Principles of Human Resource Management
C H1: the balancing act of managing Human Resources
W HAT ARE HUMAN RESOURCES?
= people/employees who bring valuable qualities to an organization.
Key Components (KSAOs)
- Knowledge: Information & expertise from education, training, experience (e.g., market
research skills)
- Skills: Learned abilities to perform tasks effectively (e.g., coding, public speaking)
- Abilities: Natural talents or capacities (e.g., creativity, problem-solving, adaptability)
- Other Characteristics: Personality, values, attitudes, motivation shaping engagement &
teamwork
HR BUSINESS PARTNER MODEL (Dave Ulrich)
Administrative expert:
- Strategic: Focuses on improving HR processes and systems for
e fficiency.
- Processes: Ensures compliance , recruitment procedures, and HR
tech are streamlined.
C hange agent
- Strategic: Helps the organization manage transformation and adapt
to new strategies.
- People: Works on culture change, organizational development, and leadership programs.
Strategic partner
- Processes: Ensures HR policies and activities align with business objectives.
- Operations: Supports managers in workforce planning, performance metrics, and aligning
talent with company goals.
Employee champion
- People: Focused on supporting employees directly.
- Operational: Deals with employee relations, engagement, well-being, training, and conflict
resolution.
, ➢ HR’s main objective is not only to serve the interests of employees but to balance the
needs of the employees with the goals of the organization
➢ W hile stability is important to keep operations running smoothly, organizations today
operate in fast-changing environments ->HR in particular plays a role as a Change Agent
in helping organizations adapt
➢ C hallenges for HRM: diversity and equity, employee relations and conflicts, motivation,...
➢ HR has shifted from handling administration to becoming a strategic partner that drives
people development, culture, and change
T HE HR TRIAD
three key groups involved in most Human Resources (HR) processes:
- HR Professionals: Create the policies and systems.
- Line Managers: Implement and manage these policies with their teams.
- Employees: Are the participants who are directly affected by the policies.
ASE STUDY/ PROJECT OXYGEN
C
G oogle tried to remove all of its engineering managers, but it lead to inefficiency and chaos. They
then launched Project Oxygen to determine whether managers are necessary and what makes a
manager effective. The data-driven study found that good managers significantly improve team
performance, satisfaction, and retention
T op 10 Attributes of a Great Manager according to the project:
1) Be a good coach
2) Empower the team & avoid micromanaging
3) C reate an inclusive, caring environment: Foster psychological safety
4) Be Productive & Results-Oriented
5 ) Be a Good Communicator: actively listen
6 ) Support Career Development & Discuss Performance: provide opportunities and honest
f eedback
, 7) Have a clear vision & strategy: Collaboratively develop and communicate direction.
8 ) Process key technical skills: understand your team’s technical challenges
9) C ollaborate across the company: Work effectively with other teams and stakeholders
10) Be a strong decision maker
Making HR a strategic business partner
- Balances business goals, employee needs and ethics
- Moves from operational aspect: day-to-day tasks -> strategic influence: helping shape
business strategy
- Builds credibility through data-driven impact
- F aces real-world challenges beyond success stories
C H2 Strategy-driven HRM
trategy : gives direction and coherence, even when conditions shift-> like a compass, not a map,
S
the planning is the map
C orporate strategy business strategy
eciding where to compete: which
D eciding how to compete in a
D
industries or markets to enter, grow chosen arena: through cost
in, or exit leadership, innovation, or customer
intimacy
Ex. Amazon : Started as an online bookstore Ex. Colortyt
e xpanded into retail, cloud computing, and Known for cost leadership: delivering the
s treaming = corporate strategy through lowest
diversification. prices in Belgian retail.
Each business unit then needs its own HR - >This strategy requires efficiency, lean
practices aligned with its competitive strategy. operations, and highly disciplined workforce
management. Shows how business strategy
s hapes HRpractices directly.
hether employees are the most valuable asset or not depends on the industry, strategy, and
W
context
- C onsulting firm: employees drive almost all value
- Pharmaceutical company like Phizer : Machinery or patents may matter more
, orter’s five forces model
P
Profitability is (partially) shaped by industry conditions
- > Porter names five sources of competitive pressure which Guides corporate strategy
decisions about where to compete :
- T hreat of new entrantsThe ease with which new competitors can enter the market.
- > High barriers to entry, such as large capital requirements or strong brand loyalty, can
reduce this threat (ex. Customers loyal to coca cola in blind test experiment)
- B
argaining power of suppliers: The influence suppliers have on prices and terms.
- >When there are few suppliers or when they offer unique inputs, their power increases
(less switching options for businesses)
- B
argaining power of buyers: The influence customers have on pricing and terms.
- >If customers have many choices or can easily switch products, their power is higher
a nd can demand higher prices
- T
hreat of substitutes: The likelihood that customers will find alternative products or
s ervices.
- >High threat of substitutes limits a company’s ability to increase prices.
- Industry rivalry : The level of competition among existing firms.
- >High rivalry can lead to price wars, higher marketing costs, and reduced profitability.
Limits of an external focus
- Industries can be disrupted by new technologies
- New regulations and even reputational risks can override competitive advantages
- >ex. Elon ruined Tesla’s reputation in Europe
➢ s trategy must include more than just external forces
he Resource-Based View (RBV)
T
Shift from looking outside the firm to looking inside
- > sustainable competitive advantage comes from resources that competitors cannot easily copy
J ay Barney (1991) VRIN framework : about resourcesin general, but for human resources:
- Valuable: increase efficiency, adapt fast, achieve strategic goals
- R are : Retaining rare expertise gives a real competitive edge ( specialized talent like
tech) , When everyone has the same skills, people become replaceable
C H1: the balancing act of managing Human Resources
W HAT ARE HUMAN RESOURCES?
= people/employees who bring valuable qualities to an organization.
Key Components (KSAOs)
- Knowledge: Information & expertise from education, training, experience (e.g., market
research skills)
- Skills: Learned abilities to perform tasks effectively (e.g., coding, public speaking)
- Abilities: Natural talents or capacities (e.g., creativity, problem-solving, adaptability)
- Other Characteristics: Personality, values, attitudes, motivation shaping engagement &
teamwork
HR BUSINESS PARTNER MODEL (Dave Ulrich)
Administrative expert:
- Strategic: Focuses on improving HR processes and systems for
e fficiency.
- Processes: Ensures compliance , recruitment procedures, and HR
tech are streamlined.
C hange agent
- Strategic: Helps the organization manage transformation and adapt
to new strategies.
- People: Works on culture change, organizational development, and leadership programs.
Strategic partner
- Processes: Ensures HR policies and activities align with business objectives.
- Operations: Supports managers in workforce planning, performance metrics, and aligning
talent with company goals.
Employee champion
- People: Focused on supporting employees directly.
- Operational: Deals with employee relations, engagement, well-being, training, and conflict
resolution.
, ➢ HR’s main objective is not only to serve the interests of employees but to balance the
needs of the employees with the goals of the organization
➢ W hile stability is important to keep operations running smoothly, organizations today
operate in fast-changing environments ->HR in particular plays a role as a Change Agent
in helping organizations adapt
➢ C hallenges for HRM: diversity and equity, employee relations and conflicts, motivation,...
➢ HR has shifted from handling administration to becoming a strategic partner that drives
people development, culture, and change
T HE HR TRIAD
three key groups involved in most Human Resources (HR) processes:
- HR Professionals: Create the policies and systems.
- Line Managers: Implement and manage these policies with their teams.
- Employees: Are the participants who are directly affected by the policies.
ASE STUDY/ PROJECT OXYGEN
C
G oogle tried to remove all of its engineering managers, but it lead to inefficiency and chaos. They
then launched Project Oxygen to determine whether managers are necessary and what makes a
manager effective. The data-driven study found that good managers significantly improve team
performance, satisfaction, and retention
T op 10 Attributes of a Great Manager according to the project:
1) Be a good coach
2) Empower the team & avoid micromanaging
3) C reate an inclusive, caring environment: Foster psychological safety
4) Be Productive & Results-Oriented
5 ) Be a Good Communicator: actively listen
6 ) Support Career Development & Discuss Performance: provide opportunities and honest
f eedback
, 7) Have a clear vision & strategy: Collaboratively develop and communicate direction.
8 ) Process key technical skills: understand your team’s technical challenges
9) C ollaborate across the company: Work effectively with other teams and stakeholders
10) Be a strong decision maker
Making HR a strategic business partner
- Balances business goals, employee needs and ethics
- Moves from operational aspect: day-to-day tasks -> strategic influence: helping shape
business strategy
- Builds credibility through data-driven impact
- F aces real-world challenges beyond success stories
C H2 Strategy-driven HRM
trategy : gives direction and coherence, even when conditions shift-> like a compass, not a map,
S
the planning is the map
C orporate strategy business strategy
eciding where to compete: which
D eciding how to compete in a
D
industries or markets to enter, grow chosen arena: through cost
in, or exit leadership, innovation, or customer
intimacy
Ex. Amazon : Started as an online bookstore Ex. Colortyt
e xpanded into retail, cloud computing, and Known for cost leadership: delivering the
s treaming = corporate strategy through lowest
diversification. prices in Belgian retail.
Each business unit then needs its own HR - >This strategy requires efficiency, lean
practices aligned with its competitive strategy. operations, and highly disciplined workforce
management. Shows how business strategy
s hapes HRpractices directly.
hether employees are the most valuable asset or not depends on the industry, strategy, and
W
context
- C onsulting firm: employees drive almost all value
- Pharmaceutical company like Phizer : Machinery or patents may matter more
, orter’s five forces model
P
Profitability is (partially) shaped by industry conditions
- > Porter names five sources of competitive pressure which Guides corporate strategy
decisions about where to compete :
- T hreat of new entrantsThe ease with which new competitors can enter the market.
- > High barriers to entry, such as large capital requirements or strong brand loyalty, can
reduce this threat (ex. Customers loyal to coca cola in blind test experiment)
- B
argaining power of suppliers: The influence suppliers have on prices and terms.
- >When there are few suppliers or when they offer unique inputs, their power increases
(less switching options for businesses)
- B
argaining power of buyers: The influence customers have on pricing and terms.
- >If customers have many choices or can easily switch products, their power is higher
a nd can demand higher prices
- T
hreat of substitutes: The likelihood that customers will find alternative products or
s ervices.
- >High threat of substitutes limits a company’s ability to increase prices.
- Industry rivalry : The level of competition among existing firms.
- >High rivalry can lead to price wars, higher marketing costs, and reduced profitability.
Limits of an external focus
- Industries can be disrupted by new technologies
- New regulations and even reputational risks can override competitive advantages
- >ex. Elon ruined Tesla’s reputation in Europe
➢ s trategy must include more than just external forces
he Resource-Based View (RBV)
T
Shift from looking outside the firm to looking inside
- > sustainable competitive advantage comes from resources that competitors cannot easily copy
J ay Barney (1991) VRIN framework : about resourcesin general, but for human resources:
- Valuable: increase efficiency, adapt fast, achieve strategic goals
- R are : Retaining rare expertise gives a real competitive edge ( specialized talent like
tech) , When everyone has the same skills, people become replaceable
