what is hrm

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Introduction

Dessler (1) stated that “Human resource management refers to the practices and policies you need to carry out the personnel aspects of your management job…”. Through the last two decades many changes were made. One of the primary keys for organizational success is the management of people at work (Mathis and Jackson 14). Human resource management (HRM) appears to express a special approach to managing that asset.

In the following analysis, a comparison of personnel management with HRM is taking place for the discrimination of the main differences between them. Also, usages and definitions of HRM, as have been stated from some great economists during these last decades, help us to understand the main basis of this term. Finally, two different roles and models of HRM, which are used in different organizations and in a different rate, are placed and analyzed.

1. Personnel Management and HRM




In 180s, some incremental changes, help to the replacement of personnel management from human resource management. Personnel management was facing some problems. According to Storey (15) these problems were unreliability and ambiguity regarded an inarticulate set of duties. As Beaumont (141) stated, “…particularly in the product market area, triggered a number of changes in management and organizational practice that pointed in the human resource management direction”. Gennard and Kelly (17) go further in analyzing these changes, arguing that, an ‘enterprise culture’ was developed while companies sought to improved productivity and quality and also to increase employee commitment, creativity and flexibility.

The main differences between personnel management and Human Resource Management (HRM) are stated below

a. Personnel Management is workforced-centered, while management is resource-centered (Mullins 00). That means that HRM emphasizes on management needs for the employment of human resources, rather than personnel management, which emphasizes at the margins of organizational life, the employees.

b. HRM promote the integration of practices and policies that concern organizational and human resourcing strategies (Leopold 00). On the other hand personnel management contains practices that remain isolated at the periphery.

c. In personnel management there is short-term time of planning, organizational structure is bureaucratic and employee’s evaluation is based on cost-minimization (Beaumont 14). As will be seen, in HRM there is long-term time of planning, proactive strategy, the structure is characterized to be organic and there are policies that boost self-control and minimizes external control.

d. The above applications have a main target in HRM. As Leopold (00 10) stated, “ …the commitment of employees which is gained through inner understanding of the attitudes and behaviors expected, rather than gained through compliance measures of time-keeping, strict supervision and repeated quality checks”.

Nowadays, HRM is at the heart of business decision-making (Cheatle 001). The pivotal role of human resource management is clearly seen through its application in a lot of private and commercial organizations and its use in many aspects of people management. Some statistics concerning organizations’ strategy show that

 0% of them said that in the past three years, management of people has become one of their high priorities.

 7% said that training is important for the success of a business.

 100% of them have a team structure.

(Source Institute of Directors, 18)

. Terminology

Daft (00 406) defines Human Resource Management as “The activities undertaken to attract, develop and maintain an effective workforce within an organization”. These activities include a proper design and application of formal systems in the working environment. The integration of those systems in business structure will create a stable way of resource management strategy for the achievement of organizational and personal goals. Furthermore, the main aspects of this strategy, except the goal accomplishment, are the quality improvement of working life, the high levels of performance and commitment and finally the movement towards the creation of a competitive advantage (Huczynski and Buchanan 001).

. Usages of HRM

According to Watson (1) HRM is variously used

• As a different name for personnel management. Legge (18 and 15) reinforce this with the conclusion that there are very little, but important, differences between the two. It’s like to be ‘old wine in new bottles’. These differences have to do with the expectation of overcoming the weaknesses of personal management. Some examples are given above.

• As a tendency that spreads to more than one managerial activity, that have to do with the relationship between employees and organization.

• As a policy that contains ‘new management’ practices for higher employees’ commitment and more effective division of labor.

As it is clearly seen, the term of ‘human resource management’ belongs to a complex area of explanation. The existence of a big number of different meanings makes it very difficult to distinguish which of these are applied in the real world business.

4. Definitions of HRM

For further explanation of the complex and contested area of HRM, some definitions of HRM are listed below. Firstly, Fobrum et al. (184) define HRM as the management task that supports the HR systems of selection, appraisal, rewards and developments, to keep pace with the strategic objectives of the organization.

Secondly, Guest (187) argues that the main objectives of HRM related with strategic integration, employee commitment, flexibility and quality. Strategic integration has two meanings

- Integration of all employment management policies in the working environment. Huczynski and Buchanan (001) further suggest that some changes in the organizational environment will help this fundamental shift in employment relations.

- Close interrelationship of human resource strategy with overall business strategy.

Some of the main targets of an organization is the necessity to meet the needs of its customers, to enhance its reputation and finally to increase its profits. Loyalty and commitment are two aspects that are directly connected with business’ success. Also, flexibility has to do with the number of key tasks that an employee performs for the completion of his/her goals. Finally, quality involves the conditions in which an employee delivers high-quality goods or services that help the organization to obtain a competitive advantage (Leopold 00).

Thirdly, Storey (1) comments that a range of meanings is defining the term of HRM.

i. A different name for ‘personnel management’.

ii. A strategic practice for the increase of commitment.

iii. A strategic practice for the continuous utilization of labor resources.

These three meanings of HRM are shown in the following diagram. In the latter HRM regarded as holistic and strategy centered term to employment management.













(Source Storey, 1)

Furthermore, Torrington et al. (00) have developed a comprehensive view of how HRM is perceived as a more modern and supposedly imposing name for ‘personnel management’. In such case, there are three objectives, which control the foundation of HR activities

1. Staffing objectives. HRM is responsible for designing the necessary organisation structure for the recruitment of the appropriate staff.

. Performance objectives. This type involves motivation and commitment through training, development and reward system, for the maximization of employees’ performance.

. Administration objectives. The objectives of this type are closely correlated with the other two objectives. Generally is responsible for the smooth running of the organization. An example is the notification of employees about their performance levels and their training records.

5. Strategic and Operational Roles of HR Management

Strategic and operational roles are the major functions of HRM. The strategic roles focus on the ability of the company to be innovative and emphasizes on the human resource planning. According to Mathis and Jackson (14), “These human resources can be a source of competitive strength if they are managed effectively”. Some other typical activities of strategic function are merger or acquisition advising, evolvement of legal issues, trends of the workforce, community economic development and organizational restructuring.

The operational roles are administrative in nature. They include organizational activities for the effective and efficient daily performance of employees. These activities referred to recruitment and selection systems, employees’ orientation, safety reports, review of employees’ complaints and organization of benefits programs (Mathis and Jackson 14). Cheatle (001 ) also downplays the importance of operational human resource management insisting that, “In many organizations a huge turnover of staff, the large numbers they employ or the homogeneous nature of the business means that very often what is needed is a much more regulatory HR function”. On the surface, operational roles differ from the strategic roles in the respect that the former is responsible for making sure that human resources in an organization are functioning well.

6. Models of HRM

The following diagrams show two approaches of HRM

Figure 1 The ‘Hard’ Human Resource Management

Workers primarily

viewed as a cost

to the company

The ‘collective’ view-

concerns of employees Company outlook

subordinate (to managerial and managerial

position) prerogative takes

precedent



Sharp financial Individualistic

focus (e.g. per

employee)

Emphasis on gaining Marginalization/

work efficiencies rejection of industrial

relations

Rejection of ‘difference of

viewpoints’ between managers

and employees these are assumed

to be similar

(Source Cornelius, 1 1)

Huczynski and Buchanan (001 67) define hard human resource management as “A perspective, which emphasized the full utilization of employees in a formal, calculating and dispassionate manner, to be treated in a manner similar to any other resources available to the organization”. The main concern of this model is to be measured in an instrumental way for costs minimisation and outputs maximisation. In other words is financially driven and refer to an individualistic way for decision-making.

Figure The ‘Soft’ Human Resource Management

Workers viewed as ‘Humanist’ edge

‘exploitable assets’ to thinking

More of a Development of

concern with core employees

the employees

views

Emphasis on Employee

employee relations involvement and

commitment encouraged

(Source Cornelius, 1 1)

The soft human resource management give emphasis on the important role of humans in a working environment. More precisely, Leopold (00 1) states that, “It sees human beings as a unique resource available to organizations and one which needs to be led, motivated and communicated with”. ‘Soft’ model based employees in the centre of developmental cycle. In other words identifies the aspect that commitment, skills and creativity can lead to the creation of a competitive advantage.

Criticisms

In the above analysis, a list of aspects and opinions shows the complicate term, of what is called HRM. Some opinions coincide and some others not. Some of them are extremely different and some others have similar points between them. Each organization conceives the term of HRM in a different way than others. For instance, the nature of this function depends on the size, type, culture and tradition of the organization. The correct use and integration of HRM have to do with the grain of the organization. Cheatle (001) gives the examples of British Layland and the Royal Opera House. These two companies used their HR functions for the achievement of organizational change. The results were disastrous because these functions were against the organizational grain. In other cases, when HRM practices maintain a special interrelationship with the core organizational values then the organization will succeed.

References

Beaumont P. B. (14) Human resource management Key concepts and skills London SAGE Publications Ltd.

Cheatle, K. (001) Mastering Human Resource Management, Basingstoke Palgrave

Daft, R., L. (00) Management, 6th ed. London Thomson, South-Western

Dessler, G. (1) Essentials of human resource management, London Prentice Hall

Fobrum, C., Tichy, N. M. and Devanna, M. A. (184) Strategic Human Resource Management, London John Wiley

Gennard, J. and Kelly, J. (March 17) The Unimportance of Labels The diffusion of the Personnel/HRM Function, Industrial Relations Journal, Volume 8, Issue 1, pp.7-4

Guest, D. E. (187) Human Resource Management and industrial Relations, Journal of Management Studies, Volume 4, Issue 5, pp.48-51

Huczynski, A. and Buchanan, D. (001) Organizational Behaviour An introductory text, 4th ed., London Prentice Hall

Institute of Directors (18) Partnerships with people Improving business performance through your people, London Director Publications Ltd.

Legge, K. (18 and 15)

[in] Torrington, D., Hall, L. and Taylor, S. (00) Human Resource Management, 5th ed., Harlow Financial Times/Prentice Hall

Leopold, J. (00) Human Resources in organizations, Harlow Financial Times

Mathis, R., L. and Jackson, J., H. (14) Human Resource Management, 7th ed., Minneapolis/St. Paul West Publishing

Mullins L. J. (00) Management and organizational behavior 6th ed. London

Prentice Hall

Storey, J. (1)

[in] Cornelius, N. (1) Human Resource Management A managerial perspective, London International Thomson Business Press

Storey, J. (15) New perspectives on human resource management London

Routledge

Torrington, D., Hall, L. and Taylor, S. (00) Human Resource Management, 5th ed., Harlow Financial Times/Prentice Hall



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