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Concept of HRM (human resource management), Study notes of Human Resource Management

hrm notes - hrm notes

Typology: Study notes

2011/2012

Uploaded on 03/30/2012

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HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Definition-1:
Definition-1: (John Storey, 1995) Human resource
(John Storey, 1995) Human resource
management is a distinctive approach to employment
management is a distinctive approach to employment
management which seeks to achieve competitive
management which seeks to achieve competitive
advantage through the strategic deployment of a highly
advantage through the strategic deployment of a highly
committed and capable workforce, using an integrated
committed and capable workforce, using an integrated
array of
array of
Cultural, structural and personal techniques.
Cultural, structural and personal techniques.
Definition-2:
Definition-2: A strategic and coherent approach to the
A strategic and coherent approach to the
management of an organisation`s most valued assets-the
management of an organisation`s most valued assets-the
people working there who individually and collectively
people working there who individually and collectively
contribute to the achievement of its objectives.
contribute to the achievement of its objectives.
Key Concepts:
Key Concepts:
Distinctive approach to employment management
Distinctive approach to employment management
Competitive advantage
Competitive advantage
Deployment of committed & capable workforce
Deployment of committed & capable workforce
A strategic and coherent approach
A strategic and coherent approach
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HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE MANAGEMENT

Definition-1: Definition-1: (John Storey, 1995) Human resource(John Storey, 1995) Human resource management is a distinctive approach to employmentmanagement is a distinctive approach to employment management which seeks to achieve competitivemanagement which seeks to achieve competitive advantage through the strategic deployment of a highlyadvantage through the strategic deployment of a highly committed and capable workforce, using an integratedcommitted and capable workforce, using an integrated array ofarray of Cultural, structural and personal techniques. Cultural, structural and personal techniques. Definition-2: Definition-2: A strategic and coherent approach to theA strategic and coherent approach to the management of an organisations most valued assets-themanagement of an organisations most valued assets-the people working there who individually and collectivelypeople working there who individually and collectively contribute to thecontribute to the^ achievement of its objectives.achievement of its objectives. Key Concepts: Key Concepts:

  • Distinctive approach to employment managementDistinctive approach to employment management
  • Competitive advantageCompetitive advantage
  • (^) Deployment of committed & capable workforceDeployment of committed & capable workforce
  • (^) A strategic and coherent approachA strategic and coherent approach

VERSIONS OF HRMVERSIONS OF HRM

John Storey (1995), in New Perspectives on Human resource John Storey (1995), in New Perspectives on Human resource management, made a distinction between two versions ofmanagement, made a distinction between two versions of HRM.HRM.

    1. HARD HRM: It emphasises the need to manage people inHARD HRM: It emphasises the need to manage people in ways that will obtain added value from them and thusways that will obtain added value from them and thus achieve competitive advantage. Thus it concentrates onachieve competitive advantage. Thus it concentrates on quantitative, measurable criteria, control and performancequantitative, measurable criteria, control and performance management. The hard approach emphasises:management. The hard approach emphasises:
  • The interests of managementThe interests of management
  • Adopting a strategic approach that is closely integrated withAdopting a strategic approach that is closely integrated with business strategybusiness strategy
  • Obtaining added value from people by the process of humanObtaining added value from people by the process of human resource deployment and performance managementresource deployment and performance management
  • The need for a strong corporate culture expressed in missionThe need for a strong corporate culture expressed in mission and value statements and reinforced by communications,and value statements and reinforced by communications, training and performance management process.training and performance management process.

DEVELOPMENT OF HRM CONCEPTDEVELOPMENT OF HRM CONCEPT

HRM CONCEPTSHRM CONCEPTS

US MODEL THE UK MODEL THE JAPANESE

MODEL

Matchin

g Model

Harvard

Model

David Guest John Storey^

?

THE US MODELTHE US MODEL

    1. THE MATCHING MODEL: the humanTHE MATCHING MODEL: the human resource system and organisation structureresource system and organisation structure should match with organisational strategy.should match with organisational strategy.
    1. THE HARVARD MODEL:THE HARVARD MODEL:
  • HRM is based on central philosophy andHRM is based on central philosophy and strategic visionstrategic vision
  • HRM involves all management decisionsHRM involves all management decisions and action that affect theand action that affect the nature of thenature of the relationship between the organisation andrelationship between the organisation and its employees.its employees.
  • A longer term perspective in managingA longer term perspective in managing people and consideration of people aspeople and consideration of people as potential assets rather than variable costs.potential assets rather than variable costs.
  • Mutual interests.Mutual interests.

THE UK MODELTHE UK MODEL

1. 1. DAVID GUEST:has taken the Harvard Model andDAVID GUEST:has taken the Harvard Model and

developed it further by defining 4 policy goals:developed it further by defining 4 policy goals:

  • Strategic IntegrationStrategic Integration
  • High CommitmentHigh Commitment
  • High QualityHigh Quality
  • FlexibilityFlexibility
  1. John Storey; suggests four aspects which2. John Storey; suggests four aspects which constitute the meaningful version of HRMconstitute the meaningful version of HRM
  • HRM is constellation of beliefs & assumptionHRM is constellation of beliefs & assumption
  • The central involvement of line managersThe central involvement of line managers
  • A strategic thrust informing decisions aboutA strategic thrust informing decisions about people managementpeople management
  • Reliance upon a set of levers to shave theReliance upon a set of levers to shave the employment relationshipemployment relationship

CHARACTERISTICS OF HRMCHARACTERISTICS OF HRM

  • It is top management driven andIt is top management driven and

management oriented activitymanagement oriented activity

  • It emphasises the need for strategic fit-theIt emphasises the need for strategic fit-the

integration of business and HR strategiesintegration of business and HR strategies

  • It is commitment orientedIt is commitment oriented
  • It can take either hard or soft formIt can take either hard or soft form
  • It is performance orientedIt is performance oriented
  • Employee relations are unitarist ratherEmployee relations are unitarist rather

than pluralist, individual rather thanthan pluralist, individual rather than

collective, high trust rather than low trustcollective, high trust rather than low trust

  • Reward according to performance,Reward according to performance,

competence or skills.competence or skills.