Essentials of Human Resource Management free essay sample

Management involves setting goals and allocating scarce resources to achieve them. †¢Management is the process of efficiently achieving the objectives of the organization with and through people. †¢Primary Functions of Management Planning – establishing goals Organizing – determining what activities need to be done Leading – assuring the right people are on the job and motivated Controlling – monitoring activities to be sure goals are met 2. What is Human Resource Management? Definitions: . †¢Human Resource Management (HRM) is a subset of the study of management that focuses on how to attract, hire, train, motivate and maintain employees. Strong employees become a source of competitive advantage in a global environment facing change in a complex ways at a rapid pace. DeCenzo et al (2010:1) Human resource/personnel management may be defined as the planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished. We will write a custom essay sample on Essentials of Human Resource Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Edwin B. Elippo †¢Ã¢â‚¬ËœAll those activities associated with the management of employment relationships in the firm’Boxall and Purcell (2003: 1) †¢Ã¢â‚¬Ëœ The management of work and people in organizations’Boxall et al (2007. ) HRM as ‘an inevitable process that accompanies the growth oforganizations’Boxall and Purcell (2010: 29) †¢The policies, practices,and systems thatinfluence employees’ behavior, attitudes, and performance. Noe et al (2011. 1) HRM covers activities such as †¢human capital management, †¢knowledge management, †¢organization design and development, †¢resourcing (workforce planning, recruitment and selection, and talent management), †¢performance management, †¢learning and development, †¢reward management, †¢employee relations and employee well-being. HRM has a strong conceptual basis drawn from the behavioural sciences and from human capital and industrial relations theories. The philosophy of human resource management As conceived by the pioneers in the 1980s, HRM is fundamentally different from the personnel management practices of the time. †¢Beer et al (1984: 1) (the ‘Harvard school’)started with the proposition that: ‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’. They suggested that HRM had two characteristic features: (1) line managers accept more responsibility for ensuring the alignment ofcompetitive strategy and HR policies; (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing. †¢Fombrun et al (1984) – developed what has been termed their ‘matching model’, which indicated that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. The critical management task is to align the formal structure and human resource systemsso that they drive the strategic objectives of the organization’ (ibid: 37). †¢Hendry and Pettigrew (1990: 20) observed that: ‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies – in attitudes, scope, coherence, and direc tion – of existing personnel management’. †¢Legge(1989: 25), whose analysis of a number of HRM models identified the following ommon themes: That human resource policies should be integrated with strategic business planning and used to reinforce an appropriate (or change an inappropriate) organizational culture, that human resources are valuable and a source of competitive advantage, that they may be tapped most effectively by mutuallyconsistent policies that promote commitment and which, as a consequence, foster a willingness in employees to act flexibly in the interests of the ‘adaptive organization’s’ pursuit of excellence. Storey (2001: 7) noted that the beliefs of HRM included the assumptions that it is the human resource that gives competitive edge, that the aim should be to enhance employee commitment, that HR decisions are of strategic importance and that therefore HR policies should be integrated into the business strategy. Underpinning theories of HRM David Guest (1987: 505) commented that: ‘Human resource management appears to lean heavily on theories of commitment and motivation and o ther ideasderived from the field of organizational behaviour’. These theories are summarized below. 1. Commitment the strengthof an individual’s identification with, and involvement in, a particular organization 2. Organizational behaviour theory describes how people within their organizationsact individually or in groups and how organizations function interms of their structure, processes and culture. 3. Motivation explains the factors that affect goal-directed behaviourand therefore influences the approaches used in human resource managementto enhance engagement (the situation in which people are committed to theirwork and the organization and motivated to achieve high levels of performance). . AMO theory- set out by Boxall and Purcell (2003) states that performanceis a function of Ability + Motivation + Opportunity to participate. 5. Human capital theory concerned with how people in an organizationcontribute their knowledge, skills and abilities to enhancing organizationalcapability and the significance of that contribution 6. Resource dependence theory. Resource depende nce theory groups and organizations gain power overeach other by controlling valued resources. HRM activities are assumed toreflect the distribution of power in the system. . Resource-based theoryoften referred to as the resource-based view, blendsconcepts from organizational economics (Penrose, 1959) and strategic management(Barney, 1991). The theory states that competitive advantage is achievedif a firm’s resources are valuable, rare and costly to imitate. HRM can playa major part in ensuring that the firm’s human resources meet those criteria. 8. Institutional theory. Organizations conform to internal and external environmental pressures inorder to gain legitimacy and acceptance. 9. Transaction costs theory assumes that businesses develop organizationalstructures and systems that economize the costs of the transactions (interrelatedexchange activities) that take place during the course of their operations. 10. Agency theory -also known as principal-agent theory, explains that in mostfirms there is a separation between the owners (the principals) and the agents(the managers). Agency theory indicates that it is desirable to operate a systemof incentives for agents, ie directors or managers, to motivate and rewardacceptable behaviour. 1. Contingency theory states that HRM practices are dependent on the organization’senvironment and circumstances. This means that, as Paauwe (2004:36) explained: ‘the relationship between the relevant independent variables(eg HRM policies and practices) and the dependent variable (performance)will vary according to the influences such as company size, age and technology,capital intensity, degree of unionization, industr y/sector ownership andlocation’. The goals of HRM The overall purpose of human resource management (or people management) is to ensure that the organization is able to achieve success through people. The following policy goals for HRM were suggested by David Guest (1991: 154–59): †¢Commitment: behavioural commitment to pursue agreed goals andattitudinal commitment reflected in a strong identification with theenterprise. †¢Flexibility: functional flexibility and the existence of an adaptableorganization structure with the capacity to manage innovation. Quality: this refers to all aspects of managerial behaviour that beardirectly on the quality of goods and services provided, including themanagement of employees and investment in high-quality employees. †¢Strategic integration: the ability of the organization to integrateHRM issues into its strategic plans, ensure that the various aspects ofHRM cohere, and provide for line managers to incorporate a HRMperspective into their decision making. Characteristics of HRM Conceptually, the characteristics of HRM are that it is: †¢strategic with an emphasis on integration; commitment-orientated; †¢based on the belief that people should be treated as assets (human capital); †¢unitarist rather than pluralist, ie based on the belief that management and employees share the same concerns and it is therefore in both their interests to work together †¢individualistic rather than collective in its approach to employee relations; †¢a management-driven activity – the delivery of HRM is a linemanagement responsibility; †¢focused on business values, although this emphasis is being modified The diversity of HRM Dyer and Holder (1998) have pointed out that HRM goals vary according to competitive choices, technologies, characteristics of employees (eg could be different for managers) and the state of the labour market. †¢Boxall (2007: 48) remarked that: ‘Human resource management covers a vast array of activities and shows a huge range of variations across occupations, organizational levels, business units, firms, industries and societies’. Hard and soft HRM A distinction was made by Storey (1989:8) between the ‘hard’ and ‘soft’ versions of HRM. The hardone emphasizes the quantitative, calculative and business-strategic aspects of managing human resources in as â€Å"rational† a way as for any other economic factor. †¢By contrast, the soft version traces its roots to the humanrelationsschool; it emphasizes communication, motivation and leadership. ’ The ethical dimension HRM has an ethical dimension; that of exercising concern for the interests (well-being) of employees, bearing in mind Schneider’s (1987: 450) view that ‘organizations are the people in them: people make the place’. Beer et al (1984: 13) emphasized that: ‘It is not enough to ask how well the anagement of human resources serves the interests of the enterprise. One should ask how well the enterprise’s HRM policies serve the well-being of the individual employee’ (original emphasis). Ulrich (1997: 5) argued that HR professionals should ‘represent both employee needs and implement management agendas’. Boxall et al (2007: 5) pointed out that: ‘While HRM does need to support commercial outcomes (often called â€Å"the business case†), it also exists to serve organizational needs for social legitimacy’. 3. Why is HRM important to corporations? †¢The role of human resource managers has changed . HRM jobs today require a new level ofsophistication. oGovernment legislation has placed new requirements on employers. oJobs have become more technical and skilled. oTraditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. oGlobal competition has increased demands for productivity. oOrganizations need HRM specialists trained in psychology, sociology, organization and work design, and law oEqual employment opportunity is emphasized and geared to hire the best-qualified candidate without regard to race, age, religion, color, sex, disability, or national origin. The Strategic Nature – HRM must be oa strategic business partner and represent employees. oforward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage. oconcerned with the total cost of its function and for determining value added to the organization †¢HRM is the part of the organization concerned with the à ¢â‚¬Å"people† dimension. †¢HRM is both a staff, or support function that assists line employees, and a function of everymanager’s job. †¢HRM Certification oColleges and universities offer HR programs. The Society for Human Resource Management and Human Resource Certification Institute offer professional certification. 4. What are the Primary Activities of HRM? †¢Four basic functions: oStaffing Staffing function is concerned with seeking and hiring qualified employees. It involves strategic human resource planning, recruitment and selection. The goal of recruiting is to give enough information about the job to attract a large number of qualified applicants and simultaneously discourage the unqualified from applying. oTraining and Development The goal of training and development is to have competent, adapted employees who possess the up-to-date skills, knowledge and abilities needed to perform their current jobs more successfully. If that is attained, HRM turns its attention to finding ways to motivate these individuals to exert high energy levels. Training and development function tends to be a continuous process. This function encompasses the following – Employee Training, Employee Development, Career Development and Organization Development. oMotivation Motivation is a multifaceted process which involves the employee, the manager and the organization. The employee’s performance is based on his ability and willingness to the job. Review of job design and provision of latest technology can motivate employees. The element of respect between management and the workers should be maintained. This can be seen as involving employees in decisions that affect them, listening and implementing their suggestions. Performance setting and evaluation, feedback and reward system must be in place to motivate employees. Throughout the activities required in the motivation function, the efforts all focus on one primary goal: to have highly productive, competent, and adapted employees, with up-to-date skills, knowledge and abilities. oMaintenance Maintenance function is concerned with maintaining employee’s commitment and loyalty to the organization. This function puts into place activities that will help retain productive employees. HRM must ensure a safe and healthy working environment; caring for employees’ well-being has a major effect on their commitment. Employees’ assistance program and communication programs must be in place. Time and effort expended in this function help HRM achieve its ultimate goal of retaining highly productive, competent, and adapted employees, with up-to-date skills, knowledge, and abilities, who are willing to maintain their commitment and loyalty to the company. The process is difficult to implement and maintain, but the rewards should be such that the effort place in such endeavors is warranted. The following diagram will summarize the primary functions of HRM. Another look at the functions of HRM which goes beyond the four basic tasks: FunctionResponsibilities Analysis and design of workWork analysis; job design; job descriptions Recruitment and selectionRecruiting; job postings; interviewing; testing; coordinating use of temporary labor Training and developmentOrientation; skills training; career development programs Performance management Performance measures; preparation and administration of performance appraisals; discipline Compensation and benefits Wage and salary administration; incentive pay; insurance; vacation leave administration; retirement plans; profit sharing; stock plans Employee relations Attitude surveys; labor relations; employee handbooks; company publications; labor law compliance; relocation and utplacement services Personnel policies Policy creation; policy communication; record keeping; HR information systems Compliance with laws Policies to ensure lawful behavior; reporting; posting information; safety inspections; accessibility accommodations Support for strategyHuman resource planning.