SZABIST

PROJECT HUMAN RESOURCE MANAGEMENT

LECTURE 4

HRM IN CONTEXT
HUMAYUN AKHTAR

Structure of chapter
HRM: a vibrant area of study A brief history Research on HRM Managing the relationship between people and organization HRM practice areas Addressing the operational level in projectbased organizations Final thoughts

HRM: A vibrant area of study

A brief history

In 1954, renowned management thinker Peter

Drucker used the term human resources to emphasize the distinction between workers and other economic resources.
He stressed the fact that humans are true resources from which the firm benefits they are not merely costs.
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The breakthrough of the HRM concept

The term Human Resource Management gained popularity in

managerial practice in the mid- 1970s, and little by little it more or less replaced the term personnel management in many companies.
In the 1980s, many American corporations were threatened by

competition from rapidly expanding and highly efficient Japanese players.

Japanese management traditions, based on strong relationships

between employee and employer, lifelong employment contracts, and working methods directed at quality rather than cost management, strongly contributed to the rising interest in the HRM approach at this particular time
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Evolution of HRM
In the new view, employees were seen as

important strategic resources, not as costs that ought to be minimized. The emergence of the HRM concept was highly influenced by two intellectual developments:
Strategic management Organizational behavior

TYPES OF HRM
The Oxford Handbook of HRM-2007
International HRM is concerned with HRM in companies

operating in the international arena (such multinationals), and internationalization processes.

as

Micro HRM covers functions of HR policy and practice,

including recruitment, remuneration, etc.

training

and

development,

Strategic HRM is viewed in its entirety as including overall

HR strategies and their impact on performance, including the connections between business strategy and HRM.
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Two Main Schools of Thought on HRM

BEST-PRACTICE MODELS
BEST-FIT MODELS

BEST- PRACTICE MODELS: UNIVERSALISTIC HRM

The research within the best- practice school is

typically interested in patterns across sectors and industries and in determinants for success.
Two challenges are commonly addressed in this

context.
First, how to measure success at the company level,

work system level and employee level. Second, how to identify key practices.

BEST PRACTICES IDENTIFIED

Information-sharing programs Formal job analysis Internal promotion Quality of Work Life programs Quality Circles: Self-managed teams Incentive plans Training investments Employment security Formal performance appraisals Job Rotation

BEST- FIT MODELS: CONTINGENT HRM

The best- fit school, sometimes referred to as the

contingency approach within HRM, emphasizes instead the need of HRM practices to be aligned and integrated with the overall business strategy as well as with organizational and environmental contingencies

Managing the relationship between people and organization

Administration
Personnel Management Human Resources Human Resources Management Human Resources Development Human Assets Human Capital

Three important implications

Organizational context: Internal organizational context, particularly the operational work setting, has a major influence on the requirements placed on HRM People: Taking into account that individualization, empowerment, coworkership, and the notion of staying employable are important trends in HRM and in contemporary working life Relationship: Modern organizations have become increasingly flexible and project- based and this makes them rely, to a greater extent, on
short- term and flexible employment contracts.

HRM PRACTICE AREAS

Recruitment and selection
Training and development Competence and performance management Remuneration Work organization Equal employment opportunities Diversity management Employee voice systems.

Four Core practice areas

(based on research)

1. Flows
2. Performance 3. Involvement 4. Development.

FLOWS:
All management activities directed toward managing the

flow of people in, through, and out of the organization.

in- and out- flows of human resources across organizational

boundaries, and internal flows, for example, job rotation and assignment to/release from project assignments and project teams.

A well-managed flow (boundary-crossing as well as

internal) is critical not only for the organizations capability to ensure the continuous supply of human resources but also for maintaining mutually beneficial relationships between mobile workers and the organization.

PERFORMANCE:
Influencing the design of work settings and support in

order to ensure that people get the proper work conditions to perform a good job
Hygiene factors Physical work conditions Administrative matters Achievement Responsibility Job satisfaction

Appraisal and feedback systems, which in turn are closely

tied to reward systems.

INVOLVEMENT:
People are given the opportunity to contribute with

their knowledge and experience in order to improve and develop the organization. The area could be divided into at least two sets of activities:
Those directed at employees participation in decision-

making processes Those directed at employees influence over their work conditions

DEVELOPMENT:
The activities of this area aim at giving the flow of

human resources a dimension of long-term development of competences and a career trajectory that is beneficial for both the individuals and the organization.
Competence development. Career systems and development.

THANK YOU