1. Module 10: Management of the Human Resource (HRM)
FD in Business: Semester 2: 2012
E Woods
20 February 2012

2. Today’s Agenda 9.30 Welcome & overview of module 10
9.45 Review of Module 4 – People in Organisations
10:00 What is HRM ?
10.45 Break
11.00 How HRM developed as a concept
11.45 The context in which HRM operates
12.30 Phew – end of session!

3. Aims & Objective of the Module
Build on the knowledge gained in Module 4 – People in Organisations and provide an understanding of the HRM role and functions
You will be able to:
Recognise the traditional and new view of personnel/HRM
Describe the procedures and practices used for recruitment and selection
Discuss the effectiveness of monitoring and reward
Identify rights and procedures on exit from an organisation

4. You should also be able to…
Evaluate the role and responsibilities of line managers in human resources practice
Evaluate the interview as a selection technique and discuss a range of alternative selection methods available
Consider the link between motivational theory and reward
Evaluate exit procedures used by your chosen organisation

5. Management vs Leadership
Review of Module 4
Management vs Leadership
Motivation Theories
Teams & Group Dynamics
Successful Change

6. The Meaning of HRM – some definitions
A strategic, integrated and coherent approach to the employment, development and well-being of the people working in organisations
“All management decisions and action that affect the nature of the relationship between the organisation and its employees – its human resources” (Beer et al 1984)
“A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques” (Storey, 1995)
“The management of work and people towards desired ends” (Boxall et al 2007)

7. Human resource management: philosophy, strategy, policies, processes
THE HRM SYSTEM
Human resource management:
philosophy, strategy, policies, processes
and practices
Corporate
social
responsibility
Human
capital
management
Organization
People
resourcing
Learning and
development
Reward
management
Employee
relations
Design
Human resource
planning
Organizational
learning
Job evaluation
and market surveys
Industrial
relations
Development
Recruitment &
selection
Individual
learning
Grade and pay
structures
Employee
voice
Job design
Talent
management
Contingent
pay
Communications
Management
development
Employee
benefits
Health and safety
and welfare
HR services
Performance
management
Knowledge
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition, as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.

8. Objectives of HRM
To ensure that an organisation is able to achieve success through people
To increase organisational effectiveness and capability
To be concerned with the rights and needs of people in organisations through exercise of social responsibility

9. Policy Goals of HRM (David Guest)
Strategic Integration
High Commitment
High Quality
Flexibility

10. Characteristics of HRM
‘Human resource management covers a vast array of activities and shows a huge range of variations across occupations, organizational levels, business units, firms, industries and societies’ (Boxall et al, 2007). It can:
● be diverse (hard or soft);
● be strategic;
● be business-oriented;
● focus on mutuality – a state that exists when management and employees are interdependent and both benefit from this interdependency;
● take a unitary view – the belief that management and employees share the same concerns and it is therefore in both their interests to work together;
● treat people as assets or human capital.

11. How HRM developed as a concept
Emerged in the 1980s in the form of:
● the matching model – HR systems and the organization structure should be managed in a way which is congruent with organizational strategy (Fombrun et al, 1984);
● the Harvard framework – based on their belief that the problems of historical personnel management can only be solved ‘when general managers develop a viewpoint of how they wish to see employees involved in and developed by the enterprise, and of what HRM policies and practices may achieve those goals’ (Beer et al, 1984).

12. THE MATCHING MODEL OF HRM
Rewards
Selection
Performance
management
Performance
Development
Adapted from C J Fombrun et al, Strategic Human Resource Management, Wiley, 1984
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition, as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources. 12

13. THE HARVARD HRM FRAMEWORK
Stakeholder
interests:
shareholders
management
employees
government
unions
Situational factors:
workforce
characteristics
business
strategy and
conditions
philosophy
labour market
task technology
laws and social
values
HRM policy
choices:
employee influence
human resource
flow
reward systems
work systems
Long-term
consequences:
individual well-
being
organizational
effectiveness
societal well-
HR outcomes:
commitment
congruence
cost effectiveness
Source: M Beer et al, Managing Human Assets, The Free Press, 1984
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition, as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.

14. IMPACT OF HRM ON ORGANIZATIONAL PERFORMANCE
Business
strategy HR
HRM
practices
resourcing
performance
management
learning &
development
reward
employee
relations
outcomes
engagement
commitment
motivation
skill
productivity
quality
customer
satisfaction
Financial
results
profit
sales
market share
market value
Contingency variables: Internal context – size, sector, technology, employees, culture
External context – competition, economic, social, legal
reversed causality
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition, as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.

15. Operational Context
HRM practices are contingent on the circumstances in which the organization operates, ie the internal and external environment.
● Contingency theory tells us that definitions of HR aims, policies and strategies, lists of activities and analyses of the role of the HR department are valid only if they are related to the situation of the organization.

16. Reservations
Promises more than it can deliver – HRM is an 'optimistic but ambiguous concept'; it is all hype and hope (David Guest, 1991).
Manipulative – ‘control by compliance’ (Hugh Willmott, 1993).
Hostile to interests of employees – ‘Sadly, in a world of intensified competition and scarce resources, it seems inevitable that, as employees are used as means to an end, there will be some who will lose out. They may even be in the majority. For these people, the soft version of HRM may be an irrelevancy, while the hard version is likely to be an uncomfortable experience’ (Karen Legge, 1998).

17. Ethical Dimensions of HRM
The application of HRM requires the exercise of social responsibility – it must be concerned with the interests (well-being) of employees and act ethically with regard to the needs of people in the organization and the community.

18. THE DAVID GUEST MODEL OF THE LINK BETWEEN
HRM AND PERFORMANCE HR
effectiveness
Business strategy
HR outcomes:
Employee
competence,
commitment
and flexibility
Quality of
goods and
services
HR practices
Financial
performance
Productivity
HR strategy
Source: D Guest et al, Effective People Management, CIPD, 2000
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition, as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.

19. HRM MODEL: STOREY Strategic CHANGE MAKERS ADVISERS Non-interventionary
REGULATORS
HANDMAIDENS
Tactical
Source: J Storey, New Developments in the Management of Human Resources, Blackwell, 1992
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition, as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.

20. The changing role of the HR practitioner
HRM MODEL: REILLY
Strategic
STRATEGIST/INNOVATOR
CONTRIBUTION
ADVISER/CONSULTANT
ADMINISTRATOR/CONTROLLER
Tactical
Short
Long
TIME ORIENTATION
The changing role of the HR practitioner
Source: P Reilly, HR Services and the Re-alignment of HRM, Institute for Employment Studies, 2000
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition, as part of their course. For more academic resources and other FREE material, please visit and then click on Academic Resources.