Module 1. Industrial Relations. Dr. Jacobo Ramírez Nuñez. Theme 1: Human Resources Management in Perspective

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1 Theme 1: Human Resources Management in Perspective 1 Topic 1: Human Resources Management: A historical background 2 Background to the human resources functions Personnel Management Industrial Relations Human Resources Management (HRM) 3 1

2 Douglas McGregor (1969): Theory X or Rensis Likert (1968): Theory of the exploitative system. Arguments: -People are lazy. -People only work for money. -People are irresponsible and they do not have initiative. 4 Douglas McGregor (1969): Theory X or Rensis Likert (1968): Theory of the exploitative system. Policies: - Simple task and repetitive. - Close control and supervision. -Establishment of fix rules. Expectations: - Close control => reach of standards. 5 Strauss y Sayles (1968) Theory Z or human relations (Miles, 1966). Arguments: -People would like to: Feel important. Be informed. Belong to a group. Feedback and reward for the job well done. 6 2

3 Strauss y Sayles (1968) Theory Z or human relations (Miles, 1966). Policies: - Feedback to the employees. -Keep informed to the employees. Explain orders. Expectations: -Satisfied employee is more productive; they are more productive with the authority. 7 Traditional Theories Theories Classical Management Theory Univerzalitics Theory Human Relations Theory Authors Brech (1957) Taylor (1911); Fayol (1949) Likert (1961, 1968) Propositions Argues that maximum organizational performance results from maximum formalization and specialization. Argues that there is one best way to organize, meaning that maximum organizational performance comes from the maximum level of a structural variable, for example, specialization (Taylor, 1947). Argues that organizational performance is maximized by maximizing participation. 8 Divergence Theory It stresses the importance of cultural and national institutional factors where a firm operates by contributing to its internal organization (e.g. Child 1972; Gallie 1978; Maurice et al., 1980; Tayeb 1987). Culture Institutions Politics Economy 9 3

4 Contingency Theory It the classical and human relations schools which argues that there is clearly no single best way for a firm to organize itself (e.g. Burn and Stalker 1961; Woodward 1965; Thompson 1967). All depends of the situation 10 The Central Challenge to Organizations Global competitive Population-grow th Unemployment Workforce diversity Central challenge: BETTER ORGANIZATIONS Social responsibility Ethical Unknow n Medical, food, housing 11 The Human Resource Management Model and Subsystems Organizational FRAMEWORKS AND CHALLENGES -Historical -Societal - Organizational - Professional - International - Equal employment Societal V EMPLOYEE RELATIONS AND ASSESMENT IV COMPENSATION AND PROTECTION Objectives - Societal - Organizational - Functional - Personal III DEVELOPMENT AND EVALUATION II PREPARATION AND SELECTION Professional Feedback among objectives Human Resources activities to and from the env ironm ent 4

5 Topic 2: Definition of Human Resources Management 13 Industrial Relations This concept is related to the legal aspects of human Unions Negotiation. Unions Relations. Terms of collective and individual contracts. 14 Overall Framework for Human Resources Management COMPETITIVE CHALLENGES Globalization Technology Managing change Human capital Responsiveness Cost containment RESOURCES Planning Recruitment Staffing Job design Training/ development Appraisal Communications Benefits Labor relations EMPLOYEE CONCERNS Background diversity Age distribution Gender issues Educational levels Employee rights Privacy issues Work attitudes Family concerns 5

6 Personnel Management vs. Human Resources Dimensions Employment planning Recruitment and selection Assumptions of contract Training Employees development Job design Job categories and grades Compensation Integrate, key task Learning companies From individual skills to longer-term employment capabilities Teamwork Few HRM Approach Long-term with a close link with business strategy Aim to go beyond contract Performance-related, contingent compensation practices, knowledge based structure Personnel Management Short-term, reactive Separate, marginal task Careful delineation of written contracts Controlled access to course Short-term approach Division of labour Many Job evaluation (fixed grades) 16 Topic 3: Operational Process of Human Resources Management 17 The response of Human Resource Management to Societal Needs and Challenges RESOURCE MANAGEMENT ACTIVITIES RESOURCE OBJECTIVES -Societal -Organizational - Func tional -Personal PURPOSE OF RESOURCE MANAGEMENT Other r esources RESOURCES Other r esources OVERALL ORGANIZATIONAL OBJECTIVES SOCIETAL NEEDS AND CHALLENGES Feedback 18 6

7 Feedback Inputs Transformation process Outputs INPUTS Challenges Education Skills TRANSFORMATION PROCESS Managing Human Resources Recrui tment Training Others PRODUCTS Contributions from human resources Trained employees Motivated employees 19 7

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