HRMMBA Ch1 Reviewed

8/13/2019 HRMMBA Ch1 Reviewed

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Cardiff School of Management

Human ResourceManagement

MBA 2013


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The Nature of HRM

The objectives of this chapter are to:

1. Define HRM

2.State and discuss the 4 key objectives of HRM3.Review the evolution of HRM function throughout

history

4.To understand the link between HRM and theachievement of organizational effectiveness

5.To discuss key environmental developments

6.To explain Best practice & Best fit approaches to


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Defining HRM

HRM is used in two different ways:

1. It is used generally to describe the body ofmanagement activities covered in books . It is

more of a modern name of what has long beenlabelled Personnel Management

1. It is more than an updating of the label. It is rathera distinctive approach towards carrying out peopleoriented organizational activities held to serve the

modern business more effectively


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HRM 1: The Generic TermThe role of HRM is defined in terms of the 4 key

Obj that form the foundation of all HR activity:

1. Staffing Objectives:

To ensure that the business is appropriately staffedand able to draw on the human resources it needsincluding:

Designing org struct& selecting the right talent

Identifying different types of contracts fordifferent groups of employment

Developping offer packages that attract the right


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HRM1: The Generic Term

2. Performance objectives: HR managers seek to ensure that people are well

motivated and committed so as to maximize theirperformance in different roles, that is by:

Investing in training & development

Designing reward systems to maximize efforts

around the performance targets

Assisting in disciplining employees where

performance is unsatisfactory


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HRM 1: The Generic Term

3. Change Management Objectives

HRM plays a central role in managing changewhether it be structural requiring reorganizationof activities or Cultural intended to alter attitudesto fit employees in the organizational culture andnorms

Key activities include:

Recruitment and development of people with theright leadership skills to drive the change

Hiring Change Agents to help acceptance ofchange &construction of adequate reward systems


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4. Administration objectives:

It is meant to underpin the achievement of theother forms of objectives

It is simply carried out to facilitate anorganizations smooth running in order tomaintain accurate data on individual employeesand to ensure compliance with the law (Pay, Leave,Social Security, Insurance, Pension, etc)

Achieving excellence in the delivery of admintasks helps the HR function gain& maintain the

credibility & respect of managers


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Delivering HRM objectives: The larger the organization, the more scope there

is to employ people to HR Specialists to specializein a particular area of HRM: Employee-Employerrelations, training & development, Recruitment &Selection, Health safety & welfare, compensationbenefits etc

HR Generalists carry out the range of HR activitiesand seek to achieve all the objectives discussed

above.


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HRM 1: The GENERIC Term

In a larger businesses, they either look afterpersonnel matters in a particular division, oremployed at a senior level to develop policy & takeresponsibility for HR issues across all the

organization

HR Admin is either outsourced to specialist serviceproviders, or a shared service model(centralized

function) is established, apart from HR, to carryout the admin tasks

Smaller organizations cant afford to have HR atall. They use consultants instead or assign HRtasks to Finance/accountin departments


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HRM 2: A Distinctive Approach to the

Management of People Personnel managers seek to understand and

articulate the aspirations of the employees

They are in between management and theemployee, mediating the needs of each to theother

Personnel management is workforce centered

and focuses on the supply of employees


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HRM2 : A Distinctive Approach to the

Management of People

HRM is identified with management interests andneeds for HR

It is focused on the demand for resources and isresource centered

There is a greater emphasis on planning,

monitoring, control rather than meditation. Problem solving is undertaken with other

members of management than directly withemployees or their representatives.


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HRM Mark2: A Distinctive Approach to

the Management of People Legge concludes there are slight but important

difference between PM&HRM, such as:

1. HRM focuses more on what is done tomanagers

2. There is a more proactive role to play for line

managers

3. There is a top management responsibility for

managing culture


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The Evolution of Personnel &HRM

1. Social Justice:

PM originated in the 19th century in response tosocial reformers criticism of free enterpriseexploitation of workers by factors owners

The first PMs were appointed to ameliorate thelot of workers& to reduce the organizationaldistance between decision makers and those

implementing the decisions

In the late 19th and early 20th , welfare officerswere appointed by large employers to manage

new initiatives to make life less harsh for their-


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2. Human Bureaucracy: The 2nd phase marked a beginning of a move a

way from a sole focus on welfare towards the

meeting of various other organizationalobjectives

PM began to gain responsibilities in the areas ofrecruitment, training, and organizational design

Personnel specialists started to work out howorganizational structures could be designed andlabour deployed to maximize efficiency &

minimize the industrial conflicts and foster


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3.Negotiated consent:

In period of full employment following thesecond World War, labour became a scarce

resource, which led to a growth in trade unionmembership

In the 1940, employers were placed under

statutory duty to negotiate with unionsrepresenting employees

The government encouraged the appointment

of personnel officers and set up the first


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4.Organization:The late 1960ssaw a switch in focus among PS

away from dealing with the rank and file

employee on behalf of management towardsdealing with management itself andintegration of management activity

The phase was marked by development ofcareer paths and of opportunities withinorganizations for personal growth

PS developed techniques of manpower


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5. HRM already discussed

6. A New HR?

Beginning of a new sixth stage in the evolution ofpersonnel/HR work characterized by(Bach):

A strong tendency for issues relating to legal

compliance

Increased prevalence of multi-employers, insteadof one single employer


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The Evolution of Personnel &HRMA move away in HR from the management of jobs

to the management of people by developingemployment strategies that differ for differentgroups of employees(Lepak & Snell)

A move away from an expectation that staff willdemonstrate commitment to a set of corporate

Values and towards a philosophy which is far morecustomer focused( customers are defined as theultimate employers and employees are empoweredto meet their requirements


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Staff is viewed as an internal customer that theyaim to satisfy

The new HR understands that the employmentrelationship is not a transactional one(wheremoney is earned in exchange for carrying out a setof duties), but a relational one that involvesemotional attachments with colleagues, customersand organizations as a whole.


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HRM & The Achievement of

Organizational Effectiveness

How what happens in the HR impacts theorganizationsability to meet its objectives

Organizational effectiveness in the public&voluntary sectors is defined in terms of meeting aservice need as cost efficiently as possible and tothe highest available standards of quality

In the private sector, it is about the achievement&maintenance of competitive advantage

It varies according to the type and situation ofor anization


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Organizational Effectiveness

The contribution of HR to gaining competitiveadvantage involves achieving the objectives of an

organization in the area of people managementmore efficiently and effectively than competitors

These objectives can be achieved by mobilizing a

workforce, maximizing its performance, managingchange effectively and striving to achieveexcellence in administration


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Organizational EffectivenessAttracting, engaging, rewarding, developing and

retaining people effectively is a major role for HRto play in the achievement of organizational

effectiveness

HR contributes also significantly to develop apositive long term reputation, that is by:

fostering an understanding and commitment toethical conduct on the part of managers and staff

setting a good example of strong team and good

working conditions


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Key Environmental Developments

We are entering the era of hyper-competitivepressures driven by two major developments:

1. Moves towards the globalization of economicactivity-more intense international competition

2. Technology moves forward at an ever accelerating

pace. Developments in information technology,energy production, chemical engineering,transportation, biotechnology revolutionize the

way that many industries operate


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Key Environmental developments HR managers have to develop practices which help

enhance the competitive advantage of anorganization

Capacity for organizational flexibility has become

central to the achievement of competitiveadvantage

HR Managers have to learn how to manage an

international workforce effectively & how to attract, motivate & retain people with scare skills if theorganization is to deploy evolving technologies


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Key Environmental DevelopmentsThe following areas are particularily

important:

1.Labour Market Trends: this is significant in

terms of the number of people & skillsavailable and in terms of attitudes towardswork and the workplace

In a tight labour market, employees havemore choice about where and when they

work.

Reduced interest in joining unions with


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Key Environmental developments2. Employment regulations:

Management of different areas of employmentrelationships requires a good understanding ofthe legal aspect in order to ensure compliance

with the local employment regulations

3. Psychological Contract:

Change from Old Psychological to a NewPsychological contract involves employersgiving less security and receiving less loyaltyfrom employees in return


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Best Practice Vs Best FitBest Practice:

Adherents of Best PracticeApproach argue thatthere are key HR practices that helps anorganization in achieving competitive advantage

irrespective of the particular product marketstrategy if the right policies and practices arepursued.

These include the use of more advanced selectionmethods, a serious commitment to employeeinvolvement, substantial investment in trai&dev&the use of individualized reward systems&

harmonized terms and conditions of employment


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Best Practice Vs Best FitBest Fit:

It does not believe in the existence of universalsolutions

It advocates the HR practices and policies that fitand are thus appropriate to the situation ofindividual employers

The size of the establishment, the dominantproduct marketing strategy being pursued and thenature of the labor markets in which theorganization competes are key variables to

determine the HR best fit practice.


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The Future of Work Influential writers argued that the product market

forces will lead to the emergence of a differentworld of work marked by:

1.A shift towards what is described as Knowledge

Work; that is many more people will be employedfor their specialist knowledge and far fewerroutine jobs will exist. Competitve advantage froman employers perspective will derive from the

capacity to create& deploy knowledge moreeffectively than others.

2.Organizations will not be able to offer contracts of

employment in the way they do today Jobs will

Documents

HRMMBA Ch1 Reviewed