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UNIT 22- Managing Human Resources

UNIT 22- Managing Human Resources . Introduction to Managing Human Resources - S ession 1. SESSION AIMS. By the end of the session students will be able to: Define and Understand the Notion of HRM Understand the Various HRM activities and their Importance

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UNIT 22- Managing Human Resources

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  1. UNIT 22- Managing Human Resources Introduction to Managing Human Resources - Session 1

  2. SESSION AIMS By the end of the session students will be able to: • Define and Understand the Notion of HRM • Understand the Various HRM activities and their Importance • Examine Storey’s ‘Hard’ and ‘Soft’ perspectives of HRM

  3. What is Human Resource Management (HRM) ? • All organisations have people- they have Human Resources (HR) • Regardless of the size of an organisation or the extent of its resources, the organisation survives and thrives because of the capabilities and performance of its people • Human Resources (HR) department is the part of the organisation that deals with people • Human Resource Management (HRM) means acquiring developing and supporting staff as well as ensuring they fulfill their roles at work

  4. DEFINITIONS OF HRM • Torrington etal (2005) “ It is a series of activities which first enables working people and the organisation which uses their skills to agree about the objective and nature of their working relationship and secondly, ensure that the agreement is fulfilled.”

  5. DEFINITIONS OF HRM • The policies and practices in carrying out the “people” or Human Resource (HR) aspects of a management position including, recruiting, screening, training, rewarding and appraising (Dessler, 1999). • CIPD, (2011)- “The design, implementation and maintenance of strategies to manage people for optimum business performance including the development of policies and process to support these strategies”

  6. EVOLUTION OF HRM • The 1980’s and 1990’s saw ‘Human Resource Management’(HRM) replace ‘Personnel Management’ • Re-organisation of work of personnel department • Distinctively different with new management approach • Long term rather than short term perspective • Psychological contract of commitment • Maximum utilisation of resources

  7. IMPORTANCE OF HRM • HR is the largest revenue cost of any organisation • It is a volatile resource- requires sensitive handling • HR is a store of corporate knowledge and the means of service delivery • Retaining and developing talented HR enables a business to gain a sustainable competitive advantage

  8. HRM ACTIVITIES • HR Planning • Recruitment and Selection • Training and Development • Reward and Compensation Management • Performance Management • Employee Relations

  9. ‘Hard’ and ‘Soft’ HRM Storey (1989) has distinguished between ‘Hard’ and ‘Soft’ forms of HRM • ‘Hard’ HRM focuses on the resource side of human resources. It emphasises costs in the form of 'headcounts' and places control firmly in the hands of management. • Their role is to manage numbers effectively, keeping the workforce closely matched with requirements in terms of both bodies and behaviour.

  10. ‘Hard’ and ‘Soft’ HRM • 'Soft' HRM, on the other hand, stresses the 'human' aspects of HRM. Its concerns are with communication and motivation. People are led rather than managed. They are involved in determining and realising strategic objectives.

  11. OVERVIEW OF THE ROLE OF HR • Support and advise line managers • Ensure staff available to meet organisational needs • Provide developmental support • Appraisal • Training • Promotion • Ensure pay and benefits are in line with expectations • Deal with problematic employees • Develop • Dismissal

  12. OVERVIEW OF HRM FUNCTIONS • The company rather than the state or trade union provide employee security and welfare • HRM focuses on achieving organisational goals through individual achievement • Providing the right person in the right place • Directing positive employee communication and involvement • Optimise co-operation and loyalty

  13. OVERVIEW OF WHY HRM? • HRM equipped with strategy - a new set of tools and measures • People issues are now recognised as being central to the success of any organisation as a consequenceof which human resources has assumed a higher profile • Senior management meeting address concerns • Staffing levels • Recruitment • Management Development • Retention

  14. TASKS • Define the term ‘Human Resource Management’ (HRM) • Discuss the importance of various HRM activities for organisations with reference to relevant examples • Identify and comment on Storey’s model of HRM

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