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Human Resource Management PART1,Personnel Management to Human Resource Management,Recognition of the need to take a more strategic approach to the management of people Began in the 1980s in the USA UK followed quickly Concept is a strategic approach to acquiring, developing, managing and gaining the commitment of the organisations key resource the people who work for it Armstrong 1991,Features of HRM,Management focussed and top management driven Line management role key Emphasises strategic fit integration with business strategy Commitment oriented Two perspectives hard and soft Involves strong cultures and values,Performance oriented Requires adoption of a coherent approach to mutually supporting employment policies and practices Employee relations organic rather than pluralistic Organising principles are organic and decentralised Flexibility and team building important policy goals Strong emphasis on quality to customers Rewards differentiated by skill, competence or performance,Features of HRM,Fombrum, Tichy and Devanna Model 1984,Selection,Performance,Appraisal,HRD,Reward,Warwick Model of HRM,Business Strategy Context,Inner Context,HRM Content,HRM Context,OUTER CONTEXT,Warwick Model content of the boxes,Outer context socio-economic, technical, politico-legal,competitive Inner context culture, structure, politico-leadership, task-technology, business outputs Business strategy context objectives, product market, strategy and tactics HRM context- role, definition, organisation, HR outputs HRM content HR flows, work systems, reward systems, employee relations,The Harvard Model,Stakeholder Issues: Workforce characteristics Business strategy & conditions Management philosophy Unions Task technology Laws & societal values,Stakeholder Interests: Shareholders Management Employee Groups Government Community Unions,HRM Policy: Choice Employee influence Reward systems Work systems Human resource flows,HR Outcomes: Commitment Congruence Competence Cost effectiveness,LT consequences: Individual well being Organisational effectiveness Societal well being,Guest Model,Defines four policy goals of HRM Further development of the Harvard model Strategic integration HRM into strategic plans, in line decisions,within HR policies High commitment strong identification with company High quality including management of people Flexibility functional, adaptable structures, capability to innovate,Soft HRM,Stresses human aspect Emphasis on HRD Participation Motivation Commitment Leadership HUMAN resource management,Hard HRM,People as a resource Used dispassionately Used in calculating rational manner Head count Human RESOURCE Management,Competence-Based HRM,Definitions: The skills, knowledge and experience that an individual brings to their role IDS 1997 Basic personal characteristics that are determining factors for acting successfully in a job or situation McClelland 1993 Underlying traits, motives, skills, characteristics and knowledge related to superior performance Boyatsis 1982,Uk v. US definitions,US - input oriented what the individual brings to the job UK - output oriented the skills, attitudes and knowledge , expressed in behaviours for effective job performance One or both?,Levels of Influence,Strategic Functional Systems Individual,Implications at Strategic Level,The identification of core competencies of the organisation which confer sustained competitive advantage Owned by more than one person and grow through use and experience therefore difficult to imitate,Implications for the Human Resource Function,Develop managerial competence Strategic selection and staffing Develop internal labour market Design jobs round capability Develop individual competence Develop culture to foster innovation Build learning organisation Develop organisational learning mechanisms,Implications for Human Resource Systems,Vertical integration link individual competence to the core competence of the organisation Horizontal integration provide a framework for the integration of HR systems components Vital player in the development of core competencies Can be used to develop individual HR systems,Recruitment and Selection,Based on past behaviour as the most valid predictor of future behaviour Building the competence framework requires multiple information sources Competence specification should cover both technical and personal/interpersonal competencies,Develop interview questions that elicit examples of past behaviours In assessment centres create tasks that require demonstrated competencies Use competencies to select test instruments Use competencies to evaluate candidate performance,Recruitment and Selection,Appraisal,Set outcome and performance targets for each competence Outcome levels and performance targets can be graded if desired.e.g standard performance; above standard; excellent etc Below standard performance can be used to generate development needs,Can provide forum for the identification of new/changing competence requirements Can provide forum for setting acquisition of competence time scales Provides a clear and agreed framework for performance evaluation and discussion,Appraisal,Development,Provides a framework for individual training needs No transfer problems as competence can only be demonstrated by on the job behaviours Development contributes directly to current performance Encourages a broad based approach to development activities,Ensures line manager commitment to development Offers common language to all participants in the development process Offers transparent process to all stakeholders Facilitates validation and evaluation of the development process,Development,Reward,Promotes flexibility Promotes a development focused culture Provides opportunities for advancement via skills Provides opportunities for earnings enhancement on the basis of skills and flexibility rather than seniority,Can assist in addressing the technical/managerial divide Offers a route for the reward of knowledge workers Carries high face validity and felt fair perception Via core organisational competencies can link reward directly to organisational strategy,Reward,Integration,Vertical - integration with corporate strategy Horizontal - the internal integration of the components of an HR strategy Intra-gration the integration of the parts of a component of HR strategy e.g reward strategy base pay, variable pay and benefits all support each other,Current HRM Issues & Debates,Responding to increased competition Managing international operations Riding the waves of change Managing the changing relationship with the workforce Changing legislative and regulatory frameworks Best practice versus best fit,HRM and Corporate Strategy,Strategy,Diversity of viewpoints Two dimensions of agreement Degree of planning: deliberate emergent Outcomes: profit maximisation range of outcomes (plural) Four key approaches (Whittington),Approaches to Strategy,Outcomes,Profit maximising,Plural,Deliberate,Emergent,Classical,Evolutionary,Systemic,Processual,Processes,Classical: Rational Economic Man,Application of rational analysis Separation of planning from implementation Commitment to profit maximisation Emphasis on the long-term Explicit goals cascaded down the organisation,Classical and HRM,HRM matching and downstream Tool of implementation HR policies and strategies geared to achieving profit maximisation Critique product of its time; looks nave in todays turbulent and global environment; still pursued in some sectors with long time horizons.,Evolutionary: Natural Selection,Emphasis on environmental fit Profit maximisation achieved by market competition Fit determined by chance rather than strategy Survival by short term strategies aimed at current fit Strategy and illusion in unpredictable environment,Evolutionary law of the jungle,HR key role in environmental scanning Policies and strategies aimed at flexibility and adaptability Matching model Critique markets more regulated than jungle; by government, law, international agreements Concept of flexibility important,Processual life is messy,Concept of bounded rationality Subjective interpretation of data therefore strategy flawed and incomplete We take the first best option sufficing Organisations as coalitions consensus by negotiation Minimum adaptation for survival rather than proactive change spare capacity as buffer Strategy a comforting ritual,Processual and HRM,HR policies evolving and reactive Soft HRM OD, best practice and development of internal competencies important Critique lacks vision; may not be able to respond quickly enough to threats,Systemic: socially grounded,Man makes decisions based on social factors not economic;Social networks define norms Internal context of firm influenced by social groups, interests, resources and micro-politics Different forms of organisation successful indifferent cultures Systemic perspective includes national culture, family, gender, social groups Strategy must be sensitive to these,Systemic and HR,HR policies and processes will have to reflect local culture Management style and strategies for motivation and commitment reflect local and national culture Critique focuses on difference at the expense of similarity and cross-cultural influences,Resource-Based Theory of the Firm,Places HR at heart of strategy Competitive advantage stems from strategic core competencies built up over time Recognises importance of leadership in building top team; fostering creativity and innovation; facilitate the learning process,Emphasises renewal aspect and dynamic capabilities of the organisation Capacity of a firm to renew, adapt and augment its core competencies over time Successful organisations combine multiple modes of strategy making with high levels of competence and astute leadership with employee involvement in strategy making,Resource-Based Theory of the Firm,Resource-Based Theory & HRM,Basis for human resource as competitive edge HRM valued for generating strategic capability as well as supporting strategy Human capital advantage gained through resourcing and retention Human process advantage gained by continuous learning, co-operation and innovation facilitated by bundles of HR strategies,Defining Strategic Core Competencies,INTEGRATED bundle of individual skills 5-15 core competencies the norm A messy accumulation of learning including tacit and explicit knowledge an activity Core competence: delivers a fundamental customer benefit,- is not easily imitated by competitors - provides a gateway to new markets Contributes to strategy as: - as a source of competitive advantage - via a longer lifespan that a single product - exercised across the range of organisational activities,Defining Strategic Core Competencies,Role of HR in Managing Core Competencies,Identifying core competencies linking them to individuals Building core competencies learning and cross discipline communication,Role of HR in Managing Core Competencies,Utilising core competencies developing management capability and forms of working that maximise deployment Protecting core competencies retention strategies, protection during major change, identifying owners of core competence,COMPARATIVE HUMAN RESOURCE MANAGEMENT,Definitions,how things are done around here (Drennan, 1992) Organisational culture refers to the pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organisations history, and which tend to be manifested in its material arrangements and in the behaviour of its members. (Brown, 1995),Organisational Culture - Definitions,The pattern of beliefs and assumptions shared by the organisations members, these beliefs produce norms that shape the behaviour of individuals and groups A set of habitual ways of thinking, feeling and reacting that are characteristic of the ways in which a specific organisation meets its problems at a particular point in time,Levels of Culture,Culture can be conceived as: - societal or national culture - corporate culture - homogenous or heterogeneous subcultures Turner (1971) defined industrial sub-culture by: - distinctive set of shared meanings - use of symbols and rituals - socialisations and norms - attempts to manipulate culture,Aspects of culture,Artifacts Language jokes, jargon, stories Behaviour patterns rituals, ceremonies,celebrations Norms of behaviour History Ethical codes Basic assumptions Beliefs, values and attitudes Symbols,Models of culture,Artifacts,Beliefs, values, attitudes,Basic assumptions,Most superficial manifestations of culture,Deepest level of culture Schein, 1985,Organisational Culture,Artifacts art Visible behaviours audible behaviours,Values,Basic assumptions: Human nature Human activity Relationships Perceived reality Environment,Visible but not often decipherable,What “ought to be; norm-based,Taken for granted Invisible Pre-conscious,Common Organisation Stories,Can employees break the rules? Is the big boss human? Can the little person rise to the top? Will I get fired? How will the boss react to mistakes? Will the organisation help me when I have to move? How will the organisation deal with obstacles?,CULTURE: Socialisation: learning,pre-arrival: “preconception”,metamorphosis: “absorb”,security,commitment,productivity,encounter: “provisional”,(H&B 2002),Organisational Culture and the Life Cycle of the Firm,Phase 1 - Birth and Early Growth Purpose foster cohesion during growth Need for change economic or succession Strategies natural evolution - self-guided evolution - Managed evolution - managed evolution via outsiders,Organisational Culture and the Life Cycle of the Firm,Phase 2 Organisational mid-life Purpose culture deeply embedded, may develop sub-cultures Strategies planned change and OD - technological seduction - scandal, explosion of myths - incrementalism,Organisational Culture and the Life Cycle of the Firm,Phase 3 organisational maturity Purpose source of pride, resistant Strategies coercive persuasion - turnaround - recognition, destruction, re-birth,Culture in organisations: Handy/Harrison:,POWER: ZEUS,PERSON: DIONYSUS,TASK: ATHENA,ROLE: APOLLO,Communication Hall Model,Arab UK China Germany,High context Low context Social trust first Business first Value personal Value expertise relationships & goodwill & performance Agreement by trust Legal contract Negotiation slow, ritual Negotiation efficient,Hofstedes Model,Individualism High power distance Masculinity High uncertainty avoidance Short termism,Collectivism Low power distance Femininity Low uncertainty avoidance Long termism,HRM and Culture Change,Layers of Culture,Artefacts physical objects, behaviour and processes Espoused values those appearing publicly in mission statement, policies Underlying assumptions rarely articulated; may conflict with espoused values and each other,Culture Change,Why change? Environment changes: Business mergers, technology, market Government laws, H &S, diversity, Demographic changes in the human resources available,The Nature of Change,Externally imposed Transformational Global Hostile Large scale Long term Strategic,Internally imposed Incremental Local Positive Small scale Urgent Operational,Introducing Culture Change,Can be very difficult Can be a long term process Issues to be considered in choosing strategy: - scale incremental or radical - Locus organisation, unit, department - nature cognitive and behavioural - timescale,Principles of Culture Change,Values and assumptions define accepted and appropriate behaviours In successful organisations culture is aligned with strategy Culture change may be difficult if the culture is incompatible with strategy Check strategy before embarking on culture change Can the changes required be achieved by other means,Senior management must understand the implications and be committed Culture change must pay attention to the opinion leaders Should take into account the work systems, management style and HR policies New messages reinforced and old ones eliminated The deeper the level of culture change the more difficult it will be,Principles of Culture Change,Multiple and sub cultures will make culture change more difficult Behavioural norms are the easiest to change, deeper layers require a participative approach Top down approaches are difficult to sustain over time Participative approaches are more successful but difficult to implement and time consuming,Principles of Culture Change,Approaches to Culture Change (Bate),STEP 1 ANALYSING THE CULTURE Analysis of the existing culture and setting specific objectives for measuring success in achieving the desired culture. Leading to: PROGRAMME DESIGN STEP 2 EXPERIENCING THE DESIRED CULTURE Involvement of all work teams through peak experience workshops: INDIVIDUAL DEVELOPMT LEADERSHIP DEVELOPMENT ACTION-STUDY TASKFORCE WORK TEAM CULTURES,STEP 3 MODIFYING THE EXISTING CULTURE Modifying critical cultural influences such as : Leadership modelling Work teams Information/communication Performance reward Organisational structures Training & development First line supervision Results orientation And monitoring the outcomes by RESULTS TRACKING,Approaches to Culture Change (Bate),STEP 4 SUSTAINING THE DESIRED CULTURE Sustained achievement of objectives and internalisation of the ongoing change process.,Approaches to Culture Change (Bate),Why People Resist Culture Change,Selective perception Habit Security Economic Status and esteem,Multi-cultural Organisations,A culture that fosters and values diversity Pluralism as an acculturation process Full structural integration Full integration of informal networks Absence of instituti

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