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The Role of Human Resource
Management in the Organisation
According to Adi Godrej – all
corporate strengths are
dependent on people

©The McGraw-Hill Companies,
Objective
• To maximize the productivity of the
organization by optimizing the
effectiveness of its employees

©The McGraw-Hill Companies,
Principles of HRM
• Human resources are the most important assets of
the organisation
• business success "is most likely to be achieved if
the personnel policies and procedures of the
enterprise are closely linked with, and make a major
contribution to, the achievement of corporate
objectives and strategic plans.“ – Michael armstrong
• find, secure, guide, and develop employees whose
talents and desires are compatible with the
operating needs and future goals of the company.

©The McGraw-Hill Companies,
Changing environment of
human resource management
•
•
•
•

Globalization trends
Technological trends
Trends in the nature of work
Workforce demographic

©The McGraw-Hill Companies,
Post 70s Features of HRM
• The collective bargaining role
• The implementer of legislation
role
• The bureaucratic role
• The social conscience of
business role.
• A growing performance
improvement role
©The McGraw-Hill Companies,
Traditional HR Functions

©The McGraw-Hill Companies,
Personnel Versus Human
Resource Management

©The McGraw-Hill Companies,
Points of Difference between Personnel
and IR Practices and HRM Practices
Beliefs & assumptions
Contract
• Rules
• Guide to management action
• Behavior referent
• Managerial task
• Nature of relations
• Conflicts
©The McGraw-Hill Companies,
Strategic aspects
• Key relations
• Corporate plan
• Speed of decision

©The McGraw-Hill Companies,
Line management
•
•
•
•
•

Leadership
Key managers
Communication
Standardization
Prized management skills

©The McGraw-Hill Companies,
Key levers
•
•
•
•
•

Selection
Pay
Labor management
Job categories & grades
Job design

©The McGraw-Hill Companies,
•
•

•

e-mail one
Attention: Human Resources
Joe Smith, my assistant programmer, can always be found
hard at work in his cubicle. Joe works independently, without
wasting company time talking to colleagues. Joe never
thinks twice about assisting fellow employees, and he always
finishes given assignments on time.
Often Joe takes extended
measures to complete his work, sometimes skipping
coffee breaks. Joe is an individual who has absolutely no
vanity in spite of his high accomplishments and profound
knowledge in his field. I firmly believe that Joe can be
classed as a high-calibre employee, the type which cannot be
dispensed with. Consequently, I duly recommend that Joe be
promoted to executive management, and a proposal will be
executed as soon as possible.
Regards,
Project Leader

©The McGraw-Hill Companies,
• e-mail two
Attention: Human Resources
• Joe Smith was reading over my shoulder
while I wrote the report sent to you earlier
today. Kindly read only the odd numbered
lines [1, 3, 5, etc.] for my true assessment of
his ability.
Regards,
Project Leader
©The McGraw-Hill Companies,
Distinguishing Between HRM
and PM

©The McGraw-Hill Companies,
Guest’s Model of HRM
• Linked to the strategic management of
an organisation.
• Seeks commitment to organisational
goals
• Focuses on the individual needs rather
than the collective workforce.
• Enables organisations to devolve
power and become more flexible
• Emphasises people as an asset to be
positively utilised by the organisation.
©The McGraw-Hill Companies,
Storey’s Definition of HRM
•
•

•

•

'Human capability and commitment'. Storey
argues that this is what differentiates
organisations.
Strategic importance of HRM. It needs to be
implemented into the organisational strategy and
needs to be considered at the highest
management level.
The long term importance of HRM. It needs to be
integrated into the management functions and is
seen to have importance consequences on the
ability of the organisation to achieve its goals.
The key functions of HRM which are seen to
encourage commitment rather than compliance.
©The McGraw-Hill Companies,
The HR Functions

©The McGraw-Hill Companies,
Points of Difference between
Personnel and IR Practices and
HRM Practices
Dimension

Personnel/IR

HRM

Beliefs and assumptions
1. Contract

Careful delineation of written
contracts

Aim to go 'beyond contract'

2. Rules

Importance of devising clear
rules/mutuality

'Can-do' outlook; impatience with
'rule'

3. Guide to management
action

Procedures

'Business need'

4. Behaviour referent

Norms/custom and practice

Values/mission

Managerial task
vis a vis labour

Monitoring

Nurturing

6. Nature of relations

Pluralist

Unitarist

7. Conflict

Institutionalised

De-emphasised

©The McGraw-Hill Companies,
S trate gic as pe c ts
Personnel /IR

HRM

8. Key relations

Labour management

Customer

9. Initiatives

Piecemeal

Integrated

10.Corporate plan

Marginal to

Central to

11. Speed of decision

Slow

Fast

©The McGraw-Hill Companies,
Line manage me nt
Personnel / IR

HRM

12. Management role

Transactional

Transformational
leadership

13. Key managers

Personnel/IR
specialists

General/business/line
managers

14. Communication

Indirect

Direct

15. Standardisation

High (for example
'parity' an issue)

16. Prized
management
skills

Negotiation

Low (for example
'parity' not an
issue)
Facilitation

©The McGraw-Hill Companies,
Key Levers
Personnel / IR

HRM

17. Selection

Separate, marginal task

Integrated, key task

18. Pay

Job evaluation (fixed
grades)

Performance related

19. Conditions

Separately negotiated

Harmonisation

20. Labour management

Collective bargaining
contracts

Towards individual contracts

21. Thrust of relations with
stewards

Regularised through
facilities and training

22. Job categories and
grades

Many

Marginalised (with exception
of some bargaining for
change models)
Few

23. Communication

Restricted flow

Increased flow

24. Job design

Division of labour

Teamwork

25. Conflict handling

Reach temporary truces

Manage climate and culture

26. Training and
development

Controlled access to
courses

Learning companies

27. Foci of attention for
interventions

Personnel procedures

Wide ranging cultural,
structural and personnel
strategies
©

The McGraw-Hill Companies,
A Model of the Shift to
HRM

©The McGraw-Hill Companies,
Hard HRM
• The 'hard' approach rooted in the
manpower planning approach is
concerned with aligning human
resource strategy with business
strategy

©The McGraw-Hill Companies,
Soft HRM
• The 'soft' approach is rooted in the
human relations school, with concern
for workers' outcomes and encourages
commitment to the organisation by
focussing on workers' concerns.

©The McGraw-Hill Companies,
The Human Resource
System

©The McGraw-Hill Companies,
The Harvard Model of Human
Resource Management

©The McGraw-Hill Companies,
Guest’s Model of HRM

©The McGraw-Hill Companies,
Human resource
Development

©The McGraw-Hill Companies,
The Context of HRM

©The McGraw-Hill Companies,
Strategic Management
and Environmental
Pressures

©The McGraw-Hill Companies,
The Human Resource
Cycle

©The McGraw-Hill Companies,
Summary
• An HR manager needs to recognise
that Human Resource Management
is in a constant state of change.
• HR management has progressed
from an ad hoc role to the
professional body of the CIPD.

©The McGraw-Hill Companies,
Summary continued 1
• The terms Personnel management and
HRM have are part of the debate that inform
the role of the HR manager.
• HRM is viewed as a means of moving
people along to achieve organisational
goals through staffing, performance, change
management and administrative objectives.
©The McGraw-Hill Companies,
Summary continued 2
• Personnel Management has often been
seen as a bridge between the employer
and the employee.
• "Hard" HRM characterised by the Michigan
model is seen as viewing people as a
resource needed to achieve organisational
goals.
• "Soft" HRM characterised by the Harvard
model is seen as a method of developing
strategies to encourage employee©The McGraw-Hill Companies,
Summary continued 3
• The functions of HR include: planning and
resourcing; recruitment and selection;
training and development; pay and reward
and employee relations.
• Understanding the HR context in relation to
the organisational and external context is
important for an effective HR manager.

©The McGraw-Hill Companies,

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Intro to HRM

  • 1. The Role of Human Resource Management in the Organisation According to Adi Godrej – all corporate strengths are dependent on people ©The McGraw-Hill Companies,
  • 2. Objective • To maximize the productivity of the organization by optimizing the effectiveness of its employees ©The McGraw-Hill Companies,
  • 3. Principles of HRM • Human resources are the most important assets of the organisation • business success "is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans.“ – Michael armstrong • find, secure, guide, and develop employees whose talents and desires are compatible with the operating needs and future goals of the company. ©The McGraw-Hill Companies,
  • 4. Changing environment of human resource management • • • • Globalization trends Technological trends Trends in the nature of work Workforce demographic ©The McGraw-Hill Companies,
  • 5. Post 70s Features of HRM • The collective bargaining role • The implementer of legislation role • The bureaucratic role • The social conscience of business role. • A growing performance improvement role ©The McGraw-Hill Companies,
  • 6. Traditional HR Functions ©The McGraw-Hill Companies,
  • 7. Personnel Versus Human Resource Management ©The McGraw-Hill Companies,
  • 8. Points of Difference between Personnel and IR Practices and HRM Practices Beliefs & assumptions Contract • Rules • Guide to management action • Behavior referent • Managerial task • Nature of relations • Conflicts ©The McGraw-Hill Companies,
  • 9. Strategic aspects • Key relations • Corporate plan • Speed of decision ©The McGraw-Hill Companies,
  • 11. Key levers • • • • • Selection Pay Labor management Job categories & grades Job design ©The McGraw-Hill Companies,
  • 12. • • • e-mail one Attention: Human Resources Joe Smith, my assistant programmer, can always be found hard at work in his cubicle. Joe works independently, without wasting company time talking to colleagues. Joe never thinks twice about assisting fellow employees, and he always finishes given assignments on time. Often Joe takes extended measures to complete his work, sometimes skipping coffee breaks. Joe is an individual who has absolutely no vanity in spite of his high accomplishments and profound knowledge in his field. I firmly believe that Joe can be classed as a high-calibre employee, the type which cannot be dispensed with. Consequently, I duly recommend that Joe be promoted to executive management, and a proposal will be executed as soon as possible. Regards, Project Leader ©The McGraw-Hill Companies,
  • 13. • e-mail two Attention: Human Resources • Joe Smith was reading over my shoulder while I wrote the report sent to you earlier today. Kindly read only the odd numbered lines [1, 3, 5, etc.] for my true assessment of his ability. Regards, Project Leader ©The McGraw-Hill Companies,
  • 14. Distinguishing Between HRM and PM ©The McGraw-Hill Companies,
  • 15. Guest’s Model of HRM • Linked to the strategic management of an organisation. • Seeks commitment to organisational goals • Focuses on the individual needs rather than the collective workforce. • Enables organisations to devolve power and become more flexible • Emphasises people as an asset to be positively utilised by the organisation. ©The McGraw-Hill Companies,
  • 16. Storey’s Definition of HRM • • • • 'Human capability and commitment'. Storey argues that this is what differentiates organisations. Strategic importance of HRM. It needs to be implemented into the organisational strategy and needs to be considered at the highest management level. The long term importance of HRM. It needs to be integrated into the management functions and is seen to have importance consequences on the ability of the organisation to achieve its goals. The key functions of HRM which are seen to encourage commitment rather than compliance. ©The McGraw-Hill Companies,
  • 17. The HR Functions ©The McGraw-Hill Companies,
  • 18. Points of Difference between Personnel and IR Practices and HRM Practices Dimension Personnel/IR HRM Beliefs and assumptions 1. Contract Careful delineation of written contracts Aim to go 'beyond contract' 2. Rules Importance of devising clear rules/mutuality 'Can-do' outlook; impatience with 'rule' 3. Guide to management action Procedures 'Business need' 4. Behaviour referent Norms/custom and practice Values/mission Managerial task vis a vis labour Monitoring Nurturing 6. Nature of relations Pluralist Unitarist 7. Conflict Institutionalised De-emphasised ©The McGraw-Hill Companies,
  • 19. S trate gic as pe c ts Personnel /IR HRM 8. Key relations Labour management Customer 9. Initiatives Piecemeal Integrated 10.Corporate plan Marginal to Central to 11. Speed of decision Slow Fast ©The McGraw-Hill Companies,
  • 20. Line manage me nt Personnel / IR HRM 12. Management role Transactional Transformational leadership 13. Key managers Personnel/IR specialists General/business/line managers 14. Communication Indirect Direct 15. Standardisation High (for example 'parity' an issue) 16. Prized management skills Negotiation Low (for example 'parity' not an issue) Facilitation ©The McGraw-Hill Companies,
  • 21. Key Levers Personnel / IR HRM 17. Selection Separate, marginal task Integrated, key task 18. Pay Job evaluation (fixed grades) Performance related 19. Conditions Separately negotiated Harmonisation 20. Labour management Collective bargaining contracts Towards individual contracts 21. Thrust of relations with stewards Regularised through facilities and training 22. Job categories and grades Many Marginalised (with exception of some bargaining for change models) Few 23. Communication Restricted flow Increased flow 24. Job design Division of labour Teamwork 25. Conflict handling Reach temporary truces Manage climate and culture 26. Training and development Controlled access to courses Learning companies 27. Foci of attention for interventions Personnel procedures Wide ranging cultural, structural and personnel strategies © The McGraw-Hill Companies,
  • 22. A Model of the Shift to HRM ©The McGraw-Hill Companies,
  • 23. Hard HRM • The 'hard' approach rooted in the manpower planning approach is concerned with aligning human resource strategy with business strategy ©The McGraw-Hill Companies,
  • 24. Soft HRM • The 'soft' approach is rooted in the human relations school, with concern for workers' outcomes and encourages commitment to the organisation by focussing on workers' concerns. ©The McGraw-Hill Companies,
  • 25. The Human Resource System ©The McGraw-Hill Companies,
  • 26. The Harvard Model of Human Resource Management ©The McGraw-Hill Companies,
  • 27. Guest’s Model of HRM ©The McGraw-Hill Companies,
  • 29. The Context of HRM ©The McGraw-Hill Companies,
  • 31. The Human Resource Cycle ©The McGraw-Hill Companies,
  • 32. Summary • An HR manager needs to recognise that Human Resource Management is in a constant state of change. • HR management has progressed from an ad hoc role to the professional body of the CIPD. ©The McGraw-Hill Companies,
  • 33. Summary continued 1 • The terms Personnel management and HRM have are part of the debate that inform the role of the HR manager. • HRM is viewed as a means of moving people along to achieve organisational goals through staffing, performance, change management and administrative objectives. ©The McGraw-Hill Companies,
  • 34. Summary continued 2 • Personnel Management has often been seen as a bridge between the employer and the employee. • "Hard" HRM characterised by the Michigan model is seen as viewing people as a resource needed to achieve organisational goals. • "Soft" HRM characterised by the Harvard model is seen as a method of developing strategies to encourage employee©The McGraw-Hill Companies,
  • 35. Summary continued 3 • The functions of HR include: planning and resourcing; recruitment and selection; training and development; pay and reward and employee relations. • Understanding the HR context in relation to the organisational and external context is important for an effective HR manager. ©The McGraw-Hill Companies,