The meaning of human resource management
(HRM)
A strategic, integrated and coherent
approach to the employment, development and well-being of the people working in
organizations.
Other definitions
● ‘All
management decisions and action that affect the nature of the relationship
between the organization and its employees – its human resources’ (Beer et al, 1984).
● ‘A
distinctive approach to employment management which seeks to achieve
competitive advantage through the strategic deployment of a highly committed
and capable workforce, using an integrated array of cultural, structural and
personnel techniques’ (Storey, 1995).
● ‘The
management of work and people towards desired ends’ (Boxall et al, 2007).
The objectives of HRM
● To
ensure that the organization is able to achieve success through people.
● To
increase organizational effectiveness and capability.
● To
be concerned with the rights and needs of people in organizations through the
exercise of social responsibility.
The policy goals of HRM (David Guest)
● Strategic
integration.
● High
commitment.
● High
quality.
● Flexibility.
The characteristics of HRM
‘Human resource management covers a vast
array of activities and shows a huge range of variations across occupations,
organizational levels, business units, firms, industries and societies’ (Boxall
et al, 2007). It can:
● be
diverse (hard or soft);
● be
strategic;
● be
business-oriented;
● focus
on mutuality – a state that exists when management and employees are
interdependent and both benefit from this interdependency;
● take
a unitary view – the belief that management and employees share the same
concerns and it is therefore in both their interests to work together;
● treat
people as assets or human capital.
How HRM developed as a concept
Emerged in the 1980s in the form of:
● the
matching model – HR systems and the organization structure should be
managed in a way which is congruent with organizational strategy (Fombrun et
al, 1984);
● the
Harvard framework – based on their belief that the problems of historical
personnel management can only be solved ‘when general managers develop a
viewpoint of how they wish to see employees involved in and developed by the
enterprise, and of what HRM policies and practices may achieve those goals’
(Beer et al, 1984).
Reservations expressed about HRM
● Promises
more than it can deliver – HRM is an 'optimistic but ambiguous concept'; it is
all hype and hope (David Guest, 1991).
● Manipulative
– ‘control by compliance’ (Hugh Willmott, 1993).
● Hostile
to interests of employees – ‘Sadly, in a world of intensified competition and
scarce resources, it seems inevitable that, as employees are used as means to
an end, there will be some who will lose out. They may even be in the majority.
For these people, the soft version of HRM may be an irrelevancy, while the hard
version is likely to be an uncomfortable experience’ (Karen Legge, 1998).
The context in which HRM operates
● HRM
practices are contingent on the circumstances in which the organization
operates, ie the internal and external environment.
● Contingency
theory tells us that definitions of HR aims, policies and strategies, lists of
activities and analyses of the role of the HR department are valid only if they
are related to the situation of the organization.
The ethical dimensions of HRM
The application of HRM requires the
exercise of social responsibility – it must be concerned with the interests
(well-being) of employees and act ethically with regard to the needs of people
in the organization and the community.
AMO theory – The formula Performance = Ability + Motivation + Opportunity to Participate provides the basis for developing HR systems that attend to employees’ interests, namely their skill requirements, motivations and the quality of their job.
Commitment – The strength of an
individual's identification with, and involvement in, a particular
organization.
Contingency
theory – HRM practices are dependent on the
organization’s environment and circumstances. Definitions of HR aims, policies
and strategies, lists of activities and analyses of the role of the HR
department are valid only if they are related to the situation of the
organization.
Hard
HRM – People
are important resources through which organizations achieve competitive
advantage. The focus is on the quantitative, calculative and business-strategic
aspects of managing human resources in as 'rational' a way as for any other
economic factor.
Harvard
framework – The belief held by Michael Beer and his
Harvard colleagues (1984) that the problems of historical personnel management
can only be solved when general managers develop a viewpoint of how they wish
to see employees involved in and developed by the enterprise, and of what HRM
policies and practices may achieve those goals.
HR
system – HRM as an integrated and coherent bundle
of mutually reinforcing practices.
Human
resource management (HRM) – A strategic, integrated and coherent approach to the
employment, development and well-being of the people working in organizations.
Matching
model of HRM – The view held by the Michigan school (Fombrun
et al, 1984) that HR systems and the organization structure should be
managed in a way which is congruent with organizational strategy.
Mutuality
– A state that exists when management and employees
are interdependent and both benefit from this interdependency.
Pluralism – The belief that the interests of employees
will not necessarily coincide with that of their employers.
Resource-based view – The view that it is the range of resources in an organization, including its human resources, that produces its unique character and creates competitive advantage.
Soft
HRM – Treating
employees as valued assets, a source of competitive advantage through their
commitment, adaptability and high quality (of skills, performance and so on)
(Storey, 1989).
Strategic
integration – The
ability of the organization to integrate HRM issues into its strategic plans
ensure that the various aspects of HRM cohere, and provide for line managers to
incorporate an HRM perspective into their decision making.
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