Introduction to HRM

HRM is viewed as an all-embracing term describing a number of distinctive approaches to

people management. Part 1 helps you to understand and evaluate the different and
sometimes ambiguous views of human resource management by investigating its origins,
explanatory models, technology and practice

The sections in Part 1 address a number of specific issues:

 Where do the fundamental concepts of HRM come from?

 What distinguishes HRM from other approaches to managing people -
particularly personnel management?
 Is HRM here to stay or is it just another management fad?
 Is HRM a coherent and integrated approach to managing people?
 How prevalent is HRM?
 What is the link between HRM and high performance?
 HRM and Knowledge Management.
 How has technology changed the practice and delivery of HRM?
 Does its use lead to greater organizational effectiveness?

In this section we set out to understand the purpose of HRM, how it developed, and the
range of tasks covered by human resource specialists. We will touch on:

 The history of people management

 Significant developments that led to modern human resource management
(HRM)
 The main differences between 'traditional' personnel management and HRM
 The key roles played by human resource specialists

Chapter 1- People Management

We introduce you to the concept of human resource management. HRM has evolved from a
number of different strands of thought and is best described as a loose philosophy of people
management rather than a focused methodology. People management

Arguably, HRM has become the dominant approach to people management in English-
speaking countries. But it is important to stress that HRM has not 'come out of nowhere'.
There is a long history of attempts to achieve an understanding of human behaviour in the
workplace. Throughout the 20th century and earlier, practitioners and academics developed
theories and practices to explain and influence human behaviour at work. HRM has
absorbed ideas and techniques from a wide range of these theories and practical tools. In
effect, HRM is a synthesis of themes and concepts drawn from a long history of work, more
recent management theories and social science research.

Background and origins of people management

The roots of people management (and, therefore, of HRM) lie deep in the past. Just as the
tasks that have to be carried out in modern organizations are allocated to different jobs and
the people who perform those jobs, humans in ancient societies divided work between
themselves (...)
See Human Resource Management in a Business Context for further discussion on the
division of labour, the evolution of a managerial class, the Industrial Revolution and the
concept of alienation.

To get a feel for how HR issues were regarded in the past, dip into some articles from 1858-
1859. Count yourselves lucky that you are not Victorian domestic servants:

A Victorian Domestic Servant

From 'The Dictionary of Daily Wants' - 1858-1859

MAID OF ALL WORK. - A domestic servant, who undertakes the whole duties of a household
without assistance; her duties comprising those of cook, housemaid, nursery maid, and
various other offices, according to the exigencies of the establishment. The situation is one
which is usually regarded as the hardest worked and worst paid of any branch of domestic
servitude; it is, therefore, usually filled by inexperienced servants, or females who are so
circumstanced that they are only desirous of securing a home, and of earning sufficient to
keep themselves decently clad. In many of these situations, a servant may be very
comfortably circumstanced, especially if it be a limited family of regular habits, and where
there is a disposition to treat the servant with kindness and consideration.

The duties of a maid of all work being multifarious, it is necessary that she should arise early
in the morning; and six or half-past six o'clock is the latest period at which she should
remain in bed. She should first light the kitchen fire, and set the kettle over to boil; then she
should sweep, dust, and prepare the room in which breakfast is to be taken. Having served
the breakfast, she should, while the family are engaged upon that meal, proceed to the
various bedchambers, strip the beds, open the windows, &c. This done, she will obtain her
own breakfast, and after washing and putting away the things, she will again go upstairs,
and finish what remains to be done there.

As the family will in all probability dine early, she must now set about the preliminaries for
the dinner, making up the fire, preparing the vegetables, &c. After the dinner is cleared
away, and the things washed and put by in their places, she must clean the kitchen; and
this done, she is at liberty to attend to her own personal appearance, to wash and dress
herself, &c. By this time the preparation for tea will have to be thought of, and this being
duly served and cleared away, she must employ herself in needlework in connection with
the household, or should there happen to be none requiring to be done, she may embrace
this opportunity to attend to her own personal necessities. Supper has then to be attended
to; and this finished, the maid of all work should take the chamber candlesticks, hot water,
&c., into the sitting-room, and retire to rest as soon as her mistress or the regulation of the
establishment will permit her.

The duties here set down can only be regarded as an outline rather than a detail, the habits
of every family varying, and thereby regulating the amount of labour demanded, and the
order in which the duties are to be performed. As a rule, however, a maid of all work, if she
wish to retain her situation, must be industrious, cleanly, and thoughtful; and not only able
to work, but to plan.
The Victorian Employment Relationship

From 'The Dictionary of Daily Wants' - 1858-1859

MASTER AND SERVANT. - The mode of hiring is by what is commonly called a month's
warning or a month's wages. But this arrangement varies considerably, and is regulated for
the most part according to the customs of the particular branch of service or employment. A
grocer or linen draper in the metropolis, may, by the custom of the trade, discharge an
assistant without any notice. Here the bargain in the outset is for so much salary per year.
An usher engaged in much the same way, is entitled to a quarter's notice. A parliamentary
reporter is engaged for the session of Parliament. An editor is sometimes dismissed with a
month's notice, but mostly three months' notice from any day. In every trade or calling, in
the absence of any stipulation upon the point, the Courts hold that the customary notice is
understood by master and servant. If a master would require, or has required a monthly
notice from his clerk, the clerk is entitled to the same from his master. Where a mercantile
house has fifty or sixty assistants, the custom of the particular house, and not of the trade,
will prevail.

If a servant be disabled in his master's service, by an injury received through another's

default, the master may recover damage for loss of service. If a domestic servant falls ill, a
master is not bound to provide medical attendance and medicines, yet if he calls in his own
medical attendant, and pays for such attendance, he cannot set off the amount against the
servant's claim for wages, unless there was a special agreement between them that he
should do so. If a servant hired by the year, meets, with an accident or is disabled while
employed in his master's business, he cannot be lawfully dismissed, nor can big wages be
abated.

If a servant wilfully disobeys any lawful order of his master, he is liable to be discharged
immediately, without either notice or compensation. A master may not only maintain an
action against anyone who entices away his servant, but also against the servant; and if
without enticement, a servant leaves his master without just cause, an action will lie against
another who retains him with acknowledge of such departure. In cases where a person hires
a servant already engaged to another, although the person hiring is not aware of any
existing engagement, the original master may claim the services of his servant, and the
second hiring is null and void.

A master is entitled to correct his servant in a reasonable manner, to enforce fidelity and
obedience to all his lawful commands. Acts of the servant are, in many instances, deemed
acts of the master; and he is responsible for them where they are pursuant to his authority.
If a servant commit an act of trespass, by command or encouragement of his master, the
master may be held liable. But in so doing, his servant is not excused, as he is bound to
obey the master in such things, only as are honest and lawful. If a servant of an innkeeper
rob his master's guest, the. master is bound to make good the loss. Also, if a waiter at an
inn serve a person bad wine, by which the health of the person is impaired, an action will lie
against the master. In like manner, if a servant be permitted to frequently do a thing by the
tacit consent of his master, the master will be liable. If a servant is usually sent upon trust
with any tradesman, and he takes goods in the name of his master, and appropriates them
to his own use, the master must pay for them. But if a person usually deals with a
tradesman himself, or constantly pays them ready money, he is not answerable for goods
supplied on credit to the servant in his name. Or if a person, forbid a tradesman to trust his
servant on his account, and the servant continue to purchase on credit, the master is not
liable. The act of a servant, though he has quitted his master's service, has been held to be
binding on the master, by reason of the former credit given him on his master's. account,
and the fact of the servant's discharge not being known to the party trusting. The master is
also answerable for any injury arising by the fault or neglect of his servant when executing
his master's business. A master is likewise chargeable for any nuisance occasioned by his
servant, to the damage or annoyance of any individual, or the common nuisance of Her
Majesty's subjects. A servant is not answerable to Master for any loss which may happen,
unless it be through wilfull neglect; but if he be guilty of fraud or of gross negligence, an
action will lie against him by his master.

When servants are drawn for the militia, the position of the parties appears to be this:- If
the servant return to his employ within a reasonable time after training, the master is bound
to receive him, subject to the right of deducting such a sum from his wages as is
proportioned to the duration of absence. If he refuse to receive him, the servant may either
treat the service as continuing, and wait for his wages until the end of the year, or other
period agreed upon; or he may treat the service as ended by mutual consent, and at once
recover so much wages as is proportioned to the time he served before he went out
training. If a servant stipulate to remain for a certain period in his master's service, and he
discharges him before the expiration of that period, he is not entitled to recover any wages
for the portion of time that he has remained.

Mutual Obligations of Master and Servant

From 'The Dictionary of Daily Wants' - 1858-1859

MASTER AND SERVANT, MUTUAL OBLIGATIONS

It is universally admitted that a good master makes a good servant; and one of the best
signs of a proper understanding existing between the employer and the employed is
furnished by servants remaining for a lengthened period in the same situations. A master
should treat his servant with firmness but not with severity; he should lead his servant to
understand that when to once ordered anything to be done, he expected it to be promptly
and properly obeyed, without being compelled to reiterate the order. A master should
observe habits of regularity in his own proceedings, and thus get an example to those under
him, which they are almost sure to follow. A servant should be paid at a fair and just rate
for his services; no saving is in reality effected by underpayment; it sometimes makes
servants dishonest, and always renders them careless and negligent.

As length of service increases, and when the servant has conducted himself well, an
occasional augmentation of wages will not be ill-bestowed; or the recognition of fidelity and
good service may take the form of some periodical and seasonable gift. A master may
advantageously drop occasionally the character of the employer for that of the friend, giving
good advice on personal matters, and making inquiries in connection with their welfare; but
on doing this, anything approaching to familiarity should be avoided, nor should such
intercourse partake of an inquisitorial character. Servants should never be reproved before
strangers; whatever faults they commit should be censured privately; the reproof will then
have all the greater force, and the manner of giving it will be appreciated by every sensible
servant. A master should carefully avoid commissioning his servant in questionable offices,
as, for instance, inducing him to tell a falsehood, or ordering him to commit some mean act
by which a petty advantage may be gained. By such a course of conduct all moral restraint
will be lost, and the servant will in all probability avail himself of similar acts against his
master's interest.
Family quarrels and disputes with any member of the household never be carried on in the
presence of a servant; such displays have a tendency to lessen the parties in the eyes of the
servant, and encourage acts of insubordination. No master should make a confidant of his
servant, or entrust him with any secret to his prejudice; this at once gives a servant undue
importance, and leads him to take liberties which he would not otherwise dare to
contemplate. Some allowance should b« made for the feelings and sufferings of a servant;
thus, when he is overtaken by illness, or visited with affliction, he should be treated with
merciful consideration; such a concession is never thrown away, for should an employer
subsequently share a similar fate, he will find in his servant a sincere sympathizer and a
watchful attendant. Servants should be indulged in occasional holidays and hours of
relaxation; under these conditions, labour will be performed with more alacrity and greater
interest.

The duties of a servant towards his employer may be summed as follows: He should
implicitly obey the orders given him, without murmur or dissent. He should also endeavour
to gain a knowledge of his employer's habits, and anticipate his wishes, so as to spare the
necessity of being continually reminded of duties which he is sure to be called upon to
perform. A servant should avoid giving himself airs of consequence, or acting or speaking
impertinently; such conduct only serves to display his ignorance, and an unfitness for the
situation he holds. All duties should be performed as conscientiously in the employer's
absence as in his presence; eye-service is a species of hypocrisy which must be sooner or
later detected, with very humiliating consequences. A servant should act with the same zeal
and probity on his employer's behalf as he would for his own; any petty advantage gained
by aa opposite course a more than counterbalanced by the guilty consciousness of wrong,
and may be attended by an irretrievable loss of character.

Whatever is done or said by the members of a family, which may be repeated to their
prejudice, should never be carried beyond the walls of the house; a servant who circulates
gossip and scandal respecting the household in which he lives, is unworthy of his trust, and
brands himself as a domestic spy and a traitor. Harsh expressions and hasty words,
occasionally addressed by an employer to his servant, should be overlooked instead of being
resented. This is sometimes difficult of observance, but it never fails to be appreciated, and
will invariably win respect and esteem.

A servant should always be true to his promise; thus when he is permitted leave of absence
on condition that he return at a stated time, he should be back at his post to the minute;
any extra liberty taken beyond that stipulated for is calculated to irritate an employer, and
by shaking his confidence, renders him reluctant to grant a like indulgence on a future
occasion. Truthfulness and straightforward conduct should be ever observed; when a
servant has committed an error, or has met with some mishap in the performance of his
duties, he should not endeavour to screen himself by subterfuge and misrepresentation, but
at once acknowledge the fault he has committed, or reveal the accident that has befallen
him.

A servant should be cheerful and willing, and content with the station which has been
assigned him; he should remember that there must of necessity be some grades in life lower
than others; and, in order that he may reconcile himself to this order of things, he should
contrast his lot with that of thousands who are much worse situated than himself; and find
comfort in the fact that he is spared the responsibilities and vexations which attach
themselves to the higher spheres of society.
The Victorian Apprentice

From 'The Dictionary of Daily Wants' - 1858-1859

APPRENTICE signifies a person who is bound by indenture to serve a master for a certain
term, and receives in return for his services instruction in his master's profession, art, or
occupation. Apprentices and .masters are equally bound to perform their portion of the
contract towards each other; and if the master neglect to teach the apprentice his business,
or the apprentice refuse to obey his master's instructions, both are liable to be summoned
before a magistrate to answer the complaint against them. A master cannot legally compel
his apprentice to work an unreasonable length of time.

There is no specific duration marked out by law, but doubtless the habitual employment of
an apprentice for more than twelve hours daily (exclusive of meal times) would be deemed
unreasonable. Compelling an apprentice to work on Sunday is clearly illegal. On these
points, however, justices have not the power to interfere where the premium paid exceeds
£25. When an assignment is made of a trader's effects, the apprentice may form part of the
assignment and he is bound to serve him to whom he is transferred in all respects the same
as his original master. Bankruptcy, however, is a discharge of the indenture. In cases of
dissolution of partnership, the apprentice is bound to serve the remaining members of the
firm, just as though the partnership remained intact. When the master dies the
apprenticeship is at an end, for the contract is held to be a personal one between master
and servant. But, by the custom of London, if a master die, the apprentice is bound to
continue his services to the widow, provided she carry on the same trade.

Indentures may be cancelled by mutual consent; the safest and most economical mode in
such a case is simply to cut off the names and seals of the parties in the indenture, and
endorse thereon a memorandum, signed by all parties, to the effect that they give their
consent to the cancelling of the same. If there be any covenant for maintenance in the
indentures, the executor of the deceased master is bound to make provision for the same so
far as the assets will allow. A master may administer reasonable corporal chastisement to
his apprentice, but he cannot discharge him. If any apprentice, whose premium does not
exceed £19, runs away from his master, he may be compelled to serve beyond his term for
the time which he absented himself, or make suitable satisfaction, or be imprisoned for
three months, If he enters another person's service, his master is entitled to his earnings,
and he may bring an action against the persons who enticed him away. An apprentice
cannot be compelled to serve in the Militia, nor if impressed in the Royal Navy.
Apprenticeship indentures need not of necessity be legally prepared, but may be drawn up
on printed forms designed for that purpose, and sold at the various law stationers.

APPRENTICING.

As this step has the most important influence upon success in life, it ought to be exercised
by parents and guardians with the most scrupulous care and discretion. In apprenticing a
youth it is not alone sufficient that he should learn a trade from which good earnings may
afterwards be derived, but that the trade selected should be in accordance with his taste,
and also conformable to his mental and physical capacity. It may be said that a boy does
not know his own mind, and that it is consequently idle to consult him upon a subject when
his seniors are better qualified to judge. But in the majority of cases a boy will be found to
give unmistakeable indications of the branch of mechanical employment upon which his
mind is most bent and for which his hands will be consequently most fit. And if this evidence
of a distinctive perception is disregarded, and the boy is apprenticed to a trade of a totally
opposite nature to that for which he has a predilection, the incessant struggle between
natural desire and constrained duty will frequently entail failure and disappointment, and
irrevocably blight the youth s prospects in life. Equally necessary is it that the mental and
bodily faculties should be considered before apprenticeship. It is, for instance, manifestly
unjust both to master and apprentice to place a youth of notoriously dull parts in a situation
where a constant demand will be made upon him for mental labour which he is unable to
supply. And it is also a species of cruelty to select for a youth of a weak and delicate
constitution such a trade as is only adapted for the robust and hardy. Obvious as these
deductions may appear, yet it is certain that they are continually being disregarded, and
youths without number are apprenticed to trades for which they have neither the inclination,
aptitude, or strength, simply because some relation or friend happens to be of a particular
trade which seems to offer an excellent opportunity for advancement.

The moral character of the future master, together with his commercial reputation, should
be strictly inquired into; for there are some employers whose only anxiety is to secure the
premium, and when that is received to allow the apprentice to pursue his own undirected
course as best he may. The wisest plan, therefore, when the particular trade is determined
on is to place the youth with a person who has been, established for some years, and
whose, deputation and ability can be testified to by former apprentices.

The premiums for apprenticeship are governed by no stated tariff but as a general rule they
are proportioned to the wages which the trade affords. For instance, instruction in an art by
which three pounds a week may be earned is as a matter of course worth more than that
from which only five and thirty shillings a week can be gained. The amount of the premium,
therefore, is a secondary consideration to the advantages which its outlay secures. In
apprenticing, another consideration is to be attended to, which is, that the trade chosen
shall not be one which materially fluctuates, or that depends upon the caprices of fashion.
That handicraft is the most reliable, which produces articles that are and must be as a
matter of necessity always in request. Amongst these may be enumerated boot maker,
hatter, tailor, carpenter, engineer, plumber and painter, saddler, turner, watchmaker, &c.

The usual term of apprenticeship is seven years, namely, from fourteen to twenty-one years
of age, but that period of probation is not always necessary, and, generally speaking, it is
optional to determine upon a shorter term.

The Victorian Character Reference

From 'The Dictionary of Daily Wants' - 1858-1859

CHARACTER OF SERVANTS. It is customary to receive testimonials of a servant's

trustworthiness and ability at the time of hiring them, and also to give servants that have
formerly been in a person's service what is termed a character. Upon this point it is
necessary to exercise a great deal of caution and discernment, in order to avoid being
cheated with testimonials that are utterly false. For instance, it is not at all uncommon for
disaffected persons - either servants who have sacrificed their good name for some previous
indiscretion, or others whose sole aim is to obtain an introduction into a house with an evil
design - to refer to some imaginary late employer, living at a distance, for a reference. The
letter making inquiries respecting the servants obtained possession of, and answered by
some person in communication with the supposed servant, or even by the impostor himself.
The testimonials given are of course the most flattering, and the unsuspecting employer
unconsciously admits a thief, or even worse, into his house. Therefore no reference should
be accepted unless it is a personal one. But even in these cases fraud is sometimes
practised, and for the sake of a fee there are dishonest persons willing to vouch for the
honesty and good qualities of persons of whom they know nothing. In these matters,
therefore, an employer should exercise judgment and discretion, and if there is any
circumstance that gives rise to suspicion in the most trifling degree, refuse to have anything
more to say in the affair. With regard to the giving of characters by employers, it is
established that an employer is not bound to give a servant a character; but if a character
be given, it must be a true one; otherwise, if a servant is in a position to prove that he has
sustained injury by a false and malicious character being given of him, an action for
damages will lie against the person so giving it. But if the character be given without malice
and to the best of his knowledge, no action lies.

It is customary with servants who have been in a particular employment at some distance of
time previously, to return to their former employer, and ask him to give them a character,
the idea being to impress persons into whose service they wish to enter with the belief that
they have only recently left the employer whose testimonials they produce. Now, as it is
possible that a servant may behave himself very well in one situation, and grossly
misconduct himself in a subsequent one, an employer giving a character under the
assumption before stated, clearly becomes a party to a species of fraud, and renders himself
liable to very disagreeable consequences: at the same time the servant may have conducted
himself properly, but owing to his last employers having left the country or died, or from
some other cause, they cannot be personally referred to. In such a dilemma, therefore, it
would be unjust to withhold the testimonials asked for; and in either case the servant may
be obliged, and ill consequences averted, by simply stating the date when the servant left
the particular employment, leaving the inquirer to act as he may think fit, with regard to the
subsequent interval. In these transactions it behoves both the master and servant to speak
truthfully, and to act in good faith, so that neither party concerned may sustain wrong or
injury.

The penalties attaching to false characters are, that if any person falsely personate any
master or mistress in order to give a servant a character; or if any master or mistress
knowingly give in writing a false character of a servant, or account of his former service; or
if any servant bring a false certificate or alter a certificate of character, the offender forfeits
upon conviction £20, with 10s. Costs.

Professional managers

By 1900 the USA had undergone several decades of rapid, large-scale industrialization.
Large American companies such as Heinz and Singer Sewing Machines had the
characteristics of modern, highly structured organizations. They produced standardized
consumer durables for the mass market. These organizations required a supply of trained
managers. Notionally selected on the basis of ability and expertise - rather than family
connections - they needed to know how to organize, reward and motivate their staff. In the
USA, state and private universities were opened to cater for this new professional need.

The first companies of equivalent size and organization did not arise in Britain and the
Commonwealth until the 1920s and management education was similarly late in developing.
Like most European or Asian companies they still tended to employ relatives or to promote
long-standing workers to management roles.
The Human Factor

The 'science' in scientific management was doubtful. Initially the work of occupational
psychologists bordered on physiology as they investigated fatigue and monotony.

Their work directly countered the myth that working longer hours produced greater output.
In their research on monotony they took a deliberate anti-Taylorist perspective. They
confirmed Taylor's views on the value of rest-pauses but argued against the notion of 'one
best way by a first-class man'. The simple truth was that individual tasks could be done
equally effectively in a variety of ways by a diverse range of people.

Human Relations

The US human relations movement dominated management thinking until the 1950s and
was a significant influence on the development of modern HRM. The movement gained most
of its inspiration from the famous Hawthorne studies at the Western Electric Company plant
of that name in Chicago from the 1920s to the early 1940s. The plant employed 40,000
people and was regarded as progressive. The studies were organized by the company, with
some assistance from the Harvard Business School. The intention was to find out how
productivity might be affected if working conditions such as lighting, heating and rest-
pauses were varied. Elton Mayo, an Australian professor at Harvard, picked up these studies
and publicized a new approach in American management philosophy that spread to many
other countries.

Human Resource Management in a Business Context considers the significance of the

Hawthorne studies in the development of HRM.

Point to consider

* You could evaluate the human relations approach on dimensions such as 'hard-soft',
'authoritarian-liberal', 'subjective-objective', etc.

Management theory

The human relations and human factors approaches were absorbed into a broad behavioural
science movement in the 1950's and 1960's. This period produced some influential theories
on the motivation of human performance. For example, Maslow's hierarchy of needs
provided an individual focus on the reasons why people work. He argued that people
satisfied an ascending series of needs from survival, through security to eventual 'self-
actualization'.

In the same period, concepts of job design such as job enrichment and job enlargement
were investigated. It was felt that people would give more to an organization if they gained
satisfaction from their jobs. Jobs should be designed to be interesting and challenging to
gain the commitment of workers - a central theme of HRM.

Classic theories were produced in the 1950s and 1960s within the human relations
framework. By the 1970s most managers participating in formal management training were
aware of: Theory X and Theory Y (McGregor, 1960); of Maslow and Herzberg's motivation
theories; and knew where they should be in terms of the managerial grid (Blake and
Mouton, 1964). These theorists advocated participative, 'soft' approaches to management.
However, only a minority of managers in the USA received such training, with even fewer in
other countries. Most operational managers - concerned with production, engineering, or
distribution - had worked their way up from low-level jobs: they were probably closer in
spirit to F.W. Taylor than the theorists of the 1950s and 1960s. This contrasted with
personnel departments with a higher proportion of people who had received academic
training; additionally, 'personnel' was an area where women were prevalent - as opposed to
production which was male dominated. Were women naturally more open to human
relations concepts than men?

Human Resource Management in a Business Context summarizes other key management

theories, including management by objectives, contingency, organizattional development,
strategic management, leadership and corporate culture.

Points to consider

*. What is the value of theory? Specifically, what is the value of a theory that has gone out
of fashion? Most theories are not entirely new - they adapt or develop older concepts as a
result of perceived inadequacies in the originals. Management thinking is like an incoming
tide: each wave comes further up the beach, then retreats, leaving a little behind to be
overtaken by the next wave. You can also consider the limitations of commonsense and the
fact that most problems have been experienced already, in some form, by someone else.
We can learn from that wider experience, whereas commonsense is essentially individual.

Personnel Management

Development of the personnel specialism

Personnel management has been a recognized function in the USA since NCR opened a
personnel office in the 1890s. American personnel managers worked within a unitarist
tradition, identifying closely with the objectives of their organization. It was natural for HRM
to emerge comparatively smoothly from this perspective.

In other countries, notably Australia, South Africa and the UK, the personnel management
function arrived more slowly and came from a number of routes. Moreover, its orientation
was not entirely managerial. In Britain its origins can be traced to the 'welfare officers'
employed by Quaker-owned companies such as Cadburys. At an early stage it became
evident that there was an inherent conflict between their activities and those of line
managers. They were not seen to have a philosophy compatible with the worldview of
senior managers. The welfare officer orientation placed personnel management as a buffer
between the business and its employees. In terms of 'organizational politics' this was not a
politically viable position for individuals wishing to further their careers, increase their status
and earn high salaries.

From personnel to human resource management

HRM-type themes, including 'human capital theory' (discussed in Part 2) and 'human asset
accounting' can be found in literature dating as far back as the 1970s. But the modern view
of human resource management first gained prominence in 1981 with its introduction on the
prestigious MBA course at Harvard Business School. The Harvard MBA provided a blueprint
for many other courses throughout North America and the rest of the world, making its
interpretation of HRM particularly influential (Beer et al, 1984; Guest, 1987; Poole, 1990).
Simultaneously, other interpretations were being developed in Michigan and New York.

These ideas spread to other countries in the 1980s and 1990s, particularly Australia, New
Zealand, parts of northern Europe - especially the UK, Ireland and Scandinavia - and also
South and South-East Asia and South Africa. Today, the HRM approach is influential in many
parts of the world.

Human Resource Management in a Business Context, provides a discussion on why HRM

seemed to be different - and preferable - to personnel management but also examine some
common prejudices against the notion of HRM.

Points to consider

* At face value, HRM is strategic, involving top management, etc. - but only if we accept the
rhetoric of HRM without debate. The question of whether or not there is a real difference
between 'personnel management' and HRM is dealt with in more depth in the next section.

* Certainly, personnel management had an image problem - and for some people, HRM is
no different. Why has personnel/HR had such a bad press? Why change the label from
'personnel' to HRM? Is there a substantive difference in philosophy, theory or practice? What
are the motives of practitioners in adopting (or resisting) the change of label?

The new managerialism

It is emphasized that the HR function had an opportunity to shift from being an 'employee
advocate' (associated with personnel management) to a 'member of the management team'.
Schuler's view was that this required HR professionals to be concerned with the bottom line,
profits, organizational effectiveness and business survival. In other words, human resource
issues should be addressed as business issues.

In fact, line and general managers have been instrumental in the adoption of HRM - often
pushing changes through despite the resistance of personnel specialists (Storey, 2001: 7).
Radical changes in business structures and supportive - largely right-wing - governments
encouraged a renewed confidence in the power of managers to manage. The balance of
power moved away from workers and their representatives with the collapse of traditional
heavy industries. High levels of unemployment allowed managers to pick and choose new
recruits. Existing employees felt under pressure to be more flexible under the threat of
losing their jobs. As a result, managers were able to design more competitive organizations
with new forms of employment relationships.

Review Questions

The first chapter of Human Resource Management in a Business Context, 3rd edition has 9
review questions. The following notes are intended to help students using the book to get
started on the questions. The questions are not shown here - you need access to the book.

1. This question is intended to create a conceptual bridge between your understanding

of issues commonly dealt with in a prior 'Organizational Behaviour' course and the
present 'Human Resource Management' module. Start by jotting down the similarities
 and the differences between the concepts represented by the two keywords in the
question.
2. Think about the issues of 'managerial' leadership and control which would have been
particular to a pre-industrial time and those which are constrained by modern
opportunities, aspirations and legislation. What elements are 'universal' and would
apply in any context?
3. This question asks you to think about the capacities and limits of individuals -
including their 'span of control' - in managing other people. At what point in a
growing business is it appropriate to delegate people management and to consider
constructing a management structure and specialist HR service? Is there a specific
number of people or does it depend on the nature of the business, diversity of work,
different locations, etc.
4. Think about scientific management versus human factors/relations and the
management theories listed in the chapter plus any others that you consider to have
major significance. Were they 'dead ends' or major contributors to modern ideas.
5. This is a review question, the differences between HRM and personnel management
are examined in the chapter. Summarize them in your own words and bring in more
perspectives from wider reading.
6. This question asks you to consider whether HRM and 'traditional' personnel
management are truly different in any meaningful way. Does it matter in practice?
7. There are close parallels between HRM and some aspects of traditional Japanese
management practice. But what cultural tradition has HRM come from and how has
it been modified in different countries?
8. You have a wide range of theoretical developments to consider. Some are almost
contrary to the rhetoric of modern HRM - for example, Scientific Management seems
crude and authoritarian. But how does that relate to the wide use of 'lean
production', 'just-in-time', monitoring of activities and so on.
9. Management theory has become something of a fashion industry, driven by people
with agendas - if only to sell books or promote their 'motivational' and other services.
What are the real merits of these ideas?

Yes No.....Division of Labour was invented in the 19th century

Yes No.....Modern business is uniquely complex
Yes No.....Tips on supervision are recorded in a 5,000-year-old document
Yes No.....Professional managers were introduced during the 19th century
Yes No.....Personnel Management dates from the 1890's in the USA
Yes No.....Management education first appeared in Britain and the Commonwealth
Yes No.....Scientific Management was invented by Schmidt
Yes No.....Mass production was first used by Henry Ford
Yes No.....The ideas of F.W Taylor and Henry Ford have no influence on
management today
Yes No.....'Therblig' was a measure of work
Yes No.....Elton Mayo was responsible for the famous Hawthorne experiments
Yes No.....Basically, HRM is just Human Relations
 Yes No.....HRM is one of a number of management fashions that have developed
over the last few decades
Yes No.....HRM has a unitarist tradition in the USA
Yes No.....HRM has a unitarist tradition in Europe and Australasia
Yes No.....Traditional personnel managers had high status compared to managers in
other business functions
Yes No.....The Japanese role model is a mixture of racial stereotyping, myth and
reality
Yes No.....'Just-in-time' and continuous improvement were developed in the USA
Yes No.....Introduction of HRM on the Harvard MBA had a significant impact on the
subject
Yes No.....HRM has been portrayed as a proactive approach to people management

Answers

Division of Labour was invented in the 19th century - No

Modern business is uniquely complex - No

Tips on supervision are recorded in a 5,000-year-old document - Yes

Professional managers were introduced during the 19th century - Yes

Personnel Management dates from the 1890's in the USA - Yes

Management education first appeared in Britain and the Commonwealth - No

Scientific Management was invented by Schmidt - No

Mass production was first used by Henry Ford - Yes

The ideas of F.W Taylor and Henry Ford have no influence on management today - No

'Therblig' was a measure of work - Yes

Elton Mayo was responsible for the famous Hawthorne experiments - No

Basically, HRM is just Human Relations - No

HRM is one of a number of management fashions that have developed over the last few
decades - Yes

HRM has a unitarist tradition in the USA - Yes

HRM has a unitarist tradition in Europe and Australasia - No

Traditional personnel managers had high status compared to managers in other business
functions - No

The Japanese role model is a mixture of racial stereotyping, myth and reality - Yes

'Just-in-time' and continuous improvement were developed in the USA - No

Introduction of HRM on the Harvard MBA had a significant impact on the subject - Yes

HRM has been portrayed as a proactive approach to people management - Yes

Chapter 2- The Concept of HRM

HRM has a variety of definitions but there is general agreement that it has a closer fit with
business strategy than previous models, specifically personnel management.

The objectives of this section are to:

 Outline the variety of ways in which HRM is defined.

 Offer a working definition for the purposes of this book.
 Discuss the most influential early models of HRM.
 Review some of the evidence for the adoption of HRM

Many people find HRM to be a vague and elusive concept - not least because it seems to
have a variety of meanings. Pinning down an acceptable definition can seem like trying to
hit a moving target in a fog. This confusion reflects the different interpretations found in
articles and books about human resource management. HRM is an elastic term (...). It
covers a range of applications that vary from book to book and organization to organization.
(...)

In Managing Human Resources: Personnel Management in Transition, Stephen Bach

(2005:3) argues that, compared to a decade ago, much of the controversy about the
definition of HRM has dissipated. He considers that, in part, this may be due to the use of a
broader and more encompassing definition of HRM. However, Bach (p.4) shows that the
debate has not vanished by disagreeing with Boxall and Purcell's (2003:1) statement that
HRM refers to:

"... all those activities associated with the management of the employment relationship in
the firm. The term 'employee relations' will be used as an equivalent term as will the term
'labour management'."

Bach argues that this definition is 'a little too broad', stating that such a broad definition
makes it difficult to:

 Highlight any distinctive features or values that underpin HRM

 Chart changes in the practice of HRM
 Understand the controversy surrounding HRM
In Bach's opinion, HRM differs from employee relations in its focus on management
practices and tendency to ignore the interests of employees. In fact, he holds quite 'hard'
views on the nature of HRM:

 HRM is unitary (employer and employee interests should coincide) with an emphasis
on organizational effectiveness
 The interests of other stakeholders such as employees are marginalized
 There is a predominant interest on the individual firm - specifically, within the firm -
focused on individual employee motivation and aspiration
 There is a consequent playing down of external and collective (unionization) issues.

Human Resource Management in a Business Context discusses the use and meaning of the
term 'human resource management', presents a number of textbook definitions and provide
a working definition for the book:

'A philosophy of people management based on the belief that human resources are uniquely
important in sustained business success. An organization gains competitive advantage by
using its people effectively, drawing on their expertise and ingenuity to meet clearly defined
objectives. HRM is aimed at recruiting capable, flexible and committed people, managing
and rewarding their performance and developing key competencies.'

Points to consider

*Look at textbook definitions of HRM. You should think about the purposes of the definitions
and the different aims of academics and practitioners. Academics are interested in the
theoretical basis and intellectual validity of the concept. Practitioners have a job to get on
with and are likely to be more interested in a practical description of the management
discipline for which they are responsible.

Maps and models of HRM

This section of Human Resource Management in a Business Context begins with a discussion
of various approaches to HRM, including Keenoy's hologram comparison and Sisson's 4 main
features of HRM models. A key concept is that of Hard and Soft HRM:

'Storey (1989) has distinguished between hard and soft forms of HRM, typified by the
Michigan and Harvard models respectively. 'Hard' HRM focuses on the resource side of
human resources. It emphasizes costs in the form of 'headcounts' and places control firmly
in the hands of management. Their role is to manage numbers effectively, keeping the
workforce closely matched with requirements in terms of both bodies and behaviour. 'Soft'
HRM, on the other hand, stresses the 'human' aspects of HRM. Its concerns are with
communication and motivation. People are led rather than managed. They are involved in
determining and realizing strategic objectives.'

Human Resource Management in a Business Context goes on to consider the views of Guest
and Léger and then discusses the classification of HRM models. Three American perspectives
on HRM are provided from the work of Fitz-Enz, Ulrich and Pfeffer.
Points to consider

* A fundamental element of most rhetorical accounts of HRM is that one of the distinctive
features of human resource management (as opposed to personnel management) is that it
is 'holistic'. In other words it is concerned with the 'big picture' and the way that different
aspects of people management fit together.

* Comparing different typologies of HRM can be difficult because they do not use the same
underlying logic. But does that mean that individual typologies are not of value?

* Each of these commentators is a 'management guru' to some extent. They have been
particularly influential in the USA in the last decade. Fitz-Enz is, perhaps, the least well-
known but has been instrumental in developing the notion that HR initiatives and their
results can (should?) be measured.

The Harvard map of HRM

A large part of this section in Human Resource Management in a Business Context is

devoted to the Harvard 'map' of HRM. This is probably the most seminal model of HRM and
has had a major influence on academic debate on the subject.

'We noted that the Harvard Business School generated one of the most influential models of
HRM. The Harvard interpretation sees employees as resources. However, they are viewed as
being fundamentally different from other resources - they cannot be managed in the same
way. The stress is on people as human resources. The Harvard approach recognizes an
element of mutuality in all businesses, a concept with parallels in Japanese people
management, as we observed earlier. Employees are significant stakeholders in an
organization. They have their own needs and concerns along with other groups such as
shareholders and customers.'

The Harvard Map or model outlines four HR policy areas:

1. Human resource flows - recruitment, selection, placement, promotion, appraisal

and assessment, promotion, termination, etc.
2. Reward systems - pay systems, motivation, etc.
3. Employee influence - delegated levels of authority, responsibility, power
4. Work systems - definition/design of work and alignment of people.

Which in turn lead to the 'four C's' or HR policies that have to be achieved:

 Commitment
 Congruence
 Competence
 Cost effectiveness

Point to consider

* Beer et al themselves did not consider that the four 'Cs' represented all necessary criteria.
Why not? What else could be considered?
HRM policies and their consequences

Beer et al (1984) proposed that long-term consequences (both benefits and costs of human
resource policies should be evaluated at three levels: individual, organizational and societal.
These in turn should be analyzed using the four Cs.

See Human Resource Management in a Business Context for more.

Point to consider

* Although central to the Harvard Map, 'stakeholder theory' has a much wider scope than
HRM and has largely been developed outside the HR literature. At first sight, it is a simple
notion - those parties or groups that have an interest in the firm. But more critical attention
reveals a concept that is not easy to define and that is also exposed to a number of political,
ethical and other agendas. How would right- and left-wing politicians regard stakeholders?
Similarly, senior managers and trade unionists, etc.

Alternative HRM models

This guide is based on Human Resource Management in a Business Context, and includes
links to extra articles, notes, tips and exercises.

The terminology used in academic human resource literature is problematic because some
authors distinguish between 'the HRM model' as distinct from 'the Personnel model' (e.g.
Bratton and Gould, 1999: 17) while others identify a number of different HRM models
(including Bratton and Gould, a paragraph later).

Where do HRM models come from?

For the purposes of this discussion, we accept that there are numerous models and at least
as many ways of classifying them - for example, 'hard and soft', 'normative and prescriptive'.
Legge has produced a four-way classification, dividing models into the following types:

 Normative
 Descriptive-functional
 Descriptive-behavioural
 Critical evaluative

Tyson, on the other hand, has a three-way breakdown: normative, descriptive and
analytical. Unfortunately, even these terms have contested meanings so that the Harvard
model, for example, can be viewed as analyitcal or prescriptive - or a mixture of both.

Taking our analysis to its most basic level, we can consider HRM models from two
fundamental perspectives:

 What are the similarities between them?

 Conversely, how do they differ?

Bratton and Gould (1999: 17) argue that: "Many of the key elements of the HRM model are
drawn from organizational behaviour theories, such as motivation, team building and
leadership." They go on to cite Legge (1989) as a reference for the assertion that 'most
normative HRM models, whether US or British, assert that the organization's 'human
resources' are valued assets, not a variable cost, and emphasise the commitment of
employees as a source of competitive advantage.' They identify the classic theories of
Maslow (1954) and Herzberg (1966) as being at the root of assumptions about the nature
and exploitation of human potential while McGregor's Theory Y underpins notions of
commitment and trust.

Chapter 3- HRM and Business Effectiveness

Objectives

The purpose of this chapter is to:

 Introduce the concept of high commitment/performance work systems

 Provide an overview of human resource systems
 Evaluate the contribution of HRM and HR technology to business effectiveness
 Provide a checklist of HRM principles

High Performance Organizations

In all the debates about the meaning, significance and practice of HRM, nothing seems more
certain than the link between HRM and performance. But is it? The opinion that high
performance or high commitment work organizations are distinctive and long-lasting is
commonly held. However, empirical evidence is not so conclusive. Wall and Wood examined
25 studies and found that the evidence was 'promising but circumstantial'. They argue that
investigators should be more careful in their use of the term. Knowledge management

Knowledge management: a Big Idea

Tacit and implicit knowledge

Knowledge management practice

HRM and business effectiveness

HR systems

HR professionals and the HR system

Measuring the impact of HRM

Where does the HR profession go from here?

A 10-C checklist for effective HRM

Summary
We discussed recent and ongoing ways in which the human resource management function
is changing - perhaps more radically than ever before. The HR function and its activities are
being examined in microscopic detail in many large organizations. Human resource
processes, especially those involving the collection and dissemination of information, are
being computerized and automated, potentially eliminating routine clerical activities. HR
information and knowledge is being linked and integrated with other information systems,
breaking down departmental barriers.

As HR processes become more easily measurable, the need for justification and the means
to do so become more obvious. Concepts such as the high performance organization and
knowledge management offer HR specialists the chance to push HRM to the fore. HR
processes and their outcomes are central to these concepts and the introduction of
technology allows more exact methods of determining whether or not human resource
initiatives do affect the 'bottom line' and shareholder value.

Yet there is some cynical scepticism coming from HR practitioners and academics, some of it
associated with dogged technophobia, together with justifiable questioning of the
methodology, rationale and, not least, the capabilities of the systems and concepts we have
discussed.