1 - Evolution & Context of HRM Flashcards
development stages of HRM
personnel department (mid 60s)
labor relations department (late 70s)
HR department (21st C)
strategic business partner (now)
stage 1: personnel department
updating employee files
internal memos
organizing social events
(people = cost, approach = reactive)
stage 2: labor relations department
social trends = need for improving life quality at work + socially responsible organizations
- new skills in personnel: legal aspects of work + specialists (pay, training, safety…)
(people = cost, approach = proactive)
stage 3: HR department
top managers start to consider that personnel activities contribute to:
- controlling costs
- increase CA
- add value to the organization
(people = investment, approach = proactive)
stage 4: strategic business partners
HR managers are seen as strategic business partners
- employee value proposition
- employee experience
- employer branding
- digital transformation (AI, analytics, machine learning…)
HRM main concerns
managing people employed in the organization
managing people employed outside the organization
managing people from other organizations working in the organization
what does HRM administer?
contract of employment
psychological contract
contract for performance
defining HRM
generic approach: body of management activities (new term for personnel management)
distinctive approach: distinct philosophy from personnel management
HRM key objectives
staffing objectives performance objectives change management objectives administration objectives reputational objectives well-being objectives
personnel management vs HRM
time: (short term + reactive) vs (long term + proactive)
psychological contract: compliance vs commitment
control: external controls vs self-control
relations: (collective + low trust) vs (individual vs high trust)
structure: bureaucratic vs flexible
role: specialists vs integrated into line management
evaluation criteria: cost minimization vs max utilization
groups involved in HRM
HRM professionals
top managers
line managers
unions
HRM professionals
perform HR activities
- define policies
- advice on specific matters (legal)
- perform specialized activities
- control performance
= have staff authority
top managers
set context for HR activities (goals + responsibilities)
approve + support HRM functions
development of HR practices + policies
HR practices concerning their direct subordinates (PA, interviews…)
negotiate w/ unions
line managers
implement HR policies + practices developed by HR professionals + top managers
HR functions on subordinates (PA, training needs, selection…)
design + monitor HR systems
unions
influence HRM in protecting employee’s right
- effectiveness of HRM depends on negotiating + capacity to establish good relations w/ unions