1. HUMAN RESOURCE MANAGEMENT Concepts and Theories
This presentation has been adapted from part of a range of resources offered free to academics and/or students using Armstrong’s Essential Human Resource Management Practice as part of their course.

2. Assessment
Exam
Report

3. THE CONCEPT OF HRM: Objectives
1. Definition of HRM 2. Development of the HRM concept 3. The goals of HRM 4. Diversity of HRM 5. Philosophy of HRM 6. Underpinning theories of HRM 7. Reservations about HRM 8. HRM today

4. Task: Find 2 (recent) definitions.
At the end of this session you will need to select 1 of these and explain why you think it is the best one

5. HUMAN RESOURCE MANAGEMENT DEFINED
Human resource management (HRM) is a strategic and coherent approach to the management of an organization's most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives.

6. FEATURES OF HRM Coherent: Commitment: Strategic:
Integrated and mutually supporting HR policies and practices
Commitment:
Emphasis on gaining commitment to the organization’s mission and values
Strategic:
Integrate business and HR strategy
People treated as assets:
Focus on developing human capital
Unitarist approach:
Management and employees share the same interests
Line managers deliver HRM:
Belief that HRM is essentially the responsibility of line managers

7. Task - FEATURES OF HRM in your own words
Strategic
Coherent
Commitment
People treated as assets:
Unitarist approach:
Line managers deliver HRM:

8. Mini Plenary
How would your define HRM? How useful do you think the features of HRM are? And why?
The Harvard framework (Beer et al, 1984)
‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’.
‘Today… many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources’.
It is necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.
HRM had two characteristic features, (1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies, (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing.
The matching model (Fombrun et al, 1984)
HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’.
UK contribution
Summed up by Hendry and Pettigrew (1990) who observed that:
HRM was ‘heavily normative from the start: it provided a diagnosis and proposed solutions’.
‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies ̶ in attitudes, scope, coherence, and direction ̶ of existing personnel management’.

9. Development
The Harvard framework The matching model The UK contribution The Bath People And Performance Model
The Harvard framework (Beer et al, 1984)
‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’.
‘Today… many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources’.
It is necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.
HRM had two characteristic features, (1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies, (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing.
The matching model (Fombrun et al, 1984)
HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’.
UK contribution
Summed up by Hendry and Pettigrew (1990) who observed that:
HRM was ‘heavily normative from the start: it provided a diagnosis and proposed solutions’.
‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies ̶ in attitudes, scope, coherence, and direction ̶ of existing personnel management’.

10. Each group will research 1 of these models and prepare an electronic presentation for the class.
Definition of model
Purpose of model
Explain model
Give real-world example of model
Link to theories and information from last week

11. THE HARVARD FRAMEWORK Stakeholder interests: shareholders management
employees
government
unions
HRM policy
choices:
employee influence
human resource
flow
reward systems
work systems
Long-term
consequences:
 individual well-
being
Organizational
effectiveness
societal well-
HR outcomes:
commitment
competence
cost-effectiveness
Situational factors:
workforce
characteristics
business
strategy and
conditions
management
philosophy
labour market
unions
task technology
laws and social
values
Source: M Beer et al, Managing Human Assets, The Free Press, 1984

12. THE MATCHING MODEL OF HRM
The matching model of HRM as developed by Fombrun, Titchy, and Devanna (1984) is illustrated below.
Rewards
Selection
Performance
management
Performance
Development
Adapted from Fombrun et al, Strategic Human Resource Management, Wiley, 1984
This resource is part of a range offered free to academics and/or students using Armstrong’s Essential Human Resource Management Practice as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.

13. THE DAVID GUEST MODEL OF THE LINK BETWEEN HRM AND PERFORMANCE
effectiveness
Business strategy
HR outcomes:
employee
competence,
commitment
and flexibility
Quality of
goods and
services
HR practices
Financial
performance
Productivity
HR strategy
Source: Guest et al, Effective People Management, CIPD, 2000
This resource is part of a range offered free to academics and/or students using Armstrong’s Essential Human Resource Management Practice as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.

14. THE BATH PEOPLE AND PERFORMANCE MODEL
Training and
development
Performance
management
Career
opportunity
Job security
Recruitment and
selection
Ability and skill
Motivation and
incentive
Opportunity to
participate
Pay
satisfaction
Front-line
management:
Implementing
enacting
leading
controlling
Organizational
commitment
Motivation
Job satisfaction
Discretionary
behaviour
Work–life
balance
Performance
outcomes
Job challenge/
autonomy
Teamworking
Involvement
Source: J Purcell et al, Understanding the People
and Performance Link, CIPD, 2003
Communications

15. Common features – Model Analysis
Think about the four models -) do they share common features? -) do they do similar thing? -) what conclusions can we make about these models?

16. Mini Plenary
Which of the four model do you think is the best? And why? Do you think that these models are suitable for model business? And why? Do you think that these models support ebusiness? And why?
The Harvard framework (Beer et al, 1984)
‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’.
‘Today… many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources’.
It is necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.
HRM had two characteristic features, (1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies, (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing.
The matching model (Fombrun et al, 1984)
HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’.
UK contribution
Summed up by Hendry and Pettigrew (1990) who observed that:
HRM was ‘heavily normative from the start: it provided a diagnosis and proposed solutions’.
‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies ̶ in attitudes, scope, coherence, and direction ̶ of existing personnel management’.

17. 1) Objectives 2) People 3) Employment relationship 4) Ethics
Goals
1) Objectives 2) People 3) Employment relationship 4) Ethics

18. GOALS OF HRM Achieve high performance through people Enhance
motivation,
commitment
and job
engagement
Achieve
human capital
advantage
Improve
knowledge
sharing
Attract and
retain the
skilled,
committed and
motivated people
required
Value
people
according
to their
contribution
Increase
capabilities
and potential
Develop a
co-operative and
productive
employee
relations
climate

19. Mini Plenary
What does the Goal Model focus on to achieve the HRM goals? How useful do you think the Goal Model is?
The Harvard framework (Beer et al, 1984)
‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’.
‘Today… many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources’.
It is necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.
HRM had two characteristic features, (1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies, (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing.
The matching model (Fombrun et al, 1984)
HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’.
UK contribution
Summed up by Hendry and Pettigrew (1990) who observed that:
HRM was ‘heavily normative from the start: it provided a diagnosis and proposed solutions’.
‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies ̶ in attitudes, scope, coherence, and direction ̶ of existing personnel management’.

20. HRM practice varies Hard and soft HRM
Diversity
HRM practice varies Hard and soft HRM

21. VERSIONS OF HRM
Using you knowledge of human motivation theories which we discussed last week. Suggest how these approaches view human motivation
Soft
Emphasis on the need to develop a high-commitment, high-trust organization – focus on ‘mutuality’, communication and involvement
Hard
Treating employees
‘rationally’
as as a key resource
from which competitive
advantage can be
obtained
Hard/soft
Using a mix of hard and soft
approaches
This resource is part of a range offered free to academics and/or students using Armstrong’s Essential Human Resource Management Practice as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.

22. Mini Plenary
What do you think about Soft and hard HRM? How useful do you think these approaches are?
The Harvard framework (Beer et al, 1984)
‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’.
‘Today… many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources’.
It is necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.
HRM had two characteristic features, (1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies, (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing.
The matching model (Fombrun et al, 1984)
HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’.
UK contribution
Summed up by Hendry and Pettigrew (1990) who observed that:
HRM was ‘heavily normative from the start: it provided a diagnosis and proposed solutions’.
‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies ̶ in attitudes, scope, coherence, and direction ̶ of existing personnel management’.

23. Philosophy The human resource gives competitive edge
The aim is to enhance employee commitment
HR decisions are of strategic importance
HR policies should be integrated into the business strategy.
Storey (2001)
Karen Legge (1989) identified the following common HRM themes:
human resource policies should be integrated with strategic business planning and used to reinforce an appropriate (or change an inappropriate) organizational culture;
human resources are valuable and a source of competitive advantage;
human resources may be tapped most effectively by mutually consistent policies that promote commitment and which, as a consequence, foster a willingness in employees to act flexibly in the interests of the ‘adaptive organization's’ pursuit of excellence.

24. In your groups research the underpinning theories and write a short paragraph about each one
-) Commitment
-) Organizational behaviour -) Motivation -) AMO (ability motivation opportunity) -) Resource dependence -) Resource-based -) Institutional -) Transaction costs -) Human capital -) Agency -) Contingency

25. Link the Goal Model to the underpinning Theories
Achieve high
performance
through
people
Enhance
motivation,
commitment
and job
engagement
Achieve
human capital
advantage
Improve
knowledge
sharing
Attract and
retain the
skilled,
committed and
motivated people
required
Increase
capabilities
and potential
Value
according
to their
contribution
Develop a
co-operative and
productive
employee
relations
climate

26. Human resource management: philosophy, strategy, policies, processes
THE HRM SYSTEM
Human resource management:
philosophy, strategy, policies, processes
and practices
Corporate
social
responsibility
Human
capital
management
Organization
People
resourcing
Learning and
development
Reward
management
Employee
relations
Design
Human resource
planning
Organizational
learning
Job evaluation
and market surveys
Industrial
relations
Development
Recruitment &
selection
Individual
learning
Grade and pay
structures
Employee
voice
Job design
Talent
management
Management
Development
Contingent
pay
Communications
Employee
benefits
Knowledge
management
Health and safety
and welfare
HR services
Performance
management

27. Mini Plenary
Do you think HRM theory is useful? Do you have enough information to answer this question? Justify your answer
The Harvard framework (Beer et al, 1984)
‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’.
‘Today… many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources’.
It is necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.
HRM had two characteristic features, (1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies, (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing.
The matching model (Fombrun et al, 1984)
HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’.
UK contribution
Summed up by Hendry and Pettigrew (1990) who observed that:
HRM was ‘heavily normative from the start: it provided a diagnosis and proposed solutions’.
‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies ̶ in attitudes, scope, coherence, and direction ̶ of existing personnel management’.

28. Guest (1991: 149) referred to the ‘optimistic but ambiguous label of human resource management’.
‘The HRM rhetoric presents it as an all or nothing process which is ideal for any organization, despite the evidence that different business environments require different approaches’. (Armstrong, 2000: 577)

29. HRM is simplistic - as Fowler (1987:3) wrote: The HRM message to top management tends to be beguilingly simple.
Don't bother too much about the content or techniques of personnel management, it says. Just manage the context.
Get out from behind your desk, bypass the hierarchy, and go and talk to people. That way you will unlock an enormous potential for improved performance.

30. The unitarist/managerialist approach to industrial relations implicit in HRM prompted Fowler (1987:3) to write:
At the heart of the concept is the complete identification of employees with the aims and values of the business - employee involvement but on the company's terms.
Power in the HRM system, remains very firmly in the hands of the employer. Is it really possible to claim full mutuality when at the end of the day the employer can decide unilaterally to close the company or sell it to someone else?

31. HRM is 'macho-management dressed up as benevolent paternalism' (Legge, 1998: 42).
HRM is manipulative, Wilmott (1993: 534) asserted that: ‘any (corporate) practice/value is as good as any other so long as it secures the compliance of employees’.
Oxterby and Coster (1992: 31) asserted that: ‘The term ‘human resources’ reduces people to the same category of value as materials, money and technology – all resources, and resources are only valuable to the extent they can be exploited or leveraged into economic value’.

32. Mini Plenary
Do you think HRM is a useful process? And why? Do you think HRM is there to support the company or the worker? And why?
The Harvard framework (Beer et al, 1984)
‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’.
‘Today… many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources’.
It is necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.
HRM had two characteristic features, (1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies, (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing.
The matching model (Fombrun et al, 1984)
HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’.
UK contribution
Summed up by Hendry and Pettigrew (1990) who observed that:
HRM was ‘heavily normative from the start: it provided a diagnosis and proposed solutions’.
‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies ̶ in attitudes, scope, coherence, and direction ̶ of existing personnel management’.

33. HOW HR CAN MAKE AN IMPACT ON PERFORMANCE
Develop and successfully implement high-performance work practices, particularly those concerned with job and work design, flexible working, resourcing, employee development, reward and giving employees a voice.
Formulate a clear vision and set of values (the ‘big idea’) and ensure that it is embedded, enduring, collective, measured and managed.
Develop a positive psychological contract and means of increasing the motivation and commitment of employees.
Source: J Purcell et al, Inside the Box: How people management impacts on organizational performance, CIPD, 2003

34. HOW HR CAN MAKE AN IMPACT ON PERFORMANCE
Formulate and implement policies that meet the needs of individuals and ‘create a great place to work’.
Provide support and advice to line managers on their role in implementing HR policies.
Manage change effectively.
Source: J Purcell et al, Inside the Box: How people management impacts on organizational performance, CIPD, 2003

35. At a meeting of trustees the chief executive of a medium-sized charity proposed that a director of human resources should be appointed.
Two trustees protested that the term
‘human resources’ implied that employees would just be treated as factors of production not as people.
How would you respond?

36. Mini Plenary
-) Suggest which model might be best to support the employees from one of the video from last week (Amazon & China) and explain why. -) Is the company using a hard or soft HRM? -) Suggest your own definition which best reflects that workplace, using todays notes?
The Harvard framework (Beer et al, 1984)
‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’.
‘Today… many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources’.
It is necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.
HRM had two characteristic features, (1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies, (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing.
The matching model (Fombrun et al, 1984)
HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’.
UK contribution
Summed up by Hendry and Pettigrew (1990) who observed that:
HRM was ‘heavily normative from the start: it provided a diagnosis and proposed solutions’.
‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies ̶ in attitudes, scope, coherence, and direction ̶ of existing personnel management’.

37. List 3 things you have learnt today
Identify 3 things you need to study in more depth
On a scale of 1-10 (10 being high) how confident are you with your understanding of today’s topics?
The more important messages of HRM such as the need for strategic integration, the desirability of gaining commitment, the virtues of partnership and participation and the key role of line managers are now generally accepted
Emphasis is now placed on the need for HR to be strategic and business-like and to add value.
New interests and developments include human capital management, engagement, talent management, competency-based HRM, e-HRM, high performance work systems, and performance and reward management. But these have not been introduced under the banner of the HRM concept as originally defined.
The meaning of HRM – Boxall et al (2007)
Human resource management (HRM) ̶ the management of work and people towards desired ends ̶ is a fundamental activity in any organization in which human beings are employed. It is not something whose existence needs to be radically justified: HRM is an inevitable consequence of starting and growing an organization. While there are a myriad of variations in the ideologies, styles, and managerial resources engaged, HRM happens in some form or other. It is one thing to question the relative performance of particular models of HRM… It is quite another thing to question the necessity of the HRM process itself, as if organizations cannot survive or grow without making a reasonable attempt at organizing work and managing people.