Page 177 - E1 Integrated Workbook STUDENT 2018

Introduction to human resource management

Introduction

1.1 What is human resource management (HRM)?

HRM can be viewed as a strategic approach to acquiring,
developing, managing and motivating an organisation’s key
resource. This should help the organisation achieve its stated
objectives through the best use of its employees.

1.2 HRM versus personnel

Personnel HRM

 Traditional approach.  Modern approach.

 Concerned with operational matters.  Concerned with operational and
strategic matters.
Human resource management (HRM) can be viewed as a strategic
 Views employees as costs.
approach to acquiring, developing, managing and motivating an

Views employees as key assets and
organisation’s key resource. This should help the organisation achieve
 Employees motivated by payment a potential source of competitive
its stated objectives through the best use of its employees.
(which is just enough to recruit and advantage.
Hard HRM treats employees simply as a resource of the business (like
retain sufficient staff) and coercion.

Employees motivated by consent
machinery and buildings). There is little staff empowerment and pay is
 Line managers not seen as key to and involvement and receive a
just enough to recruit and retain sufficient staff.
HR. competitive pay structure.
Soft HRM treats employees as the most important resource in the
Could be viewed as a HARD approach to  Line managers seen as key to HR.
business and as a source of competitive advantage. Employees are
HR.
empowered and receive a competitive pay structure (including
performance-related pay). Could be viewed as a SOFT approach to
HRM.

Illustrations and further practice

Read illustration 1 from Chapter 13.

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