Transcript Chapter 1

Chapter 1
Introduction to Human
Resource Management
Chapter contents
• Opening case:Employee affiliations at Eastern
Computing (Pty) Ltd.
• Introduction
• The point of departure: Demarcating the field of study
• Redefining human resources management
• Management approaches to human resources
management
• The need for strategic HRM and accompanying
strategies
• Human resources management profession
• Challenges facing HRM
• Structure of the book
• Conclusion
Introduction
• Demarcating HRM field of study
• Defining various terms and concepts
• Distinction between approaches and manifestations of
science within formal work environments
• Unveiling challenges of this discipline within the Southern
African context
• Identifying importance of strategic HRM
• Focus on the South African Institute of People Management
(SAIPM)
• Focus on the South African Board for Personnel Practice
(SABPP)
• Structure and content of the book
Demarcation of the field of
study
• The whole (‘gestalt’) to be understood before content of
discipline is contextualised
• HRM stems from the study field of management
• HRM interacts with other disciplines ( See Fig 1.1)
• Sister disciplines are psychology which focuses on the study
of human behaviour and Sociology focus on social behaviour
relationships within and among groups
• Business management is the study of management which
includes macro and functional points of view
• Employment relations is the relationship between employers,
employees, and the state
• HRM is an applied behavioural science.
Redefining HRM
• Integration of HRM strategy into global strategy of
organisations is important
• Personnel is key factor to success of organisations and
operates in various environments and contexts
• Definition: Stone (2008) HRM ‘Involves the productive
use of people in achieving the organisation’s strategic
objectives and the satisfaction of individual employee
needs.’
• External environment has 4 sub-environments:
Economic, social, political, technological
Redefining HRM (cont.)
• An organisation has various characteristics: size,
structure, technology, HR policies, etc.
• The job itself affects employee performance
• Individual employees are the most important
component as the focus of any organisation’s
objective achievement efforts
• Employing the right people is the organisation’s
best use of its most important asset.
The context of the systems model
to HRM
Three environments are illustrated in Figure 1.2 namely:
• Employees’ job content
- Nature of job, tasks, guidelines, utilisation, status
• Job context
- Organisation culture and climate, management
philosophy, leadership style, structures, etc.
• External environment
- Labour market, education, economic conditions,
employment legislation
Management approaches to
HRM
• Functional approach to HRM views it as a staff function
- HRM function traditionally includes: provisioning,
maintenance,
and developing personnel
- HR manager has a service, control, and advisory function
* Systems approach to HRM
- In Fig 1.2 presents a management systems model of the
employee as a subsystem
- Organisation is an open system with various components
which are sub-systems and include micro and macro views.
Management approaches to HRM
(Cont.)
• Micro systems view of HRM comprise various sub-systems:
- Goal sub-system
- Work task sub-system
- Work method sub-system
- The people sub-system, which
consists of various aspects
- The informal sub-system.
• Macro systems view of HRM
- Humans are a sub-system with inputs, through puts
and outputs
- Before employment, a psychological contract is
negotiated between the individual and the
organisation based on personal and organisational
expectations and goals
Management approaches to HRM
(Cont.)
• Efficiency approach to HRM
- Success is measured against standards of
achievement and entails working towards optimal
achievement of goals and includes multiple goals
which are short, medium, and long term
• Cornerstones are: ‘doing things right’ and ‘doing the right things’
- Focus is maintaining and improving individual
performance.
The individual employee
• Relationship between employee behaviour and
personality requires knowledge and insight by
superiors to achieve organisations’ goals
• Personality is a characteristic way a person thinks to
adapt to their environment and act in a particular job
• Personal characteristics include values, motives,
genetic factors, attitudes, self-image, etc.
• Cultural and social factors impact on personality
• The personality set of characteristics determine
communality or differences in individuals’ behaviour
• Hereditary factors also shape a person’s personality
The concept of the psychological
contract
• Individual performance is the result of motivated
behaviour
• Motivated employee behaviour is best achieved by
integrating personal goals with goals of the
organisation
• The relational psychological contract is usually more
important for HRM than the transactional contract
The concept of the
psychological contract (Cont.)
• The two major types of psychological contracts are
relational and transactional, which include various
possibilities
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Inclusiveness – is a concern for the person and their
development
Time frame – whether the arrangement is
open-ended or not
Formalised – whether it is written or not
Stability – whether it is dynamic and subject
to change
Tangible – whether a third party would observe the conditions under which it
operates
The concept of the psychological
contract (cont.)
• The psychological contract entails two sets of expectations
which correspond or differ from each other, depending
whether the focus is the employee or the organisation
- Employees have expectations about promotion, salary,
status, office and décor, etc. Other expectations are:
Technical skills, time and energy, involvement,
communication skills, etc.
- Organisations have expectations about what they will
receive and what they can offer an employee
- Organisations offer a meaningful job, challenging work,
recognition, status and prestige, compensation, interesting
work, etc.
The concept of the psychological
contract (cont.)
–Organisation expects employee to be able to execute
tasks, work productively, supervise and guide others,
make good responsible decisions, plan and organise
his or her own work, etc.
–More important than items, is an understanding of
the nature of the psychological contract, and
communication of these mutual expectations
between employee and organisations
–Expectations of employees are different at different
ages e.g. at 25 years of age a career is desired at
50+ retirement prospects are looked for, because the
contract is dynamic and change as employees get
older.
Contemporary views on the
psychological contract
• The contemporary psychological contract
- This contract is dynamic, voluntary,
subjective and informal, and defines two
tasks i.e. employment relationship and
mutual expectations
- The contract is characterised by the fact that
employees must look after their own
industrial security because the focus is now
on talents and commitments.
Attachment commitment to the
organisation
• Interaction between employee and organisation
has two outcomes:
1) An individual’s desire to maintain
membership (attachment) and
2) A desire to perform on the job and
contribute (involvement)
• Organisations expect attachment and
involvement due to the following:
- Recruit and retain workers
Attachment commitment to the
organisation (Cont.)
- Allocated
work should be executed with
responsibility
- Innovative and spontaneous cooperation with
regard to organisational activities
• Attachment has two components formal and
involvement and has to do with the job content and job
context environments
• Five states of attachment of employers to an
organisation exist:
- Identification, innovation, ritualism, resilience, and
rebellion
• Concept of commitment entails where individuals feel
strongly drawn to objectives, values and goals of their
employer
Attachment commitment to the
organisation (Cont.)
• Successful organisations are known for performance
inclined, innovative, and creative employees
• A performance orientated employee show the following
work behaviour:
- A desire to remain with the organisation
- Do much more than is expected for the
organisation
- accept the organisational culture and goals
• Commitment is closely related to issues such as:
- increased effort, attendance, employee
retention, and involvement.
Employees’ contribution to the
organisation’s bottom-line
• Focus is on employee contribution to value of organisation
and shareholder value
• Determine return on investment of human capital
• The following contribute to share value e.g.
- Total reward, accountability, and value creation
- Collegiality and flexibility
- Recruitment and retention excellence
- Communication and integrity
• Quality assurance and added value
• Support of employees to provide quality inputs
• Quality assurance performed by HR department.
Scope of quality assurance and HRM
• QA uses both the functional and systems approach to achieve
organisations’ objectives
• Line and staff managers use QA to ensure workforce quality
• Quality performance starts with organisational vision
- Organisational vision is important for QA
- Alignment between employee outcomes and organisational
vision is necessary
- Quality performance through HRM focuses on relationship
building.
- Strengthening organisation and securing resources is part
of vision
- QA helps to solve problems
Human resources management:
A process in itself
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QA of HRM exist within functional approach to HRM
HRM as a process in itself is shown in Figure 3.1
HRM dept. deliver HR potential to achieve objectives
Organisation must be designed structurally and process wise,
to get best fit between people, process, policy, etc.
Proper job design and job analysis is needed for effective QA
Quality HR start with recruitment and selection
Managers must know HR techniques for effective QA
T & D is important in QA process
Strategic HRM important for long term goals via assuring
quality
Adding value
• Individuals instrumental to add value to organisations
• Profit at all cost is not acceptable in modern world
economy
• Employees can add value to organisations by:
- Managing and controlling themselves
- Coordinating their work with the work of other
employees
- Suggesting ideas about better ways to do the work
- Developing new products and ways to serve
customers
 Social relationships of personnel contribute to value
Adding value via HR professional &
department activities
• A tight fit between HR and business strategy
leads to adding value
• Various “do-ables” and “deliverables” are
important to add value in organisations e.g.
to develop the employer brand
• Knowledge, skills and abilities must be
enhanced to add value
• Various attributes are necessary to add
value
• Establish and maintain a positive reputation
for an organisation
The need for strategic HRM and
accompanying strategies
• In 20th century, integration of HRM with
business strategy has become essential for
business success
• HRM has changed at an increasing tempo
• Organisation’s overall business strategy
should provide guidance for HRM strategy,
which in turn outlines organisation’s people
objectives. This is because HRM strategies
are functional strategies in organisation’s
objective achievement endeavours.
HRM profession
• The Institute of People Management of Southern Africa
(IPM)
- Is the professional body of HRM in SA
- Is dedicated to effective management and
development of human potential in accordance with
its value statement
- Influences and assists in the development and
utilisation of HR
- Focuses on the promotion and development of
competence and ethical conduct amongst members.
HRM profession (Cont.)
• The South African Board for Personnel Practice
(SABPP)
- Professional body for the registration of HR
practitioners in SA, established in 1982
- Strategy is to promote, guide, and influence
the development of the personnel profession
- Various prescriptions exist re a behavioural code of
a person registered with the SABPP
- Various registration categories exist which dictate
different registration requirements.
Jobs and careers in HRM
• Many opportunities exist for people wishing
to pursue a career in HRM
• Nature and size of an organisation dictates
number of opportunities which exist in HRM
• High demand for HR personnel exist who are
qualified in both HRM and employment
relations management due to interdependence and high level of trade union
activities in SA.
Challenges facing HR managers and the
profession
• Globalisation
• Downsizing and delayering in organisations
• Shortage of skills
- High intellectual capacity people leave SA
- South Africans have a high status as
quality employees and international
demand including financial offers grow at
alarming rates
• Developing workplace flexibility is essential
• How to deal with the Aids pandemic is of paramount
importance nationally.
Structure of the book
• Part 1: General introduction to HRM
• Part 2: HRM and the legislative environment
• Part 3: Staffing the organisation and maintaining
people
• Part 4: Behavioural aspects of HRM
• Part 5: Employee, group and organisational
empowerment through HRM interventions
• Part 6: Strategic and international HRM
Conclusion
• This chapter orientated the learner/reader to the field of HRM
as an applied science
• Foundation of HR as well as definition and manifestation is
explained
• The psychological contract was also discussed
• Challenges to HR is not distant and in most cases already
part of the quest for better and improved practices
• HR is key to organisations’ success, since a QA and value
adding approach means optimum use of HR
• The importance of the IPM and SABPP was also pointed out
• Good quality HR contribute directly increased GDP