TOPIC #1: HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

• is concerned with all aspects of how people are employed, managed and developed in organizations.

• inevitable consequence of starting and growing an organization. 

HRM PHILOSOPHY

• based on ‘the guiding principles that identify and characterize the value and treatment of employees covered within a particular HRM system’

LEGGE

• he analyzed that human resource policies should be integrated with strategic business planning, human resources are valuable and a source of competitive advantage, foster a willingness in employees to act flexibly in the interests of the ‘adaptive organization’s’ pursuit of excellence.

STOREY

• said that human resource that gives competitive edge, that the aim should be to enhance employee commitment and HR policies should be integrated into the business strategy.

RESOURCE-BASED THEORY

• states that competitive advantage is achieved if a firm’s resources are valuable, rare and costly to imitate. 

  • It is claimed that HRM can play a major part in ensuring that the firm’s human resources meet these criteria.

HARVARD FRAMEWORK

• 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’. 

  • They also stressed that it was necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’.

MATCHING MODEL

• sometimes called ‘Michigan framework.’ indicated that 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’

HR SYSTEM

• is a set of practices or activities that fit together and interact to achieve a purpose. In a properly functioning system, its different parts are interrelated and jointly supportive in order to enable HR goals to be achieved. 

  • operates within the framework provided by the HR architecture.

  • often not interpreted similarly or reacted to in the same way by each individual owing to differences in experience, values or preferences.

HR ARCHITECTURE

• is a comprehensive representation of all that is involved in HR, not simply the structure of the HR function.

TRANSFORMATIONAL ACTIVITIES

such as organization development and the formulation and implementation of HR strategies; 

TRANSACTIONAL ACTIVITIES

• that cover the main areas of HR service delivery resourcing, learning and development, reward, employment relations and employee wellbeing.

HR STRATEGY

• which defines the direction that HR intends to take in each of its main areas of activity

HR POLICIES

• which set out what HR is there to do and provide guidelines defining how specific aspects of HR should be applied and implemented.

HR PRACTICES

• which consist of the HR activities involved in managing and developing people and in managing the employment relationship.

BOWENN & OSTROFF

• they advocated a ‘strong’ HR system to ensure the more effective implementation of HRM practices.

  • Their model of HRM viewed HR practices as communications from the employer to employee and they suggested that ‘when the HRM system is perceived as high in distinctiveness, consistency, and consensus, it will create a strong situation’ 

• They argued that a strong HRM system can significantly affect firm performance by creating powerful focused organizational cultures that help to structure and direct employee behaviour and ­ effort towards desired organizational goals.

PECCEI

• he suggested that wellbeing has a key role in enhancing organizational performance. 

• he pleaded that any analysis of the link ­ between HRM and performance should be more employee-centred and look explicitly at the effect that HR practices have on employee wellbeing.

AMO MODEL

• states that performance depends on the individual’s ability, motivation and opportunity. 

  • It provides valuable information on the HRM practices that should be included in a high-performance work system (bundles of HR practices that improve employee performance by enhancing their engagement, motivation and skill).

MUTUAL GAINS MODEL

• suggests that HRM should benefit both individuals and organizations. 

DOMINANT MODEL

• focus largely on ways to improve performance, with employee concerns very much a secondary consideration.

PRO-BUSINESS

• we mean a focus on longer-term sustainability of both organizations and people, rather than just immediate shareholder interests of profit-taking