THE NATURE OF HUMAN RESOURCE MANAGEMENT Lecturer: MBA.Lê Thị Kim Khang OBJECTIVES OF THIS CHATER • • • • • • Review key current developments in human resource management Explain the different ways in which the term ‘human resource management’ is used Set out the main objectives of the human resource function Review the historical evolution of the modern HR function Explain the philosophy of HRM that is adopted in this book Introduce some major current debates in the field of HRM 01. HRM for Tweentyfirst century HRM for Tweenty-first century 1960 – 1970: The human aspirations of senior people in companies and public sector operations tended to produce large staffs, with heavyweight, hierarchical bureaucracies and stagnant businesses. End of 20th century: ‘downsizing’ or reducing the number of people employed to create businesses that were lean, fit and flexible. => Hierarchies were ‘delayered’ to reduce numbers of staff and many functions were ‘outsourced’ => simplify the operation of the business. HRM for Tweenty-first century In 21st century: The company lacked of employees => balancing the between the financial viability and success in the marketplace on the one hand and the need to maximise human capital on the other. 02. Businesses, organisations and HRM Businesses, organisations and HRM • • Organisation: organisational behaviour, organisational psychology, organisational sociology, organisation theory => interaction between the organization and employees or surrounding society. HR people involved in the effective management of people of the business. Businesses, organisations and HRM • • • The contract of employment => legal basic of the employment relationship. A psychological contract for perfomance. A lean and flexible business needs to reduce long-term cost commitments and focus on effort activities => competitive advantage. 03. Defining HRM HRM mark 1: the generic term Staffing objectives Performance objectives Change-management objectives Administration objectives Staffing objectives • • Involes designing organisation structures, identifying type of contract different groups of employees (or subcontractors) will work, before recruiting, selecting and developing the people. Developing competitive pay packages, provision of valued training and development opportunities and to ensuring the experience of working. Performance objectives • • • • • Do reward systems to maximise effort and focus attention on performance targets. To assist in discipling employees effectively and equitably. Welfare function => assist performance. Employee involement initiatives => to raise levels of commitment and to engage employees. A propensity on the part of an organisation’s employees to demonstrate discretionary effort => a key determinant of superior competitive performance Coca – Cola Vietnam Unilever Vietnam Change-management objectives • The recruitment and/or development of people with the necessary leadership skills to drive the change process, the employment of change agents to encourage acceptance of change and the construction of reward systems which underpin the change process. What things are the HRM needs to do to changemanagement in the COVID19 pandemic? Sources: www.hr.com Administration objectives • • Underpining the achievement of the other forms of objective. Achieving professionalism and cost effectiveness => helps HR function to gain and maintain the credibility and respect => influence other managers. Group discussion Activity 1.2 – Page 8 Delivering HRM objectives HRM mark 2: a distinctive approach to the management 04. The evolution of personnel and HRM Theme 1: social justic • • The wellfare of employees => higher productivity, a longer-serving workforce and larger applicants. The more conspicuous welfare initiatives => employee assistance schemes, childcare facilities and healthscreening programmes. Theme 2: humane bureaucracy • • Organisational structures could be designed and labour deployed => maximise efficiency. the fostering of social relationships in the workplace and employee morale => important objectives to raise productivity levels. Theme 3: negotiated consent • • Personnel managers next added expertise in bargaining to their repertoire of skills The government encouraged the appointment of personnel officers and set up the first specialist courses for them in the universities. Theme 4: organisation • • A significant portion of time and resources being devoted to the recruitment, development and retention of an elite core of people with specialist expertise. Developed techniques of manpower or workforce planning => forecasting the likely need for employees with different skills in the future. Theme 5: Human resource management Theme 6: a “new HR” • • • Staff and line managers serve as internal customers. From “the management of jobs” and towards “the management of people” => development of employment strategies that differ for different groups of employees. The employment relationship is not only a transaction but also emotional attachments. Group discussion Activity 1.4 – Page 14 • • • • • Work-life balancers Want it all Pleasure seekers Live to work Work to live 05. HRM and the achievement of organisational effectiveness Business in private sectors Long-term objective => sustained period of commercial success Public and vontuntary sectors Meeting a serivce with cost efficiently and the highest achievable standard of quailty Sizeable organisations To foster a positive long-term reputation. • • • Maintain a strong reputation in the financial markets => to attract investment funds and financial advisers. The maintenance of a positive reputation in the media => to maintain and grow the customer base. Corporate ethics and social responsibility => determining the purchasing decisions of consumers. • • • Mobilising a workforce, maximising its performance, managing change effectively and striving to achieve excellence in administration => gaining competitive advantage. Recognising the significance of the organisation’s people => maintaining competitive advantage. Human capital => combined knowledge and experience of an organisation’s staff. • • Developing a positive reputation among investors, financial advisers, financial journalists => makes a significant contribution. Financial market => balances the maximization of opportunities and minimization of risks. • Ethically or socially responsible organisation in 2 ways: • Involves fostering an understanding of and commitment to ethical conduct on the managers and staff. • Relates to the way to manage people.