CH1 Final Text

Part 1 & Chapter 1 Introduction to The Human Resource Management
Introduction To The Human Resource Management

What Is An Human Resource Management
Definition;
Activities designed to provide for and coordinate the Human resources of an organization.
By lioyd l. byars & leslie w. rue

Human Resources Management is a set of interrelated organizational functions and processes including staffing the organization, designing jobs and teams, training and developing skilled employees, assessing and rewarding employee performance, and maintaining and retaining employees.
Department of Psychology
Human Resource Management is based on ideas and techniques developed to enhance worker motivation, productivity and performance. The HRM model emphasizes: 1. The need to search for new ways of working. 2. The central role of managers in promoting change. 3. The treatment of workers as individuals rather than part of a collective workforce. 4. The encouragement of workers to consider management as 'partners' rather than as opponents - 'us and us', rather than 'us and them'.
Human resource management.co.uk

Human resource management involves all management decisions and actions that affect the relationship between the organization and employees its human resource.
Beer et al.1984: 1
A method of maximizing economic return from labour resource by integrating HRM into Business Strategy.
Keenoy 1990
University Of Central Punjab 1
A strategic, coherent and comprehensive approach to the management and development of the organizations human resources in which every aspect of that process is wholly integrated within the overall management of the organization. HRM is essentially an idealogy.
M .Armstrong 1992: 9
Perhaps it is best to regard HRM as simply a notion of how people can best be managed in the interest of the organization.
M .Armstrong 1994
A diverse body of though and practice, loosely unified by a concern to integrate the management of personnel more closely with the core management activity of arganizations.
Goss 1994: 1
HRM is a discourse and technology of power that aims to resolve the gap inherent in the contract of employment between the capacity to work and its exercise and thereby organize individual workers into a collective productive power or force.
Townley 1994: 138

Human resource management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.
Storey 1995: 5
Human Resource Management, concerned with the strategic management of human resources to achieve a competitive advantage.
By English
Halifax ist die Hauptstadt von Neu-Schottland in Kanada mit den geographischen Koordinaten N 4439'0" W 6336'0".
By German
University Of Central Punjab
Human Resource Management (HRM, ook wel Human Resources Management) is een veelgebruikte term waarvoor in het Nederlands geen adequate vertaling bestaat. In het dagelijks taalgebruik wordt HRM vaak gebruikt als synoniem voor personeelsbeleid. Juister is het om Human Resource Management te zien als een specifieke invulling van personeelsbeleid: * Mensen vormen binnen een organisatie geen kostenpost, maar zijn baten
By Dutch
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By Russian
Human resource management (HRM) is a relatively modern label for the range of themes and practices involved in managing people. It is defined and described in a variety of (sometimes contradictory) ways.
By Alan Price
HRM as a philosophy of people management and provides a framework for its role within the business context. Human resource management has not 'come out of nowhere'.
HRM has absorbed ideas and techniques from a number of areas. In effect, it is a synthesis of themes and concepts drawn from over a century of management theory and social science research. Nevertheless, the concept of HRM is not straightforward. We will see that there is a considerable debate about its distinctiveness and definition, while evidence for the extent of its adoption remains contradictory. Some commentators regard HRM as a major advance, others dismiss it as a passing fad. This introductory chapter provides a framework which will allow you to understand and evaluate the different and sometimes ambiguous views of HRM. HRM owes a great deal to older models of people management but its orientation is consistent with other modern management techniques. Often HRM is associated or even confused with initiatives such as total quality management, culture change and business process reengineering. Each has its own rational but there are underlying themes in common with HRM. They are all products of a late twentieth-century reevalution of management thinking. They reflect criticisms of western business practices, the impact of Japanese competition and the emergence of dynamic new industrial economies such as Singapore and Korea.
Key concept of the HRM

A philosophy of people management based on the belief that human resources are uniquely important to sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. HRM is aimed at recruiting capable, flexible and committed people managing and rewarding their performance and developing key competencies
Influences on the development of HRM

Scientific Management Selection of the best people for the job Time and motion Direction of effort Minimum staff Performance management Performance related pay Anti-union climate Human Relations People matter Consultative management Working conditions Motivation other than pay Team working Informal organization Group phenomena Peer pressure
Hard HRM Soft

Strategic Management Long term thinking Missions and objectives Values Planned activities Resource management Proactive, focused direction Japanese Management Commitment Development Organizational culture Quality Just-in time resourcing Core/ periphery (flexibility) Continuous improvement
Mission Statement
We recognize that the most important resources of any institution of higher education are its faculty, administrators and support staff. Therefore, the mission of the Human Resources Department is to promote and facilitate the recruitment, retention and development of these resources. This mission is supported by providing assistance with the search process; by communicating employee benefits and human resource policies through orientation programs, handbooks, information brochures and memoranda; by providing consistent and nondiscriminatory human resource policy administration; by fostering positive labor management relations and through the coordination of workshops and training programs to promote professional and personal growth.
Brief History of Management Theories

Views on management have changed substantially over the past century -- particularly in the past few decades
1) Scientific Management Theory (1890-1940)

At the turn of the century, the most notable organizations were large and industrialized. Often they included ongoing, routine tasks that manufactured a variety of products. The United States highly prized scientific and technical matters, including careful measurement and specification of activities and results. Management tended to be the same. Frederick Taylor developed the:scientific management theory which espoused this careful specification and measurement of all organizational tasks. Tasks were standardized as much as possible. Workers were rewarded and punished. This approach appeared to work well for organizations with assembly lines and other mechanistic, routinized activities.
2) Bureaucratic Management Theory (1930-1950)

Max Weber embellished the scientific management theory with his bureaucratic theory. Weber focused on dividing organizations into hierarchies, establishing strong lines of authority and control. He suggested organizations develop comprehensive and detailed standard operating procedures for all routinized tasks.
3) Human Relations Movement (1930-today)

Eventually, unions and government regulations reacted to the rather dehumanizing effects of these theories. More attention was given to individuals and their unique capabilities in the organization. A major belief included that the organization would prosper if its workers prospered as well. Human Resource departments were added to organizations. The behavioral sciences played a strong role in helping to understand the needs of workers and how the needs of the organization and its workers could be better aligned. Various new theories were spawned, many based on the behavioral sciences (some had name like theory X, Y and Z).
What Is Human Resources ?

Human Resources may be the most misunderstood of all corporate departments, but its also the most necessary. Those who work in Human Resources are not only responsible for hiring and firing, they also handle contacting job references and administering employee benefits. Its true that any individual who works in Human Resources must be a people person. Since anyone in this department deals with a number of employees, as well as outside individuals, on any given day, a pleasant demeanor is a must. Managing employees is a major job, so those in Human Resources must be equal to the task. Ten or twenty years ago, Human Resources personnel were rarely seen. Instead they worked behind the scenes to ensure personnel records were in order and employee benefits were being properly administered, but the job stopped there. Todays Human Resources personnel dont only handle small administrative tasks. They are responsible for staffing major corporations. This is no minor feat. Its not enough to be able to screen potential employees, however. Those who work in Human Resources also have to be able to handle a crisis in a smooth, discreet manner. Whether the issue is health care related or regarding sexual harassment or employee disputes, a person working in Human Resources must be trusted to keep an employees personal details to herself. The Human Resource team must also be a good judge of morale and realize when morale boosting incentives are needed. Its up to them to make sure all employees are comfortable with their surroundings and working under acceptable, if not above average, conditions. For those looking to enter a career in Human Resources, a college education is necessary. One doesnt necessarily have to have a degree in Human Resources, however. Majoring in Business Administration, Psychology, Labor Relations and Personnel Administration, as well as degrees in Social and Behavioral Sciences, can also be beneficial. Human Resources may have gotten a bum rap, but its clearly among the most important departments in any corporation. The next time you have to meet with University Of Central Punjab
Part 1 & Chapter 1 Introduction to The Human Resource Management someone from Human Resources, remember that without her, your company might not be running so efficiently.
Origins
HRM-type themes including Human capital theory and human asset accounting can be found in the literature from the 1970s. However the modern view of human resource management first gained prominence in 1981 with its introduction on the prestigious MBA course at Harvard Business School. The Harvard MBA has provided blueprint for many other courses throughout the world, making its interpretation of HRM particularly influential (Beer et al 1984; Guest 1987; Poole 1990). Simultaneously, other interpretations were being developed in Michign and New York. These ideas spread to the UK in the 1980s, and also to Australia, New Zealand and parts of northern Europe. Today, the HRM approach is influential in many parts of the world. Typically, HRM has been portrayed as being:
A Radically New
A radically new approach to managing people, demarcated sharply from traditional personnel management (Storey 1989: 4). Personnel management is commonly viewed as having an operational focus, emphasizing technical skill and day to day functions such as recruitment and selection, training, and salary administration and employee relations. Personnel is detached and neutral approach to staff. HRM is more proactive, looking at people in economic terms as assets and liabilities to be actively managed. HRM is strategic, tying people management to business objectives. It attempts to manage people not necessarily employees-in the long term interests of the business.
An Integrated Approach
An integrated approach which provides a coherent programme, linking all aspects of people management. Whereas personnel managers employ a piecemeal range sophisticated techniques for assessment or selection, HRM integrates these within a meaningful and organized framework. Each element fits into a patterns which ultimately meets business needs. Additionally, HRM is seen to be holistic: its concern is significant shift towards more conceptual, higher-level concerns such as the structure and culture of the organization and the provision of necessary competences.
A Consistent View of People Management

A consistent view of people management in which employees are treated valuable assets. An organizations reward systems, performance measures, promotion and learning opportunities are used to maximize the utilization of its human resources. In particular, they are focused on the attitudes, beliefs and commitment of employees to achieve behavioural consistency and a culture of commitment. University Of Central Punjab 7
A General Management Function

A general management function. Personnel management is viewed as the work of specialists; HRM is the responsibility of all managers. In some organizations human resource experts provide an internal consultancy service to line managers. There is a particular stress on the role of top management and an overall increase in the status of people management. Traditional personnel managers have little power or prestiage.
From an organizational perspective human resources encompasses: The people in an organization-its employees
The people in an organization its employees. They offer different skills, abilities and knowledge which may or may not be appropriate to the needs of the business. Additionally, their commitment and motivation vary. Some people identify with an organization and are motivated to help achieve its objectives. Others regard their employing firm as a vehicle for personal goals. Some may be overworked while others are underutilized. Invariably, there is a gap or mismatch between the actual performance of employees and the ideal requirements of a business. HRM focuses on closing this gap to achieve greater organizational effectiveness. This has been referred to as the matching model.
The human potential available to a business

The human potential available to a business. This includes the recognition and development of unrealized skills and knowledge. Ingenuity and creativity can be tapped to develop innovative services and products. This also extends to people outside an organization contractors,consultants,freelancers,temporary and part time workers who can add expertise, deal with unusual problems and provide the flexibility to give a competitive advantage. Why should HRM have attracted such attention particularly from senior managers? From a strategic viewpoint, Lengnick Hall (1988) identify a clear rational for adopting the HRM approach: HRM offers a broader range of solutions for complex organizational problems . It ensures that an organizations people are considered as well as its financial and technological resources when objectives are set or capabilities assessed . It forces the explicit consideration of the individuals who implement and comprise the strategy . Two-way links are encouraged between the formulation of strategy and its human resource implications, avoiding problems which might arise from: 1. Subordinating strategic considerations to HR preferences; University Of Central Punjab 8
Part 1 & Chapter 1 Introduction to The Human Resource Management 2. Neglecting an organizations people as a potential source of organizational competence and competitive advantages.
HRM is primarily North American in origin but, far from causing a revolution in people management techniques, acceptance of the new interpretation.
HRM-type themes, including 'human capital theory' and 'human asset accounting', can be found in the literature from the 1970s. However, the modern view of human resource management first gained prominence in 1981 with its introduction on the prestigious MBA course at Harvard Business School. Simultaneously, other interpretations were being developed in Michigan and New York. Sparrow and Hiltrop (1994) picked out four main approaches from this period: The Michigan and New York Schools: strategic matching theories The Harvard school: a multiple stakeholders theory The Warwick School: a political and change process theory The Schuler School: a behavioural transformation theory
The concept of HRM

What exactly is 'human resource management'? Many people find HRM to be a vague and elusive concept - not least because it seems to have a variety of meanings. This confusion reflects the different Interpretations found in articles and book Townley (1994) argues that much of the confusion over the role of human resource managers is due to two factors:- s about human resource management. 1. The conflict between the welfare' tradition of personnel management and the strategic orientation of modern HRM . 2. A gender divide between: - 'female' or 'soft' personnel management (particularly in respect of the welfare tradition) at lower management and administrative levels; 'male', hard-nosed human resource managers within upper management or corporate headquarters. 3. More recently, she believes that: "The present division between personnel and HRM ... equally reflects the same gendered elements. Put bluntly, the focus of HRM - an agenda, in the main, prescribed by men - has been 'important' men in one field talking to, reflecting and reporting on 'important' men in another."
The Development Of The HRM Concept

The full concept of HRM emerged in the mid 1980 against the background of the popularist writers on management who flourished in that decade. These included Pascale and Athos (1981) and Peter and Waterman (1982) who produced the lists of the attributed that they claimed characterized successful companies. These popular school of excellence writers may have exerted some influence on management thinking about the need for strong cultures and commitment but as Guest (1993) has commented they were right enough to be dangerously wrong. The concept of HRM has gone through three stages
1. The initial concepts developed by American writers in the 1980s. 2. The take-up of these comments by British writers in the late 1980s and earlier 1990s who were often skeptical about the reality beyond the rhetoric and dubious about its morality. 3. The assimilation of HRM into traditional personnel management.
The two initial concepts of HRM have been christened by Boxall (1992) as the matching model and the Harvard framework. University Of Central Punjab
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Integrated Performance Management Model

Organizations expend considerable amount of efforts, time, and money in order to motivate and utilize the human talent optimally in the name of the performance management. Unfortunately most of these attempts have not succeeded in producing the anticipated and desired results as pointed out by few research studies. The major reason for this include lack of coherence among HR initiatives and misdirected or random efforts. Integration of the performance management activities with a specific objective and its alignment with strategic planning of organization can
1) Minimize these negative outcomes. 2) Contribute effectively for organizational effectiveness.

There are numerous performance management models in circulation, mostly at the conceptual level. In this context a pragmatic and integrated performance management model developed, implemented and evaluated by Les Pickett president elect of ARTDO and president of HR international Australia can serve as the best example and basis. The model had received wide appreciation during this presentation at 25 annual international symposium on personnel Administration held in 2000. The over view is illustrated that.
Essential principles of HRM.

Part 1 & Chapter 1 Introduction to The Human Resource Management A systematic framework designed for Human Resource Management in a Business Context based on the ten 'C' model. This framework incorporates ten principles, each conveniently beginning with 'C' - in the best management-guru style. In fact terms beginning with 'C' have a considerable track record in HRM.. The Harvard model has its central four Cs - commitment, congruence, competence, cost-effectiveness - three of which are incorporated in our ten principles. Our ten principles have been chosen because they are all measurable in some way and the essence of HRM lies in the tension and balance between them.
Different interpretations of HRM.

The Harvard interpretation sees employees as resources. However, they are viewed as being fundamentally different from other resources - they cannot be managed in the same way. The stress is on people as human resources. There are the two approaches 1) Soft approach. 2) Hard approach.
Harvard Map & Soft Approach

The Harvard Map or model outlines four HR policy areas: Human resource flows recruitment, selection, placement, promotion, appraisal and assessment, promtion,termination, etc. Reward systems pay systems, motivation, etc.
Employee influence delegated levels of authority, responsibility, power Work systems definition/design of work and alignment of people. Which in turn lead to the 'four C's' or HR policies that have to be achieved: Commitment Congruence Competence Cost effectiveness
The Harvard Map of HRM & Hard Approach

This map is based on an analytical approach and provides a broad causal depiction of the 'determinants and consequences of HRM policies.' It shows human resource policies to be influenced by two significant considerations: University Of Central Punjab 12
Situational factors in the outside business environment or within the firm such as laws and societal values, labor market conditions, unions, work-force characteristics, business strategies, management philosophy, and task technology. According to Beer et al these factors may constrain the formation of HRM policies but (to varying degrees) they may also be influenced by human resource policies. Stakeholder interests, including those of shareholders, management employees, unions, community, and government. Beer et al argue that human resource policies SHOULD be influenced by ALL stakeholders. If not, 'the enterprise will fail to meet the needs of these stakeholders in the long run and it will fail as an institution.'
The authors also contend that human resource policies have both immediate organizational outcomes and long-term consequences. Managers can affect a number of factors by means of the policy choices they make, including: - the overall competence of employees, - the commitment of employees, - the degree of congruence between employees' own goals and those of the organization, and - the overall cost effectiveness of HRM practices. Beer et al state that these 'four Cs' do not represent all the criteria that human resource policy makers can use to evaluate the effectiveness of human resource management, but consider them to be 'reasonably comprehensive' although they suggest that readers may add additional factors depending on circumstances. And various authors have done so. Beer et al argue that: "In the long run, striving to enhance all four Cs will lead to favorable consequences for individual well-being, societal well-being, and organizational effectiveness (i.e., long-term consequences). By organizational effectiveness we mean the capacity of the organization to be responsive and adaptive to its environment. We are suggesting, then, that human resource management has much broader consequences than simply last quarter's profits or last year's return on equity. Indeed, such short-term measures are relatively unaffected by HRM policies. Thus HRM policy formulation must incorporate this long-term perspective."
A harder approach - people as human resources.

A different view is associated with the Michigan Business School. The Michigan model has a harder, less humanistic edge, holding that employees are resources in the same way as any other business resource. They must be: - obtained as cheaply as possible - used sparingly
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Part 1 & Chapter 1 Introduction to The Human Resource Management -developed and exploited as much as possible Sparrow and Hiltrop (1994), pointing out that this is a 'matching' model of strategic HRM originally outlined by Tichy, Fombrun and Devanna (1982), state that: "The philosophy does not limit itself to direct employees of an organization. Therefore humans or people - as opposed to just employees - need to be managed in a way that is consistent with broad organizational requirements such as quality or efficiency. Personnel policies and organization structures have to be managed in a way that is congruent with organizational strategy and organizational effectiveness depends on there being a tight 'fit' between human resource and business strategies. HRM strategies are all about making business strategies work and so emphasis is placed on how to best match and develop 'appropriate' HRM systems." The Michigan theorists highlighted the following as being the most important HR issues to achieve such a match: Selection the most suitable people to meet business needs
Performance in the pursuit of business objectives Appraisal, monitoring performance and providing feedback to the organization and its employees Rewards for appropriate performance
Development of the skills and knowledge required to meet business objectives The New York variation on the matching model, outlined by Schuler and Jackson (1987), looked at Michael Porter's generic competitive strategies (quality enhancement, innovation and cost leadership or reduction) and developed a set of 'needed role behaviours' for each strategy which, according to Sparrow and Hiltrop (1994): "varied across a number of dimensions and then ( they) stipulated a set of hypotheses about the personnel and industrial relations practices that were needed. They identified the most important HRM practices about which strategic decisions had to be made and for each practice noted the dichotomous but logical alternatives that could be applied. HRM could be seen as a menu of strategic choices to be made by HR executives intended to promote the most effective role behaviours that are consistent with the organization strategy and are aligned with each other." Schuler and Jackson (1987) listed these choices under a number of categories, e.g.
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Part 1 & Chapter 1 Introduction to The Human Resource Management Planning choices: Informal ... Formal; Short-term ... Long-term; Explicit ... Implicit job analysis; Job simplification ... Job enrichment; Low employee involvement ... High employee involvementOther choices were given for staffing, appraising, compensating, and training/development.
Schools of thought
Paradoxically, attempts to define HRM too precisely seemed to have resulted in confusion and contradiction rather than clarity. However, and perhaps only for the moment, HRM has the advantage of appearing to be contemporary and innovative. This is particularly the case in comparison with personnel management. Nevertheless, personnel departments have refused to go away. A casual examination of job advertisements in the press will reveal that applications are still to be sent to 'Personnel Managers', 'Personnel Departments', and even 'Staffing Officers'. At the same time, advertisements for 'human resource' jobs are common - particularly at a senior level - even if applications are to be sent to the Personnel Office! It is evident, therefore, that defining and accepting HRM comes down to a matter of opinion - or vested interest. Indeed, some interpretations have a strong constituency. It can be seen from table 2.3 that each of these views has a natural audience able to identify their own interests with a particular interpretation. Hence it is possible to find accounts stressing one of the following:
HRM is really personnel management Human resource management is a

modernized form of 'personnel', repackaged to enhance the status of personnel managers. It has a hard edge, entitling HR managers to the same respect as finance professionals. HRM is based on integrated and coherent recruitment, assessment and development programmes. It is sophisticated, requiring rigorous training under the auspices of a professional body or university.
HRM is a strategic model It employs the techniques of strategic management

for the utilization of human resources. It focuses on senior managers' concern with achieving objectives and containing costs. HRM aims for a seamless link between business policy and recruitment, performance assessment, reward management, development and dismissal. HRM is a mechanism for control and the exercise of power by top management. It encourages employee attitudes and behaviour which are consistent with business goals. HRM is just one aspect of a senior manager's strategic repertoire. It requires a wide appreciation of the industry and the organization and fits resource-based theories which are familiar from business strategy literature. This interpretation owes its inspiration largely to the Michigan model.
HRM is people management It covers all aspects of managing employees in

its widest sense and emphasizes the role of line managers in overseeing their own University Of Central Punjab 15
Part 1 & Chapter 1 Introduction to The Human Resource Management staff. From this perspective, HRM is a new generic label for all the techniques and tactics available to manage people. It concentrates on translating organizational objectives into operational achievement by winning employee commitment and gaining high-quality performance. HRM is practical and pragmatic. This interpretation derives from the Harvard model. However, as can be seen from much published material, and even university courses, there is a considerable risk that this approach can result in a loss of focus. The subject can easily be reduced to an incoherent and inconsistent collection of techniques and practices. The value and popularity of HRM may derive from its openness to varied interpretations. It is possible to argue that the term is a useful, 'catch-all phrase, reflecting general intentions but devoid of specific meaning' (Guest, 1989b). This allows it to be applied in a variety of circumstances. Individual authors and practitioners interpret HRM according to their own background, interests and intended audiences. Indeed, Keenoy and Anthony (1992: 238) consider that we should not look too closely: '...once we seek to explain HRM, to subject it to any analysis or criticism, it ceases to function as intended. Its purpose is to transform, to inspire, to motivate and, above all, to create a new 'reality' which is freely available to those who choose or are persuaded to believe. To explain it is to destroy it.'
The new managerialism . Schuler (1990) emphasized that the HR function

had an opportunity to shift from being an 'employee advocate' (associated with personnel management) to a 'member of the management team'. Schuler's view was that this required HR professionals to be concerned with the bottom line, profits, organizational effectiveness and business survival. In other words, human resource issues should be addressed as business issues.In fact, line and general managers have been instrumental in the adoption of HRM - often pushing changes through despite the resistance of personnel specialists (Storey, 1995: 7).Encouraged by the writing of management gurus such as Peters and Waterman and Kanter, managers eagerly adopted new forms of organization.
People management
Human resource management has not 'come out of nowhere'. HRM has absorbed ideas and techniques from a number of areas. In effect, it is a synthesis of themes and concepts drawn from over a century of management theory and social science research.
People management - origins

Arguably, HRM has become the dominant approach to people management in English-speaking countries. But it is important to stress that HRM has not 'come out of nowhere'. There is a long history of attempts to achieve an understanding of human behaviour in the workplace. Throughout the 20th century and earlier, practitioners and academics deweloped theories and practices to explain and influence human behaviour at work. HRM has absorbed ideas and techniques from a University Of Central Punjab 16
Part 1 & Chapter 1 Introduction to The Human Resource Management wide range of these theories and practical tools. In effect, HRM is a synthesis of themes and concepts drawn from a long history of work, more recent management theories and social science research. (...) There is a long history of attempts to achieve an understanding of human behaviour in the workplace. Throughout the twentieth century, practitioners and academics have searched for theories and tools to explain and influence human behaviour at work. Managers in different industries encounter similar experiences: businesses expand or fail; they innovate or stagnate; they may be exciting or unhappy organizations in which to work; finance has to be obtained and workers have to be recruited; new equipment is purchased, eliminating old procedures and introducing new methods; staff must be re-organized, retrained or dismissed. Over and over again, managers must deal with events which are clearly similar but also different enough to require fresh thinking. We can imagine that, one day, there will be a science of management in which these problems and their solutions are catalogued, classified, standardized and made predictable. Sociologists, psychologists and management theorists have attempted to build such a science, producing a constant stream of new and reworked ideas. They offer theoretical insights and practical assistance in areas of people management such as recruitment and selection, performance measurement, team composition and organizational design. Many of their concepts have been integrated into broader approaches which have contributed to HRM.
Scientific management. A hard-nosed and authoritar0ian approach to management developed by F.W. Taylor at the beginning of the 20th century. Taylor believed in a combination of detailed task specifications and selection of the 'best man' for the job. It was the function of managers to think - workers were expected to do exactly as they were told. This, he felt, would result in the most efficient method of performing physical work. Additionally, he advocated premium payments as a means of rewarding the most effective (compliant) workers. Taylor's ideas led on to: Fordism a philosophy of production based on the continuous assembly line techniques devised by Henry Ford. This methodology dominated worldwide manufacturing until the 1980s. Time and motion - stopwatch methods of measuring work, used to increase efficiency and minimize wasted time and effort. Continuous improvement - fundamental to Japanese production methods: using employee knowledge and ingenuity to continually refine product manufacture and development.
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Part 1 & Chapter 1 Introduction to The Human Resource Management These practices require management control over the precise detail of work in order to maximise efficiency and gain competitive advantage. Inevitably, this is achieved at the expense of employees who sacrifice the freedom to control their own work. 'Scientific management', under any name, creates an inevitable tension between the rights and expectations of workers and management's need to gain ever greater quality and cost-effectiveness. HRM is identified with attempts to deal constructively with this tension through assertive, but non-autocratic, people management. It is also linked to the use of performance-related pay and other ways of rewarding appropriate behaviour. Human factors. In Australia, New Zealand and - particularly - the UK, governmentsponsored research by work psychologists during and after the First World War produced significant information on the relationship between boredom, fatigue and working conditions. They established that fatigue arose from psychological as well as physical causes. They demonstrated also that working longer hours did not necessarily increase productivity. Human factors psychologists established a tradition of performance measurement, job analysis and clarification of skill requirements. These underlie key HRM techniques such as competence assessment and selection methods. Human relations. In the 1920s and 30s researchers in the USA demonstrated that work performance and motivation did not depend simply on pay and discipline. People worked for many other reasons. They wanted to be involved in determining their own work conditions. They responded to encouragement and the interest shown by management. Workers formed informal groups which established their own norms of behaviour, including acceptable levels of performance. Working groups exercised social pressure on their members to conform to these unconsciously determined rules. The human relations movement had considerable influence within US business schools such as Harvard which later developed a 'soft', humanistic interpretation of HRM. Behavioural science. The human relations and human factors approaches were absorbed into a broad behavioural science movement in the 1950's and 1960's. This period produced some influential theories on the motivation of human performance. For example, Maslow's hierarchy of needs gave an individual focus to the reasons why people work, satisfying an ascending series of needs from survival, through security to eventual 'self-actualisation'. In the same period, concepts of job design such as job enrichment and job enlargement were investigated. It was felt that people would give more to an organization if they gained satisfaction from their jobs. Jobs should be designed to be interesting and challenging to gain the commitment of workers - a central theme of HRM. Management by objectives. Based on work by Drucker in the 1950s, and further developed by McGregor, management by objectives (MBO) linked achievement to competence and job performance. MBO primarily focused on the individual, tying rewards and promotion opportunities to specific agreed objectives, measured by feedback from performance assessment. Individual managers were given the opportunity to clarify the purposes of their jobs and set their own targets. MBO developed into modern performance management schemes and performance-related pay. University Of Central Punjab 18
Part 1 & Chapter 1 Introduction to The Human Resource Management Contingency. Many researchers found difficulty in applying academic theories to real organizations. The socio-technical school developed models of behaviour and performance which took into account the contingent variables, or 'it depends' circumstances, attached to particular work situations (Burns and Stalker, 1961; Woodward, 1980). They argued that employees were part of a system which also included the equipment and other resources utilized by an organization. The system could not function optimally unless all its components - human and non-human - had been considered. The HRM concepts of coherence and integration derive, in part, from this line of thought. Organizational development. Also drawn from the long tradition of organizational theory, organizational development (OD) took a pragmatic approach to change. Theory and practice were mixed in a tentative process called 'action research'. OD familiarized managers with the idea that changes in processes, attitudes and behaviour were possible and that organizations should be thought of as whole entities. Strategic management. Directing people to achieve strategic objectives so that individual goals are tied to the business needs of the whole organization. Strategic management has become a dominant framework for organizational thinking since the second world war. It is based on concepts first used for large-scale military and space programmes in the USA. Frequently, it employs project and team-based methods for planning and implementation. Lately, internal (including human) resources and key competencies have been identified as crucial elements of longterm competitive success. Strategic management has become the major unifying theme of undergraduate and - especially - postgraduate business courses. The concern with strategy distinguishes human resource management from personnel management. Leadership. Many writers have concluded that a visionary leader is essential, particularly in developing and inspiring teams. McGregor's The Human Side of Enterprise (1960) linked leadership and management style to motivation. McGregor expressed the contrast between authoritarian people management ('Theory X') and a modern form based on human relations ideas ('Theory Y'). His ideas parallel 'hard' and 'soft' HRM. Effective managers do not not need to give orders and discipline staff, they draw the best from their people through encouragement, support and personal charisma. Later authors (such as Peters and Waterman, 1982) feature the leader's vision and mission as a quasi-religious means of galvanising worker commitment and enthusiasm. Corporate culture. Deal and Kennedy (1982) popularized the belief that organizational effectiveness depends on a strong, positive corporate culture. They combined ideas from leadership theory and strategic management thinkers with prevailing beliefs about Japanese business success. Managers were exhorted to examine their existing organizational climates critically and work to change them into dynamic and creative cultures. The excellence movement inspired by Peters and Waterman (In Search of Excellence, 1982, and others) has been particularly influential with practising managers, despite criticisms of the research on which it was based. University Of Central Punjab 19
Personnel management
The renewed emphasis on the importance of human resources in the 1980s and 90s drew attention to the way in which people management was organized. Specifically, this meant a critical review of the functions of personnel management. Personnel management has been a recognised function in the USA since NCR opened a personnel office in the 1890s. American personnel managers worked within a unitarist tradition, identifying closely with the objectives of their organization (key concept 1.3). It was natural for HRM to emerge comparatively smoothly from this perspective. In other countries, notably Australia, South Africa and the UK, the personnel management function arrived more slowly and came from a number of routes. Moreover, its orientation was not entirely managerial. In Britain its origins can be traced to the 'welfare officers' employed by Quaker-owned companies such as Cadburys. At an early stage it became evident that there was an inherent conflict between their activities and those of line managers. They were not seen to have a philosophy compatible with the worldview of senior managers. The welfare officer orientation placed personnel management as a buffer between the business and its employees. In terms of organizational politics this was not a politically viable position for individuals wishing to further their careers, increase their status and earn high salaries.
Key concept
Unitarism
A managerialist stance which assumes that everyone in an organization is a member of a team with a common purpose. It embodies a central concern of HRM, - that an organization's people, whether managers or lower-level employees, should share the same objectives and work together harmoniously. From this perspective, conflicting objectives are seen as negative and disfunctional. By definition it is the opposite of pluralism: the acceptance of several alternative approaches, interests or goals within the samr organization or society. Arguably, in the field of HRM, unitarism represents a US tradition, whereas pluralism is more typical of European attitudes towards people management. The second tradition - industrial relations - further compounded this distinction between personnel and other managers. In the acrimonious industrial relations climate which prevailed in the UK throughout much of the 20th century, personnel/industrial relations managers played an intermediary role between unions and line management. Their function was legitimized by their role as 'honest brokers'. But from the 1980s onwards governments with a neo-liberal or free market orientation such as Margaret Thatcher's administration in the UK reined in union freedom severely. Overall, there was a marked reduction in the importance of University Of Central Punjab 20
Part 1 & Chapter 1 Introduction to The Human Resource Management collective worker representation in many English-speaking countries. The perceived importance of collective bargaining reduced as managerial power increased. Trade union membership declined along with centralized pay bargaining and other forms of collective negotiation - and with them, the importance of the personnel manager with negotiating experience. The focus switched from the collective to the relationship between the employer and the individual employee. To support this change, a variety of essentially individualistic HR techniques were applied to achieve business goals. These include performance measurement, objective-setting, and skills development related to personal reward. By the 1980s, personnel had become a well-defined but low status area of management (see table 1.1). Associations such as the British Institute of Personnel Management (now the Institute of Personnel and Development) recruited members in increasing numbers, developed a qualification structure and attempted to define 'best practice'. Although the knowledge and practices they encouraged drew on psychology and sociology, they were largely pragmatic and commonsensical and did not present a particularly coherent approach to people management. Moreover, in some instances training and industrial relations were considered to be specialist fields outside mainstream personnel management. Traditional personnel managers were accused of having a narrow, functional outlook. Storey (1989: 5) commented that personnel management: '...has long been dogged by problems of credibility, marginality, ambiguity and a 'trash-can' labeling which has relegated it to a relatively disconnected set of duties - many of them tainted with a low-status 'welfare' connotation'. In practice, the background and training of many personnel managers left them speaking a different language from other managers and unable to comprehend wider business issues such as business strategy, market competition, labour economics, the roles of other organizational functions - let alone balance sheets (Giles and Williams, 1991). The scene was set for a reintegration of personnel management with wider trends in management thinking.
Specialist Personnel Functions

Recruitment - advertising for new employees and liaising with employment agencies. Selection - determining the best candidates from those who apply, arranging interviews, tests, references. Promotion - running similar selection procedures to determine progression within the organization. Pay - a minor or major role in pay negotiation, determination and administration. Performance assessment - co-ordinating staff appraisal and counselling systems to evaluate individual employee performance. Grading structures - as a basis for pay or development, comparing the relative difficulty and importance of functions. Training and development - co-ordinating or delivering programmes to fit people for the roles required by the organisation now and in the future.
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Welfare - providing or liaising with specialists in a staff care or counselling role for people with personal or domestic problems affecting their work. Communication - providing an internal information service, perhaps in the form of staff newspapers or magazines, handouts, booklets, videos. Employee Relations - handling disputes, grievances and industrial action, often dealing with unions or staff representatives. Dismissal - on an individual basis as a result of failure to meet requirements or as part of a redundancy, downsizing or closure exercise, perhaps involving large numbers of people.
Personnel administration - record-keeping and monitoring of legislative requirements related to equal opportunities and possibly pensions and tax.
Personl Vs HRM
The reasons for this many and varied .Among them the potential reason is lack of the clear understanding about the differences between personnel/IR and HRM. Professor John Storey brilliantly portrayed these differences in 27 areas of people management in 1992 in his book titled Development in the Management of Human Resources.
Points of Differences Dimensions

Beliefs and Assumptions
1. 2. 3. 4. 5. 6. 7. Contract Rules Guide to management actions Behaviour refrent Managerial risk vis-vis labour Nature of relations conflict Careful delineation of written contracts Importance of devising clear rules Procedures Norms /custom and practice Monitoring Pluralist Institutionalized Aim to go beyond contract Can do outlook impatience with rule Business need Values Nurturing Unitarist De -emphasized
Personnel and IR
HRM
Strategic aspects
1. 2. 3. 4. Key relations Initiatives Corporate plan Speed of decision Labour management Piecemeal Marginal slow Customer Integrated Central Fast
Line Management University Of Central Punjab 22

1. 2. 3. 4. 5. Management role Key managers Communication standardization Prized management skills Transactional Personnel/IR specialists Indirect High Negotiation Transformational leadership General Direct Low Facilitation
Key levers
1. 2. 3. 4. 5. Selection Pay Conditions Labour management Separate, marginal task Job evaluation Separately negotiated Collective bargaining contracts Regularized through facilities and training Many Restricted flow Division of labour Reach temporary truces Controlled access to courses Personnel procedure Integrated Performance related Harmonization Towards individual contracts Marginalized Few Increased flow Team work Manage the climate and culture Learning companies Wide ranging cultural, structural and personnel strategies
Thrust of relations with stewards 6. Job categories and grades 7. Communication 8. Job design 9. conflict handling 10. Training and development 11. Foci of attention for interventions
Management thinking
Like fashions in hairstyle and clothing, management ideas come and go. However, a consistent theme has prevailed for over twenty years: the most successful organizations make the most effective use of their people - their human resources. These concepts have exercised strong influences on managers but, like fashions in hairstyle and clothing, management ideas come and go. Today's best-selling management concept will not survive long before being overtaken by the next 'big idea'. Significantly, however, a consistent theme has prevailed for 20 years: the most successful organizations make the most effective use of their people - their human resources. In fact, the emergence of HRM is part of a major shift in the nature and meaning of management towards the end of the 20th century. This has happened for a number of reasons. Perhaps most significantly, as we will see in chapters 2 and 3, changes in the structure and intensity of international competition have forced companies to make radical changes in their working practices From the 1970s onwards, managers in the west have felt themselves to be on a roller-coaster of change, expected to deliver improved business performance by whatever means they could muster. Their own careers and rewards were tied to those improvements and many have been despatched to the ranks of the unemployed for not acting quickly and imaginatively enough. Caught between the need to manage decisively and fear of failure, managers have sought credible new ideas as a potential route for survival. University Of Central Punjab 23
Part 1 & Chapter 1 Introduction to The Human Resource Management The shift of economic power to the Asia-Pacific region emphasized the weakness in traditional western - specifically, American - management methods. To meet competition from east Asia, industries and organizations in older developed countries have been forced to restructure. The Japanese provided both a threat and a role model which eastern and western companies tried to copy. Frequently, reorganized businesses have adopted Japanese techniques in an attempt to regain competitiveness. The term 'Japanization' came into vogue in the mid-1980s to describe attempts in other countries to make practical use of 'Japanese' ideas and practices, reinforced by the impact of Japanese subsidiaries overseas. Initially, the main interest lay in forms of technical innovation and manufacturing methods such as 'continuous improvement' and 'just-in-time'. More recently their ways of managing people have attracted attention. Japanese practice indicates that human resources are an organization's key asset. A key feature of Japanese organizations is the emphasis on worker commitment, flexibility and development. Books such as Pascale and Athos' (1981) The Art of Japanese Management highlighted the competitive advantage which the Japanese gained through effective people management. The message came through that 'at bottom, it is the human resource among all the factors of production which really makes the difference' (Storey, 1995: 5).
KEY CONCEPT Stakeholders

Employees have rights and interests other than pay. They are stakeholders in common with members of other recognisably separate groups or institutions with a special interest in an organization. These include shareholders, managers, customers, suppliers, lenders and government. Each group has its own priorities and demands and fits into the power structure controlling the organization. Employees have limited importance in free market countries such as the USA and the UK in comparison with most European and many AsianPacific countries. Notionally, shareholders are paramount in English-speaking countries. In reality, top managers normally have effective control and pursue their own interests - often at the expense of their staff. People management is a central strategic issue rather than a 'necessary inconvenience' (Goss 1994: 4). The component ideas of HRM parallel elements of Japanese people management. But, whereas HRM is a matter of rhetoric for most western managers, the Japanese view it as a way of life: an instrumental approach to ever-increasing efficiency focused on employee commitment and skill. Traditionally, Japanese companies have placed the interests of their employees first amongst their stakeholders (see key concept 1.2), followed by customers and lastly the shareholders. This is virtually the opposite situation to that found in free market western countries such as Australia and Britain. However, as we shall see in chapter 2, the recession in the early 1990s forced a number of Japanese companies to adopt western ways.
Specialist functions Of HRM

1 Added Value often refers to the analysis undertaken by management of the cost
and contribution made by employees involved at each stage in the process of producing a product or providing a service.
2 Appraisal Schemes - an individual's performance is reviewed by their

manager. Their past performance is examined and future goals are set.
3 Benchmarking measures standards of performance against others doing similar

work.
4 Business Process Re-engineering (BPR) refers to the methods by which a

company or service undertakes a thorough review of all its operations.
5 Business Units often have their own Trading Accounts and operate with
relative autonomy from the rest of the company or service.
6 Continuous Improvement (Kaizen) requires employees to constantly seek

ways of improving the quality of the product or service.
7 Delayering is the removal of middle layers of management resulting in a 'flatter'

management organisation.
8 Dismissal is when you are removed from employment 9 Empowerment/Enablement are strategies aimed to give people more control
and responsibility for their work
10 Flexibility describes changes in the size of the workforce, depending on shortterm changes in market conditions
11 Management-by-Objectives means each management team identifying its

key tasks and goals and using these as a yardstick against which performance is measured.
12 Multi-Skilling is the increase of the skills base of the workforce, usually

bringing in new technology
13 Multi-tasking requires for staff to take on a wider range of tasks, usually

involving on-the-job training
14 Outsourcing occurs when management invites external contractors to

undertake work that was previously done by in-house staff.
15 Performance Indicators measure the improvements in throughputs, outputs

and outcomes.
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16 Performance Related Pay (PRP) links an individuals performance with

their pay. Different schemes have been set up to measure
17 Team Building brings together employers and employees, with the goal of
increasing performance by strengthening relationships within the workplace
18 Total Quality Management (TQM) usually involves the introduction of

continuous monitoring. It refers to initiatives designed to improve the quality of products and services to meet customer's requirements.
Three Levels Of HRM Activities

HR managers need to acquire expertise in their field of work from two dimensions.firstly they must have thorough knowledge of HR systems horizontally.Secondly,they should acquire skills to perform the vertical role of HR manager.
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Managem ent level

Strategic
Recruitment
Developing the characteristics of people neede to run business in long term. Designing internal and external systems to reflect future businesses. Validation of selection criteria. Development of recruitment plan. New markets.
Performance appraisal
In long term what should be valued?. Developing means to appraise future dimensions. Early identificatio ns of potentials.
compensation
In world as it might be in long term,how will force be rewarded? . Linking rewards to the long term business strategy. Five year compensat ion plans for individual s. cafeteria style fring benefits.
Development
Planning development al experiences for people running business of the future. Designing systems with flexibility to adjust change. Organizing management development programmes. Organizing development activities. Fostering self development . Delivering job skill training. On the job training.
Managerial
Designing systems to link current and future potential. Assessment centers for development .
Operationa l
Staffing plans. Recruitment plans.
Annual appraisal systems. Day to day control systems.
Wage and salary administra tion. Benefit plans.
Four Types In HRM Strategy

HR strategy that is most suitable to a particular market condition like change in product strategy may not be suitable to a condition like organization turnaround. D .Stace and D. Dunphy proposed four HRM strategies that can fit in with four different organizational organizations. University Of Central Punjab 27
HRM Strategy type

Task Focused HRM Strategy Strong bottom line orientation. Emphisis on workforce planning, job redesigning and work practice reviews. Focus on tangible reward structure. Internal or external recruitment.
Conditions for use

Use when markets/products/services are undergoing major change and niche strategies is prevelant. HRM strategies must deliver the capacity for rapid structural, systems, skill and cultural changes.
Development
internal recruitment, where Use when markets are growing and possible. products/market/innovation is desired. Extensive development programmes. Use of intrinsic rewards. Strong emphasis on corporate culture.
Turnaround HRM Strategy

Downsizing, retrenchments. Use when the business environment Breaking with the old culture. changes dramatically, business strategy Lateral recruitment of key radically changes, environment is not executives from outside. compatible.
Paternalistic HRM Strategy

Central personnel orientation. Organizations and methods studies. Inflexible internal appointment policy. Use only in very limited mass production situations where the organization has an absolute monopoly on stable markets/ products.
Three Logics Of HRM Strategies
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Part 1 & Chapter 1 Introduction to The Human Resource Management The type of HRM practices that an organization prefers would be contingent upon its HRM goals. In turn the goals of an organization s HR strategy depends upon the logic it choose. Goals
Contribution
Investment
High initiative creativity,high performance expectations,some flexibility Comfortable headcount,highskill mix,moderate staff High High,identification company with and
Inducement
Some initiative and creativity,very high performance standards,modest flexibility. Lean head count,low skill mix,minimal staff. Adequate. High instrumental.
Involvement
Very high initiative and creativity,very high performance
Composition
Comfortable head count,protected core,high skill mix,minimal staff. Very high. Very high,strong identification with work,team,and company.
Competence Commitment
Practices Staffing Careful selection,extensive career development,some flexibility,minimal layoffs Extensive, continuous learning Tall structure,competitive,fixe d,job based,merit,many benefits Broad jobs,employee initiative,some group Careful selection,few career options,use of temps,minimal layoffs. Minimal Flat structure,high variable,piece rate,profit sharing,minimal benefits. Narrow jobs,employee paced. Minimal, directive More communication,high voice,high due process, high employee assistance Nonissue Over compliance Less communication,some voice,egalitarian Union avoidance conflict compliance or Very careful selection,some career development,extreme flexibility,minimal layoff. Extensive learning. continuous
Development Rewards
Flat structure,high, partially capable,skill and competency based,gain sharing. Enriched the jobs Minimal facilities Open and extensive communication,high voice,some due process Union avoidance cooperation Compliance and
Work system Supervision Employee relations Labour relations Government relations
Three Barriers To Effective HRM
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Part 1 & Chapter 1 Introduction to The Human Resource Management There are the basically three barriers to the effective HRM here we are discussing. 1. The first barrier is lack of top management commitment to HRM..A lack of top management support for HRM may be attributed to two factors.firstly it may be that the HRM function in general and HR managers in particular lacks representation and power to influence events in the organization. This is because top management is more concerned with their own power and maintaining control than about the real needs of the organization. Secondly it may be that top managemeant takes a short term perspective on the HRM because they belive that the evidence of HRM having a long term and positive impact on individual or organization level performance is sketchy. 2. The second barrier is shortage of knowledge and skills among
HRM managers to implement a credible HRM programme within their organization. In the above mentioned multination survey
majority of HRM managers viewed their jobs as routine administration and agreed that they lacked the knowledge skills and influence and credibility to develop and implement an HRM programme. 3. The third barrier to effective HRM is lack of proven
knowledge about the long term impact of HRM programmes.

As a result members of an organization may be skeptical of the benefits of major HRM initiatives. Both top and middle management may hold this skepticism. They are unable to discern tangible and positive performance outcomes related to HRM so that their commitment to it wanes.
Skill Set For HRM Professional In Organizational Culture

HR role is being placed on the forefront whether it is downsizing or experiencing economies of scale or technological change or business process reengineering or organizational restructuring.
Aspects of Reaction of employees Knowledge and skills organizationa to work place change needed by HR l change professionals
values Anger reassurance ,resentment, Knowledge of culture as to purpose,elements and bedrock nature Open thinking where the change of the process needed
Information technology
Fear,anxiety,curiosity,info rmation seeking ,excited
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Work process Resistance,group think,make sence,accountable Insecurity Team effectiveness,personality theory,empathy Empathy,knowledge of intercultural difficulties,decision making skills,persuading skills Negotiation skills,influencing skills,empathy Leadership development skills self awareness Self awareness,decision making and behaviour interpretation skills Understanding of financial Systems that are foundations of the business.continuously developing and upgating information net work
Economic inclusion Organizational inclusion Leadership style
Employee upset,out of the loop No loyalty,hoping leave,reassurance Powerlessness to
Employee
Company driver
cofusion
Fifteen Key Roles of HRM Practitioners

There are the most important roles for the HRM practitioners which are very much interesting, 1. Evaluator 2. Group facilitator 3. Individual development 4. Instructional writer 5. Instructor 6. Manager of training and development 7. Marketer 8. Media specialist 9. Needs analyst 10. Programme administrator 11. Programme designer 12. Strategist 13. Task analyst 14. Theoretician 15. Transfer agent
Outs And Ins Of HRM Trends

Part 1 & Chapter 1 Introduction to The Human Resource Management HRM function is continuously evolving due to changing cotours of internal and external environments of the organizations.
Out Chain of command, reporting relationships, department,and function,work as imposed from above tasks. Self management, responsiveness, proactivity, initiative, collaboration,self reliance Stability, order, predictability, structure. Flux, disorder, ambiguity, risk. Job titles and labels such as employee, manager, staff. Everyone as business person, an owner of a complete business process. Good citizenship show up, be a good soldier, stay 9 to 5 in cubicle. Make a difference add value, challenge the process, work for hours.
In Out In Out In Out In
Adopting HRM around the world

Hetrick (2002) explored the ways in which HRM emerged as a set of concepts, policies and practices within multinational subsidiaries in Poland between 1996 and 1999. HRM was clearly viewed as an imported 'Anglo-American concept' bearing no resemblance to people management as practised in Polish organizations. Hetrick comments that multinational firms are increasingly viewing HRM as one of the main control mechanisms by which employees can be integrated across national boundaries. Expatriate managers are important in this process as:

Role models displaying appropriate company behaviours, values and ways of doing things; Fixers, adapting corporate values and mission statements to local circumstances; Key actors, enacting the HRM practices; Networkers or boundary spanners, making connections between local managers and other parts of the business; Agents of the owners, overseeing the new subsidiary company; Coaches or mentors, transferring knowledge to local managers.
HRM is not necessarily strong in all western countries. Wchter and Muller-Camen (2002), noting the importance of German businesses to the European economy, suggest that a well-functioning HR system would be expected. But a number of comparative studies have found HRM in German companies to be less strategically integrated and proactive than that of similar businesses in other countries. They University Of Central Punjab 32
Part 1 & Chapter 1 Introduction to The Human Resource Management attribute these findings, at least partly, to the co-determination structure of German employee relations where the Betriebsrat (works council) has an important strategic role. Hence HRM has to be integrated with a pre-existing local system which, according to Wchter and Muller-Camen, might even be a strategic resource.
HRM in the United States.

HRM is primarily North American in origin but, far from causing a revolution in people management techniques, acceptance of the new interpretation has not been universal in the USA.(...) Why is this so? There are several possible explanations. First, there is the issue of perception: many US businesses fail to see any difference between HRM and earlier forms of people management. This is reflected in many (most?) standard US academic texts which are mainly concerned with the functional activities of personnel specialists - their philosophy is little different from that of 1970s texts. Second, There has always been a managerialist and anti-union tradition within personnel management in the USA - so that HRM is not the radical alternative it seems to be for welfare-oriented personnel managers and industrial relations specialists in other countries.Third, the long-term perspective of HRM - viewing an organization's people as investments for the future. This concept sits uneasily with the prevailing short-termist ideology of business in the English-speaking.
HRM in the UK.

When HRM was imported into other countries, it arrived with many of the contradictions inherent in North American practice. Further confusion was created as its principles were considered in the light of local people management traditions. As many commentators in Britain and elsewhere have been quick to point out, there is a 'central uncertainty' as to exactly what HRM is. The nature of HRM has been the focus of a particularly vigorous debate in the UK..
Status and Significance of HRM

Regardless of the rationale or the nature of its practice, HRM has become a common label for various forms and functions of people management. In English-speaking countries, the term has replaced 'personnel management' in many contexts. For example, academic courses, journals and textbooks formerly labelled as 'personnel management' are now described as 'human resource management'. However, and particularly at practitioner level, re-labelling does not mean necessarily that either the approach or the content have changed (Sisson, 1995: 87). The diverse interpretations of HRM are apparent when we compare practices in different countries and organizations. We noted earlier that 'personnel' and 'human resources' can co-exist and many organizations throughout the developed world follow North American practice, using the terms interchangeably.
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Part 1 & Chapter 1 Introduction to The Human Resource Management Following a South African study by Wood and Els (2000) we can identify four distinct patterns of practice:
1. A simple change in nomenclature of relevant personnel sections where, in a number of cases, staff were not seen as managers but instead they were viewed as a distinct, relatively junior, category of employee. 2. A broadened personnel function encompassing clearly delineated areas such as training and development. 3. HRM practitioners play an important strategic role as facilitators in the adoption of progressive industrial relations policies, rather than developing a vision for managing human resources across the organization. 4. True strategic HRM.
Why is HRM increasingly important?

Is there any evidence that the implementation of HRM has a significant effect on national or organizational economic performance? After all, this is the justification implicit in HRM models for valuing the human resource above all others. Since then, progress has been made in conceptualizing the problem and measuring results (...). For example, Huang (2000) looked at 315 firms in Taiwan and related their human resource practices to their organizational performance. Huang's study shows a significant relationship between performance and the effectiveness of their HR functions, including planning, staffing, appraisal, compensation, and training and development. Michie and Sheehan-Quinn (2001) surveyed over 200 manufacturing firms in the UK to investigate the relationship between corporate performance and the use of flexible work practices, human resource systems and industrial relations. They found that 'low-road' practices - including short-term contracts, lack of employer commitment to job security, low levels of training and unsophisticated human resource practices - were negatively correlated with corporate performance. In contrast, they established a positive correlation between good corporate performance and 'high-road' work practices - 'high-commitment' organizations or 'transformed' workplaces. They also found that HR practices are more likely to make a contribution to competitive success when introduced as a comprehensive package, or 'bundle' of practices. Kelliher and Riley (2002), highlighting evidence to support the view that the impact of HRM is greatest when it involves a set of coherent policies and practices, also consider that HR initiatives should be implemented as part of an integrated package. They instance functional flexibility, which leads to an intensification of work, but in the cases they studied this was less of an issue when supported by higher levels of remuneration. Michie and Sheehan (1999) used evidence from the UK 1990 Workplace Industrial Relations Survey to show that 'low-road' HRM practices also appeared to be negatively correlated with investment in R&D and new technology. By contrast, 'high-road' work practices were positively correlated with investment in R&D and University Of Central Punjab 34
Part 1 & Chapter 1 Introduction to The Human Resource Management new technology. Cooke, F.L. (2001) reviewed a number of British studies on the use of 'high-road' and 'low-road' HRM strategies and concludes that high-road HRM may lead to better organizational performance. But firms do not necessarily opt for this because of the historical, social and institutional context of employment relationships in Britain. Rondeau and Wager (2001) focused on the ability of certain 'progressive' or 'high performance' human resource management practices to enhance organizational effectiveness, noting growing evidence that the impact of various HRM practices on performance is contingent on a number of contextual factors, including workplace climate. They conducted a postal survey of 283 Canadian nursing homes which included questions about human resource practices, programmes and policies impacting on workplace climate. The survey also included a variety of performance indicators. Their results indicated that nursing homes with more 'progressive' HRM practices and which also reported a workplace climate valuing employee participation, empowerment and accountability tended to be viewed as better performers. The best performers overall were those nursing homes that had implemented more HRM practices and also reported workplace climates reflecting a strong commitment to their human resources.. Greenwood (2002) reviewed the ethical position of HRM and concluded that even when judged by minimum standards, HRM is seriously lacking, not least because of a general disregard of stakeholder theory. Foote (2001) investigated the ethical behaviour of HR managers working in a sample of UK and Irish charities. The study highlights the ethical inconsistency between the application of strong, explicit organizational values to external clients and the limited influence of those values on HR strategies and practices within organizations. HR professionals no longer thought that the HRM function should be the conscience of the organization, but felt that they had a significant role in the provision of advice on ethical action to senior management. What do people 'at the coal face' feel about the prevalence and effectiveness of human resource management? Gibb (2001) describes a survey of the views of 2632 employees on HRM in the 73 organizations for which they worked. In this study employees were found to be positive about some elements of HRM, including training and development, rewards and levels of personal motivation. They also gave high ratings for the performance of HR staff across a range of services. But the survey found negative employee views on the management of staffing levels, aspects of recruitment and retention, communication and overall levels of morale in their organizations.
HRM and 'best practice'

In some cases, businesses have sought guidance and advice from consultants, academics and professional associations. In either case, it is relevant to ask if it is a prescriptive, ideal model of people management or simply a description of 'best practices' in competitive organizations? As we saw in Part 1 of this book, Jeffrey Pfeffer has inspired a considerable interest in the concept of 'best practice' in HRM. Marchington and Grugulis (2000) question whether the practices typically assumed to be 'good' are actually beneficial to workers. They argue that the literature is underpinned by unitarist thinking and also that the notion of 'best practice' is University Of Central Punjab 35
Part 1 & Chapter 1 Introduction to The Human Resource Management problematic despite its superficial attractiveness. In particular, they point to weaknesses in relation to the meaning of specific practices, their consistency with each other, and the supposed universal applicability of this version of HRM. Truss (2001 found that the informal organization played a significant role in the process and implementation of HR policies and that successful organizations do not always implement 'best practice' HRM even if intended. Conversely, Hughes (2002) argues that empirical support for universal HRM is growing. Boxall and Purcell (2000) argue that there is a complex relationship between HRM and the achievement of organizational outcomes and that HR strategies are strongly influenced by national, sectoral and organizational factors. But this conclusion does not necessarily invalidate the concept of 'best-practice' because basic principles of people management underpin practice and are essential to the competitiveness of business organizations. However, there is increasing evidence supporting the notion that HR practices are more effective when combined. For example, Laursen (2002) studied 726 Danish firms with more than 50 employees and found that HR practices influence innovation performance more when applied together than as individual practices. Additionally, application of complementary HR practices is most effective for firms in knowledge-intensive industries.
DEFINITIONS AND STANDARDS FOR HUMAN RESOURCES MANAGEMENT ACCOUNTABILITY SYSTEMS Definitions Human resources management (HRM) accountability is the
responsibility shared by top agency management, line managers, and HR officials for ensuring that people are managed efficiently and effectively in support of agency mission accomplishment in accordance with the merit system principles.
A human resources management accountability system is a process

for ensuring that HRM accountability is established and maintained over time.
Standards
The HRM accountability system must support the organizations mission. It must clearly address and directly support the overall organizations mission-related strategic goals and objectives, as well as those of the HR function itself. The system should determine whether the agency has established and is executing effective human capital strategies, including but not necessarily limited to those delineated in the OPM Human Capital Scorecard (e.g., getting and keeping necessary talent, establishing and sustaining a culture of high University Of Central Punjab 36
Part 1 & Chapter 1 Introduction to The Human Resource Management performance, promoting effective leadership, etc.), in support of its mission and goals. It should also determine whether the HR function is adequately organized and equipped to support these strategies. The HRM accountability system must enable the agency to identify and resolve significant problems. It must be sufficiently targeted and comprehensive to enable the organization to identify problems or less than successful results in a timely and systematic way, especially those that pose a high risk to organizational integrity and effectiveness. The system must also enable the organization to take prompt actions to correct problems or improve sub-standard results. Kinds of problems or issues to be addressed include HRM practices that 1) result in failure to meet organizational mission goals, 2) increase the organizations financial or legal vulnerability, 3) give rise to systemic violations of employee protections or veterans preference, or 4) lead to loss of integrity in the eyes of the public or otherwise undermine the integrity of the organization. The HRM accountability system must provide for balanced measurement of agency human resources management. Balance is achieved by including measures in each measurement category, as defined below. The measures chosen for use must, in the aggregate, provide a reasonable overall assessment of agency HRM -- including 1) success in carrying out agency human capital strategies, 2) effectiveness of HRM programs, 3) efficiency of HR processes, and 4) compliance with legal requirements. The measures regarding human capital strategies must include those identified in the OPM Human Capital Scorecard. Overall, measurement data will typically be drawn from a variety of sources, such as the Central Personnel Data File (CPDF) or other databases of workforce demographics, surveys of customer or employee perceptions, cost or financial data, and information from systematic internal and external reviews of records and operations. The HRM accountability system itself and the results of its application must be documented. The systems objectives, methods, measures, processes, and results must be documented and information generated by the system disseminated sufficiently to allow for informed review and action by appropriate officials. Documentation should typically include 1) a description of the system and its purposes and processes, 2) results of the systems ongoing determination of HRM results, 3) recommendations for dealing with deficiencies identified, and 4) actions taken in response to recommendations.
HRM MEASUREMENT CATEGORIES

Below are four broad categories within which measures must be developed and utilized by the agency. For each category there are examples of measures that might be used. The examples are intended only to aid in understanding the University Of Central Punjab 37
Part 1 & Chapter 1 Introduction to The Human Resource Management categories, and are not intended to direct or limit in any way an agencys choice of measures. Strategic Alignment - Measures in this category address the extent to which HR goals and programs are aligned with and support the agency mission. These measures must include those identified in the OPM Human Capital Scorecard. Examples: the degree to which targeted competency gap reductions in agency restructuring plans are met, agency staff possesses competencies needed for mission-critical activities, the effectiveness of the agencys strategy for managing employee performance, or the extent to which employees understand how their jobs fit in and contribute to fulfilling the agency mission. HRM Program Effectiveness - Measures in this category address the extent to which HR programs achieve their desired outcomes, as well as the capacity of the HR staff and line managers to support effective HRM programs. Examples: retention rates, the level of employee satisfaction with agency HRM programs, the extent and effectiveness of training and development activities, the level of diversity in the workforce relative to the population at large, or data on the competencies of the HR workforce. HR Operational Efficiency Measures in this category address the degree of efficiency of HR service delivery and the capability of the human resources and other staff to support it. Examples: accuracy and timeliness of personnel processes, including time to hire; effective use of human resources information technology including the accuracy of the HRIS data base; total cost of HR per serviced employee; or cost of a given HRM activity such as staffing, benchmarked against other agencies data or tracked internally over time. Measures of Legal Compliance - Measures in this category address the extent to which HRM activities are carried out in accordance with the merit system principles and other pertinent laws and regulations. Measures should address the HRM-related actions of line managers as well as the HR staffs adherence to procedural requirements. Examples: level of compliance with veterans preference or whistleblower provisions, managers knowledge of the merit principles, findings from internal or external HRM reviews, or results of quality control checks of CPDF data, employee files, or personnel actions.
HRM in small and medium-sized enterprises

Principle
Comprehensive
Range
All people management handled by
Comment
Tends to the extreme:
38

owner/small executive team. Coherence Control Communication Credibility Commitment Change Competence Dependent on owners personality. Often completely centralized. Highly variable; employees tend to develop a fixed opinion of the owner. Highly variable, employees tend to develop a fixed opinion of the owner. Can be exciting and challenging for people of the right type. Varies between static and growth businesses. Dangerously dependent on the abilities and knowledge of the owner and core staff. Most SMEs do the same as their competitors; the few expectations are destined for success. Often run on a shoe-string ; minimal staffing and low pay. comprehensively good or totally ineffective. May be haphazard and idiosyncratic. Can be either autocratic or clubby. Dependent on owner; often an open culture with direct communication. Owners personality is visible to all. People who relate to the owner will stay others will quickly leave. Change usually reactive rather than strategic. Often erractic and personalized resourcing development unsystematic and restricted to the chosen few. Creative owners generally make use of their own ideas. Most owners do not reward themselves and their staff on the same criteria.
Creativity Costeffectiveness
HRM in cooperative businesses

Principle
Comprehensiveness Coherence
Range
Cooperative are uniquely focused on their working members. Medium to good, depending on mutual understanding between members. Generally decentrialized. Tends to be fairly good with shared and well-understood objectives. Strategies have to be discussed and agreed (or accepted) by all. Belonging implies commitment. May be slow because of the need for agreement. Competent initially but needing to bring new partners in as requirements change. Can be high. Depends on the realism of the
Comment
Actual people system such as resourcing and training are not necessarily sophisticated. Where specific aspects have not been discussed are agreed, members may do their own thing. Assertive members can have undue influence. Generally open, with intermittent conflict and possible political factions. Management and staff are the same in smaller cooperatives. People vary-there are committed activists and less committed passangers. A sensitive and highly political subject; may be the major cause of conflict. What happens to the partners whose skills are no longer appropriate?. Where members are free to deal with own areas of work. Transparent and equitable as pay
Control Communication Credibility Commitment Change Competence Creativity Cost-effectiveness
39

partners. is agreed among members.
HRM in functionally structured organizations

Principles
Comprehensiveness Coherence
Range
Different functions are likely to be treated differently. Low to medium, as functional managers block or value different aspects, e.g. performance related pay. Split between functions. Good vertically within a function dreadful horizontally between functions. Promotion and reward policies not understood if they do not fit functions needs. Focused on functional department, not whole organization. Structural change regarded as threatening. High at functional and individual levels. Limited Can be good if management kept to minimal levels.
Comment
Specific people systems such as resourcing and training may be sophisticated. Organization is divided into separate camps. Some functions are more powerful than others. Prone to us and them. Misunderstanding and warfare between departments. Parochial view restricts comprehension of overall business objectives. People march in different directions. Mangers fight to preserve departmental power. Limitations on developing generalists with all-round abilities. Little cross-fertilization between functions. Specialist managers expect professional rates; jealously between functions.
Control Communication Credibility Commitment Change Competence Creativity Cost-effectiveness
HRM in divisional organization

Principle
Comprehensiveness
Range
Successful and unsuccessful divisions are likely to be treated differently. Corporate HR strategies may be neutralized at divisional level. Divided between divisions and head office. Can be good within divisions; more problematic between divisions and head office; poor between divisions.
Comment
Centrally provided people systems such as performance management may be sophisticated. Divisional people managers behave independently. Scope for conflict and confusion. Prone to resentments and misunderstandings between head office and divisions.
Coherence Control Communication
40

Credibility Corporate HR strategies not understood if they do not fit divisional needs. Parochial view comprehensions of business objectives. restricts overall
Commitment Change
Competence Creativity Cost-effectiveness
Focused on division- not Divisions whole organization. independent.

Emphasis on acquisition and demerger. High at functional and individual levels. Scope for considerable creativity in suitable divisions. Tendency for managerial/administrative jobs to be duplicated.
quasi-
Managers fight to preserve integrity of division. Limitations on developing generalists with all-round abilities. Small firm climate encourages cooperations between functions. Little consistency between divisions.
HRM in networked organizations

Principle
Comprehensive Coherence Control Communication Credibility Commitment Change Competence Creativity Costeffectiveness
Range
Dependent on design of organizational structure. Is it formalized or ad hoc? Amorphous nature of organization can lead to incoherence. Project or customer-driven. Tends to consist of informal connections forged to solve problems and achieve task goals. Evident that organization is there to meet project or customer needs. Focused on project not whole organization. Organization changes continuously. Focus on skilled knowledge of workers. Emphasis on people devising their own approach to work. Theoretically, human resources are perfectly matched to work.
Comment
Flexibility of the organization allows expertise to be bought in for any need. Reward, performance and development systems apply to some-but not to others. Dependent on software systems. Self-managed and problemsolving approaches leads to direct communication. Emphasis on performance gives high credibility to the network. No longer-term commitment to the organization required. Structure and processes driven by customer needs. Dependent on the identification and availability of the most suitable people. Freedom for creativity comes from self-management. Minimal supervision requirement.
Summary of organizational structures

Type
Functional
Focus
Department e.g. sales, accounts, personnel.
Benefits
Simple to understand. Clear lines of command. Specialist expertise. Career structures.
Disadvantages
Slow to react. Us and them. Hierarchies tend to grow into vast pyramids. Managers have difficulty gaining organization-wide perspective.
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Divisional
Product or market, e.g. pharmaceuticals. Geographical territory, e.g. brewing regions.
Self-contained units. Can be evaluated separately. Can be added to, closed or sold as wholes. Team-based, loyalty to division and product. Managers obtain overall experience.
Conflict between divisional and organizational objectives. Morale difficulties in unsuccessful divisions. Duplication of functional activities, e.g. marketing, human resources. Complex. Conflict between reporting lines. Conflict over allocation of resources. Disliked by commentators. City
Matrix
Project or team.
Strong focus on project, client objectives.
Federations Network
Loose relationship. Nodes. Individuals resources.
Informal, flexible. Talents focused on tasks. Seamless organization-no departmental boundaries. Open to external contributors.
as
No job security. Potentially anarchic.
Cultural Dimensions
Dimensions
Individualism (vs.collectivism)
High
Argentina Australia Belgium Brazil Canada France Ireland New Zealand Spain UK USA
Medium
Austria Germany Israel Italy Japan Netherlands Scandinavia South Africa Switzerland
Low
Chile Greece Hong Kong India Iran Mexico Pakistan Peru Portugal Singapore Taiwan Turkey Yugoslavia Australia Germany Italy UK USA
Power distance (inequality between levels in organizations)
Belgium France Hong Kong Iran Nigeria Philippines Singapore South America Spain Taiwan Thailand
Japan
42
Uncertainty avoidance (intolerance ambiguity)
of
Argentina Austria Belgium France Germany Greece Iran Israel Italy Japan South Africa Spain Switzerland Turkey Austria Italy Japan Switzerland Venezuela Canada Greece Hong Kong India Jamaica Pakistan South Africa UK USA Belgium Israel USA Yugoslavia
Australia Canada Ireland Netherlands New Zealands Scandinavia UK USA
Masculinity (competitiveness)
Chile Costa Rica Netherlands Scandinavia Yugoslavia
Work centrality
Japan
Germany Netherlands UK Greece Italy Japan Portugal Spain
Job satisfaction
Canada Germany Netherlands Scandinavia UK
Elements of corporate culture

Company practices Rites: planned, dramatic events in the life of the organization. Ceremonial: a series of rites such as the launch of a product, a graduation ceremony, the annual shareholders meetings. Ritual: standardized, unimportant activities such as the Friday afternoon pub session which used to be commonplace. Stories: based on the true events. Myths: untrue stories, old timers stories. Sagas: heroic company histories. Legends: involving heroes and heroines in the organizational history. Folk tales: fiction with a message indicating successful behaviours which led to promotion and reward. Symbols and slogans: these are powerful components of a corporate identity, serving to create a recognizable image for people inside and outside the organization. They include colour schemes, letterheads, logos and uniforms.
Company communication
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Physical cultural forms
Artefacts: tools, furniture styles, appliances and other equipment used in a factory or office. Some companies collect these in a haphazard way over the years, others have central purchasing policies which ensure harmonization.
Physical layout: as may equipment, offices, production areas and canteens may be laid out in an ad-hoc manner or they may be planned to follow an organizational theme. Common language Organizations develop their own terminology and means of expression. For example, in Dsneyland theme parks, the staff are not employees but cast members who wear costumes onstage. Guests use the attractions. The use of such terminology helps employees to slip into their roles and reinforce their belief in the character they play. At land Rover, employees are called associates, and all wear company overalls, including the managing director.
Corporate culture and organization types

The club culture Typical of a small company. A personal, informal culture focused on the owner. The LEADER is all. This form of culture is suitable for new ventures needing strong personalities and fast responses. Hierarchical, with an organizational chart portraying an orderly set of JOB BOXES . individuals are less important than the roles they fill. A role culture is managed not led, with a formal communication system. Such a culture is best for stable, unchanging organizations with routine tasks. There is a strong tendency to adopt the role culture with increasing size, leading to the evolution of a mechanistic, bureaucratic organization. The main focus is on groups such as project teams. Organization is based on trust and respect and geared to plans not procedures. This is a problemsolving environment exciting and challenging but expensive to run. Work is based on projects. There is little job security: staff leave when tasks are finished. This is radically different. It is suited to professionals who are self-managing and require minimal structure or supervision. This focus is on talent and professional expertise-management has low status. This is reflected in nonmanagerial titles such as Dean, Such a culture is best suited to professional practices and educational establishment. Role culture
Task culture
The culture
person
Governance and Management

Model of Governance
Working/Administrative Board:
Board members are involved in all aspects of human resources
Human
Resource
Advantages
Disadvantages
Directors with expertise in human resources management provide
Consensus driven decision making can be time consuming
44

management. hands-on management of human resources. and conflict ridden. Heavily dependent on Board members to volunteer for additional responsibilities.
Mixed Board: Board is less involved in management but remains involved in the work of the organization. Board committees can be established to work on areas such as human resources management Overlap in responsibility for human resources management between the Board and staff. May be hard for Board members to give up management responsibilities
Traditional Policy Board: Board establishes the organization's mission and goals. Board provides oversight of the human resources management practices to achieve the mission and goals. ED is accountable to the Board for human resources management. The Board through its Executive Committee or President is responsible for human resources for hiring, supervising, and evaluating the ED. Committees made up of Board members and senior staff may be established to develop human resources policies and practices. The roles and responsibilities of the Board and ED for human resources management are clear. Quick changes in human resources management practices are difficult to make if approvals are required at the committee level
Policy Governance (Carver):
Board
45

Board develops policy to set the ends to be achieved by the organization, the means to achieve those ends and the limits on the ED for human resources management. Board as a whole directs the ED The Board needs to establish a thorough reporting structure so that it can fulfill its oversight function for human resources management. Responsibility for human resources is delegated to the ED within the limits set by the Board. ED develops and implements all human resources policies and practices. Issues with the ED may be hard to deal with in a timely way when the Board as a whole has to be involved in the process. The Board is not involved in the development of policies and practices for human resources management, yet as the legal employer, the Board and individual members can be held legally accountable for breaches of law.
Role and Responsibilities for Human Resources Management

In a mature organization, there are three participants in human resources management: the Board, Executive Director and Line Managers. Line Managers are managers who directly supervise the work of other staff. An organization with good governance practices clearly establishes the division of authority and accountability among the Board, Executive Director and Line Managers. The role of the Board is governance and the role of the Executive Director is management. Sometimes the roles can get blurred. In clarifying whose job it is, the Board and the Executive Director must always keep in mind the Board's legal responsibilities and liabilities as the employer.
Whose Job Is It?

The level of autonomy of the Line Manager for human resources activities will depend in part on the size of the organization.
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Human Board Resourc es Manage ment

Legal Responsi bilities
The Board is the legal employer of an organization. As the legal employer the Board is ultimately accountable for compliance with all legislation related to employ The Board must monitor compliance with legislation. If legislation is breached, the board as a whole and in some cases individual board members will be held accountable by the courts. ment. The Board is accountable for issues that arise from employment contracts; for example: wrongful dismissal. The Board negotiates and writes the employment contract for the Executive Director.
Executive Director (ED)

The ED is accountable to the Board for employment issues. The ED oversees compliance with all employment legislation on behalf of the Board The ED keeps up to date on changes in employment legislation and ensures that the Board is informed about such changes. The ED may delegate the responsibility for monitoring changes in legislation to another employee.
Line Manager
Legislation
Line Managers are accountable to the Executive Director for employment issues. Line Managers uphold all legislation related to employment.
Employment Contracts
The ED ensures that employment contracts are legally defensible; for example: the termination clause in the contract complies with Employment/La bour Standards. The ED ensures that all staff have written employment contracts.
The Line Manager uses the organization's standard contract form and ensures that it is followed. The Line Manager may prepare employment contracts for direct reports.
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Part 1 & Chapter 1 Introduction to The Human Resource Management Vicarious Liability
As the employer, the Board may be held liable for the wrongful actions of its employees. The ED is responsible for implementing risk management processes to reduce vicarious liability. The Line Manager is responsible for managing risks to reduce vicarious liability.
48
Policies:
Develop written human resources policies and procedures.
Involvement in policy development depends upon the governance structure. Working Boards, Mixed Boards and Traditional Policy Boards review human resources management policies. Policy Governance Boards set very broad parameters within which human resources policies are developed. At a minimum, Boards should approve human resources policies that have legal implications for the Board such as screening policies and harassment policiy. The Board is responsible for ensuring that all human resources policies comply with Human Rights, Employment/L abour Standards and all other legislation.
The ED develops human resources policies. If the governance structure is a Mixed Board or a Traditional Policy Board, a committee may also be involved in developing human resources policies. With a Policy Governance Board, the ED develops all human resources policies within the parameters set by the Board.
The Line Manager is responsible for complying with all human resources policies. Line Managers may identify areas where policy development is needed.
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Part 1 & Chapter 1 Introduction to The Human Resource Management Job Descriptions:
Prepare written job descriptions for each staff position. The Board develops the job description for the Executive Director. The ED ensures that job descriptions are written for all other staff. The Line Manager may write job descriptions for direct reports.
Recruitment and Selection:

Establish a standard process for recruitment and selection.
Orientation:
Orientation is provided to all new staff to the organization .
Training and Develop ment:

Staff members are trained and provided with opportunitie s to acquire new knowledge and skills.
The Board establishes the recruitment and selection process for the Executive Director. The Board ensures that an appropriate screening process is in place for staff and volunteers working with children and vulnerable adult clients. The Board ensures that an orientation process is in place when a new Executive Director is hired. The Board ensures that funds are budgeted for training and development.
The ED oversees the recruitment and selection of all other staff. The ED recruits and selects all direct reports. The ED oversees the establishment of the screening protocol for staff and volunteers.
Line managers may be responsible for the recruitment and selection of direct reports. Line Managers are responsible for conducting screening according to the established protocol.
The ED ensures that an orientation process is in place for all staff. The ED ensures that staff are properly trained for their work and that development opportunities are available.
Line Managers oversee the orientation of direct reports.
Line Managers are responsible for on-the-job training and for helping staff to identify other training and development opportunities.
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Part 1 & Chapter 1 Introduction to The Human Resource Management Performance Manage ment:
Monitor and evaluate performanc e through a performanc e managemen t process. The Board monitors and evaluates the performance of the Executive Director. The ED establishes a performance management system for all staff. The ED monitors and evaluates the performance of all direct reports. The ED ensures that all Line managers are given supervisory training. The ED supervises the work of all direct reports. The Board ensures that guidelines are in place for setting compensation. The Board negotiates the compensation of the Executive Director. The Board ensures that the working conditions and relevant policies of the organization comply with health and safety legislation. The ED ensures a healthy and safe workplace. The ED is responsible for establishing the salary range for all staff positions. The Line Manager may set compensation within the appropriate salary range in consultation with the Executive Director. Line Managers monitor and evaluate the performance of all direct reports.
Supervision:
Provide appropriate, supportive supervision, and ongoing feedback on employee performanc e.
The Boards supervises the work of the Executive Director.
Line Managers supervise the work of all direct reports.
Compensation and Benefits:

Provide fair compensati on and reasonable benefits.
Health
and Safety:
Provide a work environmen t that is healthy and safe
Line Managers addresses issues of workplace health and safety with their direct reports.
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Part 1 & Chapter 1 Introduction to The Human Resource Management Discipline and Terminat ion:
Discipline and termination processes are established. The Board ensures that fair and legally defensible policies and processes for discipline and termination are established. The ED sets the discipline and termination processes and ensures that all supervisors are given appropriate training on the processes. The ED deals with disciplinary issues of direct reports. Line Managers deal with disciplinary issues according to the established process. Line Managers consult with the Executive Director when termination may be necessary.
Human Resource Management Process

Recruitment
The process by which a job vacancy is identified and potential employees are notified. The nature of the recruitment process is regulated and subject to employment law. Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists. Job description outline of the role of the job holder Person specification outline of the skills and qualities required of the post holder Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV) University Of Central Punjab 52
Selection
The process of assessing candidates and appointing a post holder Applicants short listed most suitable candidates selected Selection process varies according to organisation: Interview most common method Psychometric testing assessing the personality of the applicants will they fit in? Aptitude testing assessing the skills of applicants In-tray exercise activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer Presentation looking for different skills as well as the ideas of the candidate
Employment Legislation
Increasingly important aspect of the HRM role Wide range of areas for attention Adds to the cost of the business
Discrimination
Crucial aspects of employment legislation: Race Gender Disability
Discipline
Firms cannot just sack workers Wide range of procedures and steps in dealing with workplace conflict Informal meetings Formal meetings Verbal warnings Written warnings Grievance procedures Working with external agencies
Development
Developing the employee can be regarded as investing in a valuable asset A source of motivation A source of helping the employee fulfil potential
Training
53
Part 1 & Chapter 1 Introduction to The Human Resource Management Similar to development: Provides new skills for the employee Keeps the employee up to date with changes in the field Aims to improve efficiency Can be external or in-house
Rewards Systems
The system of pay and benefits used by the firm to reward workers Money not the only method Fringe benefits Flexibility at work Holidays, etc.
Trade Unions
Importance of building relationships with employee representatives Role of Trade Unions has changed Importance of consultation and negotiation and working with trade unions Contributes to smooth change management and leadership
Productivity
Measuring performance: How to value the workers contribution Difficulty in measuring some types of output especially in the service industry Appraisal Meant to be non judgmental Involves the worker and a nominated appraiser Agreeing strengths, weaknesses and ways forward to help both employee and organisation
54
The Driving Forces of HRM

Whether as a label or a variable combination of specific initiatives, we can justifiably ask if the uptake of HRM has been driven by practitioners - people involved in practical people management - and then attracted wider attention; or if it is a creation of academics and consultants with some (and only some) practitioners following on? What is apparent is that the practitioners involved in the introduction of HRM are often line or general managers rather than personnel managers. Clearly, there are many 'stakeholders' in HRM. Managerialists Senior managers Academics University Of Central Punjab 55
Part 1 & Chapter 1 Introduction to The Human Resource Management The personnel profession
Managerialists
Management power increased significantly in the 1980s, especially in Englishspeaking countries with New Right governments. Keenoy calls HRM a deliberate and brilliant ambiguity (1990 : 371) suspecting a hidden political agenda arising from right-wing government policies. This perspective sees HRM as a reflection of That cherite and Reaganite policies which were translated into a wave of managerialism, first in industry and then in the public sector.
Senior managers
The strategic nature of HRM, conventionally owned and driven from the top, has been of great interest to senior managers. It is compatible with the power needs of top managers who want the reins in their own hands. In effect, HRM is part of the fashionable ideas industry which fuels modern management. In our discussion of the management of change we saw that HRM has been associated with programmes such as TQM, culture change, downsizing and business process-re-engineering.
Academics
Market forces have given academies an added interest in HRM (Townley 1994 : Legge 1995a: 48). With the reduction in the perceived importance of industrial relations due to government action in a number of countries, academies have had to look elsewhere for research finding and new courses to teach. HRM offers an opportunity for people interested in work psychology and industrial sociology to continue with the subjects that interest them but under a more marketable lablel.
The personnel profession

Personnel practitioners have long held ambiguous views on the subject of HRM. Opinion in the profession has swung between various extremes: Ignore it It will go away. Its just another fad, which will be replaced by another soon enough. Embrace it It will give us prestige. We can repackage personnel management as a marketing exercise. Lots more money. Believe in it Always a miniority position. People are really the most valuable resources? So how come Im not paid as much as the finance manager? University Of Central Punjab 56
Live with it OK, so its an American import, a fad and something economies will never understand. But it gives me a bit more clout right now.
The Impact of HRM

Is there any evidence that the implementation of HRM has a significant effect on national or organizational economic performance? After all, this is the justification implicit in HRM models for valuing the human resource above all others. At the moment, we must conclude that we simply do not know. There are several reasons for this state of affairs.
Insufficient research.
Not because of lack of effort but due to the absence of clear, agreed frameworks within which to conduct comparative research. The root cause of this was perceived as HRM's own ambiguity. How were we to look for evidence of HRM and its effects if we had no agreement on what HRM was?
Intangibility.
If people are an 'intangible resource' we have an insurmountable problem - by definition intangibles are unmeasurable.
Confusion with other management initiatives

We have observed already that it is difficult to untangle the effects of true HRM from those of other strategic initiatives. HRM is accompanied almost invariably by other packaged programmes such as TQM..
Situational effects
HRM has not implemented uniformly. It is found mainly in specific areas. In private industry, it has been adopted by large, sophisticated and often non-unionized organizations. These businesses have particular characteristics which are appropriate for HRM. The classic examples of success come from Greenfield sites, which provide a clean slate with no previous practices or cultural history to prevent management action. HRM may not be appropriate in firms which have strong unions or depend on a low-skilled workforce.
Future of Human Resource Management

Are people managers on a constant treadmill? Can we expect a never-ending succession of fashionable ideas?. There are enough up-and-coming authors and consultants to drive the process. Some of them have been generated by the ideas University Of Central Punjab 57
Part 1 & Chapter 1 Introduction to The Human Resource Management industry itself: a generation of middle managers evicted by downsizing and delayering. At the same time there are a few hopeful signs of disillusion with simplistic approaches- a call for pragmatism which recognizes the complexities involved in managing people. But pragmatic management implies experience, expertise and common sense. It sounds boring. It is not likely to satisfy the ambitious. Sooner or later, HRM will find itself replaced by a new flavour of the month. In the past, new management concepts have generally come from North America. However, this is not a sanctified rule. The worldwide economy is changing, with ever-stronger regional grouping challenging individual nation-states in importance. East Asia and the European Union appear destined to be major influences at the beginning of the twenty-first century and neither is dominated by US-style freemarket ideas. Whereas American concepts reign in business schools, people are being managed increasingly through methods forged within different ideologies. If the collectivist tradition of the east and the social chapter of the EU can foster philosophies of people management which value employees more than the hard HRM of the free market, so much the better. Only time will tell. If HRM is not to remain more in the realm of rhetoric with wide disparaties between theory and practice, several things need to take place. First, HRM needs to be diffused across industries and the economy. For this to occur the following conditions need to be satisfied:

HRM should be an essential part of management education and training (some would say that it should be the essence). From this, two important consequences are likely to follow. HRM is likely to be ingetrated into corporate strategies and line managers' functions and decisions. This would reduce the need for HRM specialists, except at the policy level where they will have a greater voice. Business strategies are then likely to be built less around low cost and low wages, but around the real sources of competitive advantage such as flexibility, quality and customer service. Employment policies which support employment security, without which HRM policies, including training, would have little motivational effect. This does not mean guaranteed employment, but a policy which treats termination as a last, rather than a first, resort. Learning from international experiences and diffusing the information can have a transforming effect, as was the case when American manufacturing was transformed through in-depth studies of Japanese manufacturing in the automobile industry. Substantial investment in people and the willingness of employers to view the benefits from a long-term perspective - a difficult task in a system which is driven by short-term investor pressure.
HRM requires to overcome one of its weaknesses, namely, to recognize that the choices available to managements are governed not only by internal but also by external considerations. "Ironically ...students of HRM often begin with the University Of Central Punjab 58
Part 1 & Chapter 1 Introduction to The Human Resource Management weakening of external labour market institutions and the liberalization of management in the firm as necessary pre-conditions for the adoption of HRM ... the more HRM is seen to be the preserve of each individual firm acting in isolation, the least likely it is that HRM practices will grow and flourish in the wider economy."
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Part 1 & Chapter 1 Introduction to The Human Resource Management

Introduction To The Human Resource Management

By lioyd l. byars & leslie w. rue

Human resource management.co.uk

Part 1 & Chapter 1 Introduction to The Human Resource Management

Townley 1994: 138

University Of Central Punjab

Part 1 & Chapter 1 Introduction to The Human Resource Management

University Of Central Punjab

Part 1 & Chapter 1 Introduction to The Human Resource Management

Key concept of the HRM

Influences on the development of HRM

Hard HRM Soft

University Of Central Punjab

Part 1 & Chapter 1 Introduction to The Human Resource Management

Brief History of Management Theories

1) Scientific Management Theory (1890-1940)

2) Bureaucratic Management Theory (1930-1950)

University Of Central Punjab

Part 1 & Chapter 1 Introduction to The Human Resource Management

3) Human Relations Movement (1930-today)

What Is Human Resources ?

A Consistent View of People Management

Part 1 & Chapter 1 Introduction to The Human Resource Management

A General Management Function

The human potential available to a business

The concept of HRM

University Of Central Punjab

Part 1 & Chapter 1 Introduction to The Human Resource Management

The Development Of The HRM Concept

Part 1 & Chapter 1 Introduction to The Human Resource Management

Integrated Performance Management Model

1) Minimize these negative outcomes. 2) Contribute effectively for organizational effectiveness.

Essential principles of HRM.

Different interpretations of HRM.

Harvard Map & Soft Approach

The Harvard Map of HRM & Hard Approach

Part 1 & Chapter 1 Introduction to The Human Resource Management

A harder approach - people as human resources.

University Of Central Punjab

University Of Central Punjab

HRM is really personnel management Human resource management is a

HRM is a strategic model It employs the techniques of strategic management

HRM is people management It covers all aspects of managing employees in

The new managerialism . Schuler (1990) emphasized that the HR function

People management - origins

University Of Central Punjab

Part 1 & Chapter 1 Introduction to The Human Resource Management

Specialist Personnel Functions

University Of Central Punjab

Part 1 & Chapter 1 Introduction to The Human Resource Management

Points of Differences Dimensions

Line Management University Of Central Punjab 22

Part 1 & Chapter 1 Introduction to The Human Resource Management

KEY CONCEPT Stakeholders

Specialist functions Of HRM

Part 1 & Chapter 1 Introduction to The Human Resource Management

2 Appraisal Schemes - an individual's performance is reviewed by their