CHAPTER 1

Theories, issues and influences in human resource management

Session objectives Define the purposes and scope of human resource management (HRM) Trace the development of HRM Understand the influences, issues and underlying theories of HRM Assess the relevance of critiques of HRM Describe the principal roles, functions and outcomes of HRM Discuss the professional and ethical principles guiding HRM

Personnel management vs human resource management

Personnel management:A set of functions or activities

Human resource management:An integrated set of personnel activities, linked strategically with organizational

objectives

History and origins of HRM

HRM has existed since the beginning of time Developed formally as a result of the Industrial Revolution Working conditions became a social and industrial issue Growth of trade unions and IR systems

Contingencyapproaches

Excellencestudies

TQM

Classical management

theory

Classical organization

theory

Transitional theorists

Systems theorists

Management science

Behavioral school

HRM

Management theories and influences on HRM

Stages in the development of HRM Welfare and administration (1900–1940s)

Staffing and training (1940s–mid-1970s)

Human resource management (mid-1970s–1990s)

Strategic and global HRM (2000 and beyond)

Harvard model ‘Hard’ and ‘soft’ HRM Unitarist and pluralist perspectives Relationship of HRM to IR Criticisms of HRM theory

Concepts and models

HRM – roles, functions and strategies

StrategicStrategic

FunctionalFunctional

OperationalOperational

Responsiveness to competition and globalization Alignment to business strategy Quality HRM practices Management of change

Strategic HRM

Quantity and quality of employees Strategic recruitment and selection practices Retention Productivity and motivation Job design Integration and accountability of functions Evaluation

HRM issues

Devolution

Automation

Outsourcing

HRM – the future