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CHAPTER 1

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Theories, issues and influences in human resource management

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Session objectives

  • Define the purposes and scope of human resource management (HRM) in Australia
  • Trace the development of HRM in Australia
  • Understand the influences, issues and underlying theories of HRM
  • Assess the relevance of critiques of HRM
  • Describe the principal roles, functions and outcomes of Australian HRM
  • Discuss the professional and ethical principles guiding HRM

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Personnel management vs �human resource management

Personnel management:

A set of functions or activities

Human resource management:

An integrated set of personnel activities, linked strategically with organisational objectives

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History and origins of HRM

  • HRM has existed since the beginning of time
  • Developed formally as a result of the Industrial Revolution
  • Working conditions became a social and industrial issue
  • Growth of trade unions and IR systems

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Management theories and influences on HRM

Contingency

approaches

Excellence

studies

TQM

Classical management theory

Classical organisation theory

Transitional theorists

Systems theorists

Management science

Behavioural school

HRM

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Stages in the development of HRM

  • Welfare and administration (1900–1940s)
  • Staffing and training (1940s–mid-1970s)
  • Human resource management (mid-1970s–1990s)
  • Strategic and global HRM (2000 and beyond)

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  • Harvard model
  • ‘Hard’ and ‘soft’ HRM
  • Unitarist and pluralist perspectives
  • Relationship of HRM to IR
  • Criticisms of HRM theory

Concepts and models

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HRM – roles, functions and strategies

Strategic

Functional

Operational

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  • Responsiveness to competition and globalisation
  • Alignment to business strategy
  • Quality HRM practices
  • Management of change

Strategic HRM

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  • Quantity and quality of employees
  • Strategic recruitment and selection practices
  • Retention
  • Productivity and motivation
  • Job design
  • Integration and accountability of functions
  • Evaluation

HRM issues

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  • Devolution
  • Automation
  • Outsourcing

HRM – the future