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Chapter 1

Chapter 1. Introduction to Human Resource Management . Chapter contents. Opening case: Employee affiliations at Eastern Computing (Pty) Ltd. Introduction The point of departure: Demarcating the field of study Redefining human resources management

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Chapter 1

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  1. Chapter 1 Introduction to Human Resource Management

  2. Chapter contents • Opening case:Employee affiliations at Eastern Computing (Pty) Ltd. • Introduction • The point of departure: Demarcating the field of study • Redefining human resources management • Management approaches to human resources management • The need for strategic HRM and accompanying strategies • Human resources management profession • Challenges facing HRM • Structure of the book • Conclusion

  3. Introduction • Demarcating HRM field of study • Defining various terms and concepts • Distinction between approaches and manifestations of science within formal work environments • Unveiling challenges of this discipline within the Southern African context • Identifying importance of strategic HRM • Focus on the South African Institute of People Management (SAIPM) • Focus on the South African Board for Personnel Practice (SABPP) • Structure and content of the book

  4. Demarcation of the field of study • The whole (‘gestalt’) to be understood before content of discipline is contextualised • HRM stems from the study field of management • HRM interacts with other disciplines ( See Fig 1.1) • Sister disciplines are psychology which focuses on the study of human behaviour and Sociology focus on social behaviour relationships within and among groups • Business management is the study of management which includes macro and functional points of view • Employment relations is the relationship between employers, employees, and the state • HRM is an applied behavioural science.

  5. Redefining HRM • Integration of HRM strategy into global strategy of organisations is important • Personnel is key factor to success of organisations and operates in various environments and contexts • Definition: Stone (2008) HRM ‘Involves the productive use of people in achieving the organisation’s strategic objectives and the satisfaction of individual employee needs.’ • External environment has 4 sub-environments: Economic, social, political, technological

  6. Redefining HRM (cont.) • An organisation has various characteristics: size, structure, technology, HR policies, etc. • The job itself affects employee performance • Individual employees are the most important component as the focus of any organisation’s objective achievement efforts • Employing the right people is the organisation’s best use of its most important asset.

  7. The context of the systems model to HRM Three environments are illustrated in Figure 1.2 namely: • Employees’ job content - Nature of job, tasks, guidelines, utilisation, status • Job context - Organisation culture and climate, management philosophy, leadership style, structures, etc. • External environment - Labour market, education, economic conditions, employment legislation

  8. Management approaches to HRM • Functional approach to HRM views it as a staff function - HRM function traditionally includes: provisioning, maintenance, and developing personnel - HR manager has a service, control, and advisory function * Systems approach to HRM - In Fig 1.2 presents a management systems model of the employee as a subsystem - Organisation is an open system with various components which are sub-systems and include micro and macro views.

  9. Management approaches to HRM (Cont.) • Micro systems view of HRM comprise various sub-systems: - Goal sub-system - Work task sub-system - Work method sub-system - The people sub-system, which consists of various aspects - The informal sub-system. • Macro systems view of HRM - Humans are a sub-system with inputs, through puts and outputs - Before employment, a psychological contract is negotiated between the individual and the organisation based on personal and organisational expectations and goals

  10. Management approaches to HRM (Cont.) • Efficiency approach to HRM - Success is measured against standards of achievement and entails working towards optimal achievement of goals and includes multiple goals which are short, medium, and long term • Cornerstones are: ‘doing things right’ and ‘doing the right things’ - Focus is maintaining and improving individual performance.

  11. The individual employee • Relationship between employee behaviour and personality requires knowledge and insight by superiors to achieve organisations’ goals • Personality is a characteristic way a person thinks to adapt to their environment and act in a particular job • Personal characteristics include values, motives, genetic factors, attitudes, self-image, etc. • Cultural and social factors impact on personality • The personality set of characteristics determine communality or differences in individuals’ behaviour • Hereditary factors also shape a person’s personality

  12. The concept of the psychological contract • Individual performance is the result of motivated behaviour • Motivated employee behaviour is best achieved by integrating personal goals with goals of the organisation • The relational psychological contract is usually more important for HRM than the transactional contract

  13. The concept of the psychological contract (Cont.) • The two major types of psychological contracts are relational and transactional, which include various possibilities • Inclusiveness – is a concern for the person and their • development • Time frame – whether the arrangement is • open-ended or not • Formalised – whether it is written or not • Stability – whether it is dynamic and subject • to change • Tangible – whether a third party would observe the conditions under which it operates

  14. The concept of the psychological contract (cont.) • The psychological contract entails two sets of expectations which correspond or differ from each other, depending whether the focus is the employee or the organisation - Employees have expectations about promotion, salary, status, office and décor, etc. Other expectations are: Technical skills, time and energy, involvement, communication skills, etc. - Organisations have expectations about what they will receive and what they can offer an employee - Organisations offer a meaningful job, challenging work, recognition, status and prestige, compensation, interesting work, etc.

  15. The concept of the psychological contract (cont.) • Organisation expects employee to be able to execute tasks, work productively, supervise and guide others, make good responsible decisions, plan and organise his or her own work, etc. • More important than items, is an understanding of the nature of the psychological contract, and communication of these mutual expectations between employee and organisations • Expectations of employees are different at different ages e.g. at 25 years of age a career is desired at 50+ retirement prospects are looked for, because the contract is dynamic and change as employees get older.

  16. Contemporary views on the psychological contract • The contemporary psychological contract - This contract is dynamic, voluntary, subjective and informal, and defines two tasks i.e. employment relationship and mutual expectations - The contract is characterised by the fact that employees must look after their own industrial security because the focus is now on talents and commitments.

  17. Attachment commitment to the organisation • Interaction between employee and organisation has two outcomes: 1) An individual’s desire to maintain membership (attachment) and 2) A desire to perform on the job and contribute (involvement) • Organisations expect attachment and involvement due to the following: - Recruit and retain workers

  18. Attachment commitment to the organisation (Cont.) - Allocated work should be executed with responsibility - Innovative and spontaneous cooperation with regard to organisational activities • Attachment has two components formal and involvement and has to do with the job content and job context environments • Five states of attachment of employers to an organisation exist: - Identification, innovation, ritualism, resilience, and rebellion • Concept of commitment entails where individuals feel strongly drawn to objectives, values and goals of their employer

  19. Attachment commitment to the organisation(Cont.) • Successful organisations are known for performance inclined, innovative, and creative employees • A performance orientated employee show the following work behaviour: - A desire to remain with the organisation - Do much more than is expected for the organisation - accept the organisational culture and goals • Commitment is closely related to issues such as: - increased effort, attendance, employee retention, and involvement.

  20. Employees’ contribution to the organisation’s bottom-line • Focus is on employee contribution to value of organisation and shareholder value • Determine return on investment of human capital • The following contribute to share value e.g. - Total reward, accountability, and value creation - Collegiality and flexibility - Recruitment and retention excellence - Communication and integrity • Quality assurance and added value • Support of employees to provide quality inputs • Quality assurance performed by HR department.

  21. Scope of quality assurance and HRM • QA uses both the functional and systems approach to achieve organisations’ objectives • Line and staff managers use QA to ensure workforce quality • Quality performance starts with organisational vision - Organisational vision is important for QA - Alignment between employee outcomes and organisational vision is necessary - Quality performance through HRM focuses on relationship building. - Strengthening organisation and securing resources is part of vision - QA helps to solve problems

  22. Human resources management: A process in itself • QA of HRM exist within functional approach to HRM • HRM as a process in itself is shown in Figure 3.1 • HRM dept. deliver HR potential to achieve objectives • Organisation must be designed structurally and process wise, to get best fit between people, process, policy, etc. • Proper job design and job analysis is needed for effective QA • Quality HR start with recruitment and selection • Managers must know HR techniques for effective QA • T & D is important in QA process • Strategic HRM important for long term goals via assuring quality

  23. Adding value • Individuals instrumental to add value to organisations • Profit at all cost is not acceptable in modern world economy • Employees can add value to organisations by: - Managing and controlling themselves - Coordinating their work with the work of other employees - Suggesting ideas about better ways to do the work - Developing new products and ways to serve customers • Social relationships of personnel contribute to value

  24. Adding value via HR professional & department activities • A tight fit between HR and business strategy leads to adding value • Various “do-ables” and “deliverables” are important to add value in organisations e.g. to develop the employer brand • Knowledge, skills and abilities must be enhanced to add value • Various attributes are necessary to add value • Establish and maintain a positive reputation for an organisation

  25. The need for strategic HRM and accompanying strategies • In 20th century, integration of HRM with business strategy has become essential for business success • HRM has changed at an increasing tempo • Organisation’s overall business strategy should provide guidance for HRM strategy, which in turn outlines organisation’s people objectives. This is because HRM strategies are functional strategies in organisation’s objective achievement endeavours.

  26. HRM profession • The Institute of People Management of Southern Africa (IPM) - Is the professional body of HRM in SA - Is dedicated to effective management and development of human potential in accordance with its value statement - Influences and assists in the development and utilisation of HR - Focuses on the promotion and development of competence and ethical conduct amongst members.

  27. HRM profession (Cont.) • The South African Board for Personnel Practice (SABPP) - Professional body for the registration of HR practitioners in SA, established in 1982 - Strategy is to promote, guide, and influence the development of the personnel profession - Various prescriptions exist re a behavioural code of a person registered with the SABPP - Various registration categories exist which dictate different registration requirements.

  28. Jobs and careers in HRM • Many opportunities exist for people wishing to pursue a career in HRM • Nature and size of an organisation dictates number of opportunities which exist in HRM • High demand for HR personnel exist who are qualified in both HRM and employment relations management due to inter-dependence and high level of trade union activities in SA.

  29. Challenges facing HR managers and the profession • Globalisation • Downsizing and delayering in organisations • Shortage of skills - High intellectual capacity people leave SA - South Africans have a high status as quality employees and international demand including financial offers grow at alarming rates • Developing workplace flexibility is essential • How to deal with the Aids pandemic is of paramount importance nationally.

  30. Structure of the book • Part 1: General introduction to HRM • Part 2: HRM and the legislative environment • Part 3: Staffing the organisation and maintaining people • Part 4: Behavioural aspects of HRM • Part 5: Employee, group and organisational empowerment through HRM interventions • Part 6: Strategic and international HRM

  31. Conclusion • This chapter orientated the learner/reader to the field of HRM as an applied science • Foundation of HR as well as definition and manifestation is explained • The psychological contract was also discussed • Challenges to HR is not distant and in most cases already part of the quest for better and improved practices • HR is key to organisations’ success, since a QA and value adding approach means optimum use of HR • The importance of the IPM and SABPP was also pointed out • Good quality HR contribute directly increased GDP

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