week one - the role of HRM in business strategy Flashcards
what are human resources
People who work in an organisation (also called staff)
what is a HR strategy
A firm’s deliberate use of human resources to help it to gain an edge against its competitors
what is a HR tactic
A particular HR policy or programme that helps to advance a firm’s strategic (HR-related) goal
what are some environmental HRM challenges
- legislation
- rapid change
- natural disasters
- globalisation
- digitalisation
what are some organisational HRM challenges
- competitive position
- decentralisation
- organisational culture
- technology
- organisational restructuring
what are some individual HRM challenges
- matching people and organisation
- ethical dilemma
- productivity
- brain drain
- job insecurity
what is meant by classical school - ‘homo economicus’
- early 20th century
- people as a production factor and only financially motivated
- strict separation between thinkers (managers) and doers (workers)
- F. W. Taylor, H. Fayol
what is meant by the human relations school - ‘homo socialis’
- 1920s onwards
- people also have non-financial motivations
- being valued is more important
- E. Mayo - Hawthorne experiments
- influence of the informal organisational structure
what is meant by the social systems school
- 1930s onwards
- deepening on studying intrinsic motivation
- importance of organisational behaviour issues which contributed to laying out the foundations of HRM
- C.I. Barnard, R. Cyert
what is meant by integrative approaches
- from 1950s
- broad diversity of management theories will different approaches to manage people in organisations; neoclassical school, socio-technical school, systems approach, contingent approach, strategic approach
- A. P. Sloan
- current relevance of strategic approach to HRM
what are the four stages in the evolution of the role of the HR function
1) classical model (up to 1960s)
2) legal-centric model (1960-80s)
3) organisational behaviour model (1980-90s)
4) business-strategic model (1990 onwards)
what is the purpose and unit name of the classical model
- to maintain internal order and discipline and maximise efficiency of operations
- unit name: personnel office, personnel department
what are the three characteristics of the classical model
1) orientation towards technical and clerical employees
2) strict supervision and control of operators’ work
3) focus on personnel paperwork, e.g. contracts, payroll etc.
what is the management style and professionals of the classical model
- authoritarian
- lawyers/labour relations specialists
what is the purpose and unit name of the legal-centric model
- to apply labour law and reach agreements with (usually unionised) employees 9especially on salaries)
- unit name: personnel department
what are the three characteristics of the legal-centric model
1) orientation towards technical and clerical employees
2) focus on complying with legislation (contracts, social security, wages, etc.) and collective bargaining
3) labour-related legal advisory services
what is the management style and professionals of the legal-centric model
- authoritarian
- lawyers/labour relations specialists
what is the purpose and unit name of the organisational behaviour model
- to optimise activities related to people, using HR techniques developed in the field of organisational behaviour (selection, training etc.), in addition to labour relations issues
- unit name: human resources department
what are the three characteristics of the organisational behaviour model
1) little focus on managers
2) diversity of independent and disconnected HR practices
3) lack of connection to overall business strategy
what is the management style and professionals of the organisational behaviour model
- paternalistic –> participative
- less % lawyers/more % of other specialists (especially psychologists)
what is the purpose and unit name of the business strategic model
- optimise employee contribution to fulfil the business strategy, combining economic rationality with people development
- unit name: human resources department
what are the four characteristics of the business strategic model
1) focus on all types of employees (including managers
2) HR strategy and business strategy are highly intertwined
3) HR function is developed following a strategic logic
4) focus on consistency among HR practices
what is the management style and professionals of the business strategic model
- contingent (mainly participative)
- multidisciplinary teams (including economists)
what are the three dimensions of the HRM scope
- HR management
- labour administration
- HRM support tools
what are the aims of the human resource managements organisational policies
- achieving the proper human structure for meeting organisational goals
- having people with the necessary competences
- creating the necessary incentives to attract maximum interest from people towards the organisation
what are the aims of the labour administration
- application and monitoring of compliance with agreements of wages and working conditions, considering labour laws and obligations
- occupational health and safety (OHS)
what are the HRM support tools and what are some examples
- specific activities and practices of managing people that have a direct effect on behaviour, attitude, satisfaction and commitment
- e.g. leadership programmes
- teambuilding activities
- mentoring/coaching
- these are usually developed by in line managers
what are two types of human resource management
- traditional (technical) HRM
- strategic HRM
what is traditional HRM
- HR policies concentrate on satisfying needs of stakeholders
- HR policies focused on recruitment and selection, training, assessment, compensation and labour administration
- reactive: traditional view of the business and of employee relations
what is strategic HRM
- establishing a set of HRM practices so they can be implemented optimising two consistency criteria
1) horizontal/internal fit: consistency among the different practices
2) vertical/external fit: such practices help organisational goals to be achieved - proactive: forward looking view of the business and of employee relations
why should we regard HRM as a strategic activity
1) because people are crucial for business success (or failure)
2) because people are a key source of competitive advantage
3) because strategic decisions, especially in rapidly changing environments need a proactive focus on HRM
i.e. people must be considered as an investment to be optimised
