Introduction to hrm lecture 1

Introduction to HRMIntroduction to HRM
Human ResourceHuman Resource
Management - SManagement - Session 1ession 1
Suhel KhanSuhel Khan

AimsAims
By the end of the session students will beBy the end of the session students will be
able to:able to:
1) Demonstrate an understanding1) Demonstrate an understanding role ofrole of
HRHR..
2) 2) UnderstandUnderstand the factors influencing thethe factors influencing the
HRM.HRM.

What is HR?What is HR?
Human Resources is the part of theHuman Resources is the part of the
organization that deals with peopleorganization that deals with people
Managing the human resourceManaging the human resource
This means acquiring developing andThis means acquiring developing and
supporting staff as well as ensuring theysupporting staff as well as ensuring they
fulfill their role at workfulfill their role at work

Define HRMDefine HRM
Torrington et al “ It is a series of activitiesTorrington et al “ It is a series of activities
which; first enables working people andwhich; first enables working people and
the organisation which uses their skills tothe organisation which uses their skills to
agree about the objective and nature ofagree about the objective and nature of
their working relationship and secondly,their working relationship and secondly,
ensure that the agreement is fullfilled.”ensure that the agreement is fullfilled.”

HRMHRM
 The Policies and practices in carrying out theThe Policies and practices in carrying out the
“people” or human resource aspects of a“people” or human resource aspects of a
management position including, recruiting,management position including, recruiting,
screening, training, rewarding and appraising.screening, training, rewarding and appraising.
(Dessler G)(Dessler G)
 The Charted Institute of Personnel ManagementThe Charted Institute of Personnel Management
“ The design, implementation and maintenance“ The design, implementation and maintenance
of strategies to manage people for optimumof strategies to manage people for optimum
business performance including thebusiness performance including the
development of policies and process to supportdevelopment of policies and process to support
these strategies”these strategies”

ContinueContinue
So the Human Resource Manager job includes:So the Human Resource Manager job includes:
 Conducting Job analysis ( determining the nature ofConducting Job analysis ( determining the nature of
each job)each job)
 Planning labour needs and recruiting job candidatedPlanning labour needs and recruiting job candidated
 Selecting Job candidatesSelecting Job candidates
 Orienting and training new employeesOrienting and training new employees
 Managing wages and salaries (compensatingManaging wages and salaries (compensating
employees)employees)
 Providing incentives and benefitsProviding incentives and benefits
 Appraising performanceAppraising performance
 Communicating ( interviewing, counselling, disciplining)Communicating ( interviewing, counselling, disciplining)
 Training and developmentTraining and development

Cont.Cont.
Training and Developing managersTraining and Developing managers
Building employee commitmentBuilding employee commitment
And what a HRM Manger should knowAnd what a HRM Manger should know
aboutabout
Equal opportunity and affirmative actionEqual opportunity and affirmative action
Employee health and safetyEmployee health and safety
Handling grievances and labour relationsHandling grievances and labour relations

Personnel Management V ResourcePersonnel Management V Resource
ManagementManagement
 Personnel Management is ‘workforce’ centredPersonnel Management is ‘workforce’ centred
 HR is resource centredHR is resource centred
 Does not identify with Management interestsDoes not identify with Management interests
 Directed at management needs for deploymentDirected at management needs for deployment
 People have the right to proper ‘treatment’People have the right to proper ‘treatment’
 Focus is on individuals and needs and potentialFocus is on individuals and needs and potential
 Intervene between manager - subordinate relationshipsIntervene between manager - subordinate relationships
 Planning, monitoring and control rather than mediationPlanning, monitoring and control rather than mediation

Introduction to HRIntroduction to HR
 The 1980’s and 90’s saw ‘Human ResourceThe 1980’s and 90’s saw ‘Human Resource
Management’(HRM) replace ‘Personnel Management’Management’(HRM) replace ‘Personnel Management’
 fashionable termfashionable term
 re-organisation of work of personnel departmentre-organisation of work of personnel department
 distinctively different with new management approachdistinctively different with new management approach
 Long term rather than short term perspectiveLong term rather than short term perspective
 Psychological contract of commitmentPsychological contract of commitment
 Self-control rather than external controlsSelf-control rather than external controls
 Management integrationManagement integration
 Maximum utilisation of resourceMaximum utilisation of resource

Why is it Important?Why is it Important?
 Staff are the largest revenue cost of any organisation.Staff are the largest revenue cost of any organisation.
 Staff are a volatile resource, they can leave you anyStaff are a volatile resource, they can leave you any
time.time.
 Staff are a store of corporate knowledge and the meansStaff are a store of corporate knowledge and the means
of service delivery.of service delivery.
 Retaining and developing good staff allows you to useRetaining and developing good staff allows you to use
skills and develop as a business.skills and develop as a business.
 Individuals should contribute more than they cost.Individuals should contribute more than they cost.
 In the industry customer care critical and delivered byIn the industry customer care critical and delivered by
staff as representatives.staff as representatives.

Hard and Soft HRMHard and Soft HRM
 'Storey (1989) has distinguished between hard and soft'Storey (1989) has distinguished between hard and soft
forms of HRM, typified by the Michigan and Harvardforms of HRM, typified by the Michigan and Harvard
models respectively. 'Hard' HRM focuses on themodels respectively. 'Hard' HRM focuses on the
resource side of human resources. It emphasizes costsresource side of human resources. It emphasizes costs
in the form of 'headcounts' and places control firmly inin the form of 'headcounts' and places control firmly in
the hands of management. Their role is to managethe hands of management. Their role is to manage
numbers effectively, keeping the workforce closelynumbers effectively, keeping the workforce closely
matched with requirements in terms of both bodies andmatched with requirements in terms of both bodies and
behaviour. 'Soft' HRM, on the other hand, stresses thebehaviour. 'Soft' HRM, on the other hand, stresses the
'human' aspects of HRM. Its concerns are with'human' aspects of HRM. Its concerns are with
communication and motivation. People are led rathercommunication and motivation. People are led rather
than managed. They are involved in determining andthan managed. They are involved in determining and
realizing strategic objectives.'realizing strategic objectives.'

Hard and Soft HRMHard and Soft HRM
 Hard HRM: A different view of HRM isHard HRM: A different view of HRM is
associated with the Michigan Business Schoolassociated with the Michigan Business School
(Fombrun, Tichy and Devanna, 1984). There are(Fombrun, Tichy and Devanna, 1984). There are
many similarities with the Harvard 'map' but themany similarities with the Harvard 'map' but the
Michigan model has a harder, less humanisticMichigan model has a harder, less humanistic
edge, holding that employees are resources inedge, holding that employees are resources in
the same way as any other business resource.the same way as any other business resource.
People have to be managed in a similar mannerPeople have to be managed in a similar manner
to equipment and raw materials. Thay must beto equipment and raw materials. Thay must be
obtained as cheaply as possible, used sparingly,obtained as cheaply as possible, used sparingly,
and developed and exploited as much asand developed and exploited as much as
possible.possible.

 The Michigan model is also known as theThe Michigan model is also known as the
'matching model' or 'best-fit' approach to human'matching model' or 'best-fit' approach to human
resource management. In essence, it requiresresource management. In essence, it requires
that human resource strategies have a tight fit tothat human resource strategies have a tight fit to
the overall strategies of the business. As such, itthe overall strategies of the business. As such, it
limits the role of HR to a reactive, organizationallimits the role of HR to a reactive, organizational
function and under-emphasizes the importancefunction and under-emphasizes the importance
of societal and other external factors. Forof societal and other external factors. For
example, it is difficult to see how the currentexample, it is difficult to see how the current
concern for worklife balance could be integratedconcern for worklife balance could be integrated
into this model.into this model.

The Matching Model of HRMThe Matching Model of HRM
Internal Inter-linked components:Internal Inter-linked components:
Mission andMission and
StrategyStrategy
OrganisationOrganisation Human ResourceHuman Resource
StructureStructure managementmanagement
External forces:External forces:
Political forces Economic forces Cultural forcesPolitical forces Economic forces Cultural forces
Devanna et al., 1984Devanna et al., 1984
Emphases the ‘tight fit’ between HR strategy and business strategyEmphases the ‘tight fit’ between HR strategy and business strategy

Harvard ModelHarvard Model
 A large part of this section is devoted to the Harvard 'map' of HRM.A large part of this section is devoted to the Harvard 'map' of HRM.
This is probably the most seminal model of HRM and has had aThis is probably the most seminal model of HRM and has had a
major influence on academic debate on the subject.major influence on academic debate on the subject.
 'We noted that the Harvard Business School generated one of the'We noted that the Harvard Business School generated one of the
most influential models of HRM. The Harvard interpretation seesmost influential models of HRM. The Harvard interpretation sees
employees as resources. However, they are viewed as beingemployees as resources. However, they are viewed as being
fundamentally different from other resources - they cannot befundamentally different from other resources - they cannot be
managed in the same way. The stress is on people asmanaged in the same way. The stress is on people as humanhuman
resources. The Harvard approach recognizes an element ofresources. The Harvard approach recognizes an element of
mutuality in all businesses, a concept with parallels in Japanesemutuality in all businesses, a concept with parallels in Japanese
people management, as we observed earlier. Employees arepeople management, as we observed earlier. Employees are
significant stakeholders in an organization. They have their ownsignificant stakeholders in an organization. They have their own
needs and concerns along with other groups such as shareholdersneeds and concerns along with other groups such as shareholders
and customers.'and customers.'

TheThe Harvard MapHarvard Map or model outlinesor model outlines
four HR policy areas:four HR policy areas:
11 Human resource flowsHuman resource flows - recruitment,- recruitment,
selection, placement, promotion, appraisalselection, placement, promotion, appraisal
and assessment, promtion, termination,and assessment, promtion, termination,
etc.etc.
22 Reward systemsReward systems - pay systems,- pay systems,
motivation, etc.motivation, etc.
33 Employee influenceEmployee influence - delegated- delegated
levels of authority, responsibility, powerlevels of authority, responsibility, power
44 Work systemsWork systems - definition/design of- definition/design of
work and alignment of people.work and alignment of people.

Which in turn lead to the 'four C's' orWhich in turn lead to the 'four C's' or
HR policies that have to be achieved:HR policies that have to be achieved:
CommitmentCommitment
CongruenceCongruence
CompetenceCompetence
Cost effectivenessCost effectiveness

Factors Affecting HRFactors Affecting HR
LegislationLegislation
The Economic environmentThe Economic environment
The global economyThe global economy
The structure of the labour marketThe structure of the labour market
The Political environmentThe Political environment
Changes in technologyChanges in technology
Need to constantly retrain staffNeed to constantly retrain staff

LegislationLegislation
In the EU employment law is highlyIn the EU employment law is highly
complexcomplex
In the UK changes made twice a yearIn the UK changes made twice a year
The contract of employment is key to theThe contract of employment is key to the
employer/employee relationshipemployer/employee relationship

The Policy DecisionsThe Policy Decisions
The formalities to bargain withThe formalities to bargain with
Government legislation, trade unions andGovernment legislation, trade unions and
workers council consultationsworkers council consultations
The decision to minimise external powerThe decision to minimise external power
and influenceand influence
Encompass management and employeeEncompass management and employee
group interactiongroup interaction

The Role of HR in TourismThe Role of HR in Tourism
 Support and advise line managersSupport and advise line managers
 Ensure staff available to meet organisational needsEnsure staff available to meet organisational needs
 Provide developmental supportProvide developmental support
 AppraisalAppraisal
 TrainingTraining
 PromotionPromotion
 Ensure pay and benefits in line with expectations.Ensure pay and benefits in line with expectations.
 Deal with problem staffDeal with problem staff
 DevelopDevelop
 DismissalDismissal

The Changing Nature of HotelThe Changing Nature of Hotel
WorkWork
Greater level of overseas travelGreater level of overseas travel
Technology room bookings etcTechnology room bookings etc
Larger number of multinational groupsLarger number of multinational groups
Greater job mobilityGreater job mobility
Higher customer care expectationsHigher customer care expectations
Reduction in seasonal differencesReduction in seasonal differences
Health and SafetyHealth and Safety
Greater need for Multi-skillingGreater need for Multi-skilling

Factors Affecting Hotel WorkFactors Affecting Hotel Work
Disposable income levelsDisposable income levels
Customer expectationsCustomer expectations
Travel options consider 911Travel options consider 911
TechnologyTechnology
Staff availabilityStaff availability
Status many hotels are importing labourStatus many hotels are importing labour
Flexibility of supply e.g. Students in summerFlexibility of supply e.g. Students in summer
Career expectationsCareer expectations

HRM FunctionHRM Function
 The company rather than the state or trade unionThe company rather than the state or trade union
provide employee security and welfareprovide employee security and welfare
 HRM focuses on achieving organisational goalsHRM focuses on achieving organisational goals
through individual achievementthrough individual achievement
 Providing the right person in the right placeProviding the right person in the right place
 Directing positive employee communication andDirecting positive employee communication and
involvementinvolvement
 Optimise co-operation and loyaltyOptimise co-operation and loyalty
 Imposition of different forms of control to developImposition of different forms of control to develop
managementmanagement

Moving with the TimesMoving with the Times
 Forces interact in complex ways to move andForces interact in complex ways to move and
change markets, businesses and the economicschange markets, businesses and the economics
of regions.of regions.
 The changing expectations of a growingThe changing expectations of a growing
population.population.
 a greater sense of self-determinationa greater sense of self-determination
 expectation of rewards and recognition forexpectation of rewards and recognition for
efforts expendedefforts expended
 a growing appetite for a better life.a growing appetite for a better life.

Business ChangesBusiness Changes
 HRM equipped with strategy - a new set of toolsHRM equipped with strategy - a new set of tools
and measuresand measures
 People issues are now recognised as being centralPeople issues are now recognised as being central
to the success of any organisationto the success of any organisation
 as a consequence, human resources has assumedas a consequence, human resources has assumed
a higher profile.a higher profile.
 senior management meeting address concernssenior management meeting address concerns
 staffing levels,staffing levels,
 recruitment,recruitment,
 management developmentmanagement development
 retention.retention.

MutualityMutuality
between Employers and Employeesbetween Employers and Employees
 The theory that policy will elicit commitmentThe theory that policy will elicit commitment
which in turn will yield better economicwhich in turn will yield better economic
performance and greater human developmentperformance and greater human development
Mutual goalsMutual goals
mutual influencemutual influence
mutual respectmutual respect
mutual rewardsmutual rewards
mutual responsibilitymutual responsibility
 Walton, 1985Walton, 1985

ReferenceReference
http://www.hr-topics.com/introduction-to-hrm/dhttp://www.hr-topics.com/introduction-to-hrm/d
Armstrong M Handbook of HRMArmstrong M Handbook of HRM
practices(Kogan Page 1999)practices(Kogan Page 1999)
OTHM Presentation of Travel and TourismOTHM Presentation of Travel and Tourism
Laurie J. Mullins Management andLaurie J. Mullins Management and
Organisational Behaviour seventh editionOrganisational Behaviour seventh edition

Introduction to hrm lecture 1

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