1 scope and nature of hrm -sept 2013-ver 2(1)

Managing PeopleScope and nature of HRM

Tejinder Pal Singh

Module Aim• Develop a critical approach to the study of PM• Recognize the complexity of PM, particularly, in

different organisational and social contexts • Understand contemporary perspectives on

leadership, management and HRM/D.• Identify alternative perspectives on change and

how change is managed in different organisational settings.

• Examine particular practices of human HRM/D from different perspectives.

Learning Outcomes• Review and critically evaluate major contemporary research

and debates in the fields HRM and HRD.• Evaluate major theories relating to the management of

people in organisations such as alienation, motivation, commitment and engagement at work and how these are put into practice by organisations.

• Debate and critically evaluate the management and leadership of people in organisations

• Understand change & how it is managed in organisations.• Critically discuss the aims, objectives practices &

contributions of the HRM/D• Promote professionalism and an ethical approach to HRM

and HRD practice in organisations.

Module Structure

• Lectures ?• Tutor-led seminars – learning activities

– discussions, debates– small group work and – exercises, case studies.

• Independent research and private study• reflection upon seminar & work experience

Study Material

• Textbooks• Journal Articles• On-line Resources

Texts

There is a range of available texts on PM & D.

• Rees, G. & French, R. [2010] Leading, Managing and Developing People. 3rd. Edition. CIPD.

• Rigg, C., Stewart, J., Trehan, K. [2007] Critical Human Resource Development. Pearson Education Ltd.

Other popular textbooks

• Storey, J. (ed). (2007) Human resource management: a critical text. London: Thomson;

• Beardwell, J. and Claydon, T. (eds). (2010) Human resource management: a contemporary approach. Harlow: Financial Times Prentice Hall.

Evolution• PM – Establishing, maintaining and

developing systems which provide framework for employment.

• Welfare Personnel – 1900• Personnel Administration -1930• Personnel Management 1940- 50s• Personnel Management- IR-1960- 70s• Entrepreneurial phase 1980s• Rise of HRM – 1980s

Rise of HRM

• Shift in personnel function in its emphasis (Hunt 1984)– From adversarial IR of the 70s - to achieving

excellence through committed workforce– In Search of Excellence (Tom Peter,

Waterman)– Performance management– Enterprise culture, market economy

HRM

• Believes– It is important to communicate with the

employees– To involve them in what is going on – To foster commitment and identification with

organisation– A strategic and identification with the

organisation– A strategic approach to acquisition,

management and motivation of people.

HRM – later phase

• Team work• Empowerment• Continuous Development• Competence• Redundancy/ downsizing• Culture management, performance - PRP

Traditional view of PM• Management policies for employment

relationship and maintaining suitable organisation– Collective bargaining– Staffing and organisation– Development and training– Incentive schemes– Reviewing and auditing manpower– IR research

Personnel management

• PM was often a matter of ‘collecting together such odd jobs from management as they are prepare to give up’

» Crichton(1968, PM in Context)

• Reactive rather than proactive• Personnel policy and practice divorced

from the strategy of the business

Personnel Management

• PM is ‘a collection of incidental techniques without much internal cohesion’ – Partly as file office clerk– Partly a housekeeping job– Partly a social worker’s job– Partly ‘fire fighting’

» Drucker (1955, The Practice of management)

HRM

• A method of maximising economic return from labour resource by integrating HRM in Business Strategy

» Kennoy, 1990

• A strategic , coherent and comprehensive approach to the M&D of the organisation’s HRs in which every aspect of that process is wholly integrated within the overall management of the organisation. HRM is essentially an ideology.

» Armstrong , 1992

HRM• A diverse body of thought and practice, loosely

unified by the concern to integrate the management of the personnel more closely with the core management activity of organisation

» Gross, 1994

• HRM is a distinctive approach to employment management which seeks to achieve CA through the strategic development of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.

» Storey, 1995

Difference between PM and HRMStorey’s model of HRM

• Pluralist – Unitarist• Norms and customs- values & mission• Written contract – beyond contract• Labour management- customer• Piecemeal , adhoc – integrated• Marginal to corporate plan – central• Managers- leaders• Indirect – direct communication• Negotiation skills – facilitation skills• Collective – individual contract• Division of labour – teamwork• Rules and regulation - culture

Perceptions of HRM• People management

• Commitment, Performance, Leadership, Teambuilding

• Personnel Management• Appraisal, Recruitment, Selection methods,

Development

• Strategic Management• Strategic Planning, Performance Management,

Development, managing change

What do HRM professionals do?

Planning

Staffing

Evaluating

Developing

Motivating

Managing relationships

Managing change

HRM Functions

Cultural forcesEconomic

forces

Political forces

Organisation structure

Mission and Strategy

Human resource

management

Michigan Model of HRMMichigan Model of HRMStrategic management and environmental pressures

Fombrun, Tichy & Devanna

Michigan Model of HRM

PerformanceSelection Appraisal

Rewards

Development

The human resource cycle

Harvard Model of HRMHarvard Model of HRM

Employee Employee influenceinfluence

Work system

Human resource flow Rewards

Human Resource System

Harvard Model of HRMHarvard Model of HRMA map of the HRM territory

Stakeholder Interest

StakeholdersManagement

Employee groupsGovernmentCommunity

UnionsHRM Policy

ChoicesEmployee Influence

Human resource flowReward systemsWork systems

Situational Factors

Work forcecharacteristics

Business strategy and conditionsManagement

philosophyLabour market

UnionsTask technology

Laws and societal values

Long-term Consequences

Individual well-being

Organisational effectiveness

Societal well-being

HR OutcomesCommitmentCompetenceCongruence

Cost-effectiveness

Beer et al

‘Human’ implies it has something to do with people; ‘management’ places it in the domain of business and organisation; but ‘resource’ is a highly ambiguous concept which many people find difficult to relate to. Take the following letter to The Scotsman newspaper:

Sir,While visiting a patient in Edinburgh’s Western General hospital, I

was shocked to see a six-foot long board with large letters proclaiming: HUMAN RESOURCES. This distinguishes people who work in the hospital - doctors, nurses, porters, office workers, painters, managers - from other resources such as computers, laser beams, toilet rolls, refuse bins, beds etc

If these human resources are ill, are they labelled ‘out of order’ or ‘broken down’ and when being treated, are they being repaired? Are babies listed as ‘in process of being manufactured’ with an expected date when they will be operational? Are old and dead people ‘non-usable human resources’ or can they be listed as ‘replacement parts’?

When we define humans as resources, we are in danger of forgetting that we are dealing with people!’

(quoted in Bennis 1990)

Group Work• Critically discuss the role of HRM

in achieving competitive advantage.

HRM -hard or soft?

Hard: Human RESOURCE Management• aligning business and HR strategies• people as an economic factor (cost) to be

controlledSoft: HUMAN Resource Management• training and development• commitment strategies

Two key alternative HR principles

Direct control/low commitment

• employees given little discretion, closely supervised and motivated

• limited ‘psychological’ commitment sought from employees

Indirect control/high commitment

• employee’s ‘empowered’ - encouraged to use discretion

• high ‘psychological’ commitment sought from employees

Walton 1985 (US)

• Success depends on securing commitment from people, not controlling them

The Guest model of HRM

Peters and Waterman -1982Eight characteristics• Bias for action• Close to customer• Autonomy and entrepreneurship• Productivity through people• Hands on value driven• Stick to knitting• Simple form, lean staff• Simultaneous loose tight properties.

Is there one best way of managing people?

Universal approach, e.g. Pfeffer (1998)His HR strategy has 7 elements:

– Employment security– Careful hiring – right people– Extensive use of self managed teams; Decentralisation– High pay contingent on org. performance– Extensive training– Low status distinctions– Extensive sharing of information

Universalists cont’d

• Huselid (1995)• Ichniowski (1999)

• HPWS include a focus on skill formation, work structuring, performance management, pay satisfaction job flexibility and minimal status differential

Studies like these show a positive association between firm performance and the adoption of HPWS

Or, does the HR strategy depend on what firms do?

• Contingent approach• E.g. would you use the same methods

with, say, the civil service as you would with, say, McDonalds?

Or, does the HR strategy depend on what firms do?

• Contingent approach• E.g. would you use the same methods

with, say, the civil service as you would with, say, McDonalds?

Is There a “One Best HR Way”?

• HRM is contingent on the companies special situation (strategy, life cycle, products etc.) – Wright & Snell, 1998;

• But: All companies can benefit from– Employee motivation and commitment – Results oriented appraisals and compensation– Well trained staff– Foster good relationships and communication– Professional global executives

• Sectoral differences – Guest (2001) – HPWP effective in Manufacturing rather than in services.

Contingent upon what?

1 Product market strategy• E.g. Porter (1980) – cost leadership,

differentiation and focus• Miles & Snow (1984) – defender,

prospector and analyser• Schuler and Jackson (1987) – cost

reduction, quality enhancement, innovation

Perceptions of HRM• People management

• Commitment, Performance, Leadership, Teambuilding

• Personnel Management• Appraisal, Recruitment, Selection methods,

Development

• Strategic Management• Strategic Planning, Performance Management,

Development, managing change

Dave Ulrich’s Role Model.1997

HRM MODELS: TYSON AND FELL

Clerk of worksHR activities are largely routine: employment and day-to-day administration. Policies are short term and ad hoc.

Contracts manager

The HR department will use fairly sophisticated systems. The HR manager is likely to be a professional or very experienced in industrial relations but will not be on the board and will act mainly in an interpretative, not a creative or innovative, role.

ArchitectHR policies exist as part of the corporate strategy. Human resource planning and development are important concepts and a long term view is taken. The head of HR is probably on the board with power derived from professionalism and contribution to the business.

Source: Tyson S and Fell A (1996) Evaluating the Personnel Function, Hutchinson

HRM MODELS: STOREY

Strategic

Non-interventionary Interventionary

Tactical

Change makers Advisers

Regulators Handmaidens

Source: Storey J (1992) New Developments in the Management of Human Resources, Blackwell

• Change makers (interventionary/strategic) that are close to the HRM model.

• Advisers (non-interventionary/strategic) who act as internal consultants, leaving much of HR practice to

line managers.

• Regulators (interventionary/tactical) who are ‘managers of discontent’ concerned with formulating and

monitoring employment rules.

• Handmaidens (non-interventionary/tactical) who merely provide a service to meet the needs of line managers.

1. Change champions who envision, lead or implement strategic change.

2. Change adapters who act as ‘reactive pragmatists’ who adapt the vision to the realities of the organization and view organizational change as a slow iterative process.

3. Change consultants who implement a discrete change project or the key stages of an HR change initiative.

4. Change synergists who strategically coordinate, integrate and deliver large scale and multiple change projects across the whole organization.

HRM MODELS: CALDWELL

Source: Caldwell R (2002) Champions, adapters, consultants and synergists: the new change agents in HRM, Human Resource Management Journal, 11 (3)

Caldwell concentrates on the role of HR managers as change agents and has identified four types:

Griener’s (1998) Growth Model

PEST Analysis

• Aids the decision making process• Can tell the business if they need to change

what they are doing• Can help businesses see the opportunities• Good analysis of the businesses competitors• Helps businesses understand emerging trends

and opportunities• It may lead organisations to reconsider their

resources

SWOT Analysis

Strength Weakness

Opportunities

Threats

HRM Activities

• Strategy Formulation• Human Resource Planning• Recruitment & Selection• Appraisal & Performance Mgt.• Reward Management• Training & Development• Employee Relations• Administration

The execution of strategy lies in the hands of individuals and therefore no matter how good the strategy is, if it fails to take account of the people element it is doomed to failure at worst or to partial success at best.

(Gunnigle et al 1997)

Exercise

• Discuss the key HRM activities of your organization.

• Analyse the external factors, using SWOT and PESTLE analysis and their impact on these activities.

• Apply with justifications the HRM models to the company HRM function.