Lecture 4 - Hrm in Context

8/2/2019 Lecture 4 - Hrm in Context

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PROJECT HUMAN RESOURCE

MANAGEMENT

LECTURE 4 HRM IN CONTEXT

HUMAYUN AKHTAR

SZABIST


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Structure of chapter HRM: a vibrant area of study A brief history Research on HRM Managing the relationship between people and

organization

HRM practice areas Addressing the operational level in project-based organizations

Final thoughts


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HRM: A vibrant area of study A brief history

In 1954, renowned management thinker PeterDrucker used the term human resources toemphasize the distinction between workersand other economic resources.

He stressed the fact that humans are trueresources from which the firm benefits they are not merely costs.

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The breakthrough of the HRM concept

The term Human Resource Management gained popularity inmanagerial practice in the mid- 1970s, and little by little it more or less

replaced the term personnel management in many companies.

In the 1980s, many American corporations were threatened by competition from rapidly expanding and highly efficient Japaneseplayers.

Japanese management traditions, based on strong relationshipsbetween employee and employer, lifelong employment contracts, and working methods directed at quality rather than cost management,strongly contributed to the rising interest in the HRM approach at this

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Evolution of HRM

In the new view, employees were seen asimportant strategic resources, not as costs thatought to be minimized.

The emergence of the HRM concept was highly influenced by two intellectual developments:

Strategic managementOrganizational behavior


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TYPES OF HRMThe Oxford Handbook of HRM-2007

International HRM is concerned with HRM in companies

operating in the international arena (such asmultinationals), and internationalization processes.

Micro HRM covers functions of HR policy and practice,including recruitment, training and development,remuneration, etc.

Strategic HRM is viewed in its entirety as including overallHR strategies and their impact on performance, including

the connections between business strategy and HRM. 6


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Two Main Schools of Thought on HRM

BEST-PRACTICEMODELS BEST-FIT MODELS

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BEST- PRACTICE MODELS:

UNIVERSALISTIC HRM The research within the best - practice school istypically interested in patterns across sectors andindustries and in determinants for success.

Two challenges are commonly addressed in thiscontext.

First, how to measure success at the company level, work system level and employee level.Second, how to identify key practices.


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BEST PRACTICES IDENTIFIEDInformation-sharing programsFormal job analysisInternal promotionQuality of Work Life programsQuality Circles: Self-managed teamsIncentive plans

Training investmentsEmployment security Formal performance appraisals Job Rotation


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BEST- FIT MODELS:

CONTINGENT HRM The best - fit school, sometimes referred to as thecontingency approach within HRM, emphasizesinstead the need of HRM practices to be aligned andintegrated with the overall business strategy as well as with organizational and environmental contingencies


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Managing the relationship between

people and organization AdministrationPersonnel Management

Human ResourcesHuman Resources ManagementHuman Resources DevelopmentHuman AssetsHuman Capital


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Three important implications Organizational context:Internal organizational context, particularly the operational work setting, has a major influence on the requirements

placed on HRMPeople:Taking into account that individualization, empowerment,coworkership , and the notion of staying employable areimportant trends in HRM and in contemporary working life

Relationship:Modern organizations have become increasingly flexible andproject- based and this makes them rely, to a greater extent, onshort- term and flexible employment contracts.


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HRM PRACTICE AREAS Recruitment and selectionTraining and development

Competence and performance managementRemuneration Work organizationEqual employment opportunitiesDiversity managementEmployee voice systems.


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Four Core practice areas(based on research)

1. Flows2. Performance3. Involvement4. Development.


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FLOWS: All management activities directed toward managing theflow of people in, through, and out of the organization .

in- and out- flows of human resources across organizationalboundaries, and

internal flows, for example, job rotation and assignmentto/release from project assignments and project teams.

A well-managed flow (boundary-crossing as well as

internal) is critical not only for the organizations capability to ensure the continuous supply of humanresources but also for maintaining mutually beneficialrelationships between mobile workers and theorganization.


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PERFORMANCE:

Influencing the design of work settings and support inorder to ensure that people get the proper work conditionsto perform a good job

Hygiene factorsPhysical work conditions Administrative matters AchievementResponsibility Job satisfaction

Appraisal and feedback systems, which in turn are closely tied to reward systems.


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INVOLVEMENT:People are given the opportunity to contribute withtheir knowledge and experience in order to improveand develop the organization.The area could be divided into at least two sets of activities:

Those directed at employees participation in decision-making processesThose directed at employees influence over their workconditions


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DEVELOPMENT:The activities of this area aim at giving the flow of human resources a dimension of long-termdevelopment of competences and a career trajectory that is beneficial for both the individuals and theorganization.

Competence development.Career systems and development.


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THANK YOU

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Lecture 4 - Hrm in Context