HUMAN

RESOURCE/CAPITAL
MANAGEMENT IN THE
PUBLIC SECTOR

Dr. Sakinah Muslim

 OVERVIEW
• A changing organizational
environment in the new
economy.
• Recipes for success in changing
environment.
• The importance of “human” to
organizations and businesses.
• What’s the difference between
“human resource” and “human
capital”
• Human Resource Management
and Human Capital Management.
• A glance review of HRM
philosophy and perspective.

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 INTRODUCTION

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Questions to
ponder…

Why study HRM?

How to manage employees in

the WFH setting?

Based on your reading, what

are the recent trends in HRM?
 Organizational Environment

Composed of forces or institutions surrounding an

organization that affect performance, operations,
and resources

i. internal
ii. external

Change
 involves the continuous adjustment to the external
conditions

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 PERSPECTIVES
1. Strategy scholars
Divide the environment into dimensions or forces that
affect the firm’s performance.

1. Technological
2. Economic
3. Physical
4. Social
5. Political

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 ORGANIZATIONAL THEORY

• the environment has been classified according to its structural layers

or constituent elements.
• two environmental layers:
1. The task environment—the layer closer to the organization
2. The general – affect indirectly.

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 Institutional Theory
-“Inter-organizational field” that includes actors and their actions
Actors are defined as organizations or agents that interact with a given firm
directly through exchange or indirectly through competition (Leblebici et al.,
1991).

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 The New Economy
• Weightless economy, the knowledge economy, the digital economy, the
electronic economy, the virtual economy or network economy
• Based on knowledge and information, relying on subsectors such as purely
digital goods and services, mixed goods, and the ICT industry which
provides the support for the aforementioned segments.
• A consequence of the effects of technological innovation in macroeconomic
terms

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 Industrial Revolution

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 e.g. rapidly changing technologies, shortened product lifecycles, the need for
continuous skill, escalating globalization, tough competition, new
organizational alliances, novel organizational structures, demographical shift,
change in methods of working

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 Supportive policies - favorable to innovative start-ups and to financial systems
able to support them, those that facilitate the reorganization required to reap
the full benefits of ICT, regulatory and institutional frameworks that
facilitate links between science and industry, and efforts to train and obtain
the necessary human capital, as well as public support for basic scientific
research.
The unprecedented speed of change, the breadth and the depth of many radical
changes unleashed by new digital, robotic and 3D technologies  is having
major impacts on what we produce and do, how and where we do it and
indeed how we earn a living.

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 What are the current forces in the organizational environment?

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 HRM DEFINITIONS
Human resource management - a strategic, integrated and coherent approach to
the employment, development and well-being of the people working in
organizations (Armstrong, 2016:7)
Human resource management - the process through which management builds
the workforce and tries to create the human performances that the
organization needs (Boxall and Purcell, 2016:7)

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 Examples of Human Resource Activities
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transferring from one job to another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policies for organizational
relationships.

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 9. Collective bargaining, contract negotiation and grievance handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at all levels.
12. Developing and maintaining motivation for workers by providing
incentives.
13. Reviewing and auditing manpower management in the organization
14. Potential Appraisal Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization Development and Quality of Working Life

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 The Goals of HRM
Armstrong and Taylor (2015):
Support the organization in achieving its objectives by developing and
implementing HR strategies that are integrated with business strategy
Contribute to the development of a high-performance culture
Ensure that the organization has the talented, skilled and engaged people it
needs
Create a positive employment relationship between management and
employees and a climate of mutual trust
Encourage the application of an ethical approach to people management.

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 HRM PHILOSOPHY
1. Ownership.
• Human resource management is and has to be
owned and driven by the top management in the
interests of the key stakeholders.
2. Business or organizational strategies form the basis
for human resource strategies
3. Employees as an asset rather than liabilities.
4. Getting additional value from employees.
 through human resource development and
performance management systems.
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5. Employee commitment.
Organizational success comes from the
employees’ total commitment to the
organizational mission, goals, objectives,
and values.
• The direction changed more towards team
working, employee empowerment;
organizational learning and competence-
based human resource management.
• Internationalization of human resource
management and the impact of globalization
in human resource management, particularly
in the developing world.
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 HRM PERSPECTIVES

As a field of study:
The Hard Model The Soft Model As a style of
Examines how the
Human resources Focuses on the managing: management of employment
are seen as much management of Can be measured, varies between workplaces
the same as any ‘resourceful defined, and and over time. It allows us to
other resource humans’ compared examine the extent to which
external factors impact
with an ideal.
management choice,
employee relations, and
worker attitudes and
behaviors

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 DISCUSS
What are the contemporary trends that
affect HRM? Are these trends suitable to
be implemented in the public sector?

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 THANK YOU

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