Presentation on theme: "The Nature of Human Resource Management"— Presentation transcript:
1 The Nature of Human Resource Management TitleThe Nature of Human Resource ManagementWords 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 outlineThe Nature of Human Resource Management
3 The Nature of Human Resource Management Human Resource Management: Management & HRMThe Nature of Human Resource ManagementHuman 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 & HRMThe Nature of Human Resource ManagementManagement:The science perspectiveThe political perspectiveThe control perspectiveThe 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 employeeThe Nature of the Employment Relationship
13 What do HRM professionals do? Managing relationships HRM functionsHRM FunctionsWhat do HRM professionals do?PlanningStaffingDevelopingMotivatingMaintainingManaging relationshipsManaging changeEvaluating
14 HRM Functions What affects what HRM professionals do? External context (economic, political and legal regulations, and social aspects)StrategyOrganization (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.
23 HarvardHarvardClassifies 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. GuestGuestReflects 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
29 StoreyStoreyDemonstrates 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’.
32 Extent of HRM How many organizations have adopted the new HRM model? The extent of HRMExtent of HRMHow 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.