Professional Documents
Culture Documents
Management Practices
(HRMP)
PDM (2016 18)
Session 2
HRM A Big Hat with No Cattle?
Managing Human Resources - Environment and Challenges
HRM Defined!
HRM refers to the framework of philosophies, policies, procedures and
practices for the management of the relationship that exists between an
employer and employee.
More important deliverable for HRM is building Human Capital. Human Capital refers
to the stock of employee Knowledge, Skills and Abilities (KSA) that may not show up in
the balance sheet but have significant impact on firms performance.
HRM assumes that it is the people who make the difference. They alone are capable of
generating value and adding to the competitive advantage to organisations.
Evaluating
Staffing
Maintaining
HR
Relationships Developing
Functions
Maintaining Motivating
Statutes
Managing
Change
HRM Practices
Knowledge Skill Abilities Empowerment Enhancing
(KSA) Enhancing Practices Practices
o Training o Grievance Procedures
o Selection o Flextime
o Compensation Level o Participation Programs
Employment Security
Motivation Enhancing o
Practices
o Incentive
o Compensation
o Task Variety Skill Variety Job Enrichment
o Internal Promotion 6
HRM and its Environment
External Environment
Political-Legal
Internal Environment
Leadership
Social Cultural
Unions HRM Strategy
Economic Professional
Bodies
Technological
Characteristics 20th Century 21st Century
o Retention: Includes i) rewarding employees for performing their jobs effectively ii)
ensuring harmonious working relations between employees and managers iii)
maintaining a safe, healthy work environment
Environment
al factors
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CAUSAL AMBIGUITY
Black-box
phenomenon
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TWO-WAY LINK
HR practices does not make a direct impact. There is an
intermediate factor in the form of employee characteristics
affected by HR practices.
o Ability + Motivation + Outcome (AMO) (Boxall and Purcell, 2003)
o P = f( Ability Motivation)
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CASE
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