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Chapter 1 - Lecture Slides

This document provides an overview of human resource management (HRM) for MBA students. It discusses the evolution of personnel management to HRM, key models and perspectives in HRM, and the strategic nature and practical application of HRM in organizations. The main points are: 1) HRM has developed from a more administrative personnel management approach to a strategic partner focused on organizational capability and employee commitment. 2) Models like the Harvard model and Ulrich model emphasize the strategic and multi-stakeholder nature of HRM. 3) While most organizations still have aspects of both personnel management and HRM, HRM principles around flexibility, learning, and high-involvement work practices are increasingly

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1K views

Chapter 1 - Lecture Slides

This document provides an overview of human resource management (HRM) for MBA students. It discusses the evolution of personnel management to HRM, key models and perspectives in HRM, and the strategic nature and practical application of HRM in organizations. The main points are: 1) HRM has developed from a more administrative personnel management approach to a strategic partner focused on organizational capability and employee commitment. 2) Models like the Harvard model and Ulrich model emphasize the strategic and multi-stakeholder nature of HRM. 3) While most organizations still have aspects of both personnel management and HRM, HRM principles around flexibility, learning, and high-involvement work practices are increasingly

Uploaded by

firas
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
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HRM for MBA students

Lecture 1
People management: personnel
management and human resource
management
Learning outcomes

• A good appreciation of the ‘people


management’ function in contemporary
organisations
• An appreciation of the theoretical
development of HRM
• An appreciation of the practical application
of HRM
• Recognition of the key themes of HRM
People are the only real source of
sustainable competitive
advantage.
We can define
people management as:

all the management decisions


and actions that directly
affect or influence people as
members of the organisation
rather than as job holders.
What do people managers do?

• Staffing objectives
• Performance objectives
• Change management objectives
• Administration objectives
Torrington et al (2009)
The ‘Ulrich model’ of HRM

Human resources should become:


– a strategic partner with top
management
– an expert in administration
– a champion for employees
– an agent of continuous transformation.
Ulrich (1998)
‘Building organisational capability is HR’s
heartland.’

But…

HR managers ‘can help make capitalism


human’.

Linda Holbech (2007 )


Personnel management

• Early industrial revolution: welfare role


• Rise of trade unionism: industrial relations
role
• Scientific management: training;
sophisticated recruitment and selection
• Personnel management paradigm
(Taylorist)
Human resource management

• Loss of faith in traditional mass-production


techniques
• Japanese quality
• Information technology
• HRM paradigm (post-Taylorist)
Perspectives in management

• Unitarist:
– conflict is ‘wrong’
• Pluralist:
– conflict is not ‘wrong’ but must be
managed
• Radical/critical:
– conflict is inevitable – and may be
‘right’.
The ‘Harvard model’ of HRM
Stakeholder
Interests

Shareholders
Management
Employee Groups
Government
Community
Unions
HRM Policy Choices HR Outcomes Long-term
Consequences
Employee influence Commitment
Human resource flow Competence Individual well being
Reward systems Congruence Organisational
Work systems Cost effectiveness effectiveness
Societal well-being

Situational Factors

Work force characteristics


Business strategy and
conditions
Management philosophy
Labour market
Unions
Task technology
Laws and societal values

Figure 1.1: A map of the HRM territory: the ‘Harvard model’ from Beer et al (1984,

p.16).
Key aspects of the ‘ideal types’
of PM & HRM

Characteristics Personnel Human Resource Management (HRM)


Management (PM)
Strategic nature  Ad hoc  Proactive, strategic
Psychological contract  Based on compliance  Based on seeking willing commitment
Job design  Typically Taylorist/Fordist  Typically team based
Organisational structure  Hierarchical  Flexible
Remuneration  Collectivised  Individualised
 ‘Pay by position’  ‘Pay for contribution’
Recruitment  Sophisticated recruitment practices  Sophisticated recruitment for all employees
for senior staff only  Strong internal labour market for core employees
Training/development  Limited  A learning and development philosophy for all core
employees
Employee relations  Pluralist  Unitarist:
perspective  Collectivist, low trust  Individualistic, high trust
Organisation of the function  Specialist / professional  Largely integrated into line management for day to day
 Bureaucratic and centralised HR issues
 Specialist HR group to advise and create HR policy
Welfare role  Residual expectations  No explicit welfare role
Criteria for success of the  Minimising cost of human resources  Control of HR costs, but also maximum utilisation of
function human resources over the long term
HRM in practice

• Evidence of significant adoption of HRM


practices
– (Workplace Employee Relations Surveys
and others)
• But still two traditions or paradigms
• Most organisations share characteristics of
each
• But HRM in the ascendant
Key themes in HRM
• High employee work practices
• Flexible organisation (core and periphery)
• Micro-level work organisation (team-
working)
• Sophisticated HR for recruitment
• Unitarist employee relations
• Change management
• Learning organisation
• Knowledge management
• Leadership

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