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Introduction to HRMIntroduction to HRM
Human ResourceHuman Resource
Management - SManagement - Session 1ession 1
Suhel Kha...
AimsAims
By the end of the session students will beBy the end of the session students will be
able to:able to:
1)     Demo...
What is HR?What is HR?
Human Resources is the part of theHuman Resources is the part of the
organization that deals with ...
Define HRMDefine HRM
Torrington et al “ It is a series of activitiesTorrington et al “ It is a series of activities
which...
HRMHRM
 The Policies and practices in carrying out theThe Policies and practices in carrying out the
“people” or human re...
ContinueContinue
So the Human Resource Manager job includes:So the Human Resource Manager job includes:
 Conducting Job a...
Cont.Cont.
Training and Developing managersTraining and Developing managers
Building employee commitmentBuilding employe...
Personnel Management V ResourcePersonnel Management V Resource
ManagementManagement
 Personnel Management is ‘workforce’ ...
Introduction to HRIntroduction to HR
 The 1980’s and 90’s saw ‘Human ResourceThe 1980’s and 90’s saw ‘Human Resource
Mana...
Why is it Important?Why is it Important?
 Staff are the largest revenue cost of any organisation.Staff are the largest re...
Introduction to HRIntroduction to HR
 The 1980’s and 90’s saw ‘Human ResourceThe 1980’s and 90’s saw ‘Human Resource
Mana...
Hard and Soft HRMHard and Soft HRM
 'Storey (1989) has distinguished between hard and soft'Storey (1989) has distinguishe...
Hard and Soft HRMHard and Soft HRM
 Hard HRM: A different view of HRM isHard HRM: A different view of HRM is
associated w...
 The Michigan model is also known as theThe Michigan model is also known as the
'matching model' or 'best-fit' approach t...
The Matching Model of HRMThe Matching Model of HRM
Internal Inter-linked components:Internal Inter-linked components:
Miss...
Harvard ModelHarvard Model
 A large part of this section is devoted to the Harvard 'map' of HRM.A large part of this sect...
TheThe Harvard MapHarvard Map or model outlinesor model outlines
four HR policy areas:four HR policy areas:
11 Human reso...
Which in turn lead to the 'four C's' orWhich in turn lead to the 'four C's' or
HR policies that have to be achieved:HR pol...
Factors Affecting HRFactors Affecting HR
LegislationLegislation
The Economic environmentThe Economic environment
The gl...
LegislationLegislation
In the EU employment law is highlyIn the EU employment law is highly
complexcomplex
In the UK cha...
The Policy DecisionsThe Policy Decisions
The formalities to bargain withThe formalities to bargain with
Government legisl...
The Role of HR in TourismThe Role of HR in Tourism
 Support and advise line managersSupport and advise line managers
 En...
The Changing Nature of HotelThe Changing Nature of Hotel
WorkWork
Greater level of overseas travelGreater level of overse...
Factors Affecting Hotel WorkFactors Affecting Hotel Work
Disposable income levelsDisposable income levels
Customer expec...
HRM FunctionHRM Function
 The company rather than the state or trade unionThe company rather than the state or trade unio...
Moving with the TimesMoving with the Times
 Forces interact in complex ways to move andForces interact in complex ways to...
Business ChangesBusiness Changes
 HRM equipped with strategy - a new set of toolsHRM equipped with strategy - a new set o...
MutualityMutuality
between Employers and Employeesbetween Employers and Employees
 The theory that policy will elicit com...
ReferenceReference
http://www.hr-topics.com/introduction-to-hrm/dhttp://www.hr-topics.com/introduction-to-hrm/d
Armstron...
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  1. 1. Introduction to HRMIntroduction to HRM Human ResourceHuman Resource Management - SManagement - Session 1ession 1 Suhel KhanSuhel Khan
  2. 2. AimsAims By the end of the session students will beBy the end of the session students will be able to:able to: 1)     Demonstrate an understanding1)     Demonstrate an understanding role ofrole of HRHR.. 2)     2)     UnderstandUnderstand the factors influencing thethe factors influencing the HRM.HRM.
  3. 3. What is HR?What is HR? Human Resources is the part of theHuman Resources is the part of the organization that deals with peopleorganization that deals with people Managing the human resourceManaging the human resource This means acquiring developing andThis means acquiring developing and supporting staff as well as ensuring theysupporting staff as well as ensuring they fulfill their role at workfulfill their role at work
  4. 4. Define HRMDefine HRM Torrington et al “ It is a series of activitiesTorrington et al “ It is a series of activities which; first enables working people andwhich; first enables working people and the organisation which uses their skills tothe organisation which uses their skills to agree about the objective and nature ofagree about the objective and nature of their working relationship and secondly,their working relationship and secondly, ensure that the agreement is fullfilled.”ensure that the agreement is fullfilled.”
  5. 5. HRMHRM  The Policies and practices in carrying out theThe Policies and practices in carrying out the “people” or human resource aspects of a“people” or human resource aspects of a management position including, recruiting,management position including, recruiting, screening, training, rewarding and appraising.screening, training, rewarding and appraising. (Dessler G)(Dessler G)  The Charted Institute of Personnel ManagementThe Charted Institute of Personnel Management “ The design, implementation and maintenance“ The design, implementation and maintenance of strategies to manage people for optimumof strategies to manage people for optimum business performance including thebusiness performance including the development of policies and process to supportdevelopment of policies and process to support these strategies”these strategies”
  6. 6. ContinueContinue So the Human Resource Manager job includes:So the Human Resource Manager job includes:  Conducting Job analysis ( determining the nature ofConducting Job analysis ( determining the nature of each job)each job)  Planning labour needs and recruiting job candidatedPlanning labour needs and recruiting job candidated  Selecting Job candidatesSelecting Job candidates  Orienting and training new employeesOrienting and training new employees  Managing wages and salaries (compensatingManaging wages and salaries (compensating employees)employees)  Providing incentives and benefitsProviding incentives and benefits  Appraising performanceAppraising performance  Communicating ( interviewing, counselling, disciplining)Communicating ( interviewing, counselling, disciplining)  Training and developmentTraining and development
  7. 7. Cont.Cont. Training and Developing managersTraining and Developing managers Building employee commitmentBuilding employee commitment And what a HRM Manger should knowAnd what a HRM Manger should know aboutabout Equal opportunity and affirmative actionEqual opportunity and affirmative action Employee health and safetyEmployee health and safety Handling grievances and labour relationsHandling grievances and labour relations
  8. 8. Personnel Management V ResourcePersonnel Management V Resource ManagementManagement  Personnel Management is ‘workforce’ centredPersonnel Management is ‘workforce’ centred  HR is resource centredHR is resource centred  Does not identify with Management interestsDoes not identify with Management interests  Directed at management needs for deploymentDirected at management needs for deployment  People have the right to proper ‘treatment’People have the right to proper ‘treatment’  Focus is on individuals and needs and potentialFocus is on individuals and needs and potential  Intervene between manager - subordinate relationshipsIntervene between manager - subordinate relationships  Planning, monitoring and control rather than mediationPlanning, monitoring and control rather than mediation
  9. 9. Introduction to HRIntroduction to HR  The 1980’s and 90’s saw ‘Human ResourceThe 1980’s and 90’s saw ‘Human Resource Management’(HRM) replace ‘Personnel Management’Management’(HRM) replace ‘Personnel Management’  fashionable termfashionable term  re-organisation of work of personnel departmentre-organisation of work of personnel department  distinctively different with new management approachdistinctively different with new management approach  Long term rather than short term perspectiveLong term rather than short term perspective  Psychological contract of commitmentPsychological contract of commitment  Self-control rather than external controlsSelf-control rather than external controls  Management integrationManagement integration  Maximum utilisation of resourceMaximum utilisation of resource
  10. 10. Why is it Important?Why is it Important?  Staff are the largest revenue cost of any organisation.Staff are the largest revenue cost of any organisation.  Staff are a volatile resource, they can leave you anyStaff are a volatile resource, they can leave you any time.time.  Staff are a store of corporate knowledge and the meansStaff are a store of corporate knowledge and the means of service delivery.of service delivery.  Retaining and developing good staff allows you to useRetaining and developing good staff allows you to use skills and develop as a business.skills and develop as a business.  Individuals should contribute more than they cost.Individuals should contribute more than they cost.  In the industry customer care critical and delivered byIn the industry customer care critical and delivered by staff as representatives.staff as representatives.
  11. 11. Introduction to HRIntroduction to HR  The 1980’s and 90’s saw ‘Human ResourceThe 1980’s and 90’s saw ‘Human Resource Management’(HRM) replace ‘Personnel Management’Management’(HRM) replace ‘Personnel Management’  fashionable termfashionable term  re-organisation of work of personnel departmentre-organisation of work of personnel department  distinctively different with new management approachdistinctively different with new management approach  Long term rather than short term perspectiveLong term rather than short term perspective  Psychological contract of commitmentPsychological contract of commitment  Self-control rather than external controlsSelf-control rather than external controls  Management integrationManagement integration  Maximum utilisation of resourceMaximum utilisation of resource
  12. 12. Hard and Soft HRMHard and Soft HRM  'Storey (1989) has distinguished between hard and soft'Storey (1989) has distinguished between hard and soft forms of HRM, typified by the Michigan and Harvardforms of HRM, typified by the Michigan and Harvard models respectively. 'Hard' HRM focuses on themodels respectively. 'Hard' HRM focuses on the resource side of human resources. It emphasizes costsresource side of human resources. It emphasizes costs in the form of 'headcounts' and places control firmly inin the form of 'headcounts' and places control firmly in the hands of management. Their role is to managethe hands of management. Their role is to manage numbers effectively, keeping the workforce closelynumbers effectively, keeping the workforce closely matched with requirements in terms of both bodies andmatched with requirements in terms of both bodies and behaviour. 'Soft' HRM, on the other hand, stresses thebehaviour. 'Soft' HRM, on the other hand, stresses the 'human' aspects of HRM. Its concerns are with'human' aspects of HRM. Its concerns are with communication and motivation. People are led rathercommunication and motivation. People are led rather than managed. They are involved in determining andthan managed. They are involved in determining and realizing strategic objectives.'realizing strategic objectives.'
  13. 13. Hard and Soft HRMHard and Soft HRM  Hard HRM: A different view of HRM isHard HRM: A different view of HRM is associated with the Michigan Business Schoolassociated with the Michigan Business School (Fombrun, Tichy and Devanna, 1984). There are(Fombrun, Tichy and Devanna, 1984). There are many similarities with the Harvard 'map' but themany similarities with the Harvard 'map' but the Michigan model has a harder, less humanisticMichigan model has a harder, less humanistic edge, holding that employees are resources inedge, holding that employees are resources in the same way as any other business resource.the same way as any other business resource. People have to be managed in a similar mannerPeople have to be managed in a similar manner to equipment and raw materials. Thay must beto equipment and raw materials. Thay must be obtained as cheaply as possible, used sparingly,obtained as cheaply as possible, used sparingly, and developed and exploited as much asand developed and exploited as much as possible.possible.
  14. 14.  The Michigan model is also known as theThe Michigan model is also known as the 'matching model' or 'best-fit' approach to human'matching model' or 'best-fit' approach to human resource management. In essence, it requiresresource management. In essence, it requires that human resource strategies have a tight fit tothat human resource strategies have a tight fit to the overall strategies of the business. As such, itthe overall strategies of the business. As such, it limits the role of HR to a reactive, organizationallimits the role of HR to a reactive, organizational function and under-emphasizes the importancefunction and under-emphasizes the importance of societal and other external factors. Forof societal and other external factors. For example, it is difficult to see how the currentexample, it is difficult to see how the current concern for worklife balance could be integratedconcern for worklife balance could be integrated into this model.into this model.
  15. 15. The Matching Model of HRMThe Matching Model of HRM Internal Inter-linked components:Internal Inter-linked components: Mission andMission and StrategyStrategy OrganisationOrganisation Human ResourceHuman Resource StructureStructure managementmanagement External forces:External forces: Political forces Economic forces Cultural forcesPolitical forces Economic forces Cultural forces Devanna et al., 1984Devanna et al., 1984 Emphases the ‘tight fit’ between HR strategy and business strategyEmphases the ‘tight fit’ between HR strategy and business strategy
  16. 16. Harvard ModelHarvard Model  A large part of this section is devoted to the Harvard 'map' of HRM.A large part of this section is devoted to the Harvard 'map' of HRM. This is probably the most seminal model of HRM and has had aThis is probably the most seminal model of HRM and has had a major influence on academic debate on the subject.major influence on academic debate on the subject.  'We noted that the Harvard Business School generated one of the'We noted that the Harvard Business School generated one of the most influential models of HRM. The Harvard interpretation seesmost influential models of HRM. The Harvard interpretation sees employees as resources. However, they are viewed as beingemployees as resources. However, they are viewed as being fundamentally different from other resources - they cannot befundamentally different from other resources - they cannot be managed in the same way. The stress is on people asmanaged in the same way. The stress is on people as humanhuman resources. The Harvard approach recognizes an element ofresources. The Harvard approach recognizes an element of mutuality in all businesses, a concept with parallels in Japanesemutuality in all businesses, a concept with parallels in Japanese people management, as we observed earlier. Employees arepeople management, as we observed earlier. Employees are significant stakeholders in an organization. They have their ownsignificant stakeholders in an organization. They have their own needs and concerns along with other groups such as shareholdersneeds and concerns along with other groups such as shareholders and customers.'and customers.'
  17. 17. TheThe Harvard MapHarvard Map or model outlinesor model outlines four HR policy areas:four HR policy areas: 11 Human resource flowsHuman resource flows - recruitment,- recruitment, selection, placement, promotion, appraisalselection, placement, promotion, appraisal and assessment, promtion, termination,and assessment, promtion, termination, etc.etc. 22 Reward systemsReward systems - pay systems,- pay systems, motivation, etc.motivation, etc. 33 Employee influenceEmployee influence - delegated- delegated levels of authority, responsibility, powerlevels of authority, responsibility, power 44 Work systemsWork systems - definition/design of- definition/design of work and alignment of people.work and alignment of people.
  18. 18. Which in turn lead to the 'four C's' orWhich in turn lead to the 'four C's' or HR policies that have to be achieved:HR policies that have to be achieved: CommitmentCommitment CongruenceCongruence CompetenceCompetence Cost effectivenessCost effectiveness
  19. 19. Factors Affecting HRFactors Affecting HR LegislationLegislation The Economic environmentThe Economic environment The global economyThe global economy The structure of the labour marketThe structure of the labour market The Political environmentThe Political environment Changes in technologyChanges in technology Need to constantly retrain staffNeed to constantly retrain staff
  20. 20. LegislationLegislation In the EU employment law is highlyIn the EU employment law is highly complexcomplex In the UK changes made twice a yearIn the UK changes made twice a year The contract of employment is key to theThe contract of employment is key to the employer/employee relationshipemployer/employee relationship
  21. 21. The Policy DecisionsThe Policy Decisions The formalities to bargain withThe formalities to bargain with Government legislation, trade unions andGovernment legislation, trade unions and workers council consultationsworkers council consultations The decision to minimise external powerThe decision to minimise external power and influenceand influence Encompass management and employeeEncompass management and employee group interactiongroup interaction
  22. 22. The Role of HR in TourismThe Role of HR in Tourism  Support and advise line managersSupport and advise line managers  Ensure staff available to meet organisational needsEnsure staff available to meet organisational needs  Provide developmental supportProvide developmental support  AppraisalAppraisal  TrainingTraining  PromotionPromotion  Ensure pay and benefits in line with expectations.Ensure pay and benefits in line with expectations.  Deal with problem staffDeal with problem staff  DevelopDevelop  DismissalDismissal
  23. 23. The Changing Nature of HotelThe Changing Nature of Hotel WorkWork Greater level of overseas travelGreater level of overseas travel Technology room bookings etcTechnology room bookings etc Larger number of multinational groupsLarger number of multinational groups Greater job mobilityGreater job mobility Higher customer care expectationsHigher customer care expectations Reduction in seasonal differencesReduction in seasonal differences Health and SafetyHealth and Safety Greater need for Multi-skillingGreater need for Multi-skilling
  24. 24. Factors Affecting Hotel WorkFactors Affecting Hotel Work Disposable income levelsDisposable income levels Customer expectationsCustomer expectations Travel options consider 911Travel options consider 911 TechnologyTechnology Staff availabilityStaff availability Status many hotels are importing labourStatus many hotels are importing labour Flexibility of supply e.g. Students in summerFlexibility of supply e.g. Students in summer Career expectationsCareer expectations
  25. 25. HRM FunctionHRM Function  The company rather than the state or trade unionThe company rather than the state or trade union provide employee security and welfareprovide employee security and welfare  HRM focuses on achieving organisational goalsHRM focuses on achieving organisational goals through individual achievementthrough individual achievement  Providing the right person in the right placeProviding the right person in the right place  Directing positive employee communication andDirecting positive employee communication and involvementinvolvement  Optimise co-operation and loyaltyOptimise co-operation and loyalty  Imposition of different forms of control to developImposition of different forms of control to develop managementmanagement
  26. 26. Moving with the TimesMoving with the Times  Forces interact in complex ways to move andForces interact in complex ways to move and change markets, businesses and the economicschange markets, businesses and the economics of regions.of regions.  The changing expectations of a growingThe changing expectations of a growing population.population.  a greater sense of self-determinationa greater sense of self-determination  expectation of rewards and recognition forexpectation of rewards and recognition for efforts expendedefforts expended  a growing appetite for a better life.a growing appetite for a better life.
  27. 27. Business ChangesBusiness Changes  HRM equipped with strategy - a new set of toolsHRM equipped with strategy - a new set of tools and measuresand measures  People issues are now recognised as being centralPeople issues are now recognised as being central to the success of any organisationto the success of any organisation  as a consequence, human resources has assumedas a consequence, human resources has assumed a higher profile.a higher profile.  senior management meeting address concernssenior management meeting address concerns  staffing levels,staffing levels,  recruitment,recruitment,  management developmentmanagement development  retention.retention.
  28. 28. MutualityMutuality between Employers and Employeesbetween Employers and Employees  The theory that policy will elicit commitmentThe theory that policy will elicit commitment which in turn will yield better economicwhich in turn will yield better economic performance and greater human developmentperformance and greater human development Mutual goalsMutual goals mutual influencemutual influence mutual respectmutual respect mutual rewardsmutual rewards mutual responsibilitymutual responsibility  Walton, 1985Walton, 1985
  29. 29. ReferenceReference http://www.hr-topics.com/introduction-to-hrm/dhttp://www.hr-topics.com/introduction-to-hrm/d Armstrong M Handbook of HRMArmstrong M Handbook of HRM practices(Kogan Page 1999)practices(Kogan Page 1999) OTHM Presentation of Travel and TourismOTHM Presentation of Travel and Tourism Laurie J. Mullins Management andLaurie J. Mullins Management and Organisational Behaviour seventh editionOrganisational Behaviour seventh edition

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