Human Resource Management

1
Human Resource Management

• Lecture 1
• Personnel, HRM and New Psychological Contracts

2
Brief History of People Management

• WELFARE
• (Mid 19TH Century social reformers/paternalism)
• Early 20th century introduction of females
  welfare officers to improve efficiency through
  welfare i.e munitions factories first world war
• INTER-WAR YEARS LESS PERTERNAL GREATER MANAGERIAL
  CONTROL - personnel specialists involved in
  recruitment, training, discipline, turnover,
  dismissals, mix of scientific management and
  human relations

3
History of People Management

• 1950s- 70s INCREASE IN NATIONALISED INDUSTRIES,
  INDUSTRIAL RELATIONS EXPERT/LABOUR OFFICER
• (Male dominated manpower control, problem
  solving/fire fighting wage negotiation, consensus
  negotiator, employment law advisor, professional
  role, organisation man)
• 1980s-1990s)
• PERSONNEL/HUMAN RESOURCE MANAGER
• (More Strategic professional hard management,
  manpower analyst role)

4
History of People Management

• PERFORMANCE MANAGEMENT
• (Post-fordist uncertainty/unpredictability late
  1990s/21st Century)

5
Three Models Of Personnel Management (TysonFell,
1987)

• Clerk of Works Model -Welfare role/no specialist
  qualifications derived from the welfare tradition
• Contracts Manager Model Derived from industrial
  relations and manpower control tradition Fire
  fighting role/professional qualifications
• Architect Model Derived from professional,
  manpower analyst tradition. Evaluative/creative
  role/professional qualifications, technical
  competence

6
3 Models of People Management(TysonFell)

• POLICIES/SYSTEMS
• Clerk Ad Hoc Payroll/Legal based, stem from
  chief executive
• Contracts Systematic Industrial Relations
  based, derived from employer association
• Architect Integrated Planning Strategic HRM
  based

7
3 Models of People Management(TysonFell)

• CONTROL/AUTHORITY
• Clerk Vested in Line Management
• Contracts Senior Managers/Shop- Stewards
• Architect Strategic Personnel
  Presence and integration

8
3 Models of People Management(TysonFell)

• POLITICAL POSITION
• Clerk Non issue
• Contracts Derives from IR knowledge
• Architect Equal to Senior/Executive
  managers

9
3 Models of People Management(TysonFell)

• PLANNING HORIZON
• Clerk Short Immediate
• Contracts Medium Term/ 1-2 years
• Architect long Term/Strategic

10
Origins of Human Resource Management

• Search for competitive advantage
• Models of excellence
• Failure of personnel management
• Decline in trade union pressure
• Changes in the workforce and nature of work

11
Use of Human Resource Management

• Re-title of personnel management to capture new
  fashion
• Re-conceptualising, re-organising personnel roles
  and describing the work of personnel departments
• Distinctively different and new approach for
  people management

12
Strategic Human Resource Management Definition
(Bratton and Gold 2000)

• The part of management that specialises in the
  management of people in work organisations
• Emphasises that employees are critical to
  achieving competitive advantage
• HR practices which are integrated with corporate
  strategy

13
Versions of Strategic Human Resource Management

• Hard Model - Close integration of hrm policies,
  systems and activities with business objectives
• Soft Model involves treating employees as
  valued assets, a source of competitive advantage,
  through commitment, adaptability and performance
  of skills attitudes etc

14
HRM and High Commitment

• Flatter management structures
• Increased span of control
• Job and functional flexibility
• Teams are the organisational units responsible
  for performance
• Differences in status minimised
• Lateral co-ordination

15
PSYCHOLOGICAL CONTRACTS

• DEFINITION 1
• The notion of a Psychological contract implies
  that there is an unwritten set of expectations
  operating at all times between every member of an
  organisation and the various managers and others
  in that organisation (Schein (1965)
  Organisational Psychology, Prentice Hall)

16
DEFINITION 2 (Rousseau and Wade-Benzon, 1994)

• Psychological contracts refer to beliefs that
  individuals hold regarding promises made between
  themselves and another because psychological
  contracts represent how people INTERPRET promises
  and commitments, both parties in the same
  employment relationship CAN HAVE DIFFERENT VIEWS
  regarding specific terms

17
Psychological Contracts

• MOVING FROM JOB BASED TO PERSON BASED
• (No longer the jobs that have value, but the
  people)
• (Sparrow and Marchington, 1998, p 14)

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CAREER RESPONSES

• GET EVEN
• (Negative/pathological)
• GET HIGH
• (Ambitious)
• GET SECURE
• (Conservative)

19
CAREER RESPONSES

• GET BALANCED/FREE
• (Liberal)
• GET OUT
• (Radical)
• Adapted from Sparrow (1998) New Organisational
  Forms, processes, jobs and psychological
  contracts in Sparrow Marchington HRM the new
  agenda, pp 139-140)