Professional Documents
Culture Documents
Topic 1
These slides include material provided in the course text Nankervis, Compton & Baird (2008) Human Resource Management: Strategies an processes 6th ed, Thompson by permission of the publisher
Introduction
Because people are not machines they are inherently difficult to manage
Source: Michael Beer, Bert Spector, Paul Lawrence, D. Quinn Mills & Richard Walton (1985) Human Resource Management: A general Managers perspective, Free Press New York
RMIT University
Source: Based on Paul Sparrow (1996) Transitions from the psychological contract, Human Resource Management Journal 6 (4)
RMIT University
Human Relations
the humanised workplace assumes that workers are motivated by good supervision
Commitment
control through shared responsibilities tolerance of individual difference assumes people motivated by responsibility and a real job mutuality in labour relations - sub-cultures integrated into organization
Source: Based on Richard Walton (1985) From control to commitment in the workplace Harvard Business Review
RMIT University
What are the major implications of globalisation for HRM strategies and functions?
The psychological contract between employers and employees has changed irrevocably in response to labour market and generational issues Argue both sides of the statement.
Strategic HRM
The essence of SHRM is to adopt a flexible but strategic perspective which accurately analyses both the internal and external environments of organisations to ensure a good fit between HR strategies and practices, and between these and business strategies.
Why are the theories of SHRM not always easy to implement in practice? What can be done to overcome these problems?
Focus on the enterprise or organisational unit Integration of HR policies with business strategy Overall consistency in approach to management of people (systematic and
consistent processes)
Crucial role for line managers (line manager decisions about people linked directly to
business strategy)
Focus on organisational commitment and common values Shift from management-union relations to individual relationship with employees
See chapter 1 in Storey, J. (1995). 'Human Resource management: A critical text'. London, Routledge.
Stakeholder interests:
Shareholders Employer groups Employees Government Unions Consumers Suppliers
Policy choices
Employee Influence HR Flow Work systems Reward systems
HR Outcomes:
Competence Commitment Congruence Cost effectiveness
Situational factors:
workforce characteristics technology management philosophy product markets labour markets legislation community attitudes economic situation
HR practice
Source Schuler R.S & Jackson S. E. (1987) Linking competitive strategies with human resource management practices, Academy of Management Executive 1, 207-219
innovation
Source Adapted from: Schuler R.S & Jackson S. E. (1987) Linking competitive strategies with human resource management practices, Academy of Management Executive 1, 207-219
Quality enhancement
Source Adapted from: Schuler R.S & Jackson S. E. (1987) Linking competitive strategies with human resource management practices, Academy of Management Executive 1, 207-219
HR practice
fixed & explicit job descriptions with little ambiguity narrowly defined jobs & career paths encouraging efficiency minimal training and development appraisal focus on short term results close attention to market pay rates for equivalent jobs
Cost reduction
Source Adapted from: Schuler R.S & Jackson S. E. (1987) Linking competitive strategies with human resource management practices, Academy of Management Executive 1, 207-219
Source: Wright, Patrick M., McMahan Gary C, and Abigail McWilliams, (1994) Human resources and sustained competitive advantage. International Journal of Human Resource Management 5(2):301-326.
Unitarist or Pluralist?
Unitarist approach assumes: Common interests Commitment to goals set from senior managers Little employee voice Close supervision necessary to obtain control Pluralist assumes: Some organisational conflicts and disagreements over policy and action are inevitable Negotiation & resolution is one way of handling differences Involvement in decisions a way of increasing agreed goals
Instrumental HRM (hard approach) stresses the rational, quantitative and strategic aspects of managing human resources. Stress on management /organisational needs and requirements as ffocus for employee behaviour Performance management techniques used to align performance with organisation Effective utlilisation of people a measure of management performance Humanistic HRM (soft approach) while emphasising the integration of HR practices with strategic objectives Assumes competitive advantage is achieved by developing and enhancing employees work related skills Focus on development of soft skills in negotiation, counselling and mentoring for managers Employees involved in decision making to enhance outcomes
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Competitive advantage will follow from enhancement of HR and organizational competence - The Resource based theory of competitive advantage
e.g. Wright, Patrick M., McMahan Gary C, and Abigail McWilliams, (1994) Human resources and sustained competitive advantage. International Journal of Human Resource Management 5 (2):301-326.
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Questions: Do the concepts apply in China? What about small and family businesses? What about organisations not operating in a competitive market situation? What strategies can HR managers adopt to cope with the impact of the GFC?
Status of HR practitioners Lack of acceptance of HRM by senior organisational managers Ability of HR practitioners to exercise a more strategic approach
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Initiatives changing organisational structures: enterprise and individual bargaining organisational reviews and restructuring use of virtual workplaces autonomous work teams `flexible firm model (see chapter 2)
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Organisational culture
Includes philosophies, values, beliefs, work systems and practices and expectations of and limitations on employee behaviour Four broad types:
elite meritocratic collegial leader focused
Role of HR specialist
Summary
HRM is: Linked to business needs Focussed on knowledge about employee behaviour and motivation Places responsibility on line managers as well as HR specialists Crucial to organisational success
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