HUMAN RESOURCE MANAGEMENT

Definition-1:
(John Storey, 1995) Human resource
management is 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 personal techniques.
HUMAN RESOURCE MANAGEMENT

Definition-2:
A strategic and coherent
approach to the management
of an organisation`s most
valued assets-the people
working there who individually
and collectively contribute to
the achievement of its
objectives.
HUMAN RESOURCE MANAGEMENT

Key Concepts:
• Distinctive approach to
employment management.
• Competitive advantage.
• Deployment of committed &
capable workforce.
• A strategic and coherent
approach.
 VERSIONS OF HRM

John Storey (1995), in New Perspectives on

Human resource management, made a
distinction between two versions of HRM.
1. HARD HRM: It emphasises the need to
manage people in ways that will obtain
added value from them and thus achieve
competitive advantage.
Thus it concentrates on quantitative,
measurable criteria, control and performance
management. The hard approach
emphasises:
 VERSIONS OF HRM(CONTINUED )
2. SOFT VERSION: The soft model of HRM is based
upon human relations school and is identified
by Storey as involving `treating employees as
valued assets, a source of competitive
advantage through their commitment,
adaptability and high quality.
• The need to gain commitment of employees
• The interests of management and employees
should coincide
• Integration and team work
DEVELOPMENT OF HRM CONCEPT

HRM CONCEPTS

US MODEL THE UK MODEL THE JAPANESE

MODEL

Matchin Harvard
?
g Model David Guest John Storey
Model
THE US MODEL

1. THE MATCHING MODEL: the human resource

system and organisation structure should
match with organisational strategy.
2. THE HARVARD MODEL:
• HRM is based on central philosophy and
strategic vision
• HRM involves all management decisions and
action that affect the nature of the
relationship between the organisation and its
employees.
• A longer term perspective in managing people
and consideration of people as potential assets
rather than variable costs.
• Mutual interests.
THE CRITICISMS

MATCHING MODEL: The concept of FIT has been

criticised on a number of fronts:
• A number of writers have commented that
business strategy dictates HR strategy.
Business strategy is formulated in a rational
way, by the top down approach.
• A perfect match between business strategy
and Hr strategy might not be to the advantage
of the organisation as a whole.
• It ignores the complex nature of human beings
and the possibility that workers and their
unions might influence strategic planning.
THE UK MODEL

1. DAVID GUEST:has taken the Harvard Model and

developed it further by defining 4 policy goals:
• Strategic Integration
• High Commitment
• High Quality
• Flexibility
2. John Storey; suggests four aspects which constitute the
meaningful version of HRM
• HRM is constellation of beliefs & assumption
• The central involvement of line managers
• A strategic thrust informing decisions about people
management
• Reliance upon a set of levers to shave the
employment relationship
CHARACTERISTICS OF HRM

• It is top management driven and management

oriented activity
• It emphasises the need for strategic fit-the
integration of business and HR strategies
• It is commitment oriented
• It can take either hard or soft form
• It is performance oriented
• Employee relations are unitarist rather than
pluralist, individual rather than collective, high
trust rather than low trust
• Reward according to performance,
competence or skills.