HRM10004 Human Resource Practices Lecture 1 PDF

HRM10004 Human Resource Practices Lecture 1 Introduction, Evolution and the Context of...

HRM10004 Human Resource Practices Lecture 1 Introduction, Evolution and the Context of HRM DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Lecture Outline Discussion of unit outline and overview of the subject Personnel management and HRM Definitions of HRM Characteristics of HRM Stages in the development of HRM Human resource management – concepts and models Unitarism and Pluralism Hard or Soft HRM HRM theory – the critics HRM roles, functions and strategies Strategic HRM HRM practice The Context of HRM HRM – towards the future DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M  HRM defined HRM is defined as “the management of employees for their own benefit and for their organisations.” (Nankervis et al. 2017, p.3) The use of modern psychological and organisational techniques to efficiently manage the human resources of the organisation. ‘The subject is best viewed as involving a synthesis of elements from international business, organisational behaviour, personnel management and industrial relations’ (Poole, 1990). Not yet clear. Like most innovations it tends to be whatever the person speaking at the time wants it to be (Torrington, 1989). In the most general sense HRM refers to the policies, procedures and processes involved in the management of people in work organisations (Sisson, 1990). DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M HRM HRM is (or ought to be) ‘strategic’ Integrated set of activities Employees seen as an asset DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Characteristics of HRM Proactive Strategic fit and integration People are social capital Coincidence of stakeholders Seeks power equalisation/trust Open channels of communication Participation and informed choice DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M HRM – roles, functions and strategies (cont.) HRM activities include (but not limited to) Job analysis HR planning Recruitment (attraction) and Selection HR development Performance management Remuneration Employee health and safety Industrial and employee relations etc… DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M HRM ACTIVITIES Workforce Recruitment Planning Performance & Selection Management Health & Safety Training & Development Human Remuneration Resource Industrial and Benefits Job Management Analysis Relations DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Stages in the Development of HRM Stage 1 1900 – 1940s: welfare and administration Stage 2 1940s – mid-1970s: welfare and administration, staffing and training – personnel management and industrial relations Stage 3 mid-1970s – late 1990s: Human resource management and strategic human resource management (SHRM) Stage 4 2000 onwards: SHRM into the future DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M  Human Resource Management – concepts and models HRM differs from its predecessor, personnel management, in relation to its focus, principles and applications. Guest (1987) suggests that “HRM was born out of the failure of personnel management to manage people effectively in the pursuit of the strategic imperatives.” “Harvard” model of HRM (see next slide), shows HRM as a broad set of policy choices in response to the demands of organisational characteristics within the context of the external labour market and social, economic and political conditions. Choices of HRM policies encompass the nature of all traditional HR functions (e.g., work design, performance management, etc.) and hopefully lead to desirable HR outcomes and long-term consequences for the organisation. DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Human Resource Management – concepts and models (cont.) See textbook DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Human Resource Management – concepts and models (cont.) The central principle is the effective utilisation of employees in order to enable the achievement of organisational objectives. HRM theories also recognise that human resources cannot be manipulated or exploited, and this requires complex and sensitive management. All HRM theories are managerialist. The imperatives of HRM theory include: efficiency, effectiveness, productivity, labour flexibility and competitive HR advantage. Dismissal of “one best way” models of HRM. Diverse national and industrial relations environments demand different HRM applications. DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Unitarism Organisation is integrated/harmonious and exists for a common purpose Employees identify with the goals of the firm No conflict of interest between capital and labour Capital and labour are joint partners Economic actors part of the team Single source of loyalty and authority Conflict and factionalism are pathological Trade unionism illegitimate intrusion DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Pluralism The view of the firm as a microcosm of society Firms accommodate differing and competing interests Institutionalisation of conflict Establishment of negotiating bodies to manage conflict Societal stability achieved through negotiation, concession and compromise Trade unions are a legitimate representative of employee interests DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Hard or Soft HRM? Hard HRM has a strategic and managerial focus, emphasising the effective utilisation of human resources towards broad organisational objectives and goals. Soft HRM infers involvement of employees through such means as consultation, empowerment, motivation and leadership “Tough-mindedness” or “tender-mindedness” Hard role of HRM in many Australian companies is associated with the prevalence of downsizing and outsourcing DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M HRM Theory – the critics Some critics question the application of ‘unitarist’ U.S. models of HRM to Australian workplaces Pluralism may be appropriate for HRM in Australia The absence of any consistent definition of HRM Ambiguity over the boundaries of the HRM field The elastic scope of HRM The diversity of academic perspectives The reality that HRM has been ‘colonised’ by personnel management and industrial relations specialists DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M HRM – roles, functions and strategies The principal responsibility of HRM is to ensure that organisations have the right numbers, types and skill mixes of employees at an appropriate time and cost to meet present and future requirements HR practitioners need to operate at three distinct levels: – i) Strategic – corporate & HR planning – ii) Operational – develop plans to meet current labour needs – iii) Functional – conduct HR activities to ensure employees are in the right place at the right time for the right cost DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Components of strategic management Strategic management involves: – Strategy formulation – Organisational mission and objectives – Environmental analysis – Strategy selection and implementation – Performance evaluation and feedback DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Types of ‘business strategies’ Innovation Quality improvement Cost reduction Growth Retrenchment Stability A combination of growth, retrenchment, and stability International strategies – Global – Multidomestic – Transnational DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M SHRM and business strategy Other business strategies divides all business strategies into three categories (Porter, 1985) – Cost leadership (cost reduction) – Product differentiation (quality enhancement, uniqueness) – Market segmentation Organisational strategies should reflect specific HRM strategies, policies and practices Organisational strategies should be reflected in HRM practices and policies that shape employee role behaviours DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M SHRM and business strategy (cont.) Several types of linkages between HR and organisational strategies have been identified:- i) Accommodative: HR strategies simply follow organisational strategies ii) Interactive: A two-way communication process between HRM and corporate planning in which HRM contributes to, and then reacts to, overall strategies iii) Fully integrated: The HR specialist is intimately involved in the strategic process in both informal and formal interactions. HR ‘true business partner’ DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Australia Today DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M  Economic growth in Australia (GDP) DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M  Changes in Australian industry and occupation structure Need to look behind growth figures to gain appreciation of HR implications Rapid changes in industry structure – well above OECD average Encouraged by deliberate gov’t policy as part of strong push to enhance Australia competitiveness Committee for Economic Development of Australia (CEDA) report states that ‘jobs that involve low levels of social interaction, low levels of creativity, or low levels of mobility and dexterity are more likely to be replaced by automation’ – Computers as a direct substitute for labour – Computers disrupt the way work is conducted, expanding competition and reducing the costs to consumers but also reducing the income of workers Substantial changes in sectoral composition of economy – Primary (agriculture - up to mid 20th century) – Secondary (manufacturing - from 1950-1970s) – Tertiary (services - 1970s-present) DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M  The Changing Australian Economy DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M The Context of HRM Global & Australian Economic Context Social/ Demographic Context ~ Ageing Workforce ~ Women at work ~ Maternity/ Paternity/ Parental leave ~ Education levels ~ Changes in work patterns ~ Casualisation of Employment Political/ Legal Context DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M Strategic HRM Growing need for HR managers to assume a broader role in overall organisational strategy Strategic HR needs to be:- – Responsive to a highly competitive workplace and global business structures – Closely linked to business strategic plans – Jointly conceived and implemented by both HR and line managers – Focused on quality, customer service, productivity, employee involvement, teamwork and flexibility DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M SHRM model – See textbook DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M The HRM challenge HR managers need to: – be strategic contributors; – show the true value of the HR function to the organisation; – be the employees’ voice; and – demonstrate professional competence HR managers need to constantly demonstrate the connection between HR, organisational performance and employee well-being DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M  The greatness of a man is his simplicity… Be simple in life! Gandhi DULN004(Q) KP(JPS)5195/IPTS/1144 05 June 2004 Co. No. 497194-M