Role of Human resources in shaping the culture of company

1. The role of HR

2. Comparative HRM: Theory &
Practice

3. Universalism vs Contextual
• Universalism-Contextual debate
• Is there a best practice approach?
• Convergence as a 3rd alternative

4. International Context
Includes:
International Agreements
Corporate Strategy
National Context
Includes:
culture
political/legislative
economic
social
patterns of ownership
etc.
HRM Strategy
Includes:
integration
devolvement to line
employment policies
involvement policies
reward policies
work systems etc.
National HRM Context
Includes:
education/training
labor markets
trade unions
industrial relations
etc.
HRM Practice
Includes:
selection
performance
appraisal
rewards
development
industrial relations
communication etc.
Environment Organization
Contextual Model of HRM

5. Employee
Champion
Administrat
ive Expert
Operational
Focus
Strategic
Focus
Change
Agent
Strategic
Partner
HR Role Framework
Source: Conner J. Ulrich D. (1996). “Human Resource Roles:
Creating Value Not Rhetoric” Human Resource Planning
September
People
Process

6. PerformanceSelection Appraisal
Rewards
Development
The Michigan Matching Model of HRM

7. Stakeholder
interests
Shareholders
Management
Employee groups
Government
Community
Unions
HRM Policy
Choices
Employee
influence
Human
Resource flow
Reward systems
Work systems
HR Outcomes
Commitment
Competence
Congruence
Cost
effectiveness
Long-term
consequences
Individual well
being
Organizational
effectiveness
Societal well-
being
Situational
factors
Work force
characteristics
Business strategy
and conditions
Management
philosophy
Labor market
Unions
Task technology
Laws and societal
values
The Harvard Model of Human Resource Management

8. Role of HRM departments
• Differing roles in different countries.
• Some more administrative some more
strategic
• As some of the administrative work is
outsourced or computerised, there can be
more emphasis on strategic role.

9. Role of HRM department
• Is it represented on the board of directors
• Is it involved in strategic management
• Where was the HR manager recruited

10. Moving from a centralised to
decentralised HR model
• Trend towards management through cost-
centre profit-centre based approach
• Line managers are more in contact with
employees. They have the main responsibility
for performance.
• Issue of responsiveness to customers.
• A move towards reducing overhead and
realtime staffing.

11. Pressures slowing the devolvement
to line managers
• Line managers not enthusiastic to take on HR
activities
• Line managers may regard HR activities as a
lower priority
• Not enough training and support to line
managers in HR duties

12. Integration and devolvement
• Degree of integration of HRM into business
strategy
• Degree of devolvement: the degree to which
HRM practive involves and gives responsibility
to line managers rather than personnel
specialits

13. Mechanics (low integration and
low devolvement)
• Specialist, but limited skills and interests of
HRM practitioners.
– Professional personnel manager with higher’
imperatives than the organization. Belief that
specialist knowledge is beyond the scope of
untrained people.
– Focus on the mechanical requirements of the
function.
– Increasing isolation from strategic interests of the
organization.

14. wild west (low integration and high
devolvement)
Individual manager free to develop his/her own
employee relationship.
lncreased power to hire and fire, reward and
develop employees.
Potential for incoherence, inconsistency and
strong employee reactions.

15. Guarded strategists (high
integration but low devolvement)
• Specialists powerful figures in the
organization.
• Close liaison with senior managers to develop
strategy.
• Large and influential departments with
centralized control of policies.
• Better line managers frustrated with lack of
control, poor managers welcome lack of
responsibility.

16. Pivotal (high integration and high
devolvement)
Senior personnel managers act as catalysts,
facilitators and co-ordinators.
Small, but powerful departments.
Monitoring of and internal consulting on HRM
developments.
Responsibility and authority devolved to the
line.
Problems with resourcing high-calibre business-
orientated HRM managers.