3 Definition of HRMStrategic and coherent approach to the management of an organization’s most valued assest – the people working there who individually and collectively contribute to the achievement of its objectives.
4 Human resource systemHR philosophies (values and guiding principles adopted in managing people)HR strategies (defining the direction)HR policies (how values, principles should be applied)HR processes ( formal procedures and methods put HR plans into effect)HR practices ( informal approaches used)HR programmes (which enable strategies, policies, practices to be implemented)
5 Models of HRM The Michigan School Model: Congruency with organizational strategy (matching model)The Harvard School Model (Harvard framework)Integrated parts towards a strategic vision and with a central philosophy
6 The Michigan School Model The human resource cycle
7 Elements of human resource cycle Selection: matching available human resources to jobsAppraisal: performance managementRewards: focus on organizational performance (most under-utilized and mishandled tool)short-term and long-termDevelopment – developing high quality employees
9 Characteristics of HRM in Harvard framework 1) line managers accept more responsibility for ensuring the alignment of competitive strategy and personnel policy2) personnel has the mission of setting policies that govern how personnel activities are developed and implemented in ways that make them more mutually reinforcing
10 Aims of HRMOrganizational effectiveness (HRM makes a significant impact on firm performance)Human capital management (HC is the prime asset – the aim is to develop the inherent capacities of people)Knowledge management (support the development of firm-specific knowledge)Reward management (enhance motivation, job engagement)Employee relations (harmonious relationship between partners)Meeting diverse needs (stakeholders, workforce)Bridging the gap between rhetoric and reality (HRM is to bridge the gap – and to ensure that aspirations are translated to effective action
11 HRM concepts People Management Human Resources Management The policies and practice which govern how people are managed and developed in organizationsHuman Resources ManagementThe strategic and coherent approach to the management the most of organization’s most valued assets – the people working there who individually and collectively contribute to the achievements of its objectivesHuman Capital ManagementAn approach to obtaining, analyzing and reporting on data which informs the direction of value adding people management strategic investment and operational decisions at corporate level and at the level of front line managementPersonnel ManagementPersonnel mmanagement is concerned with obtaing, organizing and motivating human resources required by enterprise
12 HRM and Personnel Management differences places more emphasis on strategic fit and integration,is based on a management and business oriented philosophy,places more emphasis on mutuality,is more holistic,specialists are more like business partners than administrators,treats people as assets and not only costs.
13 Hard and Soft HRM Hard (instrumental) HRM approach: employees are viewed as a passive factor of production, an expenseemployees can be easily replaced and seen as disposable.Strategic, quantitative aspects of managing HRM as an economic factorSoft (humanistic) HRM approach:stresses active employee participationgains employee commitment, adaptability and contribution of their competences to achievement of organizational goalsemployees are valued as assetsEmphasizing communication, motivation and leadership
16 The Strategic View of Human Resources (Cook, C.) Employees are human assets that increase in value to the organization and the marketplace when investments of appropriate policies and programs are applied.Effective organizations recognize that their employees do have value, much as same as the organization’s physical and capital assets have value.Employees are a valuable source of sustainable competitive advantage.
17 What gives the firm competitive advantage? UniqueHard to copySustainable
18 Sources of Employee Value (Cook) Technical KnowledgeMarkets, Processes, Customers, EnvironmentAbility to Learn and GrowOpenness to new ideasAcquisition of knowledge and skillsDecision Making CapabilitiesMotivationCommitmentTeamworkInterpersonal skills, Leadership ability