Human resources Management Old wine in new bottles

Objectives By the end of the chapter you should be able to: Describe the nature and hallmarks of HRM Explain the reasons for the rise in interest in HRM Critically evaluate the case for distinguishing between HRM and personnel management Understand ways in which context affects HRM and HR roles

Introduction to HRM Some useful definitions: (Definitions vary according to the authors backgrounds, focus, or theoretical roots) Functional definition: “HRM a set of interrelated functions and processes whose goal is to attract, socialize, motivate, maintain, and retain an organization’s employees”, Belcourt et al., 2002). more goal-based definition: (e.g. “HRM aims to improve the productive contribution of individuals while simultaneously attempting to attain other societal and individual employee objectives”, Schwind et al., 2002) or definitionhighlighting the strategic nature of HRM; (“[HRM is] a managerial perspective which argues the need to establish an integrated series of personnel policies to support organizational strategy”, Buchanan & Huczynski, 2004).

Hallmarks Integration of HR policies with business plans and with each other. HR issues at senior level Shift from collectivist to more individual employment contracts Emphasis on mission, cultural values and commitment to achieve competitive advantage.

Challenges to HRM Stakeholders: Employees, organization and society. Contexts: time, place, history and origin, charactersitics of organization ( unionised, form of ownership), degree of internationalization ( legislation, culture, division of labour), trends affecting work and organization in general ( globalisation, technology, demography, etc.)

Reasons for emergence of HRM 1. Rise of enterprise culture– high unemployment, reduction of trade unions power, growth of enterprise-level bargaining, single –union agreements and privatisation. A promotion of individualistic enterprise culture with an emphasis on enhanced performance, results and customer satisfaction.

HRM emergence This shift coincided with academic thinking of corporate strategy– strategies to gain competitive advantage, i.e. human resources. Main problem is that you cannot replicate completely from other cultures, e.g. Japan– where human resources come first due to lack of natural resources.

Emergence of HRM 2.Influence of popular management books that preach virtues of ‘ excellence’, ‘total quality’ and ‘cultural change.’ The influence was more on line managers and top management rather than personnel professionals. Example: In search of excellence by Peters and Waterman ( 1982). Strong emphasis on prescriptions, less helpful in providing guidelines on how to achieve excellence, individualism, high commitment that resonated with a distinctive American approach to HRM.

Emergence of HRM Internationalization of Business Rapid growth of foreign-owned and foreign managed businesses, e.g. American and Japanese companies with the latter offering more challenge to western companies. Changes in the Industrial relations context individualistic attitudes, unemployment, performance related pay, etc.

Emergence of HRM Changes in the nature of work Decentralization, flat structures, business units autonomous within a structure of financial controls and corporate policy. Changing nature of work force– diversity, education.