Human Resource Management (HRM) and Organizational Change.

What is Human Resource Management (HRM)?

The strategic approach to the effective management of people in a business to help achieve competitive advantage.

What are the main functions of HRM?

1. Recruitment and Selection

2. Training and Development

3. Performance Management

4. Compensation and Benefits

5. Employee Relations

6. Health and Safety

What is Workforce Planning?

The process of analyzing and forecasting the skills and number of employees needed to meet business objectives.

• Includes:

  • Labour turnover

  • High and low turnover implications

  • Role of a workforce plan

What is the difference between Hard HRM and Soft HRM?

• Hard HRM: Focuses on maximizing workforce efficiency, often with tight control and minimal employee involvement.

• Soft HRM: Emphasizes employee development, motivation, and involvement in decision-making.

What is Organizational Change?

The process by which an organization moves from its current state to a desired future state to increase effectiveness.

Examples:

• Restructuring

• Mergers and acquisitions

• Technological changes

What are the main drivers of Organizational Change?

• Market conditions — Shifts in demand and competition.

• Technology advancements — New technologies changing production or service delivery.

• Regulatory changes — New laws or regulations.

• Internal restructuring — Mergers, downsizing, or role changes.

What are the types of Organizational Change?

• Strategic Change: Changes in business direction, structure, or processes.

• Structural Change: Changes in organizational hierarchy or job roles.

• Technological Change: Implementation of new technologies or systems.

• Cultural Change: Shifts in company values, norms, and behavior.

How does HRM manage Organizational Change?

• Communication: Clear explanation of change to reduce uncertainty.

• Training: Ensuring employees are equipped with the skills required for new roles.

• Employee Involvement: Engaging employees in decision-making to reduce resistance.

• Support Systems: Providing support during transitions, like counseling or mentoring.

What is Change Management?

The structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state.

What is the role of HRM in Organizational Change?

Communication, Training, Motivation, Support.

What is Workforce Flexibility?

The ability to adjust the workforce size and skills in response to changes in demand.

What are Flexible Working Practices?

• Definition: Work arrangements that allow flexibility in terms of time, location, and contract type.

• Types:

  • Part-time Work

  • Remote Working

  • Job Sharing

  • Compressed Workweeks

  • Zero-Hour Contracts

What are the benefits of Flexible Working for a Business?

• Cost Savings: Reduced need for physical space.

• Employee Satisfaction: Better work-life balance.

• Access to Talent: Attracts a broader range of applicants.

• Increased Productivity: Employees work during their most productive hours.

What is Talent Management?

A strategic process to attract, develop, and retain skilled employees to meet current and future business needs.

What is the importance of Training and Development?

• Definition: The process of improving an employee's skills, knowledge, and capabilities.

• Types:

  • Induction Training

  • On-the-Job Training

  • Off-the-Job Training

What is Performance Management?

Continuous process of setting objectives, assessing progress, and providing ongoing coaching to ensure employees meet business goals.

How does Organizational Change impact HRM?

Impacts:

• Need for retraining and reskilling.

• Changes in staffing needs.

• Morale and motivation of employees.

• Communication strategies to manage resistance.

What are the key barriers to Organizational Change?

• Employee resistance

• Communication barriers

• Insufficient leadership support

• Cultural differences in global expansions

What strategies can HRM use to manage resistance to change?

• Effective Communication: Transparent and frequent updates.

• Involvement: Engaging employees in decision-making.

• Support Systems: Counseling and mentoring.

• Training and Development: Equipping staff with necessary skills.

What are key exam tips for HRM and Organizational Change?

When analyzing HRM and Organizational Change:

• Link back to the case study.

• Highlight the role of HRM in managing resistance.

• Evaluate the short-term and long-term impacts on business operations.