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    HW HRM Mod1

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    Mustafa El Shazly
    HRM emerged in the early 1980s as organizations recognized that effectively managing human resources was crucial to gaining a competitive advantage. HRM aims to maximize human resource utilization by integrating HR strategies and practices with business strategies. This differs from the traditional personnel management approach, which focused only on operational HR activities and not strategic involvement. For an organization to be successful, HRM must be involved in both the strategic formulation process and operational implementation of HR practices. The key is aligning HR strategies and goals with the overall business strategy and objectives.

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    HW HRM Mod1

    Uploaded by

    Mustafa El Shazly
    31 views4 pages
    HRM emerged in the early 1980s as organizations recognized that effectively managing human resources was crucial to gaining a competitive advantage. HRM aims to maximize human resource utilization by integrating HR strategies and practices with business strategies. This differs from the traditional personnel management approach, which focused only on operational HR activities and not strategic involvement. For an organization to be successful, HRM must be involved in both the strategic formulation process and operational implementation of HR practices. The key is aligning HR strategies and goals with the overall business strategy and objectives.

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    HRM emerged in the early 1980s as organizations recognized that effectively managing human resources was crucial to gaining a competitive advantage. HRM aims to maximize human resource utilization by integrating HR strategies and practices with business strategies. This differs from the traditional personnel management approach, which focused only on operational HR activities and not strategic involvement. For an organization to be successful, HRM must be involved in both the strategic formulation process and operational implementation of HR practices. The key is aligning HR strategies and goals with the overall business strategy and objectives.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    31 views4 pages

    HW HRM Mod1

    Uploaded by

    Mustafa El Shazly
    HRM emerged in the early 1980s as organizations recognized that effectively managing human resources was crucial to gaining a competitive advantage. HRM aims to maximize human resource utilization by integrating HR strategies and practices with business strategies. This differs from the traditional personnel management approach, which focused only on operational HR activities and not strategic involvement. For an organization to be successful, HRM must be involved in both the strategic formulation process and operational implementation of HR practices. The key is aligning HR strategies and goals with the overall business strategy and objectives.

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    of 4

    Human Resource Management

    Module 1
    Origins & Nature of HRM
    1.1 What is HRM?
    HRM is a set of loosely related ideas, concepts, and techniques held together by a common understanding that maximization of the
    utilization of HR is crucial to maintain and enhance competition.
    Recent Phenomenon No Unanimous Agreement
    began development early 80s as to a definition

    1.2 Origins & Evolution of HRM

    1.2.1 Business Strategy in an Increasingly Competitive Environment

    How people are managed is the key to competitive advantage and organizational success.
    Business Strategy Competitiveness
    Due to: 1. Market globalization
    2. competition worldwide
    3. Japan competitive edge due to philosophies & techniques of quality
    a. Excellence & continued improving products
    b. Utilization of autonomous work groups
    c. Organizational cultural change that valued the employee, their contributions & inputs.
    4. Market forces
    5. Consumerism - need 2b "strategically" involved.

    1.2.2 Personnel Management (PM)


    Role of PM only partially involved in HRM and then only "Operationally" NOT involved in "Strategic" activities.
    Functions - Everyday "Operational" activities
    1. Recruitment & Selection
    2. Performance appraisal
    3. Training & Development
    4. Payment & Pension systems
    5. Industrial Relations
    Reactive - Operational Level - training - administering & running courses
    Proactive - Strategic Level - training - money invested given company direction & goals.

    Difference between HRM & PM is PM's role as specialists & technical rather than strategic. There was a great
    need for management of HR (HRM) to be involved Strategically - so the overall organization strategic objectives could be
    integrated.

    1.2.3 OB - Study of Human Behavior & Experiences in Organizations


    HRM Mission - to maximize the utilization of HR.
    3 Main Influences
    Strategy - max utilization of HR to competitive advantage.
    PM - operational level techniques used to ensure successful strategic objectives implementation.
    OB - theory & research - study of human behavior in organizations.

    1
    Debora Cooper
    Human Resource Management
    Module 1
    Origins & Nature of HRM

    1.3 Philosophical & Theoretical Perspective of HRM

    1.3.1 Hard HRM versus Soft HRM


    HR utilization determining organizational performance.
    HARD Approach Soft Approach
    people =resource =cost item employee can contribute
    costsbottom line payoff =employee contribution
    little or no regard for HR employee motivation
    "let's do more/less" attitude competitive edge
    Example - downsizing enhance motivation & capability/
    rewards, training & development

    1.3.2 Nature of Work Motivation & Behavior

    Producing enhanced performance to create conditions for employees to have a level of commitment to
    organization. People will respond + if given more decision making power.

    1.3.3 Organizational Conditions & Effectiveness


    1. Organization Conditions -assumption is to create ideal conditions to optimize people management.
    Ideal Conditions to Optimize People Management
    1. Communication at ALL levels
    2. Decentralization
    3. Leadership skills provided to managers
    4. Self managed work teams
    5. Task flexibility
    6. Team working
    2. Organization Culture
    3. Communication
    4. Leadership skills

    1.4 HRM as Strategic Activity


    HRM systems & practices should be integrated in a policy derived from the business strategy.
    Business Strategy =business vision - where it's going, how it'll go about setting & achieving the objectives to realize that vision.

    Strategy Formulation - (SWOT Analysis) Strategy End Results


    1. Strength & Weakness analysis 1. Goals/Objectives
    2. Opportunity potential 2. Policies & Procedures
    3. Threats from competition 3. To achieve success.

    Involve HRM in developing Strategic Business Strategy.


    1. HRM has support role
    2. HRM involved in strategic process after its done.
    Example - Business Strategy
    Goal Quality Products
    1. HRM quality
    culture
    2. communications
    3. Work groups
    4. Focus group
    evaluations
    5. Autonomy to group

    2
    Debora Cooper
    Human Resource Management
    Module 1
    Origins & Nature of HRM

    Guest & HRM Concepts


    1. American created phenomenon
    2. HRM theories geared to USA
    3. Concentrates on Individual
    4. Not fit to all countries - Britain
    a. Collectivism
    b. Unionism
    c. work groups

    1.5 HRM as Operational Level Activity - common/PM especially in the operational/everyday areas. However, they are
    different in that HRM is integrated into the org's strategic business, planning & goals and this directly affects the way they carry out the
    "traditional" operational activities, like recruitment and selection.
    PM - "Just fill a slot" - while
    HRM - Selects the right person who can function well in today's environment.
    Multiple Levels
    1. Macro - organizational wide
    2. Sub Units - work teams
    3. Individual - job roles
    Core Operational Areas of Performance Requirements
    1. Set Performance Goals - specify what is "good performance"
    2. Recruitment & Selection - Selection is central Operational Level Activity.
    3. Performance Appraisal
    4. Performance Management
    5. Training & Development
    6. Payment Systems
    7. Industrial Relations
    8. Legal
    New HRM Areas
    1. Career Enhancement via
    2. Career Management

    1.6 Summary
     HR utilization by adopting HRM systems & practices competitive position
    Operational HRM is concerned with everyday management of people.
    HRM emerged due to organizations need to competitiveness - nationally & globally.
    Major Factors to Emergence of HRM
    1. Not competing effectively
    2. People utilized better
    3. Enterprise culture - customer satisfaction
    4. Peters & Waterman studies of people management
    HR Strategy supports business strategy
    Strategy HRM sets HRM philosophies, approaches & techniques that can be adopted within the business requirements.
    Strategy Formulation
    1. SWOT Analysis on business & HR
    2. Develop Business vision
    3. Implement changes to make Vision a reality
    a. Devise & run training courses
    b. Communications systems
    c. Self Managed Teams

    utilization of HR via HRM to reach business objectives.

    3
    Debora Cooper
    Human Resource Management
    Module 1
    Origins & Nature of HRM
    Lists to Memorize
    HR Strategy Supports Business Strategy
    1. Strategic HRM sets philosophies, approaches & techniques 2b
    adopted by org.
    2. SWOT Analysis
    3. Vision devlp
    4. Change process 2 make vision - reality
    5. Formulation stage = Available HR  what org can do + (SW)
    direction 2 go
    6. Implementation stage/strategy
    a. #Q = training, communications, self mgd teams

    Hard Approach Soft Approach


    1. People = resources + bottom line concern 1. People = importance since org ran by them
    2. Business Strategy pushes HR Strategy  2. Formulation stage = HR Strategy
    common goals 3. SWOT matrix/humans
    3. Strategy 1 way no visa versa

    HRM Origins- complete utilization of HR necessary 4 competitive advantage


    1. US started & other developed Western nations
    2. awareness of not competing effectively @home & globally
    3. globalization  intense future competition
    4. Japs HR utilization  competitive advantage
    5. US competitiveness lacking  Japs globally successful
    6. competitiveness  better people utilization  HRM
    7. HRM replaces PM but debatable - HR (strategic) PM(operational)
    8. Peters & Waterman  people mgmt  org performance
    9. Political changes = org culture changes
    10. Mkt forces + $value + customer satisfaction  orgs run different

    Changing HRM Approach - Memo


    1. Don't readily accept outside experts /out own SWOT analysis
    2. HRM & PM common grounds @ operational so keep staff
    3. Line mgrs  HRM specialist & both share people mgmt
    4. Reacting  strategy. Strategy is proactive.
    5. Strategic HRM = formulating + implementing strategy
    a. Available HR
    b. Business strategy + HR strategy supports each other
    6. Soft HRM = people R unique resources + conditions to utilize full potential
    7. Changing org culture not easy + takes time
    8. HRM theory emphasis on whole new approach not piecemeal changes.
    9. HRM borrows from OB & may still need consultants
    10. HRM originated in US because of successful Jap mgmt techniques

    4
    Debora Cooper

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