Part 1 Introduction

Basis for Human Resource Management (HRM) Slide 1.1 Basis for Human Resource Management (HRM) Basis for all management activity Not the basis for all business activity Basis for management is always the same

What are HR People Concerned With? Slide 1.2 What are HR People Concerned With? Management of resourceful humans not employed within the organisation Management of resourceful organisations employed within the organisation The effective management of all the people of the business, not only those employed within the business

What do HR People Administer? Slide 1.3 What do HR People Administer? The contract of employment The psychological contract for performance Contract for performance

Defining HRM HRM is commonly used in two ways Slide 1.4 Defining HRM HRM is commonly used in two ways Body of management activities A particular approach to the management of people which is distinct from personnel management – a distinct philosophy

HRM – Mark 1 Four key objectives: Staffing objectives Slide 1.5 HRM – Mark 1 Four key objectives: Staffing objectives Performance objectives Change management objectives Administration objectives

HRM – Mark 1 Staffing Objectives Slide 1.6 HRM – Mark 1 Staffing Objectives Ensuring the business is appropriately staffed and able to draw on human resources it needs Designing organisational structures Compete in the employment market place Developing employment packages that are sufficiently attractive to attract & retain staff

HRM – Mark 1 Performance Objectives Slide 1.7 HRM – Mark 1 Performance Objectives Ensure motivation and commitment of staff Training & development key role Reward systems Disciplinary systems Welfare functions

HRM – Mark 1 Change Management Objectives Slide 1.8 HRM – Mark 1 Change Management Objectives Effectively managing change Re-organisation of activities or introduction of new people to roles Alter attitudes, or norms Recruitment of those with required leadership skills to drive change

HRM – Mark 1 Administration Objectives Slide 1.9 HRM – Mark 1 Administration Objectives Facilitate smooth running of organisation Maintain accurate and comprehensive data on individuals Comply with legal requirements Administer pay, sickness, taxation, leave, etc.

Slide 1.10 HRM Roles & Objectives Figure 1.1  HRM roles and objectives

HRM Mark 2 A distinctive approach Slide 1.11 HRM Mark 2 A distinctive approach Something that is qualitatively different from personnel management approach Disagreement about how fundamental a shift there is Directed mainly at management needs for human resources Demand rather than supply is the focus Greater emphasis on planning, monitoring and control

Characteristics of Personnel Management Slide 1.12 Characteristics of Personnel Management Figure 1.2  Personnel versus HRM

Characteristics of HRM Slide 1.13 Characteristics of HRM Figure 1.2  Personnel versus HRM

Evolution of Personnel & HRM Slide 1.14 Evolution of Personnel & HRM Social justice Humane bureaucracy Negotiated consent Organisation HRM

Slide 1.15 HRM Philosophy ‘A series of activities which first enables working people and the organisation which uses their skills to agree about the objectives and nature of their working relationship, and secondly, ensures that the agreement is fulfilled.’ (Torrington, Hall, & Taylor, 2002)

The Personnel / HR Process Slide 1.16 The Personnel / HR Process Figure 1.3  The personnel/HR process

HRM Debates Conceptualising the nature of current responses Slide 1.17 HRM Debates Conceptualising the nature of current responses What HR managers should be doing Longer term future developments

Key Environmental Developments (1 of 2) Slide 1.18 Key Environmental Developments (1 of 2) Globalisation Technology E-business Volatility Improvement in quality

Key Environmental Developments (2 of 2) Slide 1.19 Key Environmental Developments (2 of 2) Labour market and social trends - numbers or people and skills available - individualistic attitude Evolution of employment legislation - statutory regulation - contract of employment

Psychological Contract Slide 1.20 Psychological Contract Expectations employees have about the role they play & what employer provides in return Concerns broad expectations Not a written document – exists in people’s heads Switch from old to new approach – involves less job security

Slide 1.21 Best Practice Certain HR practices that will help organisations achieve competitive advantage Clear link between HR activity and business performance Best practice bundle – advanced selection methods, commitment to employee involvement, investment in T&D, individualised reward systems, etc.

Slide 1.22 Best Fit Identifies link between HRM practice and achievement of competitive advantage All is contingent on particular circumstances HR policies are required that fit and are appropriate to situations Key variables include – size, dominant product market, etc.

Future of Work – One Perspective Slide 1.23 Future of Work – One Perspective Speculative and impossible to prove A world of work different in many respects than is currently experienced Shift towards knowledge work Job as we know it will become rarer Long term work guarantees a thing of the past

Future of Work – A Different Perspective Slide 1.24 Future of Work – A Different Perspective Continuation of established approaches Some reversal of trends that developed in 1980s and 1990 Continuation of traditional approaches towards employment

Summary (1 of 2) HRM is fundamental to all management activity Slide 1.25 Summary (1 of 2) HRM is fundamental to all management activity HRM describes a body of management activities HRM signifies a particular approach to carrying out these activities HRM managers are concerned with meeting 4 distinct sets of organisational objectives

Slide 1.26 Summary (2 of 2) HRM activities are carried out in various ways through the organisational structure Current debate over HRM generally focus on the extent and nature of responses needed to face changes in the business environment There are three main current HRM debates