Practical connection Assignment
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Bratton_PPT091.pptxOrganizational Leadership
John Bratton
Part 3
Managing people and leadership
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HRM and leadership
Chapter 9
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Learning outcomes
After completing this chapter, you should be able to:
Define human resource management (HRM) and its relation to organizational leadership.
Appreciate the scope and functions of HRM.
Explain and evaluate the different theoretical approaches to studying HRM.
Assess the contribution of HRM to individual and organizational performance.
Critique assumptions found in mainstream HRM literature.
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Introduction
Organizations are dependent on suitably talented people who have knowledge and skills, working with physical and financial resources, which will add value and create a viable business or service.
By understanding the role of HRM, it helps to provide a framework understanding subsequent chapters on managing and developing people and leading change (Chapters 12-17).
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The nature of HRM
The early studies exposed ‘soft’ and ‘hard’ versions of HRM (Legge, 1989):
‘Soft’ approach – highly relevant to leadership as it emphasizes human interactions, focusing on motivation, development, communications and thus, the quality of leader-follower relations.
‘Hard’ approach - views people as a commodity or ‘human resource’ that has a price (wage) and needs to be managed in the same way as other factors.
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The nature of HRM
Bratton and Gold (2017) defined HRM as:
A strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities and commitment is critical to achieving sustainable competitive advantage or superior public services. This is accomplished through a distinctive set of integrated employment policies, programmes and practices, embedded in an organizational and societal context’ (p. 5).
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The nature of HRM
This definition:
emphasises the goals that underpin the processes, that applies organizational behaviour (OB) and leadership knowledge to leverage people’s potential capabilities to enhance individual and organizational performance.
conceives HRM as embedded in a capitalist society and its associated ideologies and global structures.
remind leaders that human knowledge and skills are a strategic resource that needs investment and adroit management.
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Scope and functions of HRM
Managing employment relationships in the workplace is the core of HRM.
3 major subdomains of HRM knowledge were identified (Boxall et al., 2008):
Micro (MHRM) – largest subdomain, managing individual employees and small work groups.
Strategic (SHRM) – revolves around the processes of linking HR strategies with business strategies and measures the effects on organizational performance (see Chapter 2).
International (IHRM) – focuses on the management of people in global companies operating in more than one country.
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Micro HRM activities
Key MHRM:
Workforce planning
Recruitment and selection
Performance appraisal
Training and development
Rewards
Employee relations
HR strategy and leadership
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Theorizing HRM
Models are important because they provide an analytical framework for studying HRM.
The Michigan Model of HRM (Fombrun et al., 1984)
Focus: selection, appraisal, training and rewards.
The Harvard Model of HRM ( Beer et al., 1984)
Focus: situational factors, stakeholder interests, HRM policy choices, HR outcomes, long-term consequences and a feedback loop through which the outputs flow directly into the organization and to the stakeholders.
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Theorizing HRM
The Storey Model of HRM (Storey, 2007)
Focus: beliefs and assumptions, strategic qualities, critical role of managers and key levers.
The Ulrich Business Partner Model (Ulrich, 1997)
Focus: strategic partner, change agent, administrative expert, employee champion.
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HRM & leadership
How does HRM contribute to the leadership process?
Does HRM make a difference to individual and organizational performance?
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Critiquing the HRM discourse
Ambiguities in the ‘soft’ and ‘hard’ schools of HRM (Legge, 2005).
Selection ‘best’ HR practice has tended to be viewed in terms of standardizing and objectifying the selection process (Townley, 1994).
Conflict is structured into the management of pay.
‘Trust relationships between managements and workforces are typically lacking’ observes Hutton (2015, p. 181).
HR practices have given rise to a shift from long-term ‘relational’ employment contracts between the employer and the employee towards short-term ‘transactional’ and ‘precarious’ contracts, which contradicts the goal of follower commitment and cooperation and relational leadership values.
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