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What is Human Resource

Management?
Two questions:
Does it matter?
Why does it matter?

Getting to know HRM!!


What is Human Resource
Management?
What makes it Unique?
How did it evolve?
What is the Philosophy behind HRM?
What are the Objectives of HRM?

Two broadly contrasting


pictures of HRM
1. Emphasis on people as costs and resources to be
worked to secure maximum efficiency. It is called
the Rational or economic view of employment
where the basic approach is Control and
compliance
2. Emphasis on people as resources to be invested
in to generate high commitment and involvement.
This is the Social or psychological view of
employment and it emphasizes on commitment
of the people working together as an
organization.

Operational view of HRM?


Organizations methods and
procedures for managing people to
enhance skills and motivation
---Activities to enhance the
organizations ability to attract,
select, retain and motivate people

Decenzo and Robbins


A process consisting four functionsacquisition, development,
motivation, and maintenance of
human resources.

Edward Flippos
Personnel management is the
planning, organizing, directing and
controlling of the procurement,
development, compensation,
integration, maintenance and
separation of human resources to the
objectives are accomplished

Strategic view of HRM


A strategic approach to managing
employment relations which
emphasizes that leveraging peoples
capabilities is critical to achieving
sustained competitive advantage,
this being achieved through a
distinctive set of integrated
employment policies, programs and
practices.

HRM
Strategic
Planned, deliberate, seeking to achieve set objectives

Capabilities
People or resources with potential (knowledge, skills,
abilities)

Sustained Competitive advantage


By tapping into and developing these capabilities
organizations give themselves an edge over their
rivals

Integrated
That the range of things under HRM (recruitment,
selection of employees, their training and
development, how they are rewarded) is looked at
together not as separate things.

People in organizations
Economic pay in exchange for
effort
Legal
Social
Psychological

Schools of thought:
HRM is really personnel management Human resource
management is a modernized form of 'personnel', repackaged
to enhance the status of personnel managers.
HRM is people management It covers all aspects of managing
employees in its widest sense and emphasizes the role of line
managers in overseeing their own staff. From this perspective,
HRM is a new generic label for all the techniques and tactics
available to manage people.
HRM is a strategic model It employs the techniques of strategic
management for the utilization of human resources. It focuses
on senior managers' concern with achieving objectives and
containing costs. HRM aims for a seamless link between
business policy and recruitment, performance assessment,
reward management, development and dismissal.

What and Where are the


Origins of HRM?
Ancient examples
1776 Adam Smiths Wealth of
Nations
Industrial revolution of 1990s

Major Approaches to
Management
Scientific Management (Frederick
Taylor, Frank and Lillian)
General Administrative Theory (Henri
Fayol, Max Weber)
Quantitative Management (Whiz kids,
Robert, McNamara)

Organizational Behavior

Organizational Behavior
Approach
Robert Owen (1700s)
Working conditions
Money spent on improving labor is smart
investment

Hugo Munsterberg (1900s)


Industrial psychology
Tests for employees testing

Organizational Behavior
Approach
Mary Parker Follett (1900s)
Individual and group behavior
People orientation, group ethics

Chester Barnard
Organizations and social systems
Managers job as simulating employees

The Hawthorne Studies


A series of productivity experiments conducted at
Western Electric from 1927 to 1932.
Experimental findings
Productivity unexpectedly increased under
imposed adverse working conditions.
The effect of incentive plans was less than
expected.
Research conclusion
Social norms, group standards and attitudes
more strongly influence individual output and
work behavior than do monetary incentives.

What is strategic HRM?


An integrated set of processes, programs, and
systems in an organization that focus on the
effective deployment and development of its
employees.
The concept of fit with the strategic thrusts of
the organization
HR strategies exist to ensure that the culture,
values, structure and processes of the
organization, and the quality, flexibility,
motivation and commitment of its members to
contribute fully to the achievement of its
objectives should match the business strategy

The bridge between


operational and strategic
view
The attainment of business objectives
through the contribution it makes to
the creation of an environment in
which people commit themselves to
and effectively accomplish the tasks
assigned to them.

Modern view of HRM for Line


Managers
HRM involve all the management
decisions and action that effect the
nature of relationship between the
organization and employees- human
resources

Modern view of HRM for Line


Managers
Beer and his colleagues defined the
important and link of HRM for the line
managers by two ways.
Line managers accept the responsibility of
compliance with the strategy and HR
policies.
HR has a mission to set HR policies and
strategies that govern how HR activities
are developed and implemented in a way
that make them more mutually reinforcing.

Underpinning theories of
HRM
Commitment:
The strength of individuals
identification, and involvement in a
particular organization

Underpinning theories of
HRM
Organization behavior theory
How individuals act individually and in
group within organizations in terms of
their structure , process and culture

Underpinning theories of
HRM
Motivation theory
Two main motivational aspects
Intrinsic motivation
Expectancy theory

Underpinning theories of
HRM
AMO theory
Performance is a function of
Ability X Motivation X
Opportunity

Underpinning theories of
HRM
Human Capital theory
How people in organization contribute
their knowledge, skill and abilities to
enhancing organizational capabilities
and how these contributions can be
accumulated by retaining valuable
human resources

Underpinning theories of
HRM
Resource dependence theory
Organizations and groups gain power
over each other by controlling valued
resources

Underpinning theories of
HRM
Resource based theory
Competitive advantage is achieved if
firms resources are valuable , rare and
costly to imitate
Organization of resources

Underpinning theories of
HRM
Resource based theory
Valuable
Rare not essential
Costly to imitate
History
Small vs big decisions
Socially complex resources

Organization

Underpinning theories of
HRM
Institutional theory
Organizations conform to internal and
external environmental pressure in order
to gain legitimacy and acceptance

Underpinning theories of
HRM
Transactional cost theory
Businesses develop organizational
structure and systems in order to
economize the cost of transaction

Underpinning theories of
HRM
Resource based theory
Competitive advantage is achieved if
firms resources are valuable , rare and
costly to imitate

Underpinning theories of
HRM
Resource based theory
Competitive advantage is achieved if
firms resources are valuable , rare and
costly to imitate

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