HRM 1 Flashcards
What is HRM?
Human resource managment describes business activities for managing employee-company relationships.
Three stakeholders
Employers - aim to create successful, profitable businesses
Managers - aim to achieve business targets through employing the right people in the right place
Employees - require a fair and safe work environment, in which they can succeed in a job for which they feel capable of doing and ate compensated enough
HRM strategy composed of:
- Recruitment and selection of employees
- Terms and conditions employees work under
- Equal treatment within an organisation
- Treatment of rule-breaking employees
- Payment and rewarding policies for employees
- Learning and development opportunities provided by an organisation
Scientific management
In the early 20th century, Fredrick Taylor developed the “scientific management movement”, which aimed to increase productivity through greater efficiency in production practices, selection and training practices and incentivized pay for workers.
Trade unions
Trade unions – are organized groups of workers which represent members interests in maintaining or improving the conditions of their employment by acting collectively as a way to challenge employer power.
Industrial relations
Industrial relations – the relationship between employer and employees, with a focus on those areas of the employment relationship where employers deal with employee representatives, such as trade unions, rather than individuals
Behavioural science
Third phase of HRM’s evolution. New work discipline “personnel management”, who’s role to better understanding of group works, personal development, motivation of employees.
HRM Today
HRM is the strategic and integrated approach taken by an organisation to the management of its most valued assets, namely its people
Strategic HRM
- The term strategic human resource management has emerged as a direct result of HRM being regarded as an essential component of business strategy. SHRM takes macro-level approach, whereas HRM operates at the micro level
- SHRM is where HR is coordinated and consistent with the overall business objectives, goals and strategies in order to increase business performance
Features of HRM (John Storey)
a. HRM is explicitly linked with corporate strategy
b. HRM focused on commitment rather than the compliance of employees
c. Employee commitment is obtained through an integrated approach to HR policies in the areas of rewards, selection, training and appraisal
d. HRM is not just the domain if specialists in HR function; rather, HRM is owned by line managers as a means of fostering integration
Lifecycle of employee
a. Attract and select
b. Manage and develop
c. Reward and retain
d. Separate
Different ways HR strategy can be linked to business strategy are:
o A separation model
o A fit model
o A holistic model
o An HR-driven model
HR practisioners impact across four different dimensions
- On an individual level, building effective relationships and good reputations across the business
- Organizationally, as they are responsible for the design and delivery of appropriate HR practices that reach right across the organisation
- Contextually, as their understanding of the internal and external environments specific to their organisations, are vital in developing the appropriate HR strategy
- At a strategic level, as they have a role in developing leader, manager, and employee perceptions of the HR function as adding value and enabling them to deliver on the business strategy, rather than just managing the more basic operations of the employment relationship
The following competencies are needed in the mix of HRM function:
- Credible activists, where Hr practiotioners deliver on the promises, are trusted by the business, and take action positively as neede by the business.
- Capability builders, where HR practicioners identify the core processes and capabilities which will positively impact the business strategy and then deliver the appropriate HR practices, to build and sustain these capabilities in the workforce
- Changing champions, where HR practitioners enable the organisation to respond to the external pressures and pace of change, engaging key stakeholders and enabling flexible and adaptable capabilities in the organisation
- Innovators and integrators, where HR practitioners use the latests scientific evidence and business insights to continuously develop new HR practices, in a sustainable and integrated manner, as and when they are needed by the business.
- Technological proponent, where HR practitioners have the skill to leverage available technologies, which facilitate the effective and efficient delivery of HR practices, but also to use HR analytical to ensure HR practices are positively the business strategy.
Devolve
Devolved describes the process of moving decision-making downwards, from HR to line managers
Line managers
Line managers are managers who have employees directly reporting to them and who have a higher level of responsability than those employees
The Michigan Model of HRM
“fit” or “contingency” model
Key ares on which focus:
1. Selection of the most suitable individuals to meet the needs of the business
2. Managing performance to achieve corporate objectives
3. Appraising performace and providing feedback
4. Providing rewards for appropriate performance that achieve specific goals
5. Developing eployees to meet need of the business
Criticism of the model: lack of recognition of employee interests and behaviour choice
“Universal” Approach to HRM
A “universal” approach to Human Resource Management (HRM) is a perspective that emphasizes consistency and standardization in HR practices across an organization. This approach is often contrasted with a “contingency” or “contextual” approach, which suggests that HR practices should be tailored to the unique needs and circumstances of different parts of the organization or different employees.
Guest Model of HRM
This model represents a compromise between the low-involvment and high-involvment approaches.
Key principles:
1. Strategic integration: HR policies must be alligned to the need of the business strategy, and the various aspects of HRM must be consistent and mutually supportive
2. High commitment: commitment is sought, in that employees are expected to identify closely with interests of the organisation and behave accordingly
3. Flexibility: this involves the ability and willingness of employees to demonstrate flexibility and adaptability to change as business demands change
4. High quality: the quality of managment and staff is important in achieving high performance
Strategic HRM contingency approach
The “contingency “ or “best fit” approach is the belief that organisation context provides the direction as to which HR practices should be chosen
Strategic HRM universalist approach
“best practices” aimed at creating and enhancing high levels of employee commitment and performances.
1. Recruting the right people
2. High wages clearly linked to organisations performance
3. Employment security
4. Information sharing
5. Investment in training and skill development
6. Self-managed and decentralised decision making
7. Reduced status differentials.
Human resource information system (HRIS)
is a siftware sustem for data entry, tracking and information needs of the HR functions. Even when organisation use an HRIS, the data is often not utilised within the organisation to support decision-making
Human resource (HR) analytics
is the use of people-related data in analytical processes to address business issues. HR analytics is regarded as an essential capability to ensure HR’s future as a strategic managment function for transforming organisational performance for the better
Different tools
- Firz-Enz and Mattox: Tools to summarise all information from different sources, then HR can easily analyse it
- Edwards and Edwards: more narrow definition and define HR analutics and define it as “the systematic application of predictive modeling…”
- Mondare at al.: have the broadest definition and define HR analytics as a process that demonstrate the direct impact of people on important business outcomes
- Lawler et al.: measures HR activities and how it can change orhanisation
- Marler and Boudreau’s: research shows that HR analytics is often defined bu authors as either an analysis or decision-making process
