21656 / 03059 Human Resource Management

Dr. Daniel Wintersberger

Purpose of the module
 This module introduces Human Resource Management (HRM) and
critically assesses its relevance in the contemporary economic
environment and its contribution to firm performance and
competitive advantage.

 The module will evaluate the key issues and debates within the
functional areas of employee resourcing, employee development,
employee relations, performance management and reward.

 The module will integrate theory and practice by providing real-life

cases from UK and international organisations.
Learning outcomes
 demonstrate knowledge and understanding of the origins and
development of HRM and critically evaluate the reason for its
prominence in the contemporary work environment;
 critically appraise the effect of HRM on the competitive advantage of
the firm;
 critically evaluate the impact of HRM policies and practices in various
industrial sectors and for various occupational groups,
 demonstrate comprehensive understanding of the relationship
between HRM and more traditional forms of participation such as
collective bargaining and industrial relations and evaluate the impact
of the former on the latter.
 understand the implications of national cultural and institutional
factors for HRM.
Module programme
Session Date Topic
1 9/01/18 Module introduction & introduction to HRM

2 16/01/18 Strategy and HRM

3 23/01/18 Recruitment, selection, equality and diversity

4 30/01/18 Managing Performance

5 06/02/18 Reward

6 13/02/18 Employee Voice

7 20/02/18 HRM and flexibility

8 27/02/18 Managing culture

9 06/03/18 Comparative HRM: The Role of Institutions

10 13/03/18 International HRM: The role of culture

11 20/03/18 Overview and revision

Assessment
 2-hour exam (100%)
 Choose two out of six essay questions.
 ‘deep’ learning of topics important
Structure…
 As of week 2, some sessions will involve a Turning Point formative
assessment based on the material from the previous week
 Guidance to further reading will be provided at the end of each lecture.
 Several HRM textbooks are available in the library, e.g. Bratton and
Gold (any year) and Wintersberger (2017).
 The library will stock a limited number of copies and advice on various
alternative sources including journal articles and various other
references including media coverage on topics will be provided at the
end of each lecture. You do not have to read everything on the reading
list!
Engaging with the topics
 Follow advice on recommended reading provided at
the end of each lecture.
 This course cannot be crammed. It builds on topics
introduced in a logical sequence. Aim for full
attendance.
 References recommended will be a mix of academic
(theory) and non-academic (factsheets / case studies /
media coverage).
 Top responses to exam questions will effectively ‘blend’
theory and practice.
Pre-HRM: Keynesianism: Collectivism and
Personnel Management
 ‘People management’ arguably has its roots in the
industrial revolution.
 Most meaningful emergence of personnel management as
a profession in the period 1950 to 1974: the ‘golden age’ of
Keynesian economic doctrine:
 Gov’ts keen to foster industrial peace, conciliation,
mediation and arbitration.
 1970s: New legislation on equal opportunities and diversity
 Personnel function ‘extended into fabric of the business’
Contextual factors - emergence of
HRM
Why did HRM emerge in 1980s?

 Globalisation – increased
competition from Asia Pacific
economies

 Japanese management techniques

and the Japanese ‘economic miracle’

 Neo-liberalism – shift in power

away from labour and to employers
 What did HRM replace and is it different?
(Guest 1987; Legge 2005: chapter 3)
Personnel Management HRM (normative model)
 Ad hoc  Strategic
 ‘fire-fighting’  Focused on the
 Focused on the psychological contract
employment contract –  Outcome: employee
legal aspect commitment
 Outcome: employee
compliance
N.B., this is the normative model of HRM. As
we shall see, in reality HRM might also work
through employee compliance
Key Contributions
 Storey, J. (1989) New Perspectives on Human Resource
Management:
 ‘Hard’ and ‘Soft’ versions of HRM – see also Legge (1995
/ 2005).
 Harvard Model: Beer et al. (1984) Managing Human Assets
 Michigan Model: Fombrun, Tichy and Devanna, 1984 –
harder, more utilitarian edge. Also known as ‘matching’ or
‘best fit’ model.
‘Hard’ hRm
 Utilitarian instrumentalism (Legge 1995)
 emphasises the term resource
 rational approach to managing ‘headcount’
 envisages humans as yet another factor of production, the
cost of which needs to be minimised.
 How does HRM then differ from personnel management?
‘Soft’ Hrm – The normative ‘high commitment’ view

 Developmental humanism (Legge 1995)

 Puts the ‘human’ back into human resource
management (Bolton and Houlihan 2007).
 Human resources are distinctive from inanimate
resources – can be developed
 Investment in training and development
 Adoption of ‘high commitment’ management
practices (Wood and Albanese 1995).
 Creation of a ‘Psychological Contract’ (Rousseau
1990)
Soft Version not without Critics!
 ‘manipulative form of management control causing
work intensification’ (Wells 1993)
 ‘cultural construct concerned with moulding
employees to corporate values (Townley 1994 – in
Bratton and Gold 2007: 6)

 So, how ‘soft’ is soft HRM really? Consider this

question as we move through the functional areas of
HRM over the coming weeks.
The Psychological Contract
(Rousseau 1990)
 ‘the perceptions of the two parties, employee and employer, of
what their mutual obligations are towards each other‘ (Guest
and Conway 2002)
 Defining characteristics
 Implicit (rather than explicit, i.e., employment contract
document)
 Based on beliefs about our own and other’s obligations
(reciprocal)
 Creates expectations
 Based on social exchange theory
Social exchange theory
 Like an economic exchange (e.g., ‘I pay money for an item
and expect to receive it’), the social exchange generates an
expectation of a future return (e.g., ‘I do something for you
and I then expect you to do something for me’)
 Unlike an economic exchange, the social exchange is
ambiguous in that the reciprocal ‘something’ is not specified
 ‘The norm of reciprocity’
 Individuals should help individuals who have helped
them (Gouldner 1960)
Examples of Commitments between
Employers and Employees (CIPD 2014)
Employees promise to:
Work hard
Uphold company reputation
Maintain high levels of attendance and punctuality Opportunities for promotion
Show loyalty to the organisation
Work extra hours when required
Develop new skills and update old ones
Be flexible, for example by taking on a
colleague’s work
Be courteous to clients and colleagues
Be honest
Come up with new ideas
Employers promise to provide:
Pay commensurate with performance
Opportunities for training and development
Recognition for innovation or new idea
Feedback on performance
Interesting tasks
An attractive benefits package
Respectful treatment
Reasonable job security
A pleasant and safe working environment
Breach and violation
(Robinson and Morrison 2000)
 A breach of the psychological contract occurs when one partner
perceives that the other has not met their obligations
 In practice this might occur when a firm is unable to meet a
“promise” made during the appointment process, such as the
promise of promotion within a certain time frame
 Perception plays an important role and so breach may be the result of
misunderstanding rather then a clear failure to meet a promise…
 …And so, perceived breach maybe the result of reneging (refusal or
failure to meet obligations) or incongruence (misunderstanding over
nature of obligations)
Possible outcomes of breach
 Employees less likely to meet their obligations to the
firm
 Reduction in employee trust
 Undermines organisational commitment
 Labour turnover and persistent negative effect on
employee attitudes
 https://www.youtube.com/watch?v=EKGYUyFn6rA
Organisational Commitment
(Allen and Meyer 1990)
 Affective
 Emotional attachment to the organisation: belief in its
values and sharing them
 Continuance
 Rational evaluation of costs and benefits of exiting the
firm
 Normative
 Basic assumptions (Schein 1984) about work influenced
by family, society and organisation
Affective Commitment Scale Items

 1. I would be very happy to spend the rest of my career in this

organization.
 2. I really feel as if this organization’s problems are my own.
 3. I do not feel like ”part of the family” at my organization. (R)
 4. I do not feel “emotionally” attached to this organization. (R)
 5. This organization has a great deal of personal meaning for me.
 6. I do not feel a strong sense of belonging to my organization.
(R)
Continuance Commitment
 Assessment of gains versus losses of working in an
organisation
 ‘Side bets’ important – they may lead to an individual
seeing a high cost associated with leaving the
organisation.
 Economic costs (pension entitlement; payscale) versus
social cost (loosing good work colleagues) are
assessed.
Normative Commitment
 Individual doesn’t necessary share goals (commit
affectively to) of the organisation, but feels a moral
obligation towards the organisation.
 E.g. substantial investment into employee training
 Internalized norm: e.g. brought up to appreciate the
importance of loyalty.
Ancillary reading
On HRM (introduction):
 Guest, D. (1987) ‘Human Resource Management and Industrial
Relations’, Journal of Management Studies, 24(5), 503-21.
 Legge, K. (2005) Human Resource Management: Rhetorics and
Realities, Basingstoke: Palgrave. Chapters 1 and 3
 Marchington, M., and Wilkinson, A. (2012) Human Resource
Management at Work, London: CIPD. Chapter 1
Ancillary Reading II
On the psychological contract:
 Coyle-Shapiro, J.A-M., and Parzefall, M. (2008) ‘Psychological contracts’,
in Cooper, C.L., and Barling, J. (eds.) The SAGE Handbook of
Organizational Behavior, London: Sage (available online)
 Morrison, E.W., and Robinson, S.L., (1997) ‘When employees feel betrayed:
a model of how psychological contract violation develops’, Academy of
Management Journal, 22(1), pp. 226-256.
 (GUEST, D.E. and CONWAY, N. (2002) Pressure at work and the
psychological contract. London: CIPD.
 CIPD (2014) The Psychological Contract – CIPD Factsheets -
http://www.cipd.co.uk/hr-resources/factsheets/psychological-
contract.aspx
Ancillary Reading III
On organisational commitment
 Allen, N.J., and Meyer, J.P. (1990) ‘The measurement and antecedents
of affective, continuance and normative commitment to the
organisation’, Journal of Occupational Psychology, 63, pp. 1-18 (pages 1-
5 are essential reading).
 Legge, K., (2005) Human Resource Management: Rhetorics and
Realities, Basingstoke: Palgrave, chapter 6 (pages 179-185 are essential
reading)