Human Resource Management

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Employment Issues HTM393P2
Week 2 Scope of the Human Resource
Function
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Overview of Lecture

• Definitions of HRM
• History / Development of HRM
• Key Activities of HR Function

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Defining Human Resource Management (1)

• HRM is a strategic and coherent approach to the
  management of an organisations most valued
  assets the people working there who individually
  and collectively contribute to the achievement of
  its objectives
• (Armstrong, 2006, p3)

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Defining Human Resource Management (2)

• HRM is a distinctive approach to employment
  management which seeks to obtain competitive
  advantage through the strategic deployment of a
  highly committed and capable workforce, using an
  array of cultural, structural and personnel
  techniques
• (Storey, 2001, p6)

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The Development of HRM

• (Torrington et al., 2005)

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Stage 1 The Social Reformer

• Origins of personnel management lie in the 19th
  century
• Conditions of work in factories were poor
• First Personnel managers appointed

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Stage 2 The Acolyte of Benevolence

• Late 19th century/early 20th century
• Appointment of welfare officers
• Cadbury Unemployment benefit, sick pay

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Stage 3 The Humane Bureaucrat

• Change from a sole focus on welfare issues to
  meeting of other organisational objectives
• Personnel Managers - responsibilities in the
  areas of staffing, training and organisation
  design
• Focus on maximising efficiency of labour
• Fostering of social relationships and employee
  morale important

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Stage 4 The Consensus Negotiator

• After 2nd world war -labour scare
• Growth in TU membership
• Statutory duty to to negotiate with unions
• Government encouraged appointment of personnel
  officers
• First specialist courses available in
  universities
• Personnel Management advisory service was set up
  (now ACAS)

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Stage 5 Organisation Man

• Late 1960s personnel specialists dealing with
  management / managerial activity
• Development of career paths / opportunities
  personal growth

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Stage 6 The Manpower Analyst

• 1980s Personnel specialists developing the
  capacity to undertake Manpower Planning (Human
  Resource planning)

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Armstrongs Main Characteristics of HRM

• Emphasis on the strategic management of people
• Comprehensive and coherent approach to the
  provision of mutually supporting employment
  policies and practices
• Importance placed on gaining commitment to the
  organisations mission and values commitment
  orientated
• Treatment of people as assets rather than costs
• Unitarist rather than pluralist approach to
  employee relations
• Performance and delivery of HRM as a line
  management responsibility
• (Armstrong, 2006)

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Key Activities of HRM

• (Armstrong, 2006)

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1. Organisation

• Organisation Design
• developing an organisation which caters for all
  the activities required
• grouping activities together to encourage
  integration and co-operation
• Organisational Development
• Simulating, planning and implementing programmes
  designed to improve the effectiveness with the
  organisation functions
• Coping with change
• Job and Role Design
• deciding on the content of jobs - duties and
  responsibilities

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2. The Employment Relationship

• Improving the quality of the employment
  relationship
• Creating a climate of trust
• Developing a positive psychological contract
• Achieving a high commitment organisation

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3. Resourcing

• Human Resource Planning
• assessing future people requirements (numbers /
  levels of skill and competence),
• formulating and implementing plans to meet
  requirements
• Talent management
• Attracting, Retaining, Developing and Rewarding
  high quality people
• Recruitment and Selection
• Obtaining the number and type of people the
  organisation needs

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4. Performance Management

• Getting better results from the organisation,
  teams and individuals by measuring and managing
  performance within agreed frameworks
• Assessing and improving performance
• Identifying and satisfying learning and
  development needs

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5. Human Resource Development

• Organisational and Individual Learning
• Developing the business as a learning
  organisation
• Providing employees with learning opportunities
• Providing for career growth
• Management Development
• Providing learning and development opportunities
  which will increase the capacity of managers
• Career Management
• Planning and developing the careers of people
  with potential

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6. Reward Management

• Pay Systems
• Developing pay structures and systems which are
  equitable, fair and transparent
• Contingent Pay
• Relating financial rewards to results,
  competence, contribution, skill and effort
• Non-financial Rewards
• Providing employees with non-financial rewards -
  recognition, increased responsibility and the
  opportunity to achieve and grow

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7. Employee Relations

• Industrial Relations
• Managing and maintaining formal and informal
  relationships with trade unions and their members
  
• Employee Voice
• Giving employees an opportunity to have a say in
  management decisions that affect them
• Communications
• Creating and transmitting information of interest
  to employees

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8. Health and Safety

• Ensuring a healthy and safe environment
• Protecting employees from hazards and accidents

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9. Welfare Services

• Providing employees with individual services
• Dealing with illness
• Provision of restaurants
• Provision of recreational facilities

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10.Employment and HR Services

• Managing the employment relationship
• Administering HR Policies and Procedures
• Operating HR information systems

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Key Activities of HRMAlternative Viewpoint

• Foot and Hook (2005)

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Key Activities of HRM (Foot and Hook, 2005) (1)

• Recruitment and Selection
• Training and Development
• Human Resource Planning
• Provision of Contracts
• Provision of Fair Treatment
• Equal Opportunities
• Assessing Performance of Employees
• Employee Counselling
• Employee Welfare
• Payment and Reward of Employees

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Key Activities of HRM (Foot and Hook, 2005) (2)

• Health and Safety
• Disciplining Individuals
• Dealing with Grievances
• Dismissal
• Redundancy
• Negotiation
• Encouraging Involvement

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Summary

• HRM is concerned with the management of an
  organisations most valuable asset the
  employees!
• There are various activities to be undertaken by
  the HR Manager and the Line Manager

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References

• Armstrong, M. (2006) A Handbook of Human
  Resource Management Practice, 10th Ed., London
  Kogan Page.
• Foot, M. and Hook, C. (2005) Introducing Human
  Resource Management, 4th Ed., Harlow, Financial
  Times, Prentice Hall.
• Storey, J. (2001) Human Resource Management A
  Critical Text, 2nd Ed., London Thomson.
• Torrington, D., Hall, L. and Taylor, S. (2005)
  Human Resource Management. 6th Ed., Hemel
  Hempstead Prentice Hall.

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Study Questions

• Outline the roles and objectives of HRM
• Outline the evolution of Personnel and HR
  management
• Describe the main activities/functions of HRM