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HUMAN RESOURCE MANAGEMENT

Definition-1: (John Storey, 1995) Human resourcemanagement is a distinctive approach to employmentmanagement which seeks to achieve competitiveadvantage through the strategic deployment of a highlycommitted and capable workforce, using an integratedarray of

Cultural, structural and personal techniques.

Definition-2: A strategic and coherent approach to themanagement of an organisation`s most valued assets-the people working there who individually andcollectively contribute to the achievement of its

objectives.Key Concepts:

Distinctive approach to employment management

Competitive advantage

Deployment of committed & capable workforce

A strategic and coherent approach

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VERSIONS OF HRM

John Storey (1995), in New Perspectives on Human resourcemanagement, made a distinction between two versions ofHRM.

1. HARD HRM: It emphasises the need to manage people inways that will obtain added value from them and thusachieve competitive advantage. Thus it concentrates on

quantitative, measurable criteria, control and performancemanagement. The hard approach emphasises:

The interests of management

Adopting a strategic approach that is closely integrated withbusiness strategy

Obtaining added value from people by the process of humanresource deployment and performance management

The need for a strong corporate culture expressed in missionand value statements and reinforced by communications,training and performance management process.

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VERSIONS OF HRM(CONTINUED)

2. SOFT VERSION:The soft model of HRM is basedupon human relations school and is identifiedby Storey as involving `treating employees asvalued assets, a source of competitive

advantage through their commitment,adaptability and high quality.

The need to gain commitment of employees

The interests of management and employees

should coincide Integration and team work

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DEVELOPMENT OF HRM CONCEPT

HRM CONCEPTS

US MODEL THE UK MODEL THE JAPANESEMODEL

Matchin

g Model

Harvard

Model David Guest John Storey

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THE US MODEL

1. THE MATCHING MODEL: the human resourcesystem and organisation structure shouldmatch with organisational strategy.

2. THE HARVARD MODEL: HRM is based on central philosophy and

strategic vision HRM involves all management decisions and

action that affect the nature of therelationship between the organisation and itsemployees.

A longer term perspective in managingpeople and consideration of people aspotential assets rather than variable costs.

Mutual interests.

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THE CRITICISMS

MATCHING MODEL: The concept of FIT has beencriticised on a number of fronts:

A number of writers have commented thatbusiness strategy dictates HR strategy.Business strategy is formulated in a rationalway, by the top down approach.

A perfect match between business strategyand Hr strategy might not be to theadvantage of the organisation as a whole.

It ignores the complex nature of humanbeings and the possibility that workers andtheir unions might influence strategicplanning.

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CHARACTERISTICS OF HRM

It is top management driven and managementoriented activity

It emphasises the need for strategic fit-theintegration of business and HR strategies

It is commitment oriented It can take either hard or soft form

It is performance oriented

Employee relations are unitarist rather thanpluralist, individual rather than collective, hightrust rather than low trust

Reward according to performance,competence or skills.