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CHAPTER 1: THE PROCESS OF STRATEGIC HUMAN RESOURCE MANAGEMENT

INTRO
Introduction to the essential elements of HRM, and later it presents the continuous-improvement HRM Model.

Nature, origins and implications of HRM
HRM is the part of the organization responsible for all aspects related with people. In recent years it is recognize that better outcomes can be achieved when line managers (different from HR managers) share the responsibility of HRM. HRM includes strategy development and analysis, policy making, systems, processes and procedures. Activites: People Audit to check behavioral quality.

Safeguarding people’s wellbeing, to ensure safe and healthy. Research, to monitor, evaluate and innovate employer’s attitude. Job analysis, evaluation and classification of the necessary skills and attitudes. Job design and work design to clarify work performance scheduling and relationships. HR planning, to match labour demand and resources

Recruitment and selection of the right people
Induction, training and development
Performance management, to provide proper feedback so employees can nurture their qualities to make them and the organization succeed. Managing compensation, rewards and benefits, to ensure acquiring and retaining the right people that can make the organization succeed. HR departments will vary among organizations, and can do more or less than the above, but always with the focus on making the individuals and the organization to thrive/succeed.

The Hystory of HR

The scientific management perspective: Taylorism (1911). Argues that there is one best way for people do their tasks; for that uses specific method and time standards. Focuses on efficiency and production, but is deshumanizing. It is still used today in some extent. The human relations movement: 1920. A joint focus on people and production, with emphasis on communication, respect and dignity. Organizational behavior: 1960. Evolution of the previous, study individual’s and group’s cognitions, affects and behaviors. Combines micro perspective of human relations with macro perspective of management. Deals with the people being part of an organization (motivation and behavior). The modern approach of HRM is based on OB, and focuses on building competitive advantage through people (when they have processes, systems, or social capital superior to competitors). Types of capital in this context:

Social capital: based on the networks and relationships built by employees inside and outside the organization. Builds positive relationships and sharing of knowledge. Cultural capital: Values and beliefs shared by the members of the organization. Can reduce the risk and increase customer preferences. Human capital: Based on people’s knowledge, skills and habilities.

HRM styles and philosophies
Control-based style: the organization uses people to work, and organizes tasks and processes to use workers full capacity. Resource-based view: People are valuable when they have something that organization cannot copy or substitute (skills, knowledge). The opportunities to learn and grow, people can provide capabilities and capital.

Organizations tend to combine both approaches.
Transactional philosophy: emphasis on control and efficiency. Paternalistic philosophy: high levels of control but look after the worker Commitment philosophy: maximize worker’s contribution and use of skills and knowledge for the benefit of the organization. Collaborative philosophy: acknowledge stakeholders view and take decisions that are satisfactory for all parties.

HR as a human-centred strategic management process
Strategic management is largely composed by organizational strategy. HR decisions must be done with the focus in persons, putting their qualities at the heart of the strategic management formulation and implementation process.

Strategic formulation includes setting a mission, vision, strategy, goals and values coupled with the internal and external...
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