POS 221 – Human Resource Man- to management.

agement - Most company

have a separate de-
HUMAN RESOURCE MANAGEMENT partment to look af-
Human Resource Management 1910 – 1930 ter the well-being
of employees
- deals with approaches or philosophies (al-
- Employment test &
ways anchored with philosophy).
selection
- a strategic, integrated and coherent ap-
proach to the employment, development and well- - Hawthorne studies
being of the people working in organizations. placed a significant
importance in so-
HRM in Political Science – it’s a preparatory 1930 – 1945 cial psychology
course for the students to the outside world - HR greatly affects
Frederick W. Taylor - pioneered the study of sci- the level of job sat-
entific management and eventually became isfaction
known as the father of scientific management. - Union Membership
____________________________________ - Emphasis on em-
ployee and em-
IMPORTANCE OF STUDYING HUMAN RE- 1945 – 1965
ployer relationship
SOURCE MANAGEMENT - Added benefit sys-
- The main goal of any organization is to tem
provide goods and services effectively. - Civil Rights 1964
____________________________________ 1965 – 1995 - Discrimination was
reduced
HISTORICAL BREAKTHROUGHS IN HRM
1995 – - Diverse Workplace
1. Scientific Management
Present
2. Industrial Psychology
3. Hawthorne Study ____________________________________
4. Birth of Union Membership BASIC GOALS OF HRM
5. Equal Employment Opportunity (EEO)
6. Labor Force, Globalization, and Strategic 1. Support
HRM Function 2. Contribute
3. Ensure
____________________________________ 4. Create
SIGNIFICANT FEATURES OF HRM 5. Encourage
- reflect a new philosophy, a new out- ____________________________________
look, approach and strategy, which views an a. SUPPORT
organization’s manpower as its resources and - support the organization in achieving its
assets and not as liabilities or mere hands. objectives by developing and implementing
____________________________________ human resource (HR) strategies that are inte-
grated with the business strategy
HISTORY OF HRM
*How?
1890 – 1910 - Frederick Taylor - materialize the strategies
- Scientific Manage- *Strategies:
ment: brings the  CSR
logic of efficiency - Corporate Social Responsibility

POS 221 – Human Resource Management (Prelims)|Matt Andrei Gallamos 1

 - A business strategy of any corpora-
tion in pursuit of co-corporate objec-
tives while giving back to the com-
munity.
Example: When company give job
opportunities to disabled individuals.
This can also be a trademark com-
pany (Lamoyan Corporation).
b. CONTRIBUTE
- contribute to the development of a high-
performance culture.
*High Performance (Criticism):
- When employees go beyond their produc-
tivity level, it causes so much stress, it com-
promises your physical and mental well-be-
ing.
- conventional and concentrates on supervi-
sory administration of people
Human Capital Management
- approach in obtaining, analyzing, reporting
on data which informs the discretion of value
adding people management strategic investment and
optional decision at corporate level and front men
level.
Human Resource Management
- a strategic, integrated and coherent ap-
proach to the employment, development and well-
being of the people working in organizations.
People Management

c. ENSURE
- ensure that the organization has the tal- Human Resource Human Capital
Management Management
ented, skilled and engaged people it needs.
d. CREATE
Personnel
- create a positive employment relationship Management
between management and employees and a climate
of mutual trust.
____________________________________
- creation of a more conducive environment.
FOUR BASIC FUNCTION OF MANAGE-
*Harmonious relationship: starts in the MENT
hiring process, if communicated to you properly.
1. Planning
e. CONTRIBUTE 2. Leading
- encourage the application of an ethical ap- 3. Organizing
proach to people management. 4. Controlling

*Code of Ethics: regulate the behavior of ____________________________________

employees. Social Constructivism – social group constructing
____________________________________ thing for one another.

THE RELATIONSHIP BETWEEN THE AS- Micromanagement – no autonomy between em-

PECT OF HRM ployee.

People Management Corporate Social Responsibility - A business

- policies and practices which govern how
people are managed and developed in an organiza-
tion.
Personnel Management
- an administrative function which exists in
an organization to ensure right personnel at right or-
ganizational activity. It is a traditional approach of
managing employees which focuses on adherence
to policies and rules of organization.
strategy of any corporation in pursuit of co-corpo-
rate objectives while giving back to the community.
Positive Employment Relationship – create a
more conducive work relationship.
Sweatshops – no clearance but continue to operate.
____________________________________
STAGES OF THE EMPLOYMENT CYCLE
1. Pre-Hiring Stage

POS 221 – Human Resource Management (Prelims)|Matt Andrei Gallamos 2

 - human resource planning (HRP) and job
2. human re- analysis.
HUMAN RESOURCE PLANNING
source - the process of systematically reviewing
human resource requirements to ensure
3. planning that the number of employees matches
the required skills.

(HRP) and job JOB ANALYSIS

- a methodical way of collecting, Inter-
analysis preting, and storing Information about
specific jobs. This information will help

4. human re- identify the content of the work as well

as the worker requirements needed to
perform the job.
source 2. Hiring Stage

5. planning 3. This stage

(HRP) and job comprises re-
analysis cruitment and
6. human re- 4. selection
source practices.
- this stage comprises and recruitment and

7. planning selection practices

(HRP) and job RECRUITMENT

analysis - a tool to locate and entice job seek-
ers who are eligible for the job.

8. human re- SELECTION

- choosing the best and the most
source qualified candidate from the pool of ap-
plicants.

9. planning 3. Post-Hiring Stage

(HRP) and job

analysis

POS 221 – Human Resource Management (Prelims)|Matt Andrei Gallamos 3

 - describes how people within their orga-
4. The aim of nizations act individually or in groups
and how organizations function in terms
this stage is to of their structure, processes and culture.
*Efficient – doing things right

implement *Effectivity – doing the right thing

5. Contingency Theory
5. HRM prac- - HRM practices are dependent on the or-
ganization’s environment and circum-

tices that will im- stances.

- associated with the notion of fit – the
need to achieve congruence between an
prove and sustain organization’s HR strategies, policies
and practices and its business strategies

6. employee within the context of its external and in-

ternal environment.
- Capacity of an organization to function
work perfor- effectively in order to meet or achieve
desired results.

mance level
- The aim of this stage is to implement
HRM practices that will improve and
sustain employee work performance
level.
____________________________________
THEORIES OF HRM
1. Commitment
- Strength of an individual identification
with and involvement in a particular or-
ganization.
- the strength of an individual’s identifica-
tion with, and involvement in, a particu-
lar organization
*Richard Walton – workers would respond
best and must creatively when they are not
tightly controlled.
2. Motivation
- Factors that effect on goal-directed be-
havior and therefore influence the ap-
proach.
3. Resource Based View
- competitive advantage is achieved if a
firm’s resources are valuable, rare and
costly to imitate.
4. Organizational Behavior Theory
HRM
PERFORMANCE
PRACTICES
IV DV
“Age, Technology, Unionism”
6. Institutional Theory
- Conforms or adheres to internal and ex-
ternal environmental pressures
CBA (Collective Bargaining Agreement)
- Agreement between the administration
with the union members and the union
itself.
New Institutionalist
- Broader analysis of the employment re-
lationship between an employee and em-
ployer.
- 9/9 principle
7. Human Capital Theory
- concerned with how people in an organi-
zation contribute their knowledge, skills
and abilities to enhancing organizational
capability and the significance of that
contribution.
8. Resource Dependence Theory

POS 221 – Human Resource Management (Prelims)|Matt Andrei Gallamos 4

 - Groups and organizations gain power
over each other by controlling valued re-
sources. HRM activities are assumed to
reflect the distribution of power in the
system.
9. AMO Theory
- Formula set out by Boxall and Purcell,
2003.
- performance is a function of Ability +
Motivation + Opportunity to Participate.
- HRM practices therefore impact on indi-
vidual performance if they encourage
discretionary effort, develop skills and
provide people with the opportunity to
perform.
- The formula provides the basis for de-
veloping HR systems that attend to em-
ployees’ interests, namely their skill re-
quirements, motivations and the quality
of their job.
10. Social Exchange Theory
- Employees will reciprocate their contri-
bution to the organization if they per-
ceive that the organization has treated
them well.
11. Agency Theory
- role of the managers of a business is to
act on behalf of the owners of the busi-
ness as their agents.
- there is a separation between the owners
(the principals) and the agents (the man-
agers) and the principals may not have
complete control over their agents.
- Is desirable to operate a system of incen-
tives for agents, directors or managers,
to motivate and reward acceptable be-
havior.
12. Transaction Cost Theory
- Under agency theory
- Businesses develop organizational struc-
tures and systems that economize the
costs of the transactions (interrelated ex-
change activities) that take place during
the course of their operations.
How do we economize?
- Hiring someone to do something for
you.
____________________________________
MODELS OF HRM
POS 221 – Human Resource Management (Prelims)|Matt Andrei Gallamos
1. MATCHING MODEL
- Proposed by Fombrun
- indicated that HR systems and the orga-
nization structure should be managed in
a way that is congruent with organiza-
tional strategy.
2. HARVARD MODEL
- Beer (1984)
- (HRM) involves all management deci-
sions and actions that affect the nature of
the relationship between the organization
and employees – its human resources.
- it was necessary to adopt ‘a longer-term
perspective in managing people and con-
sideration of people as a potential asset
rather than merely a variable cost.
3. CONTEXTUAL MODEL
- emphasizes the importance of environ-
mental factors by including variables
such as the influence of social, institu-
tional and political forces that have been
underestimated in other models.
- broader, integrating the human resource
management system in the environment
in which it is developed
4. 5-P MODEL
- formulated by Schuler (1992) the 5-P
model of HRM describes how HRM op-
erates under the five headings of:
a. HR Philosophy
- a statement of how the organization re-
gards its human resources, the role they
play in the overall success of the busi-
ness, and how they should be treated and
managed.
b. HR Policies
- provide guidelines for action on people-
related business issues and for the devel-
opment of HR programmes and practices
based on strategic needs.
c. HR Programmes
- shaped by HR policies and consist of co-
ordinated HR efforts intended to initiate
and manage organizational change ef-
forts prompted by strategic business
needs.
d. HR Practices
- Activities carried out in implementing
HR policies and programmes.
e. HR Processes
5
 - Formal procedures and methods used to
put HR strategic plans and policies into
effect.

Philosophies

Programmes Policies

HRM

Practices Processes

5. EUROPEAN MODEL
- Brewster (1993) six variables
a. ENVIRONMENT – established legal
framework
b. OBJECTIVES – organizational objec-
tives and social concern – people as a
key resource
c. FOCUS – cost/benefits analysis, also en-
vironment
d. RELATIONSHIP WITH EMPLOYEES –
union and non-union
e. RELATIONSHIP WITH LINE MAN-
AGERS – specialist/line liaison
f. ROLE OF HR SPECIALIST – specialist
managers - ambiguity, tolerance, flexi-
bility
6. HARD AND SOFT MODELS
Hard - emphasises the quantitative, calcula-
tive and business-strategic aspects of man-
aging human resources in as “rational” a
way as for any other economic factor.
Soft – traces its roots to the human-relations
school; it emphasizes communication, moti-
vation and leadership.
____________________________________
TWO TYPES OF REWARDS
1. EXTRINSIC
- Tangible (physical, money, etc.)
2. INTRINSIC
- Intangible (recognitions, praises, etc.)
*”one size does not fit all”
*”rewards mechanism doesn’t work every time”
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POS 221 – Human Resource Management (Prelims)|Matt Andrei Gallamos 6