MGMT 2718 Human Resource Management Notes
People are our most valued resource
‘New’ emphasis on achieving organisational success through management of people HRM as the ‘organisation’s conscience’ – where workers can expect to be treated with fairness HR ‘Process’ – recruitment, selection, training and development, performance management, reward and motivation, redundancy ‘Hard’ – ‘military’ model – management as commander – dictates strategy, then HRM follows – quantitative emphasis on the numbers ‘Soft’ – HR managers may have influence on strategy
Conscience of the firm or a strategic partner
Issues of HRM
Often the benefits of HRM oversold
Employers may not be able to deliver on the promise of HRM - often the quest for ‘success’ (profits and survival) can necessitate cutting employee’s conditions The best HRM techniques and high commitment workplaces will not necessarily ensure success – they can’t protect the organisation against pressures from international competition and the global financial system Researchers have sought unsuccessfully to find direct links between HRM practices and organisational success IR regulation and unions have not disappeared
Globalisation and offshoring
Academic Disciplinary Contributors to HRM – management, sociology, psychology, social psychology, economics, employment relations and organisational behaviour
Recruitment and selection
Training (learning) and Development
Career Development and succession
Quality of work/life – employers try to give employees a balance of work and life Ethics – relationship between the firm and the environment
The focus of HRM is on the managing people within the employer employee relationship. Specifically, it involves the productive use of people in achieving the organisation’s strategic business objectives and the satisfaction of individual employee needs. It adds value by designing and implementing HR practices and policies that motivate employees to translate their know-how into productive behaviour. HRM affects customers, business results, and shareholder value. Human capital is their most important resource.
Seven dimensions of effective people management that produce substantially enhanced economic performance are: 1. Employment security
2. Rigorous selection
3. Self-managed teams and decentralised decision making
4. Comparatively high compensation linked to individual and organisational performance 5. Extensive training
6. Reduces status distinctions
7. Extensive sharing of financial and performance info throughout organisation
HR has a positive effect on organisation performance by increasing employee knowledge, skills and abilities (KSAs), empowering employees to act, and motivating them to perform.
Human capital is the knowledge, skills and abilities present in an organisation’s human resources. It is the product of learning, education and training. Social capital describes the strengths of personal relationships existing within an organisation. It promotes knowledge sharing, employee motivation, teamwork, collaboration and willingness to get things done.
The HRM manager is responsible for performance. The position helps to achieve the strategic business objectives of the organisation. It deals directly with people. The HR manager deals with changes and challenges such as: Industrial relations
Nature of work
The HR function is recognised for contributing to the bottom line (final result). There is a need for HR managers to create a better understanding among line managers of the valuable contribution to be made by HRM and to adopt strategies to improve their relationship with the line managers. The...
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