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Introduction to HRM
Human Resource
Management - Session 1Suhel Khan
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Aims
By the end of the session students will beable to:
1) Demonstrate an understanding role ofHR.
2) Understand the factors influencing theHRM.
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What is HR?
Human Resources is the part of theorganization that deals with people
Managing the human resource This means acquiring developing and
supporting staff as well as ensuring they
fulfill their role at work
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Define HRM
Torrington et al “ It is a series of activitieswhich; first enables working people andthe organisation which uses their skills to
agree about the objective and nature oftheir working relationship and secondly,ensure that the agreement is fullfilled.”
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HRM
The Policies and practices in carrying out the “people” or human resource aspects of amanagement position including, recruiting,screening, training, rewarding and appraising.(Dessler G)
The Charted Institute of Personnel Management “ The design, implementation and maintenanceof strategies to manage people for optimumbusiness performance including the developmentof policies and process to support thesestrategies”
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Continue
So the Human Resource Manager job includes:
Conducting Job analysis ( determining the nature of each job)
Planning labour needs and recruiting job candidated
Selecting Job candidates
Orienting and training new employees
Managing wages and salaries (compensating employees)
Providing incentives and benefits
Appraising performance
Communicating ( interviewing, counselling, disciplining)
Training and development
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Cont.
Training and Developing managers
Building employee commitment
And what a HRM Manger should know aboutEqual opportunity and affirmative action
Employee health and safety
Handling grievances and labour relations
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Personnel Management V ResourceManagement
Personnel Management is „workforce‟ centred
HR is resource centred
Does not identify with Management interests Directed at management needs for deployment
People have the right to proper „treatment‟
Focus is on individuals and needs and potential
Intervene between manager - subordinate relationships
Planning, monitoring and control rather than mediation
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Introduction to HR
The 1980‟s and 90‟s saw „Human ResourceManagement‟(HRM) replace „Personnel Management‟
fashionable term
re-organisation of work of personnel department
distinctively different with new management approach
Long term rather than short term perspective Psychological contract of commitment
Self-control rather than external controls Management integration Maximum utilisation of resource
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Why is it Important?
Staff are the largest revenue cost of any organisation.
Staff are a volatile resource, they can leave you anytime.
Staff are a store of corporate knowledge and the meansof service delivery.
Retaining and developing good staff allows you to useskills and develop as a business.
Individuals should contribute more than they cost. In the industry customer care critical and delivered by
staff as representatives.
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Introduction to HR
The 1980‟s and 90‟s saw „Human ResourceManagement‟(HRM) replace „Personnel Management‟
fashionable term
re-organisation of work of personnel department
distinctively different with new management approach
Long term rather than short term perspective Psychological contract of commitment
Self-control rather than external controls Management integration Maximum utilisation of resource
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Hard and Soft HRM
'Storey (1989) has distinguished between hard and softforms of HRM, typified by the Michigan and Harvardmodels respectively. 'Hard' HRM focuses on the resourceside of human resources. It emphasizes costs in the
form of 'headcounts' and places control firmly in thehands of management. Their role is to manage numberseffectively, keeping the workforce closely matched withrequirements in terms of both bodies and behaviour.'Soft' HRM, on the other hand, stresses the 'human'
aspects of HRM. Its concerns are with communicationand motivation. People are led rather than managed.They are involved in determining and realizing strategicobjectives.'
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Hard and Soft HRM
Hard HRM: A different view of HRM is associatedwith the Michigan Business School (Fombrun,Tichy and Devanna, 1984). There are manysimilarities with the Harvard 'map' but the
Michigan model has a harder, less humanisticedge, holding that employees are resources inthe same way as any other business resource.People have to be managed in a similar mannerto equipment and raw materials. Thay must be
obtained as cheaply as possible, used sparingly,and developed and exploited as much aspossible.
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The Michigan model is also known as the'matching model' or 'best-fit' approach to humanresource management. In essence, it requiresthat human resource strategies have a tight fitto the overall strategies of the business. Assuch, it limits the role of HR to a reactive,organizational function and under-emphasizesthe importance of societal and other external
factors. For example, it is difficult to see how thecurrent concern for worklife balance could beintegrated into this model.
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The Matching Model of HRM
Internal Inter-linked components:Mission and
Strategy
Organisation Human Resource
Structure management
External forces:
Political forces Economic forces Cultural forces
Devanna et al., 1984
Emphases the „tight fit‟ between HR strategy and business strategy
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Harvard Model
A large part of this section is devoted to the Harvard 'map' of HRM.This is probably the most seminal model of HRM and has had amajor influence on academic debate on the subject.
'We noted that the Harvard Business School generated one of themost influential models of HRM. The Harvard interpretation seesemployees as resources. However, they are viewed as being
fundamentally different from other resources - they cannot bemanaged in the same way. The stress is on people as human resources. The Harvard approach recognizes an element ofmutuality in all businesses, a concept with parallels in Japanesepeople management, as we observed earlier. Employees aresignificant stakeholders in an organization. They have their own
needs and concerns along with other groups such as shareholdersand customers.'
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The Harvard Map or model outlinesfour HR policy areas:
1 Human resource flows - recruitment,selection, placement, promotion, appraisaland assessment, promtion, termination,
etc.2 Reward systems - pay systems,motivation, etc.3 Employee influence - delegated levels
of authority, responsibility, power4 Work systems - definition/design ofwork and alignment of people.
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Which in turn lead to the 'four C's' orHR policies that have to be achieved:
Commitment
Congruence
Competence Cost effectiveness
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Factors Affecting HR
Legislation
The Economic environment
The global economy The structure of the labour market
The Political environment
Changes in technology Need to constantly retrain staff
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Legislation
In the EU employment law is highlycomplex
In the UK changes made twice a year
The contract of employment is key to theemployer/employee relationship
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The Policy Decisions
The formalities to bargain withGovernment legislation, trade unions andworkers council consultations
The decision to minimise external powerand influence
Encompass management and employeegroup interaction
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The Role of HR in Tourism
Support and advise line managers
Ensure staff available to meet organisational needs
Provide developmental support
Appraisal Training
Promotion
Ensure pay and benefits in line with expectations.
Deal with problem staff Develop
Dismissal
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The Changing Nature of HotelWork
Greater level of overseas travel
Technology room bookings etc
Larger number of multinational groups
Greater job mobility
Higher customer care expectations
Reduction in seasonal differences
Health and Safety
Greater need for Multi-skilling
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Factors Affecting Hotel Work
Disposable income levels
Customer expectations
Travel options consider 911 Technology
Staff availability
Status many hotels are importing labour Flexibility of supply e.g. Students in summer
Career expectations
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HRM Function
The company rather than the state or trade unionprovide 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
Imposition of different forms of control to developmanagement
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Moving with the Times
Forces interact in complex ways to move andchange markets, businesses and the economicsof regions.
The changing expectations of a growingpopulation.
a greater sense of self-determination
expectation of rewards and recognition for
efforts expended
a growing appetite for a better life.
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Business Changes
HRM equipped with strategy - a new set of toolsand measures
People issues are now recognised as beingcentral to the success of any organisation
as a consequence, human resources has assumeda higher profile.
senior management meeting address concerns
staffing levels,
recruitment,
management development
retention.
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Mutuality between Employers and Employees
The theory that policy will elicit commitmentwhich in turn will yield better economicperformance and greater human development
Mutual goalsmutual influence
mutual respect
mutual rewardsmutual responsibility
Walton, 1985
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Reference
http://www.hr-topics.com/introduction-to-hrm/defining-hrm.htm
Armstrong M Handbook of HRM
practices(Kogan Page 1999)
OTHM Presentation of Travel and Tourism
Laurie J. Mullins Management and
Organisational Behaviour seventh edition