Human Resource

Management
HP7447
Day 2
Ama De Silva
Defining HRM
HRM is commonly used in two ways.
Generic approach: describes a body of management
activities; may be seen as a new term for ‘personnel
management’
Distinctive approach to the management of people:
distinct from personnel management – a distinct
philosophy
Philosophy of HRM

‘HRM is a series of activities which: first enables working

people and the organisation which uses their skills to
agree about the objectives and nature of their working
relationship and, secondly, ensures that the agreement is
fulfilled.’ (Torrington, Hall and Taylor, 2005, p.14)
HRM – a generic approach

Four key objectives:

1. Staffing objectives
2. Performance objectives
3. Change management objectives
4. Administration objectives
HRM – Staffing Objectives
•Ensuring that the business is appropriately staffed and able
to draw on human resources it needs
•Designing organisational structures
•Recruiting, selecting and developing people with the right
skills to provide the services needed
•Developing employment packages that are sufficiently
attractive to attract and retain staff
HRM – Performance Objectives
Ensure motivation and commitment of staff
Training and development key role
Reward systems and performance targets
Disciplinary systems
Welfare functions
Employee involvement initiatives
HRM – Change Management Objectives

Effectively managing change

Structural: re-organisation of activities or introduction of
new people to roles
Cultural: alter attitudes or norms
Recruitment and/or development of those with required
leadership skills to drive change process
HRM – Administration Objectives
Facilitate smooth running of the organisation
Maintain accurate and comprehensive data on individuals
Comply with legal requirements
Administer pay, sickness, taxation, leave etc.
 HRM Objectives

Figure 1.1 HRM roles and objectives

HRM– a distinctive approach

Something that is qualitatively different from personnel

management approach
Disagreement about how fundamental a shift is
Personnel management is workforce centred whereas
HRM is resource centred
Greater emphasis on planning, monitoring and control
HRM is totally identified with management interests
Personal vs HRM
Evolution of Personnel and HRM

HRM (1980s)
Organisation
and
Consent by integration
negotiation (1970s)
(1950s and
Human 1960s,)
bureaucracy
(early 20th
Social century)
Justice
(19th
century)
Social Justice
Origins of personnel management, derived from the work
of social reformers
Aimed to improve the lot of workers
Paternalistic approach which led to a focus on welfare
Schemes such as unemployment benefit, sick pay and
subsidised housing
Supported by a business and ethical case
19th Century response to industrial revolution
e.g. Lord Shaftesbury, Robert Owen
Towards 20th century Welfare officers’ e.g. Cadbury, Rowntree, Lever
Unemployment benefit/sickness benefit; housing e.g. Bournville, Sunlight Village
Humane Bureaucracy

Increased focus on other organisational objectives

Responsibilities included staffing, training and
organisation design
Influenced by both scientific management and human
relations schools of thought
Led to focus on social relationships in the workplace and
employee morale
Early twentieth century
Growth of the ‘organisation’
Growth of personnel work e.g. staffing
Influence of key thinkers such as:
F. W. Taylor - ‘Scientific Management’
Henri Fayol - ‘Scientific Administration’
Elton Mayo - ‘Human Relations School’
Negotiated Consent

Growth in trade unions post Second World War

Personnel managers managed the new collective
institutions
Many negotiated with trade unions-Trade Union
assertiveness led to bargaining/consultation
First specialist personnel courses designed
Establishment of ACAS
Trade Union membership increasing
Employers shift from unitary stance
Nationalised industries become major employers
Government provided personnel courses
Organisation
Personnel specialists begin to deal with management and
be integrated into management activity
Development of career paths
Development of techniques of workforce planning
Trying to understand ‘whole’ organisation/interaction of org. structures,
employees, management, environment
Shift in focus to dealing with management & integration of managerial activity
(e.g. Organisational Development & management development)

MANPOWER ANALYST: Manpower planning aim: best ‘fit’ between required

number of people / skills & available people / skills
“Management of human resources”
Manpower planning boosted via computer technology
A ‘new HR’?
May now be a new stage in evolution of HR – but debated
Themes
Global perspective
Concern with legal compliance
Multi-employer networks
‘Different path’: viewing employees as individuals and
seeking to engage them emotionally
Focus on employer branding and employer proposition
On management agenda / in literature since 1980s
employment legislation since the early 1970s,
the changing nature of the workforce due to the loss of traditional manufacturing jobs,
organisational downsizing and outsourcing,
the employment of women,
the increase in part-time jobs,
the increasing use of technology and the decreasing power of the unions.
HRM and Organisational Effectiveness

Study of links between HR practices and organisational

effectiveness dominates HR research agenda
Organisations seek to gain competitive advantage
HR function contributes to this via attracting and
developing human capital
HR also contributes to organisational reputation: as being
stable and ethical
HR Strategy: Best Practice

Certain HR practices that will help organisations achieve

competitive advantage
Clear link between HR activity and business performance
Best practice bundle – advanced selection methods,
commitment to employee involvement, investment in T
and D, individualised reward systems, etc.
References
Torrington, Hall and Taylor (2008), Human resource
Management, 7th edition, Pearson Education