonstrate vertical integration through
  • Linking business goals to individual objectives
  • Measurement and rewarding of business goals

18
Limitations of best-fit models (Beardwell, Holden
and Claydon)
  • Reliance on rational planning approach
  • Lack of sophistication in description of generic
    strategies
  • Employee interests ignored
  • Lack of internal context

19
Resource based view of the firm
  • RBV analyses strategy from inside out
  • Focuses on internal resources and the unique
    factors which enable organisations to remain
    viable
  • Competitive advantage requires four attributes
  • Value the resource makes a difference
  • Rarity there is a shortage of these resources
  • Imperfect imitability difficult for other
    employers to copy these resources
  • Non-substitutable resources cannot be rendered
    obsolete or unnecessary

20
Problems with the resource-based view
(Torrington, Hall and Taylor)
  • Focus on firms and competitive advantage make
    this less relevant for the public sector
  • Too much time may be spent on measuring and not
    everything that is measured is of critical value

21
Environmental developments and HRM
  • Globalisation of economic activity
  • Markets for goods and services are international
  • Technology
  • Use new technology to maintain market position
  • Impact on HRM?
  • Continual development of practice
  • Expect change and flexibility
  • Manage an international workforce
  • Comply with complex employment legislation

22
References
  • Armstrong,M. (2006) A Handbook of Human Resource
    Management. London Kogan Page
  • Beardwell,I., Holden,L. and Claydon,T. (2004)
    Human Resource Management a contemporary
    approach. London FT/Prentice Hall
  • Guest,D. (1989) Personnel and HRM can you tell
    the difference? Personnel Management, Jan 1989
  • Guest,D., Michie,J., Conway,N. and Shehan,M.
    (2003) Human Resource Management and performance,
    British Journal of Industrial Relations, Vol 41,
    N0 2, pp291-314

23
References ctd
  • Huselid,M. (1995) The impact of human resource
    practices on turnover, productivity and corporate
    financial performance, Academy of Management
    Journal, Vol 38, No 3, pp635-672
  • Marchington,M. and Wilkinson,A. (2005) Human
    Resource Management. Lodon CIPD
  • Pfeffer,J. (1998) The human equation building
    profits by putting people first, Boston Harvard
    Business School Press
  • Storey,J. (2001) HRM a critical text. London
    Thomson Learning

24
References ctd
  • Torrington, D., Hall,L. and Taylor,S.(2005) Human
    Resource Management. London FT/Prentice Hall
  • West,M. (et al) (2002) The link between the
    management of employees and patient mortality in
    acute hospitals, International Journal of Human
    Resource Management, Vol 13, No 8, pp1299-1310
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