The document discusses the evolution of human resource management (HRM) from a personnel/industrial relations function focused on rules and procedures to a more strategic function aimed at maximizing employee productivity and commitment. It compares traditional personnel management approaches to modern HRM approaches across factors like beliefs, strategic importance, line management roles, and key levers like selection, pay, and job design. The summary outlines models of HRM, differences between "hard" and "soft" HRM, and the core functions of an HR department like planning, recruitment, training, and employee relations.

1. The Role of Human Resource
Management in the Organisation
According to Adi Godrej – all
corporate strengths are
dependent on people
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2. Objective
• To maximize the productivity of the
organization by optimizing the
effectiveness of its employees
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3. Principles of HRM
• Human resources are the most important assets of
the organisation
• business success "is most likely to be achieved if
the personnel policies and procedures of the
enterprise are closely linked with, and make a major
contribution to, the achievement of corporate
objectives and strategic plans.“ – Michael armstrong
• find, secure, guide, and develop employees whose
talents and desires are compatible with the
operating needs and future goals of the company.
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4. Changing environment of
human resource management
•
•
•
•
Globalization trends
Technological trends
Trends in the nature of work
Workforce demographic
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5. Post 70s Features of HRM
• The collective bargaining role
• The implementer of legislation
role
• The bureaucratic role
• The social conscience of
business role.
• A growing performance
improvement role
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6. Traditional HR Functions
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7. Personnel Versus Human
Resource Management
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8. Points of Difference between Personnel
and IR Practices and HRM Practices
Beliefs & assumptions
Contract
• Rules
• Guide to management action
• Behavior referent
• Managerial task
• Nature of relations
• Conflicts
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9. Strategic aspects
• Key relations
• Corporate plan
• Speed of decision
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10. Line management
•
•
•
•
•
Leadership
Key managers
Communication
Standardization
Prized management skills
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11. Key levers
•
•
•
•
•
Selection
Pay
Labor management
Job categories & grades
Job design
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12. •
•
•
e-mail one
Attention: Human Resources
Joe Smith, my assistant programmer, can always be found
hard at work in his cubicle. Joe works independently, without
wasting company time talking to colleagues. Joe never
thinks twice about assisting fellow employees, and he always
finishes given assignments on time.
Often Joe takes extended
measures to complete his work, sometimes skipping
coffee breaks. Joe is an individual who has absolutely no
vanity in spite of his high accomplishments and profound
knowledge in his field. I firmly believe that Joe can be
classed as a high-calibre employee, the type which cannot be
dispensed with. Consequently, I duly recommend that Joe be
promoted to executive management, and a proposal will be
executed as soon as possible.
Regards,
Project Leader
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13. • e-mail two
Attention: Human Resources
• Joe Smith was reading over my shoulder
while I wrote the report sent to you earlier
today. Kindly read only the odd numbered
lines [1, 3, 5, etc.] for my true assessment of
his ability.
Regards,
Project Leader
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14. Distinguishing Between HRM
and PM
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15. Guest’s Model of HRM
• Linked to the strategic management of
an organisation.
• Seeks commitment to organisational
goals
• Focuses on the individual needs rather
than the collective workforce.
• Enables organisations to devolve
power and become more flexible
• Emphasises people as an asset to be
positively utilised by the organisation.
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16. Storey’s Definition of HRM
•
•
•
•
'Human capability and commitment'. Storey
argues that this is what differentiates
organisations.
Strategic importance of HRM. It needs to be
implemented into the organisational strategy and
needs to be considered at the highest
management level.
The long term importance of HRM. It needs to be
integrated into the management functions and is
seen to have importance consequences on the
ability of the organisation to achieve its goals.
The key functions of HRM which are seen to
encourage commitment rather than compliance.
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17. The HR Functions
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18. Points of Difference between
Personnel and IR Practices and
HRM Practices
Dimension
Personnel/IR
HRM
Beliefs and assumptions
1. Contract
Careful delineation of written
contracts
Aim to go 'beyond contract'
2. Rules
Importance of devising clear
rules/mutuality
'Can-do' outlook; impatience with
'rule'
3. Guide to management
action
Procedures
'Business need'
4. Behaviour referent
Norms/custom and practice
Values/mission
Managerial task
vis a vis labour
Monitoring
Nurturing
6. Nature of relations
Pluralist
Unitarist
7. Conflict
Institutionalised
De-emphasised
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19. S trate gic as pe c ts
Personnel /IR
HRM
8. Key relations
Labour management
Customer
9. Initiatives
Piecemeal
Integrated
10.Corporate plan
Marginal to
Central to
11. Speed of decision
Slow
Fast
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20. Line manage me nt
Personnel / IR
HRM
12. Management role
Transactional
Transformational
leadership
13. Key managers
Personnel/IR
specialists
General/business/line
managers
14. Communication
Indirect
Direct
15. Standardisation
High (for example
'parity' an issue)
16. Prized
management
skills
Negotiation
Low (for example
'parity' not an
issue)
Facilitation
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21. Key Levers
Personnel / IR
HRM
17. Selection
Separate, marginal task
Integrated, key task
18. Pay
Job evaluation (fixed
grades)
Performance related
19. Conditions
Separately negotiated
Harmonisation
20. Labour management
Collective bargaining
contracts
Towards individual contracts
21. Thrust of relations with
stewards
Regularised through
facilities and training
22. Job categories and
grades
Many
Marginalised (with exception
of some bargaining for
change models)
Few
23. Communication
Restricted flow
Increased flow
24. Job design
Division of labour
Teamwork
25. Conflict handling
Reach temporary truces
Manage climate and culture
26. Training and
development
Controlled access to
courses
Learning companies
27. Foci of attention for
interventions
Personnel procedures
Wide ranging cultural,
structural and personnel
strategies
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22. A Model of the Shift to
HRM
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23. Hard HRM
• The 'hard' approach rooted in the
manpower planning approach is
concerned with aligning human
resource strategy with business
strategy
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24. Soft HRM
• The 'soft' approach is rooted in the
human relations school, with concern
for workers' outcomes and encourages
commitment to the organisation by
focussing on workers' concerns.
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25. The Human Resource
System
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26. The Harvard Model of Human
Resource Management
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27. Guest’s Model of HRM
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28. Human resource
Development
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29. The Context of HRM
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30. Strategic Management
and Environmental
Pressures
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31. The Human Resource
Cycle
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32. Summary
• An HR manager needs to recognise
that Human Resource Management
is in a constant state of change.
• HR management has progressed
from an ad hoc role to the
professional body of the CIPD.
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33. Summary continued 1
• The terms Personnel management and
HRM have are part of the debate that inform
the role of the HR manager.
• HRM is viewed as a means of moving
people along to achieve organisational
goals through staffing, performance, change
management and administrative objectives.
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34. Summary continued 2
• Personnel Management has often been
seen as a bridge between the employer
and the employee.
• "Hard" HRM characterised by the Michigan
model is seen as viewing people as a
resource needed to achieve organisational
goals.
• "Soft" HRM characterised by the Harvard
model is seen as a method of developing
strategies to encourage employee©The McGraw-Hill Companies,

35. Summary continued 3
• The functions of HR include: planning and
resourcing; recruitment and selection;
training and development; pay and reward
and employee relations.
• Understanding the HR context in relation to
the organisational and external context is
important for an effective HR manager.
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