Chapter1 TheNatureofContemporaryHumanResourceManagement

CHAPTEROVERVIEW Thischapterintroducesyoutothetheoriesandpracticesofhumanresource management.HRMisdefinedandthecentraltenetsofthevariousHRMmodelsare explained.ThecentralimportanceofthenatureoftheemploymentrelationshiptoHRM isexplained,andthechapterdrawsattentiontofouraspects:economic,legal,social andpsychological.EmphasisisgiventounderstandingcompetingnormativeHRM modelsratherthantopracticalHRMactivities. Chapterobjectives Afterstudyingthischapter,youshouldbeableto: Explainthedevelopmentofhumanresourcemanagement DefineHRManditsrelationtoorganizationalmanagement Explainthecentralfeaturesofthecontractintheemploymentrelationship SummarizethekeyHRMfunctions ExplainthetheoreticalissuessurroundingtheHRMdebate AppreciatethedifferentapproachestostudyingHRM. LECTUREOUTLINE Introduction TheshiftfromorthodoxpersonnelmanagementtoHRMisexplainedintermsofglobal economicdevelopments. HRMdebatehasexposedtraditionalunderlyingtensionsandparadoxesinmanagingthe employmentrelationship.

Developmentofhumanresourcemanagement ThedevelopmentofpersonnelmanagementislinkedtopostSecondWorldWar governmenteconomicpolicies(Keynesianism),newemploymentlaw,and recommendationsoftheDonovonCommission. TheHRMphenomenonisexplainedintermsoftherenaissanceofmarketdisciplines, neoliberalismandthechallengetogovernmentinterventionintheeconomy. Managementandhumanresourcemanagement AfterdefiningHRM,thetermshumanresourcesandmanagementareexplained. a) Peopledetermineorganizationaloutcomes.Employeesareproblematicbecause: peoplehavedualnatures;peopleformgroups;peoplehavefreedomofchoice. Managersthereforehavetodealwitharangeofissues,tensionsandcontradictions arisingatindividual,group,andorganizationallevels. b) Managementasscience,art,politicsandcontrol. HRMINPRACTICE1.1:AnewroleforHRprofessionals. Thinkaboutthequestionsattheendofthisfeatureandmoregenerallyabouthownew skills are increasingly required from HR managers and the new responsibilities they are takingonasthemoralcompassfororganizations. Thenatureoftheemploymentrelationship Fourmaincomponentsoftheemploymentrelationshiparediscussed:economic,legal, socialandpsychological. Theextendeddiscussiononthepsychologicalcontractreflectsrecentinterestinthis topicintheHRMdiscourse. Humanresourcemanagementfunctions ToexploreHRMfunctionsthetextaddressesthreequestions:WhatdoHRprofessionals do?Whataffectswhattheydo?AndhowdoHRprofessionalsdowhattheydo?We identifyninekeyHRMfunctionstoanswerthefirstquestion,includingplanning, integrating,staffing,developing,motivating,designing,managingrelationships, managingchange,andevaluating.

Wealsoidentifythreebroadcontingencies:externalcontext,strategyand organizationaldesigntoaddressthequestionWhataffectswhatHRprofessionalsdo? Andarangeoftechnical,cognitiveandinterpersonalprocessesandskillsareusedto accomplishHRfunctions. HRMINPRACTICE1.2:TwentyfirstcenturyHRseniorHRleadershaveachangingrole. ReadthisfeatureandthinkaboutthechallengesofseniorHRmanagersintheearly21st century,includinghowHRcanbedefinedwithinorganizations,howitsoutcomescanbe evaluated,andhowitdiffers(ifatall)frompersonnelmanagement. OrganizingtheHRfunction ThewaytheHRfunctionisorganizedanditsrelativepowerdependsuponexternal factors(e.g.governmentlegislation)andinternalfactors(e.g.,businessstrategyand organizationalculture). ThethreerelateddimensionsofHRMfunctions,contingenciesandskillsareshown diagrammaticallyinathreedimensionalframework. TheoreticalperspectivesonHRM ThemeaningandtheoreticalsignificanceofHRMiscontested.Thecontroversycentres onatleasttwofundamentalquestions: 1) WhatexactlydoesHRMmeanandhow,ifatall,doesitdifferfrompersonnel management? 2) WhatcorevaluesunderlietheHRMmodel? The chapter examines five theoretical models of HRM that seek to define the salient featuresofHRM.ItalsoexplainsthemeaningofhardandsoftversionsofHRM. a) Fombrun,TichyandDevannamodelofHRM b) HarvardmodelofHRM c) GuestmodelofHRM d) WarwickmodelofHRM e) StoreymodelofHRM f) Ulrichsstrategicpartnermodel
3

PersonnelmanagementversusHRM HRMmodelsemphasizeanumberofdifferencesbetweenHRMandtraditional personnelmanagement.Theseinclude:strategicplanning,focusonthepsychological contract,importanceoflearningintheworkplace,focusontheindividual(unitarism), importanceofleadershipandproactiveness,afocusonlinemanagersandanattention tomeasuringHRperformanceoutcomes. HRMANDGLOBALIZATION:TheHRMmodelinadvancingeconomies. Readthisfeatureandthinkabouthowglobalizationisrelegatingnationalgovernments togatekeepingrolesaslargecorporationscontrolnaturalresourcesandeconomies. Studyinghumanresourcemanagement Inthisnewsection,wepointoutthatthoseinterestedintheanalysisofHRMneedto appreciatehowthedisciplineisdividedintotheoreticaltraditionsorstrandsofthought. Thetwostrandsofthoughtorstandpointsweexaminearemainstreammanagerialand criticalperspectives. Thetheoreticalrootsofthemanagerialstandpointcanbetracedbacktotheworkof F.W.Taylor,McGregor,andMaslow. Thetheoreticalrootsofthecriticalstandpointcanbetracedbacktotheradical sociologicalanalysisofworkandindustryandtheworkofMarx,Braverman,and Foucault. CritiqueandparadoxinHRM ThecritiquesofHRMfocusontheinternalparadoxesandtensions,includingHRroleof caringandcontrolling,thesoftandhardschoolsofHRM,leadersgainingcontrolby givingitup,shorttermaccountingpracticesversuslongtermHRdevelopmental practices,andthetendencyfortheHRMdiscoursetobegenderblind.
4

ENGAGINGINCRITICALTHINKING REFLECTIVEQUESTION Drawingonyourownworkexperienceoranorganizationthatyouhavestudied,think aboutthekeyHRpoliciesandactionsofthatorganization.Isthereagapbetweenthe principlesunderpinningtheHRMmodelsexaminedinthischapter?Ifthereisa difference,thinkaboutwhythatis. CHAPTERCASESTUDY:CANTERBURYHOSPITAL Thiscasestudylooksatenvironmentalissuesthataffectorganizations.Thecase illustratessomepracticalHRissuesandemphasizestheimportanceofaligning sustainabilityandHRstrategies. STUDYTIPSUSEFULFORSTUDENTS You need to be aware that many of the articles written about HRM are by consultants. They, and HRM practitioners, have a vested interest in promoting the HRM model. Therefore, having chosen a HR function that interests you, you should select readings from professional journals and/or a chapter from a more prescriptive how to HR textbookthatallowsyoutocomparedifferentapproachesandarguments.