Part 1
Introduction
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.1
Basis for Human Resource Management
(HRM)
• Basis for all management activity
• Not the basis for all business activity
• Basis for management is always the same
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.2
What are HR People Concerned With?
• Management of resourceful humans not
employed within the organisation
• Management of resourceful organisations
employed within the organisation
• The effective management of all the people of
the business, not only those employed within
the business
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.3
What do HR People Administer?
• The contract of employment
• The psychological contract for performance
• Contract for performance
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.4
Defining HRM
• HRM is commonly used in two ways
• Body of management activities
• A particular approach to the management of
people which is distinct from personnel
management – a distinct philosophy
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.5
HRM – Mark 1
Four key objectives:
1.
2.
3.
4.
Staffing objectives
Performance objectives
Change management objectives
Administration objectives
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.6
HRM – Mark 1
Staffing Objectives
•
Ensuring the business is appropriately staffed
and able to draw on human resources it needs
•
Designing organisational structures
•
Compete in the employment market place
•
Developing employment packages that are
sufficiently attractive to attract & retain staff
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.7
HRM – Mark 1
Performance Objectives
•
Ensure motivation and commitment of staff
•
Training & development key role
•
Reward systems
•
Disciplinary systems
•
Welfare functions
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.8
HRM – Mark 1
Change Management Objectives
•
Effectively managing change
•
Re-organisation of activities or introduction of
new people to roles
•
Alter attitudes, or norms
•
Recruitment of those with required leadership
skills to drive change
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.9
HRM – Mark 1
Administration Objectives
•
Facilitate smooth running of organisation
•
Maintain accurate and comprehensive data on
individuals
•
Comply with legal requirements
•
Administer pay, sickness, taxation, leave, etc.
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.10
HRM Roles & Objectives
Figure 1.1 HRM roles and objectives
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.11
HRM Mark 2
•
•
•
•
•
•
A distinctive approach
Something that is qualitatively different from
personnel management approach
Disagreement about how fundamental a shift
there is
Directed mainly at management needs for
human resources
Demand rather than supply is the focus
Greater emphasis on planning, monitoring and
control
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.12
Characteristics of Personnel Management
Figure 1.2 Personnel versus HRM
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.13
Characteristics of HRM
Figure 1.2 Personnel versus HRM
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.14
Evolution of Personnel & HRM
•
Social justice
•
Humane bureaucracy
•
Negotiated consent
•
Organisation
•
HRM
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.15
HRM Philosophy
‘A series of activities which first enables working
people and the organisation which uses their
skills to agree about the objectives and nature
of their working relationship, and secondly,
ensures that the agreement is fulfilled.’
(Torrington, Hall, & Taylor, 2002)
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.16
The Personnel / HR Process
Figure 1.3 The personnel/HR process
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.17
HRM Debates
•
Conceptualising the nature of current
responses
•
What HR managers should be doing
•
Longer term future developments
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.18
Key Environmental Developments (1 of 2)
•
Globalisation
•
Technology
•
E-business
•
Volatility
•
Improvement in quality
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.19
Key Environmental Developments (2 of 2)
•
Labour market and social trends
- numbers or people and skills available
- individualistic attitude
•
Evolution of employment legislation
- statutory regulation
- contract of employment
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.20
Psychological Contract
•
Expectations employees have about the role
they play & what employer provides in return
•
Concerns broad expectations
•
Not a written document – exists in people’s
heads
•
Switch from old to new approach – involves
less job security
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.21
Best Practice
•
•
•
Certain HR practices that will help
organisations achieve competitive advantage
Clear link between HR activity and business
performance
Best practice bundle – advanced selection
methods, commitment to employee
involvement, investment in T&D, individualised
reward systems, etc.
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.22
Best Fit
•
Identifies link between HRM practice and
achievement of competitive advantage
•
All is contingent on particular circumstances
•
HR policies are required that fit and are
appropriate to situations
•
Key variables include – size, dominant product
market, etc.
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.23
Future of Work – One Perspective
•
Speculative and impossible to prove
•
A world of work different in many respects
than is currently experienced
•
Shift towards knowledge work
•
Job as we know it will become rarer
•
Long term work guarantees a thing of the past
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.24
Future of Work – A Different Perspective
•
Continuation of established approaches
•
Some reversal of trends that developed in
1980s and 1990
•
Continuation of traditional approaches towards
employment
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.25
Summary (1 of 2)
•
•
•
•
HRM is fundamental to all management
activity
HRM describes a body of management
activities
HRM signifies a particular approach to
carrying out these activities
HRM managers are concerned with meeting 4
distinct sets of organisational objectives
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005
Slide 1.26
Summary (2 of 2)
•
HRM activities are carried out in various ways
through the organisational structure
•
Current debate over HRM generally focus on
the extent and nature of responses needed to
face changes in the business environment
•
There are three main current HRM debates
Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005