Module Learning Outcomes 07/02/2014. Topic 1 Introducing HRM PM4088. Module Aims

Transcription

1 Topic 1 Introducing HRM PM4088 Module Aims This module is designed to provide students with an appreciation and understanding of Human Resource Management (HRM) in organisations. This module examines both the role of the HR function in the management of people at work and the importance of managing people in contributing to organisational effectiveness. Module Learning Outcomes Provide students with conceptual appreciation and practical understanding of HRM in organisations Contextualise HRM within the macro environment cause and effect Familiarise students with the current literature and research evidence on HRM Provide a framework for evaluating the contribution of HRM 1

2 Essential text Carbery, R. and Cross, C. (2013) Human Resource Management: A Concise Introduction, Hampshire: Palgrave Macmillan Topic 1 Learning Outcomes Define the term Human Resource Management Describe the main activities of the Human Resource Management function Outline the historical development of Human Resource Management Be able to engage with the Personnel or Human Resource Management debate Recognize what the term Strategic Human Resource Management means Describe the key models and theoretical underpinning in the study of Human Resource Management Contextualise Human Resource Management within the macro and micro environment 2

3 Working.can be like this Or end up like this ure=relmfu The nature of the employment relationship All employment relationships have to be regulated so that each side understands its obligations traditionally negotiated with trade unions Most analyses of the employment relationship focus on the concept of industrial relations industrial relations managers 3

4 The nature of the employment relationship Decline in trade union power has meant that managers now have a significant amount of control over this relationship the open door policy For this approach to be effective Employees need to be seen as assets that can be developed and nurtured, rather than resources to be exploited A partnership exists between management and employees What is HRM.? The policies and practices involved in carrying out the people or human resource aspects of management positions, including, recruiting, hiring, training, rewarding and appraising (Dessler, 2005: 4) A distinctive philosophy towards carrying out peopleorientated organisational activities (Torrington, Hall & Taylor, 2008: 6) What is HRM Human Resource Management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques (Storey, 1995:5) 4

5 What is Human Resource Management? Since the beginning of modern management theory the terms used to describe HRM have included: personnel industrial relations employee relations human resource management The term HRM highlights the importance placed on empowering employees to assist the organisation in the achievement of its strategic objectives People are viewed as an asset rather than a cost and are seen as providing a source of competitive advantage Why does HRM matter? The impact of HRM on organisational performance The GFC highlighted organisations need to focus on ways of improving competitiveness whilst at the same time keeping costs as low as possible: employee salaries and related costs are the single most significant element of expenditure Why does it matter? Effectiveness is measured in different ways - Sustainable competitive advantage - Organisational survival - Corporate reputation Difficulty when trying to identify which specific policies or practices are responsible given the integrated nature of work and the different industries and organisational contexts 5

6 Why does it matter? Many leading academics hold the view that HRM positively improves organisational performance (see for example Huselid, 1995; Huselid and Becker, 1996; Guest, 1997; Purcell, Kinne, Hutchinson, Rayton and Swart, 2003) Despite the difficulties involved measurement has become one of the most critical aspects of HRM Evolution of HRM as an organisational function Industrial Revolution in late 19 th century the working conditions of men, women and children were dreadful Some enlightened employers, often Quakers provided workplace and family amenities for workers such as lunch rooms, medical care, company magazines, and housing The changes were driven by a welfare agenda and a drive to improve productivity Evolution of HRM as an organisational function F.W. Taylor s Scientific Management movement focused on developing a systematic approach to the design of jobs and to employment and pay systems Allied to these were tight control of workers Practices were often met with resistance from workers and their union representatives 6

7 Evolution of HRM as an organisational function Elton Mayo and his colleagues - Hawthorne Experiments - highlighted an emphasis on: personal development a better understanding of group work and the importance of working conditions as a means of motivating employees all areas that are covered by the work undertaken by today s HR function Evolution of HRM as an organisational function 1960s and 1970s - introduction of a large body of legislation which provided rights for employees 1980s recession - high unemployment levels and significant competition in the marketplace led to a focus on productivity and excellence associated with leading-edge companies Led to a shift from traditional manufacturing industries to growth in the service sector and a move towards a 24/7 society and an introduction of non-standard working hours Development of the use of the term HRM 1980s saw two separate lines of thought developed - a move to differentiate traditional Personnel Management (PM) from Human Resource Management (HRM) Storey (1989) identified four features of HRM which he believed differentiate HRM from traditional PM: 7

8 Development of the use of term HRM HRM is explicitly linked with corporate strategy HR focuses on commitment rather than compliance of employees Employee commitment is obtained through an integrated approach to HR policies in the areas of rewards, selection, training and appraisal HR is not just the domain of specialists in the HR function, rather that HRM is owned by line managers as a means of fostering integration Characteristics of HRM A strategic approach to the management of people Line managers work in partnership with HR HR policies and practices which are integrated and consistent with the organisational culture Unitarist frame of reference A soft HRM approach 8