Managing Human Capital

Introduction to Human Resource

Management

By
Seema Kamran
Agenda
• what human resource management is and how it relates to the
management process.
• Historical background
• Line and staff aspect of HRM
• The Trends shaping HR
• HR – yesterday and today
 Human Resource Management atWork
• What Is Human Resource Management (HRM)?
 Human Resources is the design and application of formal systems to ensure
the effective and efficient use of human talent
• Organization
• Manager
• The management process
• Staffing
• HR functions
• Selection
• Appraisal
• Reward
• Development
• Labor relations
• Health and safety
• Fairness concerns
Your Verdict……..

“HRM is regarded by some personnel managers as just a set of

initials or old wine in new bottles.”
 Historical Traces
• Early traces
• Humanistic perspective - Mary Parker Follett and Chester Barnard
 Human Relations Movement – Hawthorne studies
 Human Resources Perspective - Focus on job tasks and theories of
motivation
• Recent traces - Charles Fomburn and Michael Beer
 Underpinning Theories and Model of HRM
• Models
• Theories  The Matching model – 1984
 Commitment  Aligned with org. strategy
 Motivation  The Harvard model – 1984
 Resource based view  Employees are to be treated as resource
rather merely var cost
 Organizational behavior theory
 The 5 – P model – 1992
 Contingency theory
 Philosophy, Policies, Programmes
 Human capital theory Practices, Processes
 Social exchange theory  European model – 1993
 Agency theory  HRM today – The Ulrich Model
The Matching Model
• HR systems and the organization structure should be managed in a way
that is congruent with organizational strategy (hence the name
‘matching model’).
• HRM cycle
 The Harvard Model
• ‘A longer-term perspective in managing people and consideration of
people as potential assets rather than merely a variable cost’.
• The Harvard Framework
 Line and Staff Aspects ofHRM
• Line Manager • Staff Manager
 Line Managers’ HRM Responsibilities  Functions of HR Manager
 Placing the right person on the right job  A line function
 Orientation  A coordinative function or Functional
 Training authority
 Improving the job performance of each  Staff function
person – Innovator role
 Interpreting the firm’s policies and – Advocacy role
procedures
 Controlling labor costs
 Developing the abilities of each person
 Creating and maintaining department
morale
 Protecting employees’ health and
physical condition
Relationship between line management and HRM
Models of HRM - Continued
• The European Model – 1993
 environment – established legal framework;
 objectives – organizational objectives and social concern – people as a
key resource;
 focus – cost/benefits analysis, also environment;
 relationship with employees – union and non-union;
 relationship with line managers – specialist/ line liaison;
 role of HR specialist – specialist managers
 Recruiters
 EEO Coordinators
 Job analyst
 Compensation manager
 Training specialist
 Labor relation specialist
Models of HRM - Continued
• The European Model extension – 1998 (Mabey et al)
 dialogue between social partners;
 emphasis on social responsibility;
 multicultural organizations;
 Development of learning organization
Models of HRM - Continued
• HRM Today
The Ulrich Model
 The New Contract vs. The Old Contract

HRM Today
 Strategic HRM
 Managing human capital
 Employee Engagement
 Integrated Talent management
 Competency based HRM
 Evidence based HRM
 Add value
 Managing Ethics