Lecture One

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Lecture One

• Introduction To Human Resource Management

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HRM LECTURE ONE OBJECTIVES TO

• Introduce the module
• Outline the programme of study
• Recommend reading
• Outline development of the HR function
• Provide an understanding of how HRM
• Stems from but differs from previous
• Approaches
• Provide an understanding of the influence of
  environmental factors on people management

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PEOPLE A COMPLEX RESOURCE

• Variety
• Individual differences
• Specific requirements
• Scary or surplus
• Unpredictable
• Relatively immobile

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DEVELOPMENT / EVOLUTION OF PERSONNEL / HRM

• Social reformers-industrial revolution
• Welfare workers-late 19th/early 20
  century-benevolent employers
• Staffing the organisation-1920s/1930s-scientific
  management-Taylorism
• Industrial relations specialist/negotiator-post
  ww2-1950s and 1960s
• Legal adviser-1970s employment laws
• Human resource manager-late 1980s.

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HRM POLICY GOALS

• Strategic Integration
• Coherence
• Commitment
• Flexibility
• Quality

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STEREOTYPES OF IR/PM HRM
TRADITIONAL HRM
Timing Planning Perspective Relationship with
General Management Psychological
Contract Control System
Long term Proactive
Strategic Integrated Commitment Self-control
Short term Reactive Ad hoc
Marginal Compliance External
Based on GUEST, JMS, Sept 1987
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HRM MODEL

• BELIEFS ASSUMPTIONS
• HR for competitive edge
• Commitment
• Care in selection and development
• STRATEGIC QUALITIES
• HR decisions strategically important
• HR Integration with business strategy
• ROLE OF MANAGERS
• HR too important to leave to personnel
  specialists
• Managing managers is key activity
• KEY LEVERS
• Managing culture
• Integration of selection, training, reward
  (Storey 2001)

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STEREOTYPES OF PM/IR HRM
TRADITIONAL HRM
Employee Relations View Preference
Structure/ Systems Personnel Role Evaluation
Pluralist collective low trust Mechanistic
centralised defined roles Specialist/
Professional Cost minimise
Unitarist individual high trust Organic
devolved flexible roles Integrated into the
management Maximum use
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HRM IN PRACTICEEMPHASIS ON, INTEREST IN

• Systematic recruitment selection and
  promotion-especially managers
• Direct communication-team briefings etc
• Rewards related to performance
• Flexibility-through multi-skilling, core and
  peripheral workforces
• Consensus-on fundamentals (conflict can be
  healthy)
• Commitment-using employee involvement and
  partnership
• Managing manager-career planning and development
• Single union agreements

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EVIDENCE OF PRACTICE

• 79 workplaces with formal appraisal system
• 32 lip accredited 16 applied
• 68 formal strategic plan including employee
  development
• More HR in unionised workplaces
• Single elements or integrated strategic approach?
  
• (WERS 1998)

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HRM DIFFICULT TO IMPLEMENT WHEN

• Strategy of mass production and/or cost
  minimisation
• Large number engaged in short-cycle, repetitive,
  production line tasks
• Little opportunity for discretion or autonomy
• Multi-union environment, established IR practises
  and procedures
• Highly diversified companies
• Culture opposed

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HRM IN CONTEXT INFLUENCES

• Economic
• Social
• Political
• Legal
• Organisational

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ECONOMIC CONTEXT

• Internationalisation of markets
• International competition
• IT developments
• Decline in manufacturing
• Increase in service industries

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SOCIAL CONTEXT

• Expectations
• 10.5m 2knowledge workers 7m manual
• Women in employment
• Just half of labour market.
• 72 married women employed
• Part-time and casual employment
• 66 working mothers are p/t workers
• Change in psychological contract insecurity?

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POLITICAL CONTEXT

• Power of trade unions curbed?
• Deregulation of labour markets
• Privatisation of public sector
• Legislation
• Focus on individual rights and the influence of
  Europe

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NEW LABOUR NEW EMPLOYMENT CONTEXT

• 1999 National Minimum Wage
• 1998 Working Time Regulations
• Trade Union Recognition
• (1999 Employment Relations Order)

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ORGANISATIONAL CONTEXT

• Shrinking Organisations
• Decentralisation
• Flexibility

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INTERNATIONAL INFLUENCES

• EUROPE
• Freedom of movement for workers
• Working time directives
• Parental rights

• MULTINATIONAL INWARD INCESTMENT
• Cultural issues
• Selection
• Team working
• Employee involvement
• Single union
• No-strike agreements

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CONCLUSION

• Changes in practice
• A distinctive approach?
• Impact on organisational outcomes/performance?
• Ulrich and Huselid in US
• Patterson in UK
• Purcell

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ADDITIONAL READING

• Cully ct al (1999)
• Britain at Work. Routledge
• Guest D (1997)
• Human Resource Management and Performance a
  review and
• research agenda The International Journal of
  Human Resources 8 (3)
• Purcell J (1998)
• Best practice and best fit Human Resource
  Management Journal 9 (3)
• Ulrich D (1997)
• Human Resources Champions. Harvard