Professional Documents
Culture Documents
The organisational setting History of management Management and leadership Transformational leadership Management models HRM
Premise
Organisations exist to achieve ends and those ends are achieved through and by people within a defined organisational structure laden with tools and teams. What matters is how managements treat people as ends and what management provides in return. The philosophy of HRM can provide positive guidance on approaches to managing people in, for example the principle of mutual commitment. People in organisation is considered as potential assets rather than merely a variable cost.
HRM v/s PM
PM views personnel as an element of cost where as HRM views the human resource as a potential return on investment. It can be argued that HRM is simply a term used to describe the natural development of personnel management in response to the ever changing demands made upon orgnisation and how they deal with people. Torrington (1989) commented: PM has grown through the assimilating a number of additional emphases to produce an even richer combination of experience HRM is no revolution but a further dimension to a multi faceted role.
Features of HRM
Emphasis on the strategic management of people (Human capital of the orgnisation) which achieves fit or integration between the business and the HR strategy. A comprehensive and coherent approach to the provision of mutually supporting employment policies and practices The importance placed on gaining commitment to the organisations mission and values- it is commitment oriented. The treatment of people as asset rather than cost. An approach to employees relations that is unitarist rather than pluralist (employees and employers have same interest) The performance and delivery of HRM as a line management responsibilities
HRM goals
HRM aims to help the organisation to achieve success through people. Achieving high performance through people Enhancing motivation, commitment and job engagement Human capital advantage Knowledge management Resourcing Human Resource development Valuing employees Employee relations
HRM activities
Impact area Organisation Activities
Organisation design Organisational development Job and role design Creating climate of trust and developing positive psychological contract HR planning Talent management Recruitment and selection
Employment relationship
Resourcing
HRM activities
Impact area
Performance management
Activities
Measuring and managing performance within agreed frameworks of objectives and competence requirement, assessing and improving performance, identifying and satisfying learning and developmental needs.
HRD
HRM Activities
Impact Area Reward management Employee relations Activities Pay systems, contingent pay, non financial rewards Industrial relations, employee voice, communication Ensuring a healthy and safe working environment, protecting employees from health hazards and accidents Solutions during prolonged illness, group services such as
HRM processes
Strategic HRM: Defining intentions and plans for the development of HRM practices, and ensuring that HR strategies are integrated with the business strategy HRM Policy: Formulating and implementing policies that provide guidelines on how people should be managed in the orgnisation Change management: Advising on and assisting with the facilitation of change in organisation in response to changes in the environment and the introduction of new organisation structures and systems, HR policies and practices Competency based HRM: Developing competency frameworks that inform and support activities such as job design, recruitment, performance management, employee development and reward Knowledge management: Developing processes for capturing and sharing knowledge to enhance organisational learning Job and role analysis: Analysing the content and
Guest et al (2000): Relationship between HRM and performance HR effectivene ss Business strategy HR Practices HR strategy HR outcomes Employee: Competenc e, commitme nt, flexibility
Impact of HR on organisation
Quality of goods and services Financial performanc e Productivity