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INTRODUCTION TO

STRATEGIC HUMAN
RESOURCE
MANAGEMENT
About the course
Human Resource Management (R.W. Mondy 10th edition available in
library)
Human Resource Management (R.J. Stone 5 th edition available on
intranet)

Attendance and tutorials participation -10%


Class tests- each 15%
Individual Coursework- 20%
Final exam- 40%
Defining an Organisation

A social arrangement for achieving


controlled performance in pursuit of
collective goals.

Social arrangement
Collective goals
Controlled performance
Morgans Organisational Metaphors
Organisations as machines
Organisations as organisms
Organisations as brains
Organisations as cultures
Organisations as political systems
Organisations as psychic prisons
Organisations as instruments of domination
Organisations as flux and transformation
HRM vs Management
Management the art of getting things done through people
HRM is part of management
Whereas management includes marketing, management of
information systems, production, research and development,
accounting and finance.
However, as HRM aims to improve the productive contribution of
people, it is intimately related to all aspects of management
Definitions of HRM
Human resource management is the utilization of individuals to
achieve organisational goals (Mondy, 2008)

Human resource management is a distinctive approach to


employment management which seeks to achieve competitive
advantage through the strategic deployment of a highly committed
and capable workforce, using an integrated array of cultural,
structural and personnel techniques. (Storey, 1995, p.5)

HRM includes anything and everything associated with the


management of employment relationships in the firm. We do not
associate HRM solely with a high-commitment model of labour
management or with any particular ideology or style of
management. (Boxall and Purcell, 2000, p.184)
HRM
HRM is not a records maintaining, arranging social
activities and personnel function

Instead the HR activates are theory and research


enhanced
So, is there a difference between
Personnel Management and
Human Resource Management?

Personnel management
Reactive, low level people maintenance & record
keeping function
Human resource management
Proactive, strategic, views people as the most
important resource in the organisation
But, in reality, has anything changed, or is it just a
case of old wine in new bottles?
Personnel vs. HRM
Personnel Management Human Resource Management
Short term, reactive, ad hoc, Long term, proactive, strategic,
marginal integrated
Compliance Commitment
External controls Self control
Pluralist, collective, low trust Unitarist, individual, high trust
Bureaucratic / mechanistic, Organic, devolved, flexible roles
centralised, formal defined roles Largely integrated into line
Specialist / professional management
Cost minimisation Maximum utilisation (human asset
accounting
HRM and Strategic HRM

Rhetoric and Realities

Many small organisations still adopt an administrative role


Many small and large organisations still act as if staff are a cost not
an asset
Evidence indicates a reactive more often than proactive HR role
Difficult to determine contribution HR makes to an organisation --
evidence that commitment model yields good results
Views of management and staff often differ about effectiveness of
HR approach
Approaches to HRM
Instrumental HRM Humanistic HRM
It stress the rational, quantitative Though also emphasizing the
and strategic aspects of managing integration of HR policies, at the
Human resources same time recognizes that
Performance improvement and competitive advantage is achieved
improved competitive advantage by employees with superior know-
how, commitment, job
Integrated HR practices with
satisfaction, adaptability and
organization's business strategy
motivation.
Employees are proactive
contributors
Employee development,
collaboration, participation, trust
and informed choice are
emphasized
The role of Human Resource Manager
Strategic partner- HR managers being an essential part of the
management team running an organization and contributing to the
achievement of organization's objectives by translating business
strategy into action
Administrative experts-the efficiency of HR managers and the
effective management of HR activities that they create value
Employee champion- HR managers are employees voice in
management decisions
Change agent- HR managers serve as catalyst for change within the
organization
Human Resource Management functions
Staffing
Human resource development
Compensation
Safety and health
Employee and labour relations
Staffing
Is a process through which an organization ensures that
it always have the proper number of employees with the
appropriate skills in right jobs, at the right time to
achieve organizational objectives. It includes:
job analysis-systematic process of determining the skills
and duties and knowledge required for performing jobs
HR planning-systematic process of matching the internal
and external supply of people with the job openings
anticipated in organization
recruitment- process of attracting individuals on timely
basis, in sufficient numbers, and with process of choosing
from group of applicants to apply
selection-process of choosing from group of applicants
the individual best suited for particular position
Human Resource development
Major HRM function consisting not only of training and development but
also of individual career planning and development activities, organization
development, and performance management and appraisal
Career planning-on going process whereby an individual sets career goals
and identifies the means to achieve them
Career development- formal approach used by org to ensure that people
with proper qualifications and experiences are available when needed
Organization development is the planned process of improving an
organization by developing its structures, systems, and processes to
improve effectiveness and achieving desired goals.
Performance management is a goal oriented process that is directed
towards ensuring that organizational process are in place to maximize
productivity of employees, teams and ultimately the organization
Compensation
The total of all rewards provided employees in return for their
services
Direct Financial compensation- wage, salaries, commissions and
bonuses
Indirect financial compensations (benefits)- paid vacations, sick
leaves, holidays and medical insurance
Non-financial compensation- satisfaction a person receives from job
itself or from the psychological and/or physical environment in
which person works
Safety
Protecting employees from injuries caused by work-related
accidents

Important as employees who work in safe environment and enjoy


good health (both physical and emotional) are more likely to be
productive and yield long-term benefits to the org
Employee and Labor Relations
Industrial relations- employee attitudes and behavior and the
relationships between organization and its employees
If relationships are characterized by open communication , fair and
equitable HR policies and practices there will be trust , cooperation
, commitment and high performance
Governments, industrial tribunals, employer associations, trade
unions, industrial awards, terms and conditions of work and
collective bargaining
Human Resource Research
Not a distinct function
But is spread through all functional areas

What else to HRM activities include

Managing diversity
But is spread through all functional areas
Intervention and Control
INTERVENTIONS: ATTEMPT TO CONTROL:
training and development knowledge and skill
psychometric assessment types of people employed
understanding and
employee communications compliance
job redesign motivation, commitment,
performance
teambuilding
cohesion, team performance
restructuring response to external
organization development uncertainty
and change adaptability, conflict levels,
resistance
culture change
values, attitudes, beliefs,
goals
HR Department does
Job analysis
Human resource planning
Recruitment and selection
Training and development
Pay and conditions of employment
Grievance and disciplinary procedures
Employee relations and communications
Administrations of contract of employment
Employee welfare and counselling
Equal opportunities policy and monitoring
Health and safety
Outplacement
Culture management
Knowledge management
Etc.
Dynamic HRM Environment
Labour Market
Legal considerations
Society
Unions
Shareholders
Competition
Customers
Technology
Economy
Unanticipated events
Corporate Social Responsibility
Implied, enforced or felt obligation of managers acting in their
official capacity, to serve or protect the interests of groups other
than themselves
Society, environment and economy
A must-do in new market
It is a part of business strategy, which actually can bring profit
Organizational stakeholders
Individual or group whose interests are affected by organizational
activities
Approach to stakeholder analysis is social contract
Social contract is the set of written and unwritten rules and
assumptions about acceptable interrelationships among various
elements of society
Social contract concerns relationships with individuals, government
and other organizations and society in general
Social contract obligations
To Individuals: to certain extent individuals expectations are
acknowledged as responsibilities by the organization, they become
a part of social contract
To other organizations: commercial businesses are expected to
compete with one another on honorable basis, without subterfuge
or reckless unconcern for their mutual rights
To Government: organizations are expected to recognize the need
for order rather than anarchy and to accept some government
intervention in organizational affairs
To Society in general: businesses operate by public consent with the
basic purpose of satisfying the needs of society, and as those needs
are more fully met, society demands more of all of its institutions,
particularly large firms
Implementing a corporate social responsibility
To overcome negative publicity
Social audit: systematic assessment of a companys activities in
terms of its social impact
Social responsibility, open communication, treatment of employees,
confidentiality, and leadership

Steps of social audit:


Simple inventory of activities
Compilation of socially relevant expenditures
Determination of social impact
Any questions?
Read case on p 132 in R.J. Stone