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Chapter 1: The nature of human resource management• Defining human resource management, the

generic term (pp.6-8)• HRM and the achievement of

organizational effectiveness (pp.16-18)• The evolving psychological contract

(pp. 19-21)• Best practice versus best fit (pp. 21-23)

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HRM for the 21th century• 1960 -1970 companies aspiration was senior people in

companies, public sectors were with large staff with heavy weight hierarchical bureaucracies and stagnant businesses.

• End of twentieth century general directions of down sizing, reducing the number of people employed, hierarchies were delayed to reduced the staff many functions were outs sourced to simplify the business operations to concentrate on core competencies. Reducing head count was fashionable criteria for success.

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Defining human resource management, the generic term (pp.6-8)

HRM can be defined by two ways. The first describes the body of management activities and other signify approach to carry out these activities.• HRM Mark 1 :-The role of HR function is explained to identify key

objectives. There are four key objectives of HR activities. Staffing objectives:- it involves designing organizational structures, identifying types of contracts for different employees , filling the roles and choosing the right people with right skills , recruiting and training best affordable work force.Performance objectives:-to keep employee motivated and committed to maximize performance in different roles, it can be achieved by training and development, disciplining employee by arranging the employee involvement initiativeschange management objectives:- change comes in different forms, structural change, introduce new people into role, cultural change in order to alter the attitude.administration objectives. It can be done by administering the payment professionally and lawfully, deals with pension fund distribution, taxation and insurances issues. Also monitor the sick, maternity and health and safety systems.

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HRM and the achievement of organizational effectiveness (pp.16-18)• HRM contributes to achieve various dimensions of organizational effectiveness,

such as gaining competitive advantage, fostering positive standing in markets and reputation corporate social responsibility.

• Organizational effectiveness is defined in terms of meeting a customer service need as a cost efficient as possible to the highest achievable standard of quality.

contribution by HR functions to gain competitive advantage can be done as following.

For all sizeable organizations there is a need to foster a positive long term corporate reputation. developing such reputation can take many years to achieve but without care it can be lost very quickly with very damaging results.In particular organization, need to maintain strong reputation for sound management in financial markets, and in media to maintain the customer growth.

it involve fundamental aims of people management more efficiently and effectively then competitors organizations. The term human capital is used to signify combined knowledge and experience of staff( attracting, engaging, rewarding, developing and retaining people enables to leak the human capital away.

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• HR functions can play role in building organizations reputation as an ethical and social responsible organization. It happens in two ways• It involve fostering an understanding of commitment to ethical

conduct on the part of managers. That can achieved by paying attention in objectives of recruitment campaigns, criteria adopted in selection of new employees, methods used to develop people, performance management process.

• 2nd relates the manner people are managed. A poor ethical reputation can be gained simply by treating employees poorly

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The evolving psychological contract (pp. 19-21)

• This refers to the expectations that employees have about the role that they play and about what the employers is prepared to give in return. Psychological contract is different than legal written contract of employment.

• Psychological contract concerns about what each party thinks it will gain from the relationships. It is not a written document.

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Old and new approaches of psychological contract.• Old psychological contractI will work hard for and act with loyalty towards my employer. In return I expect to be retained as an employee provided I do not act against the interests of the organization. I also expect to be given opportunities for development and promotion should circumstance to make it possible.New psychological contractI will bring to my work effort and creativity. In return I expect a salary that is appropriate to my contribution and market worth. While our relationship may be short term, I will remain for as long as I receive developmental opportunities I need to build my career.This switch from old approach to new approach involves employers giving less job security and receiving less loyalty in return.

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Transactional vs relational

Pay Job security

Performance based pay Career prospective

Having a job Training and development

employee

Long hours loyalty

Multi skilled conformity

Willing to change

A switch from old to new bring less job security and receive less loylty in return from employees.

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Best practice versus best fit (pp. 21-23)

• Main element so of best practice bundle are those which considered as examples of good practice in hrm that are• Use of advanced selection methods, serious commitment to

employee involvement, substantial investments in training and development, use of individual reward systems, harmonized term and conditions of employment between various groups of employees.

• The alternative “ best fit “ identifies the link between HRM practice and achievement of competitive advantage. There is no universal solution all is depending on the particular circumstances of each organization.

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Chapter-3Strategic human resource management:-

The link between business and HR strategy(pp61-63)

&Table 3.1 (p-67)

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The separation Model(A):- the is no relationship between HR/organizational strategy:- old approach 20 years back but still exist in small organizations.The fit Model(B):-this model represent the growing recognition of importance of people in achieving the organizational strategy.Employees are seen as key in implementation of declared organizational strategy, HR strategy is designed to fit with it. relationship of fit model is exemplified by organization that cascade their business objectives down from senior management team through functions, through departments, through team sand so on . Each function define functional strategy and then departmental strategy . In this form HR function is required to respond to organizational strategy by defining HR strategy which meets organizational demands. Dialogue Model(c):- this model takes the relationship one step further, it recognize the need of two way communications and some debt. It is some how what ever is demanded by organization is not viewed as feasible alternative possibilities need to review

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• The Holistic model(D):-In this model people in organization being recognized as the key competitive advantage rather than just way of implementing organizational strategy. HR strategy become critical, there can be no other strategy without HR strategy.

• The HR-driven model(E):- it offer more extreme form which place HR in prime position.(butler,1988/89) identified that this model as a shift from HR as the implementation of strategy than HR as driving force in the formulation of strategy.

it given increasing attention to human capital.

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table 3.1 (p 67)Strategy Employee role behavior HRM Policies

Innovation 1. A high degree of creative behavior

2. .Long term focus

3. A relatively high level of cooperative , interdependent behavior

4. A moderate degree of concern for quality

5. A moderate concern of quantity an equal degree of concerns for process and result

6. A greater degree of risk taking; a higher tolerance of ambiguity and unpredictability

1. Jobs that require close interaction and coordination among groups of individuals

2. Performance appraisals that are o more likely to be reflect longer-term and group based achievement

3. Jobs that allow employees to develop skills than can be used in other positions in the firm.

4. Compensations systems that emphasis internal equity rather than external or market based equity

5. Pay rates that tends to be lower but allow employees to be stakeholders and have more freedom to choose the mix of components that makes up their pay packages.

6. Broader career paths to re in force the development of broad range of skills.