Part 1

Introduction

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.1

Basis for Human Resource Management

(HRM)

• Basis for all management activity

• Not the basis for all business activity

• Basis for management is always the same

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.2

What are HR People Concerned With?

• Management of resourceful humans not

employed within the organisation

• Management of resourceful organisations

employed within the organisation

• The effective management of all the people of

the business, not only those employed within
the business

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.3

What do HR People Administer?

• The contract of employment

• The psychological contract for performance

• Contract for performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.4

Defining HRM

• HRM is commonly used in two ways

• Body of management activities

• A particular approach to the management of

people which is distinct from personnel
management – a distinct philosophy

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.5

HRM – Mark 1

Four key objectives:

1. Staffing objectives
2. Performance objectives
3. Change management objectives
4. Administration objectives

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.6

HRM – Mark 1
Staffing Objectives
• Ensuring the business is appropriately staffed
and able to draw on human resources it needs

• Designing organisational structures

• Compete in the employment market place

• Developing employment packages that are

sufficiently attractive to attract & retain staff

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.7

HRM – Mark 1
Performance Objectives
• Ensure motivation and commitment of staff

• Training & development key role

• Reward systems

• Disciplinary systems

• Welfare functions

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.8

HRM – Mark 1
Change Management Objectives
• Effectively managing change

• Re-organisation of activities or introduction of

new people to roles

• Alter attitudes, or norms

• Recruitment of those with required leadership

skills to drive change

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.9

HRM – Mark 1
Administration Objectives
• Facilitate smooth running of organisation

• Maintain accurate and comprehensive data on

individuals

• Comply with legal requirements

• Administer pay, sickness, taxation, leave, etc.

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
 Slide 1.10
HRM Roles & Objectives

Figure 1.1  HRM roles and objectives

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.11

HRM Mark 2

• A distinctive approach
• Something that is qualitatively different from
personnel management approach
• Disagreement about how fundamental a shift
there is
• Directed mainly at management needs for human
resources
• Demand rather than supply is the focus
• Greater emphasis on planning, monitoring and
control

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
 Slide 1.12

Characteristics of Personnel Management

Figure 1.2  Personnel versus HRM

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
 Slide 1.13

Characteristics of HRM

Figure 1.2  Personnel versus HRM

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.14

Evolution of Personnel & HRM

• Social justice

• Humane bureaucracy

• Negotiated consent

• Organisation

• HRM

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.15

HRM Philosophy

‘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, & Taylor, 2002)

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
 Slide 1.16

The Personnel / HR Process

Figure 1.3  The personnel/HR process

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.17

HRM Debates

• Conceptualising the nature of current

responses

• What HR managers should be doing

• Longer term future developments

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.18

Key Environmental Developments (1 of 2)

• Globalisation

• Technology

• E-business

• Volatility

• Improvement in quality

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.19

Key Environmental Developments (2 of 2)

• Labour market and social trends

- numbers or people and skills available

- individualistic attitude

• Evolution of employment legislation

- statutory regulation

- contract of employment
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.20

Psychological Contract

• Expectations employees have about the role

they play & what employer provides in return

• Concerns broad expectations

• Not a written document – exists in people’s

heads

• Switch from old to new approach – involves

less job security
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.21

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&D, individualised
reward systems, etc.

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.22

Best Fit

• Identifies link between HRM practice and

achievement of competitive advantage

• All is contingent on particular circumstances

• HR policies are required that fit and are

appropriate to situations

• Key variables include – size, dominant product

market, etc.
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.23

Future of Work – One Perspective

• Speculative and impossible to prove

• A world of work different in many respects than

is currently experienced

• Shift towards knowledge work

• Job as we know it will become rarer

• Long term work guarantees a thing of the past

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.24

Future of Work – A Different Perspective

• Continuation of established approaches

• Some reversal of trends that developed in

1980s and 1990

• Continuation of traditional approaches towards

employment

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.25

Summary (1 of 2)

• HRM is fundamental to all management

activity
• HRM describes a body of management
activities
• HRM signifies a particular approach to
carrying out these activities
• HRM managers are concerned with meeting 4
distinct sets of organisational objectives

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.26

Summary (2 of 2)

• HRM activities are carried out in various ways

through the organisational structure

• Current debate over HRM generally focus on

the extent and nature of responses needed to
face changes in the business environment

• There are three main current HRM debates

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005