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HRM for MBA Students. Lecture 1 People management: personnel management and human resource management. Learning outcomes. A good appreciation of the ‘people management’ function in contemporary organisations Knowledge of ‘human resource management’ (HRM) and ‘personnel management’ (PM)
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HRM for MBA Students Lecture 1 People management: personnel management and human resource management
Learning outcomes • A good appreciation of the ‘people management’ function in contemporary organisations • Knowledge of ‘human resource management’ (HRM) and ‘personnel management’ (PM) • An appreciation of the theoretical development of HRM • Understanding of the relationship between HRM and business strategy • An appreciation of the practical application of HRM • Recognition of the themes of HRM in the early twenty-first century.
‘People are the only real source of ... continuing competitive advantage.’ Prahalad and Hamel (1990)
We can define people management as: ‘all the management decisions and actions that directly affect or influence people as members of the organisation rather than as job-holders.’
What do people managers do? Their role has specific objectives under four headings: • Staffing objectives • Performance objectives • Change management objectives • Administration objectives Torrington, Hall and Taylor (2002)
The ‘Ulrich model’ of HRM Human Resources should become: • a strategic partner with top management • an expert in administration • a champion for employees • an agent of continuous transformation Ulrich (1998)
‘Building organisational capability is HR’s heartland’ andHR managers ‘can help make capitalism human’ Linda Holbech (2007 )
Taylorism Principles of ‘scientific management’ (1911): • time and motion studies of work processes • standardisation of tools, implements and methods • increased division of labour Taylorism + machine-paced work = Fordism
Personnel management • The first Industrial Revolution: welfare role • Rise of trade unionism: industrial relations role • ‘Scientific management’: training;sophisticated recruitment and selection • Thus by the 1970s the Personnel management paradigm
Human resource management • Loss of faith in traditional mass-production techniques • The example of Japanese quality • Technological development • Thus by the 1990s the (post-Taylorist) HRM paradigm
Perspectives in management • Unitarist • Conflict is ‘wrong’ • Pluralist • Conflict is not ‘wrong’ but must be managed • Radical/critical • Conflict is inevitable ... and may be ‘right’
HRM in practice • Evidence of significant adoption of HRM practices • (Workplace Employee Relations Surveys and others) • But still two traditions or paradigms • Most organisations share characteristics of both • But HRM is in the ascendant
Key themes in HRM • High-involvement employee work practices • Flexible organisation (core and periphery) • Micro-level work organisation (teamworking) • Sophisticated HR for recruitment • Unitarist employee relations • Change management • The learning organisation • Knowledge management • Leadership