MGMT 206 Lecture Notes - Lecture 1: Specific Performance, Society For Human Resource Management, Organizational Culture
Human Resource Management:
• HRM involves the productive use of people in achieving the organisations strategic objectives
and the satisfaction of individual employee needs.
• The focus of HRM is on managing people within the employer-employee relationship.
• It involves the productive use of people in achieving the:
o Organisations strategic business objectives, and
o Satisfaction of individual employee needs.
• HRM is either part of the problem or part of the solution in gaining the productive
contribution of people.
• Employment of high performance HR practices increases in the value placed on HR by the
senior management and positively impact both human and social capital.
o Human capital is the knowledge, skills and abilities present in organisations human
resources.
o Social capital describes the strength of personal relationships existing within an
organisation that promotes sharing knowledge, employee motivation, team work and
work commitments.
• Companies such as Blackmores and Coca Cola recognise that human capital is their most
important resource and take action to maximise it.
HRM and Management:
• HRM is management, but management is more than HRM.
• HRM deals directly with people.
• Management also includes:
o Marketing, management info systems, production, research and development,
accounting and finance.
• But HRM is integral to all of these functions and activities.
Divergent approaches to HRM:
• Instrumental (Hard)
o Stresses the rational, quantitative and strategic aspects. Performance improvement and
competitive advantage are highlighted.
o Important to integrate HR policies and practices with the organisations business
strategy, with the emphasis being on HRM.
o Risks creating industrial conflict.
• Humanistic (Soft)
o While still emphasising the integration of HR policies and practices with strategic
business objectives, but also acknowledges employee development, collaboration,
participation and trust.
8 key roles for the HR manager:
• Strategic partner:
o Translate business strategy into action, become part of the business team.
• Administrative expert:
o Using technology, rethinking and redesigning activities.
• Employee advocate:
o Be the employees' voice.
• Agent for change and cultural transformation:
o Catalyst for change.
• Talent manager:
o Attract, develop and retain core employees. Act as talent scout/spotter.
• Organisation ambassador:
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o Represent organisation in competent manner, market HR within organisation.
• Board and senior executive resource:
o Contribute to board members on HR policies, practices to promote business success.
• Legal advisor:
o Ensure legal compliance, monitor HR hazard risk.
HRM activities:
• Job analysis
• HR planning
• Recruitment
• Selection
• Performance appraisal
• HR development
• Career planning and development
• Employee motivation
• Change and cultural transformation
• Workplace health and safety
• Remuneration and benefits
• Employee relations and or industrial relations:
o Employee relations focuses on workplace relations, and deals with employee attitudes
and behaviour and the relationship between the organisation and its employees.
o Industrial relations takes a broader perspective, involving industrial tribunals, trade
unions, governments etc.
HRM, productivity and organisation performance:
• A common indicator of organisation and HRM performance is productivity.
• Productivity is defined as an organisations total output of goods and services divided by its
total inputs.
• Productivity improvements are necessary for the economy and an organisation to be remain
competitive.
HR managers today are increasingly faced with complex, ambiguous and conflicting issues involving
questions of morality, ethics and standards of behaviour:
Ethical issues-influential factors:
• Personality and national culture
• The situation and its importance to the individual
• Corporate culture
• The existence of:
o Clear, unambiguous organisational policies
o Codes of conduct
o Ethical leadership
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Document Summary
Human resource management: hrm involves the productive use of people in achieving the organisations strategic objectives and the satisfaction of individual employee needs, the focus of hrm is on managing people within the employer-employee relationship. Instrumental (hard: stresses the rational, quantitative and strategic aspects. Act as talent scout/spotter: organisation ambassador, represent organisation in competent manner, market hr within organisation, board and senior executive resource, contribute to board members on hr policies, practices to promote business success. Legal advisor: ensure legal compliance, monitor hr hazard risk. Industrial relations takes a broader perspective, involving industrial tribunals, trade unions, governments etc. Hr managers today are increasingly faced with complex, ambiguous and conflicting issues involving questions of morality, ethics and standards of behaviour: Ethical issues-influential factors: personality and national culture, the situation and its importance to the individual, corporate culture, the existence of, clear, unambiguous organisational policies, codes of conduct, ethical leadership.
