Lecture 1 - Introduction
Lecture 1 - Introduction
Lecture 1 - Introduction
Key definitions
Agenda
1920s: 1940s:
1970s:
Labor Personnel
HRM
management management
1980s:
1990s: Talent Human capital
management management
2. Philosophy of HRM
Ensure that the organization has the talented, skilled and engaged
people it needs; create a positive employment relationship between
management and employees and a climate of mutual trust;
• Strategic HRM
• Human Capital management
• Knowledge management
• Organization development
• Resourcing (HR planning, Recruitment and Selection, and talent management)
• Learning and development
• Reward management
• Performance management
• Employee relations
• Employee well-being
5. Underpinned theories of HRM
• Commitment
The significance in HRM theory of organizational commitment (the strength of an individual’s
identification with, and involvement in, a particular organization) was highlighted in a seminal
Harvard Business Review article by Richard Walton (1985).
• Motivation
Motivation theory explains the factors that affect goal-directed behaviour and therefore influences
the approaches used in HRM to enhance engagement (the situation in which people are committed
to their work and the organization and are motivated to achieve high levels of performance).
5. Underpinned theories of HRM
• Contingency theory
- Contingency theory states that HRM practices are dependent on the organization’s environment
and circumstances.
- Contingency theory is associated with the notion of fit – the need to achieve congruence
between an organization’s HR strategies, policies and practices and its business strategies
within the context of its external and internal environment. This is a key concept in strategic
HRM.
• Institutional theory
- Organizations conform to internal and external environmental pressures in order to gain
legitimacy and acceptance
5. Underpinned theories of HRM
• AMO theory
- The ‘AMO’ formula as set out by Boxall and Purcell (2003) states that performance is a function
of Ability + Motivation + Opportunity to Participate. HRM practices therefore impact on
individual performance if they encourage discretionary effort, develop skills and provide people
with the opportunity to perform. The formula provides the basis for developing HR systems that
attend to employees’ interests, namely their skill requirements, motivations and the quality of
their job.
• Social exchange theory
- Employees will reciprocate their contribution to the organization if they perceive that the
organization has treated them well.
5. Underpinned theories of HRM
• Authority is the right to make decisions, to direct the work of others, and to
give orders. Managers usually distinguish between line authority and staff
authority.
– Line authority gives you the right to issue orders
– Staff authority gives you the right to advise others in the organization
Line Manager’s HR Management
Responsibilities
(1 of 2)
1. Department Lever
2. Employee Cost Lever
3. Strategic Results Lever
HR and Evidence-Based Management
• Adding value – means helping the firm and its employees improve in a
measurable way as a result of the human resources manager’s actions.
Sustainability and HRM
• H R C I Certifications
– P H R – Professional in Human Resources
– S P H R – Senior Professional in Human Resources
• S H R M now has its own competency and knowledge based testing
H R and the Manager’s H R
Philosophy