Contents
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HRM defined
Features of HRM
Goals of HRM
Versions of HRM
HRM activities
The development of the HRM concept
The matching model of HRM
The Harvard framework
The UK contribution to the HRM
concept
The impact of HRM: research findings
The David Guest model of the link
between HRM and performance
How HR can make an impact on
organizational performance
Role of the HR function
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Activities of HR professionals
Roles of HR professionals
HRM models: Tyson and Fell
HRM models: Storey
HRM models: Reilly
HRM models: Caldwell
The Ulrich/Brockbank 2005 model of
HR roles
Competency framework for HR
specialists
Key competency areas for HR
professionals
The professional standards of the CIPD
Evaluating the HR function
Ten ways of ensuring that the HR
function innovates effectively
FEATURES OF HRM
Strategic:
Coherent:
Commitment:
Integrate business
and HR strategy
Integrated and
mutually
supporting HR
policies and
practices
Emphasis on gaining
commitment to the
organizations
mission and values
People
treated as
assets:
Focus on
developing human
capital
Unitarist
approach:
Line managers
deliver HRM:
Management and
employees share
the same interests
GOALS OF HRM
Enhance
motivation,
commitment
and job
engagement
Achieve high
performance
through
people
Attract and
retain the
skilled,
committed and
motivated people
required
Improve
knowledge
sharing
Increase
capabilities
and potential
Achieve
human capital
advantage
Value
people
according
to their
contribution
Develop a
cooperative and
productive
employee
relations
climate
VERSIONS OF HRM
Soft
Soft
Hard
Emphasis
Emphasison
onthe
theneed
need
totodevelop
a
highdevelop a highcommitment,
commitment,high-trust
high-trust
organization
organizationfocus
focus
on mutuality,
on mutuality,
communication
communicationand
and
involvement
involvement
Treating employees
rationally
as as a key resource
from which competitive
advantage can be
obtained
Hard/soft
Using a mix of hard
and soft approaches
HRM ACTIVITIES
Human resource
management
Organization
Resourcing
Human
resource
development
Design
Human resource
planning
Organizational
learning
Job evaluation
and market surveys
Industrial
relations
Development
Recruitment
and selection
Individual
learning
Employee
voice
Job design
Talent
management
Contingent
pay
Communications
HR services
Knowledge
management
Management
development
Performance
management
Reward
management
Employee
relations
Employee
benefits
The concept of HRM was first developed in 1982. The common use of HR or HRM
as an alternative term to personnel management took place in the second half of the
1990s. Those who dislike the term HRM often refer to people management.
The main developments in the US have been described by Boxall (1992) as the
matching model and the Harvard framework and these are illustrated in the following
models. Since the pioneering US efforts, a number of British commentators have
developed the notion of HRM in the UK as summarized later.
The matching model of HRM as developed by Fombrun, Titchy and Devanna (1984)
is illustrated below.
Rewards
Selection
Performance
management
Performance
Development
Situational factors:
work force
characteristics
business
strategy and
conditions
management
philosophy
labour market
unions
task technology
laws and social
values
HRM policy
choices:
employee influence
human resource
flow
reward systems
work systems
HR outcomes:
commitment
congruence
cost-effectiveness
Long-term
consequences:
individual wellbeing
organizational
effectiveness
societal
well-being
human resource policies should be integrated with business planning and reinforce or change
the organizational culture
mutually consistent policies are developed to promote commitment and encourage employees
to act flexibly in the interests of the organization.
Keith Sisson (1990) The four main features of HRM are:
1. Integration of personnel policies with one another and business plans.
2. The responsibility for personnel management no longer resides with specialist managers.
3. The focus shifts from managertrade union relations to managementemployee relations,
from collectivism to individualism.
4. There is a stress on commitment and the exercise of initiative.
John Storey (1993) Four features comprise the meaningful version of HRM:
1. A particular constellation of beliefs and assumptions.
2. A strategic thrust informing people management decisions.
3. The central involvement of line managers.
4. Reliance on a set of levers to shape the employment relationship.
Findings
Firms with a high commitment strategy had significantly higher levels of both
productivity and quality than those with a control strategy.
Huselid (1995)
Firms with high performance work practices had economically and statistically higher
levels of performance.
Patterson, West,
Lawthom and Nickell
(1997)
Thompson (1998)
The number of HR practices and the proportion of the workforce covered appeared to
be the key differentiating factor between more and less successful firms.
Purcell et al (2003)
The most successful companies had what the researchers called the big idea. They
had a clear vision and a set of values that were embedded, enduring, collective,
measured and managed. They were concerned with sustaining performance and
flexibility. Clear evidence existed between positive attitudes to HR policies and
practices, levels of satisfaction, motivation and commitment, and operational
performance. Policy and practice implementation (not the number of personnel
practices adopted) is the vital ingredient in linking people management to business
performance and this is primarily the task of line managers.
HR
effectiveness
Business strategy
HR practices
HR outcomes:
employee
competence,
commitment
and flexibility
HR strategy
Quality of
goods and
services
Financial
performance
Productivity
Formulate a clear vision and set of values (the big idea) and ensure that it is
embedded, enduring, collective, measured and managed.
Formulate and implement policies that meet the needs of individuals and create
a great place to work.
The role of the HR function is to enable the organization to achieve its objectives by
taking initiatives and providing guidance and support on all matters relating to its
employees. The basic aim is to ensure that management deals effectively with
everything concerning the employment and development of people and the
relationships that exist between management and the workforce. A further key role
for the HR function is to play a major part in the creation of an environment that
enables people to make the best use of their capacities and to realize their potential
to the benefit of both the organization and themselves.
ACTIVITIES OF HR PROFESSIONALS
ROLES OF HR PROFESSIONALS
Clerk of works
Contracts manager
Architect
Source: Tyson, S and Fell, A (1986) Evaluating the Personnel Function, Hutchinson
ADVISERS
Interventionary
Non-interventionary
REGULATORS
HANDMAIDENS
Tactical
Advisers (non-interventionary/strategic) who act as internal consultants, leaving much of HR practice to line
managers.
Regulators (interventionary/tactical) who are managers of discontent concerned with formulating and monitoring
employment rules.
Handmaidens (non-interventionary/tactical) who merely provide a service to meet the needs of line managers.
Source: Storey, J (1992) New Developments in the Management of Human Resources, Blackwell
Strategic
STRATEGIST/INNOVATOR
CONTRIBUTION
ADVISER/CONSULTANT
ADMINISTRATOR/CONTROLLER
Tactical
Short
Long
TIME ORIENTATION
Source: Reilly, P (2000) HR Services and the Re-alignment of HRM, Institute for Employment Studies
Source: Caldwell, R (2002) Champions, adapters, consultants and synergists: the new change agents in HRM,
Human Resource Management Journal, 11(3)
THE ULRICH/BROCKBANK
2005 MODEL OF HR ROLES
Employee advocate focuses on the needs of todays employees through
listening, understanding and empathizing.
Human capital developer in the role of managing and developing human capital
(individuals and teams), focus on preparing employees to be successful in the
future.
Functional expert concerned with the HR practices that are central to HR value,
acting with insight on the basis of the body of knowledge they possess. Some are
delivered through administrative efficiency (such as technology or process design),
and others through policies, menus and interventions. Necessary to distinguish
between the foundation HR practices recruitment, learning and development,
rewards etc and the emerging HR practices such as communications, work process
and organization design and executive leadership development.
Strategic partner consists of multiple dimensions: business expert, change
agent, strategic HR planner, knowledge manager and consultant, combining them
to align HR systems to help accomplish the organizations vision and mission,
helping managers to get things done, and disseminating learning across the
organization.
Leader leading the HR function, collaborating with other functions and providing
leadership to them, setting and enhancing the standards for strategic thinking and
ensuring
corporate governance.
Source: Ulrich, D and Brockbank, W (2005) The HR Value Proposition, Harvard Press, Cambridge, Mass
COMPETENCY FRAMEWORK
FOR HR SPECIALISTS
Business and
cultural awareness
Understands: (1) the business environment, the competitive pressures it faces and its critical
success factors, (2) the business key activities and processes and how these affect business
strategies, (3) the culture (core values and norms) of the business, (4) how HR policies and
practices can impact on business performance puts this understanding to good use.
Strategic capability
(1) Seeks involvement in business strategy formulation and contributes to the development of
the strategy, (2) contributes to the development for the business of a clear vision and set of
integrated values, (3) develops and implements coherent HR strategies which are integrated
with the business strategy and one another, (4) understands the importance of human capital
measurement, introduces measurement systems and ensures that good use is made of them.
Organizational
effectiveness
(1) Contributes to the planning and implementation of cultural change and organizational
development programmes, (2) helps to develop resource capability by ensuring that the
business has the skilled, committed and well-motivated workforce it needs, (3) helps to develop
process capability by influencing the design of work systems to make the best use of people,
(4) contributes to the development of knowledge management processes.
Internal consultancy
(1) Carries out the analysis and diagnosis of people issues and proposes practical solutions,
(2) adopts interventionist style to meet client needs; acts as catalyst, facilitator and expert as
required, (3) uses process consultancy approaches to resolve people problems, (4) coaches
clients to deal with own problems; transfers skills.
Service delivery
(1) Anticipates requirements and sets up appropriate services to meet them, (2) provides
efficient and cost-effective services in each HR area, (3) responds promptly and efficiently to
requests for HR services, help and advice, (4) promotes the empowerment of line managers to
make HR decisions but provides guidance as required.
Continuous
professional
development
(1) Continually develops professional knowledge and skills, (2) benchmarks good HR practice,
(3) keeps in touch with new HR concepts, practices and techniques, (4) demonstrates
understanding of relevant HR practices.
Components
1. Personal credibility
Lives the firms values, maintains relationships founded on trust, acts with
an attitude (a point of view about how the business can win, backing up
this view with evidence).
2. Ability to manage
change
3. Ability to manage
culture
Acts as keeper of the culture, identifies the culture required to meet the
firms business strategy, frames culture in a way that excites employees,
translates desired culture into specific behaviours, encourages executives
to behave consistently with the desired culture.
4. Delivery of human
resource practices
5. Understanding of the
business
Source: Brockbank, W, Ulrich, D and Beatty, D (1999) HR professional development: creating the future
creators at the University of Michigan Business School, Human Resource Management, 38, Summer, pp
11117
The existence of a positive, can do mentality, anxious to find ways round obstacles and
willing to exploit all the available resources to accomplish objectives.
People management
and leadership
Professional
competence
Possession of the professional skills and technical capability associated with successful
achievement in personnel and development.
A desire not only to concentrate on tasks, but rather to select meaningful outputs that will
produce added-value outcomes for the organization, or eliminate/reduce performance
inhibitors, whilst simultaneously complying with all legal and ethical considerations.
Continuing learning
Customer focus
Concern for the perceptions of personnels customers, including (principally) the central
directorate of the organization, a willingness to solicit and act upon customer feedback as
one of the foundations for performance improvement.
Strategic capability
The capacity to achieve a strategic vision for the future, to foresee longer-term
developments, to envision options (and their probable consequences), to select sound
courses of action, to rise above the day-to-day detail, to challenge the status quo.
Influencing and
interpersonal skills
The ability to transmit information to others, especially in written (report) form, both
persuasively and cogently, display of listening, comprehension and understanding skills,
plus sensitivity to the emotional, attitudinal and political aspects of corporate life.
Organizational quantified
criteria
Employee behaviour
criteria
HR function service-level
criteria