Professional Documents
Culture Documents
Management
Code No 5563
Allama Iqbal Open
University
COL MBA
How the concept of HRM was originated? What are the distinguishing characteristics of
Human Resource Management from Personnel Management?
HRM may be defined as the art of procuring, developing and maintaining competent
workforce to achieve the goals of an organization in a effective and efficient manner.
Labor was regarded as a commodity to be bought and sold. Wages were based on
demand and supply. Government did very little to protect workers.
Labor is like any other factor of production, viz., money materials land etc. Workers are
like machine tools.
The Good will concept:
Welfare measures like safety first aid, lunch room, rest room will have a positive impact
on worker’s productivity.
Employees are the most valuable assets of an organization. There should be a concise
effort to realize organizational goals by satisfying needs and aspirations of employees.
History of HRM
Organizations have many operational functions. HRD is one of the functions that is
engaging with the tasks of an organization. In early 70 s there was no division called as
Human Resource Department or Division. By that time there was only a division called
"Personnel" engaged with the labor related in the organization.
Personnel Management was introduced by the end of 19th century. At that time, this
was focused on the welfare of labors in the organizations. According to the tasks they
have done, the officers at Personnel Department was called as "Welfare Officers". The
special thing was, the employee welfare tasks were done by women at that time.
During the period of 1914-1939, many organizations has showed a quick growth and
quick changes in needs and wants of the operations. Therefore the tasks done by
women shifted to the men's, because of the complexity of tasks. These officers has
called as "Labor managers" at that time.
After Second World War, during the period 1945 - 1979, this has grown up and changed
to "Personnel Management", and Personnel Management was focus basically on
employee administration and the legislation.
Personnel management can include administrative tasks that are both traditional and
routine. It can be described as reactive, providing a response to demands and concerns
as they are presented. By contrast, human resources involves ongoing strategies to
manage and develop an organization's workforce. It is proactive, as it involves the
continuous development of functions and policies for the purposes of improving a
company’s workforce.
Critics have argued that the field of human resource management (HRM) lacks a
coherent theoretical framework. This article attempts to further the theoretical
development of SHRM through discussing six theoretical models (behavioral
perspective, cybernetic models, agency/transaction cost theory, resource-based view of
the firm, power/resource dependence models, and institutional theory) that are
useful for understanding both strategic and non-strategic determinants of HR practices.
Finally, the implications of a stronger theoretical approach to SHRM research and
practice are discussed.
Introduction:
The past decade has seen an increasing interest in the "strategic management" of
organizations in the United States. Numerous models of strategic management have
been proposed (e.g., Hofer & Schendel, 1978; Miles Snow, 1978; Porter,
1980). This interest in strategic management has resulted in various organizational
functions becoming more concerned with their role in the strategic management
process. The Human Resource Management (HRM) field has similarly sought to
become integrated into the strategic management process through the development of
a new discipline referred to as Strategic Human Resource Management (SHRM).
This field of study has produced a number of conceptual and practitioner-oriented
articles proposing the particular human resource (HR) practices that would be
associated with various business strategies (Miles & Snow, 1984; Schuler & Jackson,
1987; Wils & Dyer, 1984). In addition, recent research has begun to examine the
determinants of HR practices from a strategic perspective (Dean & Snell, 1991;
Jackson, Schuler & Rivero, 1989; Snell, in press).
Given the relative infancy of this field of study, two deficiencies in this literature need to
be addressed before significant progress can be made. First, at present there is no
clear agreement regarding the delineation of the field of strategic human resource
management (SHRM), particularly with regard to its definition. Thus, it has been difficult
to differentiate between HRM and SHRM. Second, until recently there has been little in
the way of strong theoretical models to aid in understanding both the role of HRM in
organizations and the determinants of various HR practices. Similarly, without a strong
theoretical foundation for understanding the determinants of HR practices, it is difficult
to distinguish between HRM and SHRM.
Thus, the purpose of this article is to provide a foundation to guide future SHRM
research and practice by (a) clearly defining SHRM, distinct from HRM, and (b)
reviewing alternative theoretical frameworks that have and can be applied to help
explain the role of SHRM in strategic management. In order to accomplish this task, we
will first review the components of theory construction and its importance to the SHRM
research process. In the context of theory construction, we offer a specific definition of
the construct of SHRM, distinguishing it from HRM. We will then present a variety of
theoretical perspectives that may provide the necessary foundation for understanding
both the strategic and non-strategic determinants of HR practices and thus enable
researchers to take a strategic approach to HRM. Finally, we will discuss the
implications of the presence or absence of a strong theoretical foundation for the field of
SHRM.
The Role of Theory in SHRM
According to Dubin (1976), theory is "the attempt ... to model some aspect of the
empirical world," (26). Theories, if accurate, fulfill the objectives of prediction knowledge
of the outcome) and understanding (knowledge of the process) regarding the
relationships among the variables of interest. Thus, a good theory enables one to both
predict what will happen given a set of values for certain variables, and to understand
why this predicted value should result.
Although the primary goals of theorist-researchers and practitioners may differ (Dubin,
1976), a strong theoretical model has great value to both. Practitioners are primarily
concerned with the accuracy of prediction of a theoretical model in order to guide their
decision making; thus, an accurate theoretical model allows for better decision making
in conditions of uncertainty. Theorist-researchers, on the other hand, have greater
concern for understanding the why behind the prediction. For them, a well developed
theoretical model allows for testing of the model and, based on these tests, revision of
the model to increase its accuracy.
Due to the applied nature of SHRM, it is exceedingly important that the field develop or
use theoretical models that allow for both predicting and understanding the effects of
HR practices on organizational functioning. However, until very recently, one of the
most glaring inadequacies of SHRM was the lack of a strong theoretical basis for
viewing the HRM function (Mahoney & Deckop, 1986) within the larger organization.
In a call for HRM research to be grounded in the organizational context, Zedeck and
Cascio (1984) stated "HRM issues are part of an open system, and research is
theoretically bankrupt unless placed in the broader context of organizations," (463).
Similarly, Dyer's (1985) review of SHRM research pointed out that the field lacked a
strong theoretical foundation. He stated with regard to the dependent variables of
SHRM research, that it would be helpful to "have a fully articulated theory of personnel
and human resource management on which to draw," (10). In fact, in his discussion of
the criteria for evaluating theory, Bacharach (1989) noted SHRM research as one
glaring example of the lack of theory. He specifically pointed to this area as one which is
characterized by descriptive typologies, rather than good theory that helps us to
understand the why, how, and when of relationships between business strategy and
HRM practices.
The political perspective holds that HRM practices reflect the distributionof power in an
organization. For example, having an extensive set of HRMpractices implies a powerful
personnel department upon which others mustdepend when making personnel-related
decisions (Osterman 1984; Pfeffer andCohen 1984). But existence of other powerful
groups-such as unions orcompetitors who minimize their labor costs-may act to
countervail orsuppress the expression of the personnel department's wishes (Doeringer
andPiore 1971).
What are the reasons behind the different human resource management strategies
human resource management strategies understood as patterns of action for "dealing
with" the human resources or the work force of an organization? Why do we on one
hand have human resource management strategies, where the majority of employees
have a long-term employment contract with the organization (up to a "life-long"
employment guarantee), and where good working and wage conditions prevail, while on
the other hand there are certain strategies that are characterized primarily by very short-
term employment contracts and are frequently associated with poor working conditions
and relatively low wages? Economic approaches to an explanation trace the origin of
the different human resource management strategies back to the actors' primarily the
employers' - aspirations for efficiency. Often neglected here are the differences in power
between the employer and employee, but also other political aspects of the exchange
between "capital" and "labour". In this article, I suggest a Political Economy Perspective
as an explanatory approach (see also Nienhuser 2002). For this approach, I resort
mainly to considerations of power and exchange theory that exhibit parallels to
microeconomic approaches, in particular from the realm of institutional economics, but I
also pull from thoughts from the neo-Marxian labour process concepts.
Different opinions from experts and divisional managers, however it is subjective.
This method is being used more and more by small and medium organizations as it is
rather cheap and does not require much technology
Population growth. Organization operating in less stable environments ( e.g., a hospital
in an area experiencing explosive growth and change) are more likely to rely on a
judgmental approach.
Q4: write a detailed note on four different approaches to job design that affect the
degree of specialization and the psychological dimensions of work?
Job design is also know as Job redesign is a task-technology related approach that
aims at making changes in the work process of the groups of the employees. It involves
a well planned re-organization of a job and focuses to improve employee motivation,
commitment, performance, job satisfaction etc.
There are different approaches to job design and they are as follows:
1) Job Enrichment
2) Job Engineering
3) Job rotation
4) Job Enlargement
5) Socio-technical System
Job Enrichment:
Techniques
Ask them
Use surveys( checklist, listing, questions)
Job Rotation:
Job rotation is an approach to management development where an individual is moved
through a schedule of assignments designed to give him or her a breadth of exposure to
the entire operation.
Job rotation is also practiced to allow qualified employees to gain more insights into the
processes of a company, and to reduce boredom and increase job satisfaction through
job variation.
The term job rotation can also mean the scheduled exchange of persons in offices,
especially in public offices, prior to the end of incumbency or the legislative period. This
has been practiced by the German green party for some time but has been
discontinued.
For lower management levels job rotation has normally one of two purposes: promo
ability or skill enhancement.
In many cases senior managers seem unwilling to risk instability in their units by moving
qualified people from jobs where the lower level manager is being successful and
reflecting positively on the actions of the senior manager.
Many military jobs use the job rotation strategy to allow the soldiers to develop a wider
range of experiences, and an exposure to the different jobs of an occupation.
Job enlargement
Job enlargement means increasing the scope of a job through extending the range of its
job duties and responsibilities. This contradicts the principles of specialisation and
the division of labour whereby work is divided into small units, each of which is
performed repetitively by an individual worker. Some motivational theories suggest that
the boredom and alienation caused by the division of labour can actually cause
efficiency to fall. Thus, job enlargement seeks to motivate workers through reversing the
process of specialisation. A typical approach might be to replace assembly lines with
modular work; instead of an employee repeating the same step on each product, they
perform several tasks on a single item. In order for employees to be provided with Job
Enlargement they will need to be retrained in new fields which can prove to be a lengthy
process. However results have shown that this process can see its effects diminish after
a period of time, as even the enlarged job role become the mundane, this in turn can
lead to similar levels of demotivation and job dissatisfaction at the expense of increased
training levels and costs. The continual enlargement of a job over time is also known as
'job creep,' which can lead to an unmanageable workload.
Sociotechnical systems
One is that the interaction of social and technical factors creates the conditions
for successful (or unsuccessful) organizationalperformance. This interaction consists
partly of linear ‘cause and effect’ relationships (the relationships that are normally
‘designed’) and partly from ‘non-linear’, complex, even unpredictable relationships
(the good or bad relationships that are often unexpected). Whether designed or not,
both types of interaction occur when socio and technical elements are put to work.
The corollary of this, and the second of the two main principles, is that
optimization of each aspect alone (socio or technical) tends to increase not only the
quantity of unpredictable, ‘un-designed’ relationships, but those relationships that
are injurious to the system’s performance.
Therefore sociotechnical theory is about joint optimization. Sociotechnical theory, as
distinct from sociotechnical systems, proposes a number of different ways of achieving
joint optimization. They are usually based on designing different kinds of organization,
ones in which the relationships between socio and technical elements lead to the
emergence of productivity and wellbeing, rather than the all too often case of new
technology failing to meet the expectations of designers and users alike.
These, and other factors, play an integral and parallel role in ensuring successful
teamwork which sociotechnical theory exploits. The idea of semi-autonomous groups
conveys a number of further advantages. Not least among these, especially in
hazardous environments, is the often felt need on the part of people in the organisation
for a role in a small primary group. It is argued that such a need arises in cases where
the means for effective communication are often somewhat limited. As
Carvalho [3] states, this is because “…operators use verbal exchanges to produce
continuous, redundant and recursive interactions to successfully construct and maintain
individual and mutual awareness…”. The immediacy and proximity of trusted team
members makes it possible for this to occur. The co-evolution of technology and
organizations brings with it an expanding array of new possibilities for novel interaction.
Responsible autonomy could become more distributed along with the team(s)
themselves.
Q5: What are the various selection methods available for a HRM Manager during a
hiring process?
1. Recessions end. Some forecasters are now predicting that this one will start
turning around in the fourth quarter this year.
2. You may start hiring back previously laid-off employees before you hire people
off the street. This often makes sense because your former employees
already know your company and may likely be thrilled that you will consider
bringing them back. Good morale does wonders for productivity! Even more, if
you’re rehiring after a layoff, you may actually be mandated to first hire back
your laid-off workers by terms of a collective bargaining agreement.
If the laid-off person has logged in merchandise, or done something similar in the past,
he or she gets more points in evaluation of their response to the interview question than
applicants who do not fit the job duty as well. If the person has done work that requires
attention to detail and is similar to the job duty, they also get points but fewer than the
other applicant because their experience does not fit this important job requirement as
closely. We’ll call that the reasonably- skilled level. If the person has done something
that is detail-oriented but not similar to the job duty they get even fewer points than the
reasonably- skilled level. If the person has not been detail-oriented in past work they get
no points.
Knowledge of Excel
If the laid-off person put data on Excel spreadsheets, he or she gets more points when
their response is evaluated. If the person used another type of software spreadsheet,
they get fewer points. If the person seems to have some computer skills but not on
spreadsheets, they get fewer points still. If the person has little computer background,
they get no points.
If this job assessment shows that the laid-off person is reasonably skilled in these
important job duties, you’ve found your new employee!