History of HRM
Scientific Management Model 1800-early 1900
Welfare Secretaries * Focus: * processes * cost reduction
Human Relations Model 1920-1940’s
Personnel Department * Focus: * working conditions * supervisors style * What is an organization? * A group of people with highly individualized backgrounds, skills, and interests coordinated in various enterprises to pursue common goals.
Why Study HRM? * People (human capital) are the essential resource of all organizations. Human capital is: * Valuable * Rare * Cannot be imitated * Has no good substitutes * Human
Resource
Management
Organizational
Objectives
Employee
Objectives
Societal
Objectives
Human resources create competitive advantages * Organizational success depends upon careful attention to human resources
HRM is Policies, practices and systems that influence an employee’s behaviour, attitude, and performance in the attainment of organizational goals.
HRM
Legal
Compliance
Recruiting &
Hiring
Managing Health and safety
Employee
Relations
Training &
Developing
Managing
Performance
Rewards
Analyzing &
Designing Jobs
Regardless of organizational size, employees must be recruited, selected, trained and managed. Organizations are required to follow legislation when it comes to many EE practices, i.e. Overtime. HRM, then, looks after making sure polices, practices and systems that influence an employees behaviour are done so in an effective manner so as to ensure an organization meets its organizational goals.
Who is responsible for managing human resources? * Line manager is key link between employee and organization * Line manager needs knowledge and understanding of HRM and how practices influence the success of the organization
HR Responsibilities of Supervisors and Line Managers
Many HR activities are carried out by line managers: * Determining work and job design * Forecast HR needs * Making hiring decision (Interview and select candidates) * Coaching and developing employees * Promoting health and safety * Reviewing performance * Recommend pay increases and promotions * Communicate policies & comply with laws * Provide motivational environment
The human resource department is responsible for: * Aligning HR strategies with business strategies * Delivering services to other departments in the organization (i.e., recruitment) * Consistency between HR practices * Compliance with legal requirements * Coordinate training efforts, career plans and employee development * “Champion” for employee concerns * Employee crisis management * Responding to employee complaints Strategic Human Resources Management * The process of linking the HR function with the strategic objectives of the organization in order to improve performance. * Organizational Strategy * The pattern of decisions in a company that determines and reveals its objectives or goals, and produces the principle policies and plans for achieving those goals.
Organizational Strategic Choices Cost leadership Differentiation Price Quality Standardization Customization Efficiency Innovation
