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Intro to HRM: Definition

Definition of HRM: The branch of organizational


science that deals with the employment relationship,
along with all the decisions, actions, and issues
involved in that relationship.

A strategic approach to managing employment


relations which emphasizes that leveraging people’s
capabilities is critical to achieving competitive
advantage. This leveraging being achieved through a
distinctive set of integrated employment policies,
programs and practices.
A Brief History of Human Resource
Management

Stage 1: Pre-industrial Era: Craft


System
Stage 2: The Industrial Revolution and
the factory system
Stage 3: The emergence of the modern
corporation and managerial capitalism
Stage 4: Scientific management,
welfare work, and industrial psychology
Continued….
Stage 5: World War 1 and the emergence of
the HRM profession
Stage 6: Human Relations Movement (the
incorporation of the human factor into
scientific management)
Stage 7: The golden age of industrial
relations and the personnel Management
maintenance function, 1935-1970.
Stage 8: The emergence of the
contemporary HRM function
Stage 9: Strategic focus era
Reasons: Increased Importance of HRM
External
1) Increased international competition:
a) Steel and automotive industry crises.
b) Looking at Japan’s employment practices that
appear to foster employee commitment, etc.
2) Increased domestic competition
3) Government involvement (e.g., fair employment
practices)
4) Demographic changes:
a) Age structure; female participation in work force
5) Changing values of the work force (altered
expectations)
6) Customer focus
Continued…
Internal

1) Need to improve productivity and quality


2) New technologies and production concepts
3) Increasing education of the work force
4) Responding to slower growth/changes in markets
5) Restructuring and reorganization
6) Need for flexible, adaptable work force: firm specific
skills.
The system of basic HRM Practices
Work / Life
HR planning
Balance
HR marketing & Employer Branding
Recruitment Rewards

Evaluation &
Job Design Feedback &
Selection Specification
Performance Appraisal
Objective setting

Promotion Development
Career planning & development
Succession planning Formal & informal
coaching and training

Outplacement
The HRM Function Today
1)HRM is characterized by the emphasis on the
integration of traditional PM activities
2) HRM is characterized by HRMs involvement in overall
organizational planning and change
3) HRM today is characterized as a partner in
organizational change, creator of organizational
culture, and facilitator of organizational commitment
and the exercise of initiative.
4) HRM is characterized by the decentralization of many
of the traditional HRM activities from personnel
specialists to senior line management.
Continued…
5) HRM practice is characterized by a focus on
individual employees rather than on collective
management-trade union relations.
6) HRM function has been described as: broad and
strategic; involving all managerial personnel;
regarding employees as the single most important
organizational asset; being proactive in its
responsibilities; and having the objective of
enhancing organizational performance and meeting
employee needs.
7) Facilitator of organizational effectiveness in the
emergent, leaner organization.
Harvard model HRM
Activities of the Major Human
Resource Functions

 Human Resource Planning, Recruitment, and Selection


Conducting
 Conducting job analyses to establish the specific requirements of
individual jobs within the organization.
 Forecasting the human resource requirements the organization needs
to achieve its objectives.
 Developing and implementing a plan to meet these requirements.
 Recruiting the human resources the organization requires to achieve
its objectives.
 Selecting and hiring human resources to fill specific jobs within the
organization.
 Human Resource Development
 Orienting and training employees.
 Designing and implementing management and organizational
development programs.
 Building effective teams within the organization structure.
 Designing systems for appraising the performance of individual
employees.
 Assisting employees in developing career plans.
Continued…
Compensation and Benefits
 Designing and implementing compensation and benefit systems for all
employees.
 Ensuring that compensation and benefits are fair and consistent.
Employee and Labor Relations
 Serving as an intermediary between the organization and its union(s).
 Designing discipline and grievance handling systems.
Safety and Health
 Designing and implementing programs to ensure employee health
and safety.
 Providing assistance to employees with personal problems that
influence their work performance.
Human Resource Research
 Providing a human resource information base.
 Designing and implementing employee communication systems.
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Human Resource Wheel


Guest’s Model of Link between HRM &
Performance
Objectives of HRM
Organizational
Objectives

Human
Management

Societal Employee
Objectives Objectives
HRM Strategies

Proactive Reactive
Resource

• Decision-makers • Decision-makers
anticipate problems respond to problems
and challenges and rather than
take action before a anticipate them
problem occurs
Principles of effective HR policies

 Congruency
 Compatibility
 Clarity
 Stability
 Flexibility
 Cultural appropriateness
 Relationships
HR- Environmental Influence
Political
forces

Eco Cultural
forces Mission forces
Strategy

Org.
HRM
Structure
Business & Design of Employee
productivity
strategic HRM System skill
initiatives
creativity
Employee
discretionary
Motivation
effort

Job design
and work
structure

Market Profit Improved


Value and Operating
Growth performan
ce
HR model-shareholder value Relationship

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