HR
CHAPTER 1
HR APPROACHES
1. SCIENTIFIC MANAGEMENT – EARLY 1900’S
⋅ All employees considered equally productive – fired if not measuring up
⋅ Then approach taken in studying how work could be most efficiently designed
⋅ TAYLOR – father of scientific management
⋅ Workers who produced above output given incentive pay
⋅ ECONOMIC MAN
⋅ Worker is motivated primarily through economic gain
⋅ And output maximised by only through financial incentives
⋅ DIFFERENTIAL PIECE-RATE SYSTEM
⋅ Workers receive a higher rate of pay per piece produced after daily standard achieved
2. HUMAN RELATIONS – 1930’S & 1940’S
What were the Hawthorne Studies?
⋅ Late 1920s, Hawthorne Works - a large manufacturer operating in Illinois.
⋅ Are employees more productive in a well-lit environment than they are in a poorly-lit
environment?
What was discovered in the Hawthorne Study?
⋅ Managers at Hawthorne Works hired consultants and commissioned a study.
⋅ Well-lit lighting increased productivity, as did a few other variables, such as having a clean
workstation, allowing employees to build and work in teams, and having regular breaks.
⋅ While these were the direct findings from the Hawthorne study, none of them were ground-
breaking.
The Hawthorne Effect
⋅ During the Hawthorne study, when researchers adjusted an independent variable (the
variable that can be manipulated to measure its impact on another dependent variable),
productivity changed.
⋅ But, after a relatively short time, those productivity gains disappeared and output ended
up drifting back to the previous level.
⋅ The conclusion was that changes in the work environment could impact productivity,
but those productivity gains are only short-term.
⋅ The participants of the Hawthorne Works study changed their behaviour because they
were receiving attention, but once that attention was gone, they reverted to their 'normal'
behaviour.
,3. HR APPROACH – 1970’S
⋅ Organisations benefit in two ways
⋅ Increase in organisational effectiveness
⋅ Satisfaction of employee needs
⋅ Organisational goals & human needs are mutual and compatible
⋅ One set need not be gained at the epense of the other
⋅ Managing people as resources rather than factors results in benefiting both organisation
and employee
⋅ Principles of HR approach:
⋅ Employees are investments provide long-term rewards via productivity
⋅ Policies and programmes created to satisy economic and emotional needs of employees
⋅ Environemtn where employees are encouraged to develop and utilise their skills
⋅ Programmes and practices implemented with goal of balancing needs and meeting
goals of organsation and employees
STRATEGIC HR MANAGEMENT ⋅ Making those decisions that define
the overall mission & objectives of
⋅ Business Strategy = Management’s game plan
the organisation,
⋅ SHRM addresses a wide variety of people ⋅ determining the most effective
issues relevant to business strategy utilisation of its resources and
⋅ crafting and executing the strategy
⋅ Process is led by & coordinated by top management ⋅ in the ways that produce the
intended results.
Dimensions Strategic HRM Traditional HRM
Participates in formulating overall
Planning
ogranisational strategic plan and
and strategy Is involved in operational planning only
aligning HR functions with
formulation
company strategy
Has high status and authority for top Has medium status and authority (e.g.
Authority
HR officer (e.g. vice president for HR) HR Director)
Is concerned with all managers Is concerned primarily with hourly,
Scope
and employees operational and clerical employees
Is involved in making
Decision making Makes operational decisions only
strategic decisions
Is fully integrated with other
Has moderate to small integration with
Integration organisational functions e.g.
other organisational functions
marketing, finance, production
Coordination Coordinates all HRM activities Does not coordinate all HR functions
, Employee( Laws(regula-ng(
External) Separa-on( employment(
Environment:)
Compe--on,(
Government( Staffing(
Regula-on,(
Technology,(Market(
trends,(economy(
HR)Strategy) Training(
HR(planning,.(
Design(of(job(&(
work(systems,(
Corporate( what(workers( Performance(
Business(Unit(strategy( do,(what( Management(
Strategy( workers(need,(
how(job( HR(
interface(with( informa-on(
others( systems( Compensa-on(
Internal)
Environment)
Culture,(structure,( Labour(
poli-cs,(employee,( Rela-ons(
skills,(past(strategy(
COMPETENCIES AQUIRED FOR SUCCESS AS HR MANAGER:
- Business Mastery
⋅Know business of oganisation
- HR Mastery
⋅Keep aware of changes realting to issues like
⋅Staffing, development, appraisels, rewards, team building, communication
- Change Mastery
⋅Manage change proceses
⋅Actitvies effectively merged with business needs
- Personal Credibility
⋅Establish this by standing up for beliefs and be fair-minded in dealing
HR FUNCTIONS
- Compensation and benefits issues
- Affirmative action and employment equity
- Job analysis programmes
- Pre-employment testing
- Attitude surveys
, HR ACTIVITIES
1. Job analysis and design
⋅ Skills and abilities to perform a specific job is determined
2. Recruitment, selection, induction, internal stafing
⋅ Effectiveness of an organisation depends on effectivenesss of employees
⋅ External recruitement helps select a qualified labour force
⋅ Employees are introduced to organisation, tasks, superiors, co-workers
⋅ Promotions and transfers are also important
3. Appraisal, training & development, career management
⋅ Programs found in successful, expanding organisations
⋅ Employees become aware of performance deficiencies and informed on how to improve
⋅ Development happens with on-the-job and off-the-job activites teaching employees new
skills and abilities
⋅ HR managers give a lot of attention to processes and activities enhancing career advancement
and solve problems along career paths
4. Compensation and health
⋅ Employee benefits
5. Labour relations
⋅ Specialist consultants
⋅ Labour unions shape HR policies and programmes for union employees
⋅ Managers recognise causes of unsatisfactory performance and bring permanent improvement
6. HR information systems, HR research & problem-solving
⋅ Activities can be solved with HRIS
⋅ Handle HR needs – absenteeism, turnover, job dissatisfactione etc.
HR DEPARTMENT ROLES
1. Does the HR function affect the success on an organisation?
⋅ More successful companies engage in HR practices
⋅ Use HR functions to solve problems
⋅ HR directors report directly to managers
⋅ Emphasis on employee recruitment, trainging, selection
⋅ Use team building create environment for rapid decision making
⋅ Communicate perfomance objectives
⋅ Inlcude HR planning as part of strategic planning
Aqcuiring and retaining employees: create and implemet policies, maintain communication,
offer advice, provide servies and control personnel programmes and procedures.
2. HR POLICIES
⋅ Guide managements thinking
⋅ Help achieve HR objectives
⋅ Define acceptable and unacceptable behaviour
⋅ Establish organisations position on an issue
CHAPTER 1
HR APPROACHES
1. SCIENTIFIC MANAGEMENT – EARLY 1900’S
⋅ All employees considered equally productive – fired if not measuring up
⋅ Then approach taken in studying how work could be most efficiently designed
⋅ TAYLOR – father of scientific management
⋅ Workers who produced above output given incentive pay
⋅ ECONOMIC MAN
⋅ Worker is motivated primarily through economic gain
⋅ And output maximised by only through financial incentives
⋅ DIFFERENTIAL PIECE-RATE SYSTEM
⋅ Workers receive a higher rate of pay per piece produced after daily standard achieved
2. HUMAN RELATIONS – 1930’S & 1940’S
What were the Hawthorne Studies?
⋅ Late 1920s, Hawthorne Works - a large manufacturer operating in Illinois.
⋅ Are employees more productive in a well-lit environment than they are in a poorly-lit
environment?
What was discovered in the Hawthorne Study?
⋅ Managers at Hawthorne Works hired consultants and commissioned a study.
⋅ Well-lit lighting increased productivity, as did a few other variables, such as having a clean
workstation, allowing employees to build and work in teams, and having regular breaks.
⋅ While these were the direct findings from the Hawthorne study, none of them were ground-
breaking.
The Hawthorne Effect
⋅ During the Hawthorne study, when researchers adjusted an independent variable (the
variable that can be manipulated to measure its impact on another dependent variable),
productivity changed.
⋅ But, after a relatively short time, those productivity gains disappeared and output ended
up drifting back to the previous level.
⋅ The conclusion was that changes in the work environment could impact productivity,
but those productivity gains are only short-term.
⋅ The participants of the Hawthorne Works study changed their behaviour because they
were receiving attention, but once that attention was gone, they reverted to their 'normal'
behaviour.
,3. HR APPROACH – 1970’S
⋅ Organisations benefit in two ways
⋅ Increase in organisational effectiveness
⋅ Satisfaction of employee needs
⋅ Organisational goals & human needs are mutual and compatible
⋅ One set need not be gained at the epense of the other
⋅ Managing people as resources rather than factors results in benefiting both organisation
and employee
⋅ Principles of HR approach:
⋅ Employees are investments provide long-term rewards via productivity
⋅ Policies and programmes created to satisy economic and emotional needs of employees
⋅ Environemtn where employees are encouraged to develop and utilise their skills
⋅ Programmes and practices implemented with goal of balancing needs and meeting
goals of organsation and employees
STRATEGIC HR MANAGEMENT ⋅ Making those decisions that define
the overall mission & objectives of
⋅ Business Strategy = Management’s game plan
the organisation,
⋅ SHRM addresses a wide variety of people ⋅ determining the most effective
issues relevant to business strategy utilisation of its resources and
⋅ crafting and executing the strategy
⋅ Process is led by & coordinated by top management ⋅ in the ways that produce the
intended results.
Dimensions Strategic HRM Traditional HRM
Participates in formulating overall
Planning
ogranisational strategic plan and
and strategy Is involved in operational planning only
aligning HR functions with
formulation
company strategy
Has high status and authority for top Has medium status and authority (e.g.
Authority
HR officer (e.g. vice president for HR) HR Director)
Is concerned with all managers Is concerned primarily with hourly,
Scope
and employees operational and clerical employees
Is involved in making
Decision making Makes operational decisions only
strategic decisions
Is fully integrated with other
Has moderate to small integration with
Integration organisational functions e.g.
other organisational functions
marketing, finance, production
Coordination Coordinates all HRM activities Does not coordinate all HR functions
, Employee( Laws(regula-ng(
External) Separa-on( employment(
Environment:)
Compe--on,(
Government( Staffing(
Regula-on,(
Technology,(Market(
trends,(economy(
HR)Strategy) Training(
HR(planning,.(
Design(of(job(&(
work(systems,(
Corporate( what(workers( Performance(
Business(Unit(strategy( do,(what( Management(
Strategy( workers(need,(
how(job( HR(
interface(with( informa-on(
others( systems( Compensa-on(
Internal)
Environment)
Culture,(structure,( Labour(
poli-cs,(employee,( Rela-ons(
skills,(past(strategy(
COMPETENCIES AQUIRED FOR SUCCESS AS HR MANAGER:
- Business Mastery
⋅Know business of oganisation
- HR Mastery
⋅Keep aware of changes realting to issues like
⋅Staffing, development, appraisels, rewards, team building, communication
- Change Mastery
⋅Manage change proceses
⋅Actitvies effectively merged with business needs
- Personal Credibility
⋅Establish this by standing up for beliefs and be fair-minded in dealing
HR FUNCTIONS
- Compensation and benefits issues
- Affirmative action and employment equity
- Job analysis programmes
- Pre-employment testing
- Attitude surveys
, HR ACTIVITIES
1. Job analysis and design
⋅ Skills and abilities to perform a specific job is determined
2. Recruitment, selection, induction, internal stafing
⋅ Effectiveness of an organisation depends on effectivenesss of employees
⋅ External recruitement helps select a qualified labour force
⋅ Employees are introduced to organisation, tasks, superiors, co-workers
⋅ Promotions and transfers are also important
3. Appraisal, training & development, career management
⋅ Programs found in successful, expanding organisations
⋅ Employees become aware of performance deficiencies and informed on how to improve
⋅ Development happens with on-the-job and off-the-job activites teaching employees new
skills and abilities
⋅ HR managers give a lot of attention to processes and activities enhancing career advancement
and solve problems along career paths
4. Compensation and health
⋅ Employee benefits
5. Labour relations
⋅ Specialist consultants
⋅ Labour unions shape HR policies and programmes for union employees
⋅ Managers recognise causes of unsatisfactory performance and bring permanent improvement
6. HR information systems, HR research & problem-solving
⋅ Activities can be solved with HRIS
⋅ Handle HR needs – absenteeism, turnover, job dissatisfactione etc.
HR DEPARTMENT ROLES
1. Does the HR function affect the success on an organisation?
⋅ More successful companies engage in HR practices
⋅ Use HR functions to solve problems
⋅ HR directors report directly to managers
⋅ Emphasis on employee recruitment, trainging, selection
⋅ Use team building create environment for rapid decision making
⋅ Communicate perfomance objectives
⋅ Inlcude HR planning as part of strategic planning
Aqcuiring and retaining employees: create and implemet policies, maintain communication,
offer advice, provide servies and control personnel programmes and procedures.
2. HR POLICIES
⋅ Guide managements thinking
⋅ Help achieve HR objectives
⋅ Define acceptable and unacceptable behaviour
⋅ Establish organisations position on an issue
