1. The Nature of Human Resource Management
Title
The Nature of Human Resource Management
Words of wisdom
‘The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.’
‘The whole emphasis on people demands that top management attract, cultivate and keep the best workforce they can possibly find.’
‘The role of HR is becoming as important if not more than any other exectuive leadership function.’

2. The Nature of Human Resource Management
Chapter outline
The Nature of Human Resource Management

3. The Nature of Human Resource Management Human Resource Management:
Management & HRM
The Nature of Human Resource Management
Human Resource Management:
A strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical to achieving competitive advantage. This being achieved through a distinctive set of integrated employment policies, programmes and practices.

4. The Nature of Human Resource Management
Management & HRM
The Nature of Human Resource Management
Management:
The science perspective
The political perspective
The control perspective
The practice perspective

5. Figure 1.1 Management as science, politics, control & practice
The meaning of ‘management’

6. Meaning of ‘management’ (science perspective)
The meaning of ‘management’
Science perspective:
Fayol (1949).
Planning, Organizing, Directing, Controlling (PODC).
Idealized image of management as a rationally designed and operationalized tool for realizing organizational goals.

7. Meaning of ‘management’ (political perspective)
The meaning of ‘management’
Political perspective:
Characterizes the workplace as a miniature society with politics pervading all managerial work.
Individual managers viewed as ‘knowledgeable human agents’.
Reinforces the theoretical and practical importance of building alliances and networks of co-operative relationships.

8. Meaning of ‘management’ (control perspective)
The meaning of ‘management’
Control perspective:
Conceptualizes management as a controlling agent that servces the economic imperatives imposed by capitalist marketing relations.
Management structures and labour strategies are instruments and techniques to control the labour process in order to secure a high level of productivity and profitability.
Simultaneous desire for control over, and cooperation from, workers.

9. Meaning of ‘management’ (practice perspective)
The meaning of ‘management’
Practice perspective:
Sees management as an activity aimed at the continual melioration of diverse, fragmented and complex practices.
Incorporates the other three perspectives.

10. The nature of the employment relationship
Describes dynamic interlocking relations that exist between individuals and their work organizations.
Considers economic, legal, social and psychological relations.

11. The nature of the employment relationship
Economic – exchange of pay for work.
Legal – network of common law and statutory rights and obligations affecting both parties.
Social – ‘social norms’ influence employees’ actions in the workplace.
Psychological – dynamic, two-way exchange of perceived promises and obligations.

12. The Nature of the Employment Relationship
Figure 1.2 The employment and psychological contracts between employer and employee
The Nature of the Employment Relationship

13. What do HRM professionals do? Managing relationships
HRM functions
HRM Functions
What do HRM professionals do?
Planning
Staffing
Developing
Motivating
Maintaining
Managing relationships
Managing change
Evaluating

14. HRM Functions What affects what HRM professionals do?
External context (economic, political and legal regulations, and social aspects)
Strategy
Organization (size, work and structure, and technology)

15. HRM Functions How do HRM professionals do what they do?
Use technical, cognitive and interpersonal processes and skills.
Power, legal procedures and communication skills are important.

16. Figure 1.3 HRM practices, contingencies and skills
HRM Functions

17. Theoretical perspectives on HRM
Five major HRM models:
Provide an analytical framework for studying HRM.
Legitimate certain HRM practices.
Establish variables and relationships to be researched.
Explain the nature and significance of key HR practices.

18. Fombrun, Tichy & Devanna
Emphasizes the interrelatedness and the coherence of HRM activities.
HRM cycle: selection, appraisal, development and rewards aim to increase organizational performance.

19. Fig 1.4 The Fombrun, Tichy & Devanna 1984 model of HRM

20. Fombrun, Tichy & Devanna
Prescriptive.
Ignores stakeholder interests, situational factors and notion of strategic choice.
Expresses the coherence of internal HR policies and the importance of ‘matching’ them to external business strategy.

21. Stakeholder interests Long-term consequences
Harvard
Harvard
Situational factors
Stakeholder interests
HRM policy choices
HR outcomes
Long-term consequences

22. Fig 1.5 The Harvard model of HRM (1984)

23. Harvard
Harvard
Classifies inputs and outcomes at both organizational and societal level.
Absence of a coherent theoretical basis for measuring the relationship between HR inputs, outcomes and performance.

24. HRM differs from personnel management.
Guest
Guest
Reflects view that a core set of integrated HRM practices can achieve superior individual and organizational performance.
HRM differs from personnel management.

25. Table 1.1 Points of difference between PM and HRM
Guest

26. Table 1.2 The Guest model of HRM

27. Extends the Harvard framework.
Warwick
Warwick
Extends the Harvard framework.
Maps the connections between the outer and inner contexts and explores how HRM adapts to changes in context.

28. Fig 1.6 The Warwick model of HRM

29. Storey
Storey
Demonstrates the differences between the ‘personnel and industrials’ and the HRM paradigm by creating an ‘ideal’ type.
Characterizes HRM as ‘an amalgam of description, prescription, and logical deduction’.

30. Table 1.3 The Storey model of HRM

31. Table 1.3 The Storey model of HRM

32. Extent of HRM How many organizations have adopted the new HRM model?
The extent of HRM
Extent of HRM
How many organizations have adopted the new HRM model?
Number of HR ‘architects’ in the highest levels of decision-making is small.
Renaissance of ‘individualism’, fall in ‘collectivism’.
Disjuncture between knowledge of the HRM model and management practice.
Few organizations have integrated HR planning into strategic business planning.

33. Chapter summary (1st half)

34. Chapter summary (2nd half)