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Contents
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HRM defined Features of HRM Goals of HRM Versions of HRM HRM activities The development of the HRM concept The matching model of HRM The Harvard framework The UK contribution to the HRM concept The impact of HRM: research findings The David Guest model of the link between HRM and performance How HR can make an impact on organizational performance Role of the HR function
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Activities of HR professionals Roles of HR professionals HRM models: Tyson and Fell HRM models: Storey HRM models: Reilly HRM models: Caldwell The Ulrich/Brockbank 2005 model of HR roles Competency framework for HR specialists Key competency areas for HR professionals The professional standards of the CIPD Evaluating the HR function Ten ways of ensuring that the HR function innovates effectively
Human resource management (HRM) is a strategic and coherent approach to the management of an organizations most valued assets the people working there, who individually and collectively contribute to the achievement of its objectives.
FEATURES OF HRM
Strategic:
Integrate business and HR strategy
Coherent:
Integrated and mutually supporting HR policies and practices
Commitment:
Emphasis on gaining commitment to the organizations mission and values
Unitarist approach:
Management and employees share the same interests
GOALS OF HRM
Achieve high performance through people Enhance motivation, commitment and job engagement
Attract and retain the skilled, committed and motivated people required
VERSIONS OF HRM
Hard
Treating employees rationally as as a key resource from which competitive advantage can be obtained
Soft
Emphasis on the need to develop a highcommitment, high-trust organization focus on mutuality, communication and involvement
Hard/soft
Using a mix of hard and soft approaches
HRM ACTIVITIES
Human capital management
Organization
Resourcing
Reward management
Employee relations
Design
Industrial relations
Development
Individual learning
Employee voice
Job design
Talent management
Management development
Contingent pay
Communications
HR services
Knowledge management
Performance management
Employee benefits
The concept of HRM was first developed in 1982. The common use of HR or HRM as an alternative term to personnel management took place in the second half of the 1990s. Those who dislike the term HRM often refer to people management. The main developments in the US have been described by Boxall (1992) as the matching model and the Harvard framework and these are illustrated in the following models. Since the pioneering US efforts, a number of British commentators have developed the notion of HRM in the UK as summarized later.
The matching model of HRM as developed by Fombrun, Titchy and Devanna (1984) is illustrated below.
Rewards
Selection
Performance management
Performance
Development
Situational factors: work force characteristics business strategy and conditions management philosophy labour market unions task technology laws and social values
HRM policy choices: employee influence human resource flow reward systems work systems
Findings
Firms with a high commitment strategy had significantly higher levels of both productivity and quality than those with a control strategy. Productivity is influenced by employee motivation; financial performance is influenced by employee skills, motivation and organizational structures. Firms with high performance work practices had economically and statistically higher levels of performance. HR practices explained significant variations in profitability and productivity (19% and 18% respectively). Two HR practices were particularly significant: (1) the acquisition and development of employee skills and (2) job design including flexibility, responsibility, variety and the use of formal teams.
Thompson (1998)
Guest et al, (2000) The Future of Work Survey. Purcell et al (2003)
The number of HR practices and the proportion of the workforce covered appeared to be the key differentiating factor between more and less successful firms.
A greater use of HR practices is associated with higher levels of employee commitment and contribution and is in turn linked to higher levels of productivity and quality of services. The most successful companies had what the researchers called the big idea. They had a clear vision and a set of values that were embedded, enduring, collective, measured and managed. They were concerned with sustaining performance and flexibility. Clear evidence existed between positive attitudes to HR policies and practices, levels of satisfaction, motivation and commitment, and operational performance. Policy and practice implementation (not the number of personnel practices adopted) is the vital ingredient in linking people management to business performance and this is primarily the task of line managers.
THE DAVID GUEST MODEL OF THE LINK BETWEEN HRM AND PERFORMANCE
HR effectiveness
HR practices
Financial performance
Productivity
HR strategy
The role of the HR function is to enable the organization to achieve its objectives by taking initiatives and providing guidance and support on all matters relating to its employees. The basic aim is to ensure that management deals effectively with everything concerning the employment and development of people and the relationships that exist between management and the workforce. A further key role for the HR function is to play a major part in the creation of an environment that enables people to make the best use of their capacities and to realize their potential to the benefit of both the organization and themselves.
ACTIVITIES OF HR PROFESSIONALS
Service provision providing services to internal customers on all aspects of HRM. Guidance to management and line managers on strategies, policies and people management issues.
Advice to management and line managers on the development and implementation of HR policies and practices.
ROLES OF HR PROFESSIONALS
Business partner sharing responsibility with their line management colleagues for the success of the enterprise. Strategist addressing major long-term issues affecting the management and development of people and the employment relationship.
Clerk of works
Contracts manager
Architect
Source: Tyson, S and Fell, A (1986) Evaluating the Personnel Function, Hutchinson
Interventionary
Non-interventionary
REGULATORS
HANDMAIDENS
Tactical Change makers (interventionary/strategic) 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.
Source: Storey, J (1992) New Developments in the Management of Human Resources, Blackwell
Strategic STRATEGIST/INNOVATOR
CONTRIBUTION ADVISER/CONSULTANT
Tactical Short
ADMINISTRATOR/CONTROLLER
Source: Reilly, P (2000) HR Services and the Re-alignment of HRM, Institute for Employment Studies
Caldwell concentrates on the role of HR managers as change agents and has identified four types:
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 co-ordinate, integrate and deliver largescale and multiple-change projects across the whole organization.
Source: Caldwell, R (2002) Champions, adapters, consultants and synergists: the new change agents in HRM, Human Resource Management Journal, 11(3)
Source: Ulrich, D and Brockbank, W (2005) The HR Value Proposition, Harvard Press, Cambridge, Mass
Strategic capability
Organizational effectiveness
Internal consultancy
Service delivery
Components
Lives the firms values, maintains relationships founded on trust, acts with an attitude (a point of view about how the business can win, backing up this view with evidence). Drives change: ability to diagnose problems, builds relationships with clients, articulates a vision, sets a leadership agenda, and implements goals. Acts as keeper of the culture, identifies the culture required to meet the firms business strategy, frames culture in a way that excites employees, translates desired culture into specific behaviours, encourages executives to behave consistently with the desired culture. Expert in speciality, able to deliver state-of-the-art innovative HR practices in such areas as recruitment, employee development, compensation and communications. Understands strategy, organization, competitors, finance, marketing, sales, operations and IT.
Source: Brockbank, W, Ulrich, D and Beatty, D (1999) HR professional development: creating the future creators at the University of Michigan Business School, Human Resource Management, 38, Summer, pp 11117
Professional competence
Adding value through people Continuing learning
Possession of the professional skills and technical capability associated with successful achievement in personnel and development.
A desire not only to concentrate on tasks, but rather to select meaningful outputs that will produce added-value outcomes for the organization, or eliminate/reduce performance inhibitors, whilst simultaneously complying with all legal and ethical considerations. Commitment to continuous improvement and change by the application of self-managed learning techniques, supplemented where appropriate by deliberate planned exposure to external learning sources (mentoring, coaching etc). Application of a systematic approach to situational analysis, development of convincing, business-focused action plans and (where appropriate) the employment of intuitive/creative thinking to generate innovative solutions and pro-actively seize opportunities. Concern for the perceptions of personnels customers, including (principally) the central directorate of the organization, a willingness to solicit and act upon customer feedback as one of the foundations for performance improvement. The capacity to achieve a strategic vision for the future, to foresee longer-term developments, to envision options (and their probable consequences), to select sound courses of action, to rise above the day-to-day detail, to challenge the status quo. The ability to transmit information to others, especially in written (report) form, both persuasively and cogently, display of listening, comprehension and understanding skills, plus sensitivity to the emotional, attitudinal and political aspects of corporate life.
Customer focus
Strategic capability