1. Human Resource Management T 1 Introduction Denitza Borisova

2. Starting point Who is who? Expectations Initial knowledge Psychological contract

3. Organisation of work Assignments Revisions/practice work Lectures Final revision Test and essay

4. Assignments Summary of Bulgarian Law on Health and Safety at Work Summary of Bulgarian Law on Protection against Discrimination Summary of Bulgarian Law on Integration of Disabled People Summary on Bulgarian Labour Law on : –Hiring procedure –Possibilities for flexible working arrangements (working time) –Paid and unpaid leaves –Grievance and disciplinary procedures –Downsizing and redundancy procedures –Employee representatives (unions and work councils) –Groups of special protection

5. Personnel Management and Human Resources Management

6. Personnel work…. Is partly a file clerk’s job, partly a housekeeping job, partly a social worker’s job and partly firefighting to head off union trouble and settle it….. Peter Drucker, The Practice of Management 1961

7. CIPD definition Armstrong 2002 PM is that part of management, concerned with people at work and with their relationships within an enterprise. Its aim is to bring together and develop into an effective organisation the men and women who make up an enterprise and, having regard for the well being of the individual and the working groups, to enable them to make their best contribution to its success.

8. Personnel Management/Administration The HR or the line manager? Specialist or generalist? HR consultants or HR business partners? Administration or Management?

9. Primary response for recruitment and selection (% of organisations)

10. Primary response for Pay and Benefits (% of organisations)

11. Primary response for Training and Development (% of organisations)

12. Primary response for Industrial Relations (% of organisations)

13. Primary response for Workforce expansion/reduction (% of organisations)

14. Historical Background of Personnel Profession 1. Modern work 2. 19 th Century Development (Mary Wood, WWA) 3. Trades Unions and labor relations 4. The Welfare State 5.The Behavioral Sciences

15. Modern Work The rise of the factory system The shift from agriculture to industry The separation of “work” from “life” The need for time discipline Fordism and Tylorism - Growth of “mass” manufacturing Bureaucracy - Fairness and efficiency?

17. Reaction against cruelty of early industrial work systems –Factories Act 1833; Factory Inspectors Industrial Welfare as a Profession –Mary Wood; Rowntree, first Industrial Welfare Officer appointed 1896 –Eleanor Kelly at Boots in 1911 –Over 500 by the end of World War 1 –Wood and Kelly instrumental in forming the.. 1913 Welfare Workers’ Association –Feminine profession? –400/420 members were women in 1920 Acquisition of other personnel activities – 1921 National Institute of Industrial Psychologists (recruitment, selection, training, industrial relations, motivation, H&S, etc.) 19 th Century Philanthropy

18. Trade Unions 1868 first Trade Union Conference Manchester 1868; 34 delegates, 118,000 members Brighton 2005; 727 delegates, 66 unions, 6.5m members 1871 Trades Union Act legalizes them Immunities, not “rights” Labor relations - employers’ need to “manage” Unions Marxist influence - industrial conflict and challenges to capitalist system per se Unionization of the workforce Welfare Workers’ Association >>> 1931 Institute of Labour Management >>> 1946 Institute of Personnel Management >>> 1995 Institute of Personnel and Development >>> 2000 Chartered Institute of Personnel and Development (CIPD)

19. The Welfare State National Insurance Act of 1911 Welfare State and links with work related benefits (sickness, pensions, redundancy, unemployment) Employers’ role in record keeping PAYE tax system and National Insurance Data protection regulations Labor related legislation Equal Opportunities in 1970’s Health Safety and Welfare Work Councils, NMW, Working time etc. in 1990’s

20. The Behavioral Sciences Work Psychology –Kelly, Myers-Briggs etc. during 2nd World War –Maslow, Herzberg, Belbin, etc. Work Sociology –Labour Market Studies –“Manpower” and Human Resource Planning Management Science –Fayol, Mintzberg, Drucker, Handy etc. etc.

21. Current issues in People Management Flexibility and diversity – Atkinson, 1989, “The Flexible Firm”: –Core/peripheral workers –Numerical flexibility –Functional flexibility –Distancing –Pay flexibility Employment issues Information Technology Human Capital Adding Value – measure the difference that people make to the organisation

22. Adding Value (Green, 1999) In order to provide added value, HR professionals need to provide: –Alignment: point people to the right direction (mission, vision, strategy through coaching, mentoring, training) –Engagement: develop belief and commitment to the organisation’s purpose and direction (motivation, culture and values) –Measurement: provide data that demonstrate the improved results achieved

23. Major characteristics of HRM (Foot & Hook, 2005) Focus on strategy, i.e. on business needs Line managers play a predominant role Integrated policies to support values and objectives and internal communication Adopted philosophy of achievement of competitive advantage through people (BSC, Hard/Soft HRM) Rather unitarist approach: the common purpose is pursued in a pluralist framework

24. Competitive Advantage through People – BSC (Kaplan & Norton, 1996) Achieves a balanced overview of what contributes to company success: –Financial results –Customer relations –Internal processes –Learning and development

25. Is HRM the answer ? PERSONNEL specified contracts rules monitoring pluralist ERL collective bargaining standardized pay predescribed procedures HRM “beyond contract” business need nurturing unitarist ERL performance management individualized pay vision and mission

26. HRM Key Functions (Foot & Hook, 2005) HR Planning Recruitment and Selection Learning Training and Development Performance Appraisal and Management Pay and Reward Welfare, Health and Safety Partnership and Involvement Discipline and Grievance Dismissal, Redundancy, and Outplacement Equality and Diversity

27. The Effective Management of People (Advisory, Conciliation and Arbitration Service – ACAS, 2004) General principles: 1. Ambitions, goals and plans that employees know about and understand 2. Managers that listen, empower and inspire 3. People that feel valued and confident 4. Everyone is treated fairly and differences are appreciated 5. Work is organised so that it encourages initiative, innovation and teamwork 6. A safe and healthy place of work

28. The Effective Management of People (Advisory, Conciliation and Arbitration Service – ACAS, 2004) General principles (continued): 7. Work/life balance 8. A pay and reward system that is clear, fair and consistent 9. A culture that encourages L&D 10. A good working relationship between management and employee representatives 11. Formal, clear and fair grievance & disciplinary procedures

29. Discussion Storey’s 27-points model of the key differences between the “traditional personnel” and “new HRM” approaches.