Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 Management and Organisational Behaviour 7th Edition CHAPTER 19 Human Resource Management

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 19.2 Human resource management An essential part of the process of management is that proper attention be given to the efficient use of resources, in particular human resources The efficiency & performance of staff & their commitment to organisational objectives are fostered by good human relationships at work

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 19.3 The significance of HR As the basis of her ‘living strategy’ Gratton proposes – There are fundamental differences between people as an asset & the traditional assets of finance or technology An understanding of fundamental differences creates a new way of thinking & working in organisations: a shift in mind-set Business strategies can only be realised through people Creating a strategic approach to people necessitates a strong dialogue across the organisation

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 19.4 Human resource management or personnel management? The discussion generally centres on the extent to which HRM is a new & distinctive philosophy with a particular paradigm shift towards a more strategic approach to people management or New wine in old bottles – HRM is no more than a different term for what good personnel managers have always been doing

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 19.5 Human Resource Management (HRM) Involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization Fisher et al.

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 19.6 Defining HRM The design, implementation & maintenance of strategies to manage people for optimum business performance including the development of policies & processes to support these strategies CIPD

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 19.7 Defining HRM Organisations that get the people thing right are the organisations that are likely to be around in the future Delaney

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 19.8 A strategic approach The strategic use of human resources will help managers to contribute to the release of true value by the optimum use of people’s competencies A strategic HR approach requires that the needs & talents of employees become matched with organisational goals

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 19.9 HRM policies & practices The formulation of HRM policies & implementation of personnel practices & procedures should be based on underlying philosophies of managing behaviour & employee relationships

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT HRM policies & practices In general terms HRM policies should embrace – The design of effective organisation structure Staffing the new structure with suitable people Defining work roles & relationships Securing optimum working arrangements

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Range of HRM policies & practices Human resource planning Recruitment, selection & induction Salary & wage administration Organisational design & patterns of work Education, training & development Employee relations Employee services, welfare and health & safety

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Ethical frameworks for judging personnel practices Basic right – to be consulted on all matters affecting the individual at work Organisational justice – fairness in treatment, equality of opportunity & equity Universalism – acknowledging respect for the individual Community of purpose – recognition of how organisational decision-making affects different groups & stakeholders Winstanley et al.

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT HRM – a shared responsibility Figure 19.1

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Approach taken by M&S Every manager is a personnel manager Every director is a personnel director A strong, well-trained team of personnel staff provide support, training, guidance & advice to management at all levels

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT To deliver organisational excellence HRM needs to become – A partner with senior & line managers in strategy execution An expert in the way work is organised & executed to ensure costs are reduced & quality is maintained A champion for employees, representing their concerns to senior management An agent of continuous transformation Ulrich

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT People management – impact on profits 1.Is critical to business performance 2.Companies where employees have high levels of job satisfaction & commitment showed improving financial performance 3.HR practices explained nearly one-fifth of the variation between companies in productivity and profitability CIPD

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Benefits of training Training can: Increase confidence, motivation, & commitment of staff Provide recognition, enhanced responsibility, & the possibility of increased pay & promotion Give a feeling of personal satisfaction & achievement, & broaden opportunities for career progression Help to improve the availability, quality & skills of staff

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT A planned & systematic approach to training Clear commitment to training throughout all levels of the organisation An objective assessment of training needs Staff themselves should feel a sense of involvement A clear set of objectives & a defined policy for training Planned training programmes

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT A planned & systematic approach to training Choice of the most appropriate methods of training External courses & training opportunities linked to the educational system Regard given to the training needs of those groups who are not currently active in the workforce An effective system of review & evaluation Evaluation related to objective, measurable factors

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Areas of training With the rapidly changing nature of the business world and the need to maintain competitive advantage, organisations need to ensure that staff are fully trained in – Knowledge of their products/services Technical skills Human relations skills How to work with maximum effect

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Growth of e-learning Learning via technology Offers opportunities to provide a standard message to large numbers of geographically-dispersed people Provides minimum disruption to people’s working lives & private lives Can reduce costs where large numbers of learners are involved Can be more accessible than other forms of training methodologies

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Investors in People A standard for the training & development of people within an organisation Launched in 1991 by the Department of Employment Seeks to reward organisations that achieve prescribed standards Provides a framework for improving business performance & competitiveness Standard held for 3 years after which organisation is required to go through external assessment again

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Investors in People The standard is based on the following principles: 1. Public commitment from the top to invest & develop people to achieve business goals 2.Planning how individuals & teams will be developed 3.Taking relevant action to meet training & development needs 4.Evaluating the outcomes of training & development

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Overview of performance appraisal Figure 19.3

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Benefits to appraisal Can identify individual’s strengths & areas of development Can indicate how strengths can be utilised & weaknesses overcome Can help reveal problems that may be restricting progress Can develop a greater degree of consistency through regular feedback Can provide information for HR planning Can improve communications

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Performance appraisal & psychological principles People work / learn / achieve more when they are given - 1.Adequate feedback as to their performance 2.Clear attainable goals 3.Involvement in the setting of tasks & goals James

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Designing a successful appraisal system Questions to be addressed Who should be appraised? Who should undertake the appraisal? At what frequency should appraisals be undertaken? Should the appraisal system be open?

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT degree feedback An appraisal & feedback from different groups within the work situation Includes feedback from peers, subordinates, bosses & possibly internal & external customers

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Upward appraisal feedback An upward review or appraisal system that involves subordinates’ appraisal of managers This can help to judge managers’ ability accept constructive criticism Requires an appropriate organisational culture & open management

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Employment relations Concerned with the relationships between the policies & practices of the organisation & its staff & the behaviour of work groups

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Influences on the employment relations policy The type, nature & size of the organisation Structure & methods of operation Nature of staff employed Arrangements for collective bargaining Structure & strength of trade unions Preference of the parties for freedom of action from outside influences The philosophy of top management & their attitudes

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Employment relations & business performance Figure 19.6 This material is taken from Employment Relations into the 21st Century: An IPD Position Paper and reproduced with the permission of the publisher, the Chartered Institute of Personnel and Development, London, SW19 4UX, December 1997, p.5.

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT Effective employment relations Figure 19.7

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT International approaches of HRM Ethnocentric approach Polycentric approach Geocentric approach Regiocentric approach Budhwar

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT ways to make HR effective Be the catalyst for making things happen Avoid being the corporate soft touch Understand the whole business Keep people-management systems simple Remember line managers manage people, not HR

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT ways to make HR effective Work with, not above, line managers Be super-efficient in the transactional stuff Be leaders in the transformational stuff Help the business to manage change Accept that good ‘people ideas’ exist outside HR Browning