Human Resource Management
& Organisational Development
By Dr Amanda Marshall-Ponting – licensed under the Creative
Commons Attribution – Non-Commercial – Share Alike License
http://creativecommons.org/licenses/by-nc-sa/2.5/
Structure of the work package
Introductory
presentation
Reflective
questions &
problem scenarios
Background
reading materials
Presentation
Solutions and
worked examples
Reward management
Appraisal
Additional reading
Selection, recruitment & retention
Tests, reflective questions &
problem scenarios
Management theory: Classical &
social/psychological approaches
Theoretical models & key
debates
Structure of the work package
Management, what is it?
“To manage is to forecast and plan, to organise, to
command, to coordinate and to control”
(Fayol, 1916)
And
“Organizations are set up to achieve purposes that
individuals cannot achieve on their own. Organizations
then provide a means of working with others to achieve
goals...likely to be determined by whoever is in the best
position to influence them... A key characteristic of
organizations is their complexity.”
(Stewart, 1994)
Main management schools of
thought
Classical
Human relations
Scientific management
Social psychological
Administrative
Organizational behaviour
Management
Theory
Contingency theory
Systems theory
Strategic perspective
Positioning perspective
Resource based view
Classical management theories
• This section presents the classical
management theories associated with:
– Henri Fayol
– Fredrick Taylor
– Max Weber
Classical management theories –
Fayol’s principles of management
Structural principle
Social principle
Division of work
Discipline
Authority & responsibility
Subordination of individual
interests to general interest
Unity of command
Remuneration
Unity of direction
Equity
Centralisation
Stability of personnel tenure
Scalar chain
Initiative
Order
Esprit de corps
Classical management theories –
Taylor’s scientific management
1913
1914
12.5 hours
1.5 hours
on assembly line
Classical management theories –
Weber’s bureaucratic management
The importance of authority in enabling the
organisation to become operationally more
efficient.
3 basic types of authority:
• Traditional – authority accepted based on tradition
• Charismatic – loyalty based on personal qualities of
the ruler
• Rational-legal – based upon a person’s position and
bounded by rules & procedures
Social management theories –
Elton Mayo
Two identical assembly lines
Work conditions were changed for one assembly
line
Production increased no
matter how the conditions
changed
Social management theories –
Herzberg’s two factor theory
Motivators
Sense of achievement
Chance of promotion
Chance of improvement
Recognition of effort
Responsibility
Nature of the job
Work
Hygiene factors
Pay
Conditions
Company policy
Relationships with hierarchy
e.g. management
Inability to develop
Feelings of inadequacy
Social management theories –
Maslow’ hierarchy of needs
Social management theories –
Drucker’s management by objectives
Setting overall
objectives &
action plans
Develop the
organisation
for MBO
Appraisal of
results
Review
Periodic
appraisals &
feedback on
progress
Setting
individual
objectives &
action plans
Recruitment, selection, & retention
Job analysis
Recruitment
Selection
Specify
selection
criteria
Selection
decision
Choose
selection
methods
Appointment
Staff motivation and turnover
EXERCISE 1: You can motivation and its impact
upon staff turnover by completing exercise 1.
This exercise asks you to think about why staff
turnover rates vary between industries or
sectors and the factors that may account for
these differences.
Reward management
• One means of maintaining staff motivation
• Incentives include: salaries, bonuses,
commission, profit sharing
• An employee’s intrinsic needs should also be
met by incentives such as
– Job variety
– Recognition
– Responsibility and decision-making opportunities
– Career and skills development
Reward management
McKenna & Beech (2002) identified five main
types of reward schemes:
– Time rates
– Payment by results
– Individual/group performance pay
– Profit related pay
– Cafeteria or flexible benefits
Motivation and incentive schemes
in your company
Exercise 3 asks you to think about the company
you are working for and identify the different
incentives that are used to motivate different
parts of the work force.
Appraisal
• Provides opportunity to
– monitor & reward performance
– Identify personal career aspiration s & training
needs
• Aims to correct performance or behaviour
deficiencies whilst rewarding and maintaining
good practice
Define appraisal
period
Establish
performance
standards/expectati
ons objectives/
Job improvement
plan. Promotion or
transfer. Salary
review etc
Make decisions
about action
required (reward/
dev’mt)
The appraisal
process
Communicate
expectations
Employee
performance
Appraisal: assess
and measure
actual
performance
Conduct appraisal
interview and
provide feedback
Complete
appraisal
Compare actual
with expected
performance
Appraisal – good practice
• The appraiser needs:
– To be informed about the appraisee – attendance,
outputs, commitment
– To be sensitive – focus on the issues rather than
personal issues
– To emphasise the opportunity to mutually agree
objectives & plans to achieve them
– To summarise main actions points
– To try and provide feedback outside of formal
appraisals
Conclusions
This presentation has provided an overview of
the HRM and organisational performance
learning package.
To deepen your understanding, you should work
through:
• Background document
• Exercises and reflective questions
• Additional reading
Reading
Key texts
Drucker, P.F. (1955) The practice of management. Heinemann, London.
Maslow, A.H. (1943) A theory of human motivation. Psychological Review, 50 (4), 370-96
Additional reading
Hackman, J.R. And Oldham, G.R. (1976) Motivation through the design of work: Test of a
theory. Organizational Behavior and Human Performance, 16, pp 250-279
Raiden, A.B., Dainty, A.R.J. And Neale, R.H. (2006) Balancing employee needs, project
requirements and organisational priorities in team deployment. Construction Management
and Economics, 24, pp 883-895.