An organisation gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives.” (Price 2007:32 cited in Wilton 2013:6) A distinctive feature of HRM is that it encompasses ALL members of the organisation. Everybody is assumed to work towards achieving organisational success.
KEY GOALS OF HRM (GUEST 1987) The development of EMPLOYEE COMMITMENT Underlying assumption that committed employees will work harder The pursuit of FLEXIBILITY Note different types of flexibility (numerical, temporal, task) The achievement of QUALITY PERFORMANCE through QUALITY EMPLOYEES The STRATEGIC INTEGRATION of PEOPLE POLICIES within wider ORGANISATIONAL OPERATIONAL POLICIES Search for balance between organisational goals and management of the workforce
VERSIONS OF HRM (“SOFT”) Human Resource Management Emphasis on the Human element : people viewed as having their own resources which they can themselves utilise. Resourceful humans are those who are able, through their own resourcefulness, to INITIATE actions. They are seen as managers, capable of and expected to manage circumstances of work and therefore to be nurtured. Soft HRM encapsulates culture, trust, empowerment and self-direction as a means of co-ordination in the organisation.
VERSIONS OF HRM - (“HARD”) Human Resource Management Clue is in the term ‘resources’: people are there to be utilised or ‘exploited ’ like any other natural resources. People are seen as ‘assets’ to be ‘manipulated’ according to the needs of business. People are seen as the ‘foot soldiers’ : expandable if necessary for organisational survival. Remember flexibility? People are our greatest assets, therefore it makes sense to invest in them to achieve enhanced performance.
APPROACHES TO HRM Best practice (normative approach) HRM is a distinctive approach to management based which recognises a range of stakeholders and interests fused firstly into HR strategy and then business strategy – people come first. Recognises well-being. “Right” set of HR practices, geared towards high commitment and high performance are required. These practices work and organisational effectiveness is key. Examples are: employment security, sophisticated selection, TW, PRP, T and D, narrow status differentials, communication and involvement . Beer et al (2015) continue to support the model – advocating multi-stakeholder approach. Idealist?
int Stakeholder interest Shareholders Management Employee groups Government Community Unions h Situational factors Situational factors Workforce characteristics Business Strategy Management Lbr Market Unions Task tech Laws and Societal values HRM policy choices HRM policy choices Employee influence Human resource flow Reward systems Work systems HR outcomes HR outcomes Commitment Competence Congruence Cost-effectiveness Long term consequences Long term consequences Individual well-being
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