HRM

Human Resource Management

Part of management process that specialises in the management of people in work organisations
Emphasises that employees are critical in achieving sustainable competitive advantage
Human resource practice integrated into cooperate strategy
HR specialists help organisational controllers meet efficiency and equity objectives


HUMAN RESOURCE CYCLE
/Rewards
SELECTION -> performance-> appraisals-{
\ Development
Guest 1997 - Human resource practice geared towards produce high-quality, flexible, committed employees

HRM strategy Differentiation (innovation) Focus (quality) Cost (cost reduction)
HRM practices Selection Training Appraisals Reward Job design Involvement Status &Security
HRM outcomes Commitment Quality Flexibility
Behavioural outcomes Effort/ Motivation Cooperation &involvement Organisational citizenship
Performance outcomes Greater quality Reduced & conflict
Productivity absenteeism & fewer customer
& innovation labour complaints
Turnover
Financial out comes Profits Return on investments

Employee commitment vial HR outcome, behavioural outcomes
All 3 HR outcomes achieved quality, commitment and flexibility can we expect improved behavioural and performance outcomes

Fombrum and Tchy interrelated nature of HRM activities
Only by matching internal policies and practices to the organisation’s external business practices coherence of internal HR policies with

Must take into account
external factors such as industry characteristics like type of business, level of union organisations, nature of the competition, extent of the change and regional characteristics such economic conditions, legal requirements and the socio-cultural environment

Internal factors include organizational structure, the competitive strategy employed and the organisation’s culture

HR specialist and line managers differing approach soft and hard
Hard – uses words like RESOURCE, rational approach to managing people i.e. aligning business strategy to HR strategy, viewing people as costs to be controlled
Soft – HUMAN, investment in training and commitment strategies skilled loyal employees give competitive advantage. Stresses learning and enlightened leadership. Assets not variable costs
Maslow human potential and ability to tap into it

National and regional differences
Specific for each nation as a result of historic traditions, cultural, economic and legal environment, major factor degree of state interference
Eastern Europe HRM determine by law little decided by individual organisations
Western Europe large state interference European welfare and education system strongly influence the labour market
Japan and US relatively low state interference impact on HRM differs
Japan – lack of legal structure partly substituted by cultural factors especially collectivism
Factor degree of collectivism vs. individualism