1. THE CONCEPT OF HUMAN RESOURCE MANAGEMENT
As a concept, human resource management (HRM) is a strategic, integrated and coherent approach to the employment, development and wellbeing of the people working in organizations.
Its characteristics are that:
it is diverse, strategic, and commitment-oriented;
it adopts a viewpoint that is unitary (the interests of management and employees coincide) rather than pluralist (the interests of management and employees differ);
it is founded on the belief that people should be treated as assets and is a management-driven activity.
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

2. THE CONCEPT OF HUMAN RESOURCE MANAGEMENT
As a concept, human resource management (HRM) is a strategic, integrated and coherent approach to the employment, development and wellbeing of the people working in organizations.
Its characteristics are that:
it is diverse, strategic, and commitment-oriented;
it adopts a viewpoint that is unitary (the interests of management and employees coincide) rather than pluralist (the interests of management and employees differ);
it is founded on the belief that people should be treated as assets and is a management-driven activity.

3. THE CONCEPT OF HUMAN RESOURCE MANAGEMENT – SESSION PLAN
How the concept of HRM has developed
Reservations about HRM
The emergence of SHRM
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

4. BACKGROUND TO HRM Welfare Labour management
Personnel management – the developing phase
Personnel management – the mature phase
Enter HRM
HRM grew out of the increasingly sophisticated approaches to personnel management that started in the late 1930s and reaching maturity in the 1960s and 70s. Personnel management was rooted in the provision of welfare services and the development of labour management in the earlier years of the 20th century.
Welfare. The first step in the long road to HRM was the provision of welfare services - looking after the personal interests of employees and providing them with facilities such as canteens and rest rooms.
Labour management . Progressively during the 1920s and 30s, basic welfare activities were extended to the provision of administrative support to management in such forms as recruitment, training, discipline, health and safety and works consultative committees.
In the late 1930s the term ‘personnel management ‘was imported to the UK from the United States. At this stage and during the 1950s, personnel management was often simply an administrative activity. However, in some organizations personnel managers were becoming involved in industrial relations and payment systems as well as recruitment and training.
Personnel management. Activities extended into systematic training, management development, salary administration, manpower planning, performance appraisal (management by objectives) and, in a few cases, OD (organization development).
In some organizations, as trade union power and militancy grew, industrial relations became a major activity. Extended employment legislation meant that personnel specialists acquired extra responsibilities, advising on legal considerations and dealing with cases.
Behavioural science knowledge was applied to OD activities and to job design (job enrichment) and motivation policies.
The ‘quality of working life’ emphasized the role of organizations in providing work and working conditions that promote the wellbeing of employees.
Enter HRM. The notion of HRM is based on a philosophy that is fundamentally different from the personnel management practices of the time. This point was made by Fombrun and his colleagues in their classic statement in 1984 that: ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization.’ This approach became known as the ‘matching model’ of HRM.
The other major early contributors to the development of the philosophy of HRM (Michael Beer and his colleagues, 1984) started with the proposition that: ‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources.’
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

5. BACKGROUND TO HRM
HRM grew out of the increasingly sophisticated approaches to personnel management that started in the late 1930s and reaching maturity in the 1960s and 70s. Personnel management was rooted in the provision of welfare services and the development of labour management in the earlier years of the 20th century. Welfare. The first step in the long road to HRM was the provision of welfare services - looking after the personal interests of employees and providing them with facilities such as canteens and rest rooms. Labour management . Progressively during the 1920s and 30s, basic welfare activities were extended to the provision of administrative support to management in such forms as recruitment, training, discipline, health and safety and works consultative committees. In the late 1930s the term ‘personnel management ‘was imported to the UK from the United States. At this stage and during the 1950s, personnel management was often simply an administrative activity. However, in some organizations personnel managers were becoming involved in industrial relations and payment systems as well as recruitment and training.

6. BACKGROUND TO HRM
Personnel management. Activities extended into systematic training, management development, salary administration, manpower planning, performance appraisal (management by objectives) and, in a few cases, OD (organization development).
In some organizations, as trade union power and militancy grew, industrial relations became a major activity. Extended employment legislation meant that personnel specialists acquired extra responsibilities, advising on legal considerations and dealing with cases.
Behavioural science knowledge was applied to OD activities and to job design (job enrichment) and motivation policies.
The ‘quality of working life’ emphasized the role of organizations in providing work and working conditions that promote the wellbeing of employees.
Enter HRM. The notion of HRM is based on a philosophy that is fundamentally different from the personnel management practices of the time. This point was made by Fombrun and his colleagues in their classic statement in 1984 that: ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization.’ This approach became known as the ‘matching model’ of HRM.
The other major early contributors to the development of the philosophy of HRM (Michael Beer and his colleagues, 1984) started with the proposition that: ‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources.’

7. DEVELOPMENTS IN HRM Engagement Talent management
Human capital management
Knowledge management
Emphasis on learning rather than training
Recognition of limits of reward management as a ‘lever of change’
Developments in HRM in the 2000s and into the 2010s:
the emergence of the concept of engagement (people are committed to their work and the organization, and motivated to achieve high levels of performance);
the establishment of talent management as a major HR activity;
the importance attached to human capital management (HCM) - the process of informing HRM decisions by obtaining, analysing and reporting on data relating to employees;
a recognition of the importance of storing and sharing the wisdom, understanding and expertise accumulated in an organization about its processes, techniques and operations – knowledge management;
the increased emphasis on learning rather than training and on developing learning cultures rather than creating a ‘learning organization’ (a concept that was increasingly criticized as being unrealistic);
the realization that reward management, especially performance-related pay, was not the lever for change it was supposed to be, and the expansion of the notion of total rewards, which stressed that non-financial rewards were as important, if not more important, than financial rewards;
the focus on the need for HR people to be strategic, which was associated with the concept of HR specialists as strategic business partners.
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

8. DEVELOPMENTS IN HRM
Developments in HRM in the 2000s and into the 2010s:
the emergence of the concept of engagement (people are committed to their work and the organization, and motivated to achieve high levels of performance);
the establishment of talent management as a major HR activity;
the importance attached to human capital management (HCM) - the process of informing HRM decisions by obtaining, analysing and reporting on data relating to employees;
a recognition of the importance of storing and sharing the wisdom, understanding and expertise accumulated in an organization about its processes, techniques and operations – knowledge management;
the increased emphasis on learning rather than training and on developing learning cultures rather than creating a ‘learning organization’ (a concept that was increasingly criticized as being unrealistic);
the realization that reward management, especially performance-related pay, was not the lever for change it was supposed to be, and the expansion of the notion of total rewards, which stressed that non-financial rewards were as important, if not more important, than financial rewards;
the focus on the need for HR people to be strategic, which was associated with the concept of HR specialists as strategic business partners.

9. HRM TODAY
HRM has become something that organizations do rather than an aspiration or a philosophy. But the following messages are now generally accepted:
the need for strategic integration
the desirability of gaining commitment
the virtues of partnership and participation
the key role of line managers
HRM is the term most often used to describe the people-oriented activities of organizations, although ‘people management’ is sometimes adopted as an alternative. The hostile academics have largely subsided. Boxall, Purcell and Wright, representing the new generation of commentators, produced the following explanation of the meaning of HRM in 2007, which focuses on what HRM is in the later 2000s rather than on its philosophy:
Human resource management (HRM), the management of work and people towards desired ends, is a fundamental activity in any organization in which human beings are employed. It is not something whose existence needs to be radically justified: HRM is an inevitable consequence of starting and growing an organization. While there are a myriad of variations in the ideologies, styles, and managerial resources engaged, HRM happens in some form or other. It is one thing to question the relative performance of particular models of HRM … It is quite another thing to question the necessity of the HRM process itself, as if organizations cannot survive or grow without making a reasonable attempt at organizing work and managing people.
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

10. HRM TODAY
HRM is the term most often used to describe the people-oriented activities of organizations, although ‘people management’ is sometimes adopted as an alternative. The hostile academics have largely subsided. Boxall, Purcell and Wright, representing the new generation of commentators, produced the following explanation of the meaning of HRM in 2007, which focuses on what HRM is in the later 2000s rather than on its philosophy:
Human resource management (HRM), the management of work and people towards desired ends, is a fundamental activity in any organization in which human beings are employed. It is not something whose existence needs to be radically justified: HRM is an inevitable consequence of starting and growing an organization. While there are a myriad of variations in the ideologies, styles, and managerial resources engaged, HRM happens in some form or other. It is one thing to question the relative performance of particular models of HRM … It is quite another thing to question the necessity of the HRM process itself, as if organizations cannot survive or grow without making a reasonable attempt at organizing work and managing people.

11. THE DEVELOPMENT OF THE HRM CONCEPT
The 1980s was a good decade for advocates of human resource management (HRM) in the UK. To managers it seemed to offer an attractive alternative to the jaded image of personnel management and the dated rhetoric of traditional industrial relations (David Guest, 1990)
The main developments in the HRM concept in the 1980s and 90s were:
the concept of strategic human resource management (SHRM);
performance management;
reward management;
competency-based HRM;
high-performance working;
high-involvement management;
high-commitment management;
partnership agreements;
research into the link between HRM and firm performance.
Major developments continued during the 1990s
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

12. THE DEVELOPMENT OF THE HRM CONCEPT
The main developments in the HRM concept in the 1980s and 90s were:
the concept of strategic human resource management (SHRM);
performance management;
reward management;
competency-based HRM;
high-performance working;
high-involvement management;
high-commitment management;
partnership agreements;
research into the link between HRM and firm performance.

13. CHARACTERISTICS OF HRM IN THIS DEVELOPMENT PERIOD
HRM as a ‘set of interrelated policies with an ideological and philosophical underpinning’
Distinction between ‘hard’ and ‘soft’ HRM (John Storey )
The meaningful version of HRM (Storey, 1989):
A particular constellation of beliefs and assumptions.
A strategic thrust informing decisions about people management.
The central involvement of line managers.
Reliance upon a set of ‘levers’ to shape the employment relationship.
Hard HRM: emphasizes the quantitative, calculative and business-strategic aspects of managing human resources in as ‘rational’ a way as for any other economic factor.
Soft HRM: emphasizes communication, motivation and leadership and the need to gain the commitment – the ‘hearts and minds’ – of employees through involvement and other methods of developing a high-commitment, high-trust organization.
But even if the rhetoric of HRM is 'soft', the reality is almost always 'hard', with the interests of the organization prevailing over those of the individual (Truss, 1999).
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

14. CHARACTERISTICS OF HRM IN THIS DEVELOPMENT PERIOD
The meaningful version of HRM (Storey, 1989):
A particular constellation of beliefs and assumptions.
A strategic thrust informing decisions about people management.
The central involvement of line managers.
Reliance upon a set of ‘levers’ to shape the employment relationship.
Hard HRM: emphasizes the quantitative, calculative and business-strategic aspects of managing human resources in as ‘rational’ a way as for any other economic factor.
Soft HRM: emphasizes communication, motivation and leadership and the need to gain the commitment – the ‘hearts and minds’ – of employees through involvement and other methods of developing a high-commitment, high-trust organization.
But even if the rhetoric of HRM is 'soft', the reality is almost always 'hard', with the interests of the organization prevailing over those of the individual (Truss, 1999).

15. ORIGINAL GOALS OF HRM Competence Commitment Dyer and Holder (1988)
Contribution Composition
Competence Commitment
Dyer and Holder (1988)
Commitment Flexibility
Quality Strategic integration
David Guest (1991)
Goals of HRM (Dyer and Holder)
Contribution (What kind of employee behaviour is expected?)
Composition (What headcount, staffing ratio and skill mix?)
Competence (What general level of ability is desired?)
Commitment (What level of employee attachment and identification?)
Goals of HRM (Guest)
Commitment: Behavioural commitment to pursue agreed goals and attitudinal commitment reflected in a strong identification with the enterprise.
Flexibility: functional flexibility and the existence of an adaptable organization structure with the capacity to manage innovation.
Quality: all aspects of managerial behaviour that bear directly on the quality of goods and services provided, including the management of employees and investment in high-quality employees.
Strategic integration: the ability of the organization to integrate HRM issues into its strategic plans, ensure that the various aspects of HRM cohere, and provide for line managers to incorporate an HRM perspective into their decision making.
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

16. ORIGINAL GOALS OF HRM Goals of HRM (Dyer and Holder)
Contribution (What kind of employee behaviour is expected?)
Composition (What headcount, staffing ratio and skill mix?)
Competence (What general level of ability is desired?)
Commitment (What level of employee attachment and identification?)
Goals of HRM (Guest)
Commitment: Behavioural commitment to pursue agreed goals and attitudinal commitment reflected in a strong identification with the enterprise.
Flexibility: functional flexibility and the existence of an adaptable organization structure with the capacity to manage innovation.
Quality: all aspects of managerial behaviour that bear directly on the quality of goods and services provided, including the management of employees and investment in high-quality employees.
Strategic integration: the ability of the organization to integrate HRM issues into its strategic plans, ensure that the various aspects of HRM cohere, and provide for line managers to incorporate an HRM perspective into their decision making.

17. RESERVATIONS ABOUT HRM
Unrealistic
Immoral
Unrealistic: The view of many academics was that HRM promised more than it delivers.
Noon (1992) asserted that HRM has serious deficiencies as a theory: ‘It is built with concepts and propositions, but the associated variables and hypotheses are not made explicit. It is too comprehensive.’ Mabey et al (1998) posed the questions: ‘Is SHRM a promise that is not yet fulfilled or a disturbed dream? Is it a failed promise that could never work, or a dream that is most powerful in distorting the realities it advocates?’ Their answer to both questions was ‘yes’.
Immoral: HRM was accused by many academics in the 1990s of being manipulative if not positively immoral.
Willmott (1993) remarked that HRM operates as a form of insidious control by compliance when it emphasizes the need for employees to be committed to do what the organization wants them to do. It preaches mutuality but the reality is that behind the rhetoric it exploits workers.
Comments: The assertion that HRM wasn’t happening were contradicted by research conducted by Guest and Conway (1997):
The accusation that HRM treats employees as means to an end is often made. However, it could be argued that if organizations exist to achieve ends, which they obviously do, and if those ends can only be achieved through people, which is clearly the case, the concern of managements for commitment and performance from those people is not unnatural and is not attributable to the concept of HRM – it existed in the good old days of personnel management before HRM was invented.
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

18. RESERVATIONS ABOUT HRM
Unrealistic: The view of many academics was that HRM promised more than it delivers.
Noon (1992) asserted that HRM has serious deficiencies as a theory: ‘It is built with concepts and propositions, but the associated variables and hypotheses are not made explicit. It is too comprehensive.’ Mabey et al (1998) posed the questions: ‘Is SHRM a promise that is not yet fulfilled or a disturbed dream? Is it a failed promise that could never work, or a dream that is most powerful in distorting the realities it advocates?’ Their answer to both questions was ‘yes’.
Immoral: HRM was accused by many academics in the 1990s of being manipulative if not positively immoral.
Willmott (1993) remarked that HRM operates as a form of insidious control by compliance when it emphasizes the need for employees to be committed to do what the organization wants them to do. It preaches mutuality but the reality is that behind the rhetoric it exploits workers.
Comments: The assertion that HRM wasn’t happening were contradicted by research conducted by Guest and Conway (1997):
The accusation that HRM treats employees as means to an end is often made. However, it could be argued that if organizations exist to achieve ends, which they obviously do, and if those ends can only be achieved through people, which is clearly the case, the concern of managements for commitment and performance from those people is not unnatural and is not attributable to the concept of HRM – it existed in the good old days of personnel management before HRM was invented.

19. EMERGENCE OF THE CONCEPT OF STRATEGIC HUMAN RESOURCE MANAGEMENT
Principle of strategic integration: human resource policies should be integrated with strategic business planning
Strategic human resource management (SHRM) is an approach to managing people that deals with how the organization’s goals will be achieved through its human resources by means of integrated HR strategies, policies and practices. (NB: It is not just about formulating HR strategies).
Storey (1989) noted that the concept ‘locates HRM policy formulation firmly at the strategic level’ and that ‘a characteristic of HRM lies in its internally coherent approach’.
Sisson (1990) stated that a feature increasingly associated with HRM is the emphasis on the integration of HR policies both with one another and with business planning more generally.
Dyer and Holder (1988) remarked that SHRM provides ‘unifying frameworks which are at once broad, contingency based and integrative’.
Hendry and Pettigrew (1986) suggested that strategic HRM has four meanings:
The use of planning.
A coherent approach to the design and management of HR systems based on an employment policy and manpower strategy and often underpinned by a 'philosophy'.
Matching HRM activities and policies to some explicit business strategy.
Seeing the people of the organization as a 'strategic resource' for the achievement of 'competitive advantage'.
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 3rd edition, as part of their course. Please visit for more information.

20. EMERGENCE OF THE CONCEPT OF STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic human resource management (SHRM) is an approach to managing people that deals with how the organization’s goals will be achieved through its human resources by means of integrated HR strategies, policies and practices. (NB: It is not just about formulating HR strategies).
Storey (1989) noted that the concept ‘locates HRM policy formulation firmly at the strategic level’ and that ‘a characteristic of HRM lies in its internally coherent approach’.
Sisson (1990) stated that a feature increasingly associated with HRM is the emphasis on the integration of HR policies both with one another and with business planning more generally.
Dyer and Holder (1988) remarked that SHRM provides ‘unifying frameworks which are at once broad, contingency based and integrative’.
Hendry and Pettigrew (1986) suggested that strategic HRM has four meanings:
The use of planning.
A coherent approach to the design and management of HR systems based on an employment policy and manpower strategy and often underpinned by a 'philosophy'.
Matching HRM activities and policies to some explicit business strategy.
Seeing the people of the organization as a 'strategic resource' for the achievement of 'competitive advantage'.