The role of HR

Comparative HRM: Theory & Practice

Universalism vs Contextual Universalism-Contextual debate Is there a best practice approach? Convergence as a 3rd alternative

Contextual Model of HRM International Context Includes: International Agreements Corporate Strategy National Context culture political/legislative economic social patterns of ownership etc. HRM Strategy integration devolvement to line employment policies involvement policies reward policies work systems etc. National HRM Context education/training labor markets trade unions industrial relations HRM Practice selection performance appraisal rewards development communication etc. Environment Organization Contextual Model of HRM

Administrative Expert People Employee Champion Change Agent Operational Focus Strategic Focus Administrative Expert Strategic Partner Process Ulrich’s conceptual framework is based on two main dimensions. The first axis reflects the competing demands of future focus (strategic) and present focus (operational). One end of the axis represents an emphasis on strategic matters whereas the other represents a complementary focus on operational matters. The second axis reflects the conflicting demands created by the activities HR people engage in. One end of the axis represents a focus on people while the other represents a focus on process. From the juxtaposition of these two dimensions the four types of HR roles emerge. The four roles have been defined as strategic partner change agent administrative expert and employee champion. HR Role Framework Source: Conner J. Ulrich D. (1996). “Human Resource Roles: Creating Value Not Rhetoric” Human Resource Planning September

Development Selection Performance Appraisal Rewards Emphasis is placed on how to best match and develop appropriate HRM systems to business strategies. The systems that Formrun et al. (1984) felt to be the most important in achieving this match were selection performance appraisal rewards and development The Michigan Matching Model of HRM

Stakeholder interests Shareholders Management Employee groups Government Community HRM Policy Unions Choices Long-term Employee HR Outcomes consequences influence Commitment Human Individual well Competence being Resource flow Congruence Reward systems Organizational Cost effectiveness Situational Work systems effectiveness Societal well- factors being Work force characteristics Business strategy and conditions Management philosophy Labor market Unions Task technology Laws and societal values The Harvard Model of Human Resource Management

Role of HRM departments Differing roles in different countries. Some more administrative some more strategic As some of the administrative work is outsourced or computerised, there can be more emphasis on strategic role.

Role of HRM department Is it represented on the board of directors Is it involved in strategic management Where was the HR manager recruited

Moving from a centralised to decentralised HR model Trend towards management through cost-centre profit-centre based approach Line managers are more in contact with employees. They have the main responsibility for performance. Issue of responsiveness to customers. A move towards reducing overhead and realtime staffing.

Pressures slowing the devolvement to line managers Line managers not enthusiastic to take on HR activities Line managers may regard HR activities as a lower priority Not enough training and support to line managers in HR duties

Integration and devolvement Degree of integration of HRM into business strategy Degree of devolvement: the degree to which HRM practive involves and gives responsibility to line managers rather than personnel specialits

Mechanics (low integration and low devolvement) Specialist, but limited skills and interests of HRM practitioners. Professional personnel manager with higher’ imperatives than the organization. Belief that specialist knowledge is beyond the scope of untrained people. Focus on the mechanical requirements of the function. Increasing isolation from strategic interests of the organization.

wild west (low integration and high devolvement) Individual manager free to develop his/her own employee relationship. lncreased power to hire and fire, reward and develop employees. Potential for incoherence, inconsistency and strong employee reactions.

Guarded strategists (high integration but low devolvement) Specialists powerful figures in the organization. Close liaison with senior managers to develop strategy. Large and influential departments with centralized control of policies. Better line managers frustrated with lack of control, poor managers welcome lack of responsibility.

Pivotal (high integration and high devolvement) Senior personnel managers act as catalysts, facilitators and co-ordinators. Small, but powerful departments. Monitoring of and internal consulting on HRM developments. Responsibility and authority devolved to the line. Problems with resourcing high-calibre business- orientated HRM managers.