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HUMAN RESOURCE MANAGEMENT
Definition-1: (John Storey, 1995) Human resourcemanagement is a distinctive approach to employmentmanagement which seeks to achieve competitiveadvantage through the strategic deployment of a highlycommitted and capable workforce, using an integratedarray of
Cultural, structural and personal techniques.
Definition-2: A strategic and coherent approach to themanagement of an organisation`s most valued assets-the people working there who individually andcollectively contribute to the achievement of its
objectives.Key Concepts:
Distinctive approach to employment management
Competitive advantage
Deployment of committed & capable workforce
A strategic and coherent approach
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VERSIONS OF HRM
John Storey (1995), in New Perspectives on Human resourcemanagement, made a distinction between two versions ofHRM.
1. HARD HRM: It emphasises the need to manage people inways that will obtain added value from them and thusachieve competitive advantage. Thus it concentrates on
quantitative, measurable criteria, control and performancemanagement. The hard approach emphasises:
The interests of management
Adopting a strategic approach that is closely integrated withbusiness strategy
Obtaining added value from people by the process of humanresource deployment and performance management
The need for a strong corporate culture expressed in missionand value statements and reinforced by communications,training and performance management process.
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VERSIONS OF HRM(CONTINUED)
2. SOFT VERSION:The soft model of HRM is basedupon human relations school and is identifiedby Storey as involving `treating employees asvalued assets, a source of competitive
advantage through their commitment,adaptability and high quality.
The need to gain commitment of employees
The interests of management and employees
should coincide Integration and team work
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DEVELOPMENT OF HRM CONCEPT
HRM CONCEPTS
US MODEL THE UK MODEL THE JAPANESEMODEL
Matchin
g Model
Harvard
Model David Guest John Storey
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THE US MODEL
1. THE MATCHING MODEL: the human resourcesystem and organisation structure shouldmatch with organisational strategy.
2. THE HARVARD MODEL: HRM is based on central philosophy and
strategic vision HRM involves all management decisions and
action that affect the nature of therelationship between the organisation and itsemployees.
A longer term perspective in managingpeople and consideration of people aspotential assets rather than variable costs.
Mutual interests.
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THE CRITICISMS
MATCHING MODEL: The concept of FIT has beencriticised on a number of fronts:
A number of writers have commented thatbusiness strategy dictates HR strategy.Business strategy is formulated in a rationalway, by the top down approach.
A perfect match between business strategyand Hr strategy might not be to theadvantage of the organisation as a whole.
It ignores the complex nature of humanbeings and the possibility that workers andtheir unions might influence strategicplanning.
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CHARACTERISTICS OF HRM
It is top management driven and managementoriented activity
It emphasises the need for strategic fit-theintegration of business and HR strategies
It is commitment oriented It can take either hard or soft form
It is performance oriented
Employee relations are unitarist rather thanpluralist, individual rather than collective, hightrust rather than low trust
Reward according to performance,competence or skills.