AC 330 A closer look at the roots of HRM

Last time we examined four, variously competing, models of HRM The lecture was designed to show that HRM does not represent a single or unified set of ideas and practices In todays lecture we will backtrack a little as we consider the roots of HRM. We will examine: The factors that have promoted HRM as an answer to contemporary managerial problems The ways in which HRM has impacted upon academic toil Ways of unpacking and unpicking HRM

Human Resource Management: For its advocates, HRM represents a distinctive approach to the management of the employment relationship
Storey(1995) 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, strategic and personnel techniques Note the keywords: Strategy, competition, integration, culture

These are different from keywords of industrial relations: Collective bargaining, differentials, unions, inflation

Four key dimensions to this account of HRM (Storey, 1995)

1. Beliefs and assumptions Humans are the source of competitive advantage Commitment not compliance is the goal Employees are an investment 2. Strategic Qualities HR decisions are of strategic importance HR is a top management concern HR policies should be integrated with business strategy 3. Managerial Role HR is too important to be devolved to a personnel function A paradox however - HR is to be strategica top management concern, yet line management must drive and deliver HRM Management development is important too 4. Key Levers Cultural change not maintenance of procedures

HRM (new and dynamichooray) often contrasted with Personnel Management (staid, compromising and compromisedboo)
HRM Proactive Systematic Personnel Management Reactive Piecemeal Problem-focused Social Capital Develop communication Trust Collaboration Variable cost Info is power Bargaining Mediation

If we accept for a moment that HRM is new and distinctive...need to explain The Rise of HRM

Need also some means to explore and explain The varieties of HRM we identified in the last lecture

The Rise of HRM Explanation is multi-factorial

Experience of integrated and competitive markets New demands of market make HRM attractive as source of competitive advantage Rise of foreign competition Changing role of state Monetarism preferred to Keynesianism Focus upon enterprise culture Deregulation of markets

Low status of personnel management

Investigating the varieties of HRM Three accounts of HRM put forward today Legge(1995; 2005) Descriptive Models Normative Models Critical Models

Descriptive Models
Torrington and Hall(1987) Key authors on personnel practiceHRM poses personal challenge Resolution? Accept HRM as fact - examine implications of HRM for personnel practitioners Practitioners advised: Focus upon planning and monitoring Integrate what they do to business concerns Move from mediation to proactive change

Normative Models
Prescriptive rather than descriptive! Formbrum et al Market imperatives cause need for change HRM to drive and deliver new strategic objectives Beer et al HRM driven by need for strategic fit, need to consider workers as social capital Walton(1985) Market calls for approach to managing the employment relationship built upon mutuality and trust

Critical Models a variety of criticisms rehearsed here

Storey(1992) Legge(1992) Supporters of HRM fail to analyse it in context Key suggestions: 1. Comparison of HRM and Personnel Management is flawed and inappropriate 2. HRM is a rhetorical construction to extend managerial prerogative 3. HRM is not new, not strategic internal coherence etc is ideal not a reflection of practice. HRM remains opportunist, pragmatic and anti-union typical of UK and US approach

Legge(1995; 2005) HRM has many meanings and may take many forms Unresolved issue: Is HRM the Management of human resources or management of resourceful humans? Four dimensions to HRM! Strong --- Weak Loose --- Tight

A map of HRM A distinctive approach to management Integrated to business strategy External Fit Contingent Strong

Commitment! Resourceful humans!

Secure asset utilisation. Human resources Hard

Soft

Paternalist Personnel?

Macho Management?

Weak Delegated/devolved function Just personnel Absolutist approach

Summary Have attempted to outline factors implicated in the rise of HRM Have attempted to demonstrate the ways in which HRM has been interpreted by academics and the ways HRM has impacted upon academic toil and on the work of HRM/ personnel specialists Have attempted to show ways in which deeper assumptions concerning markets, management and strategy have shaped the articulation of HRM