As
the machines of the industrial revolution roared to life, companies like
Cadbury and Rowntree emerged as pioneers of personal management, focusing on
the welfare of their employees through social welfare programs (Ehnert, Harry,
& Zink, 2020). However, the rising tide of trade unionism in the 19th
century led to a shift in focus toward industrial relations and negotiations of
employment conditions (Armstrong, 2012). The early 20th century saw the
emergence of the human relations school, led by Elton Mayo, which stressed the
importance of employee psychology and emotional needs in the workplace (Mayo,
1933). McGregor's Theory X and Theory Y further developed this approach,
recognizing the need to balance the interests of both the organization and the
individual (McGregor, 1960). Today, the echoes of these historical developments
can still be felt in modern personal management practices (Armstrong, 2012).
Thus when exploring history it is apparent that the aspects of personal management have evolved over time from a welfare role in the early industrial revolution to the rise of trade unionism and industrial relations, and the human relations school's emergence. The works of Elton Mayo and Douglas McGregor continue to shape modern personal management practices, emphasizing the importance of recognizing employee needs and creating a supportive work environment.
MANAGING PEOPLE, NOT JUST JOBS: THE ART OF PEOPLE MANAGEMENT
People management refers to the set of practices and strategies that an organization employs to oversee its workforce. This includes not only the administrative tasks related to hiring, training, and compensation but also the more complex aspects of managing people's behavior, performance, and well-being. According to Henderson (2017), people management involves decisions and actions that directly affect or influence individuals as members of the organization, rather than merely as job holders.
This implies that people management is concerned not only with ensuring that employees perform their tasks efficiently but also with fostering a positive workplace culture and supporting employees' personal and professional development. Effective people management is crucial for organizational success, as it can help to improve employee engagement, productivity, and retention while reducing turnover, absenteeism, and conflicts in the workplace.
REVOLUTIONIZING HRM: TREATING PEOPLE AS ASSETS
HRM is a vital function responsible for managing the employment, development, and well-being of an organization's people (Armstrong, 2014). Unlike personnel management, HRM recognizes the value of investing in employees as an essential asset (Beer et al, 1984), creating a work environment achieve these goals, line managers play a critical role in the HRM function (Armstrong, 2011), aligning HR policies with the organization's overall strategy and goals (Fombrun et al, 1984). By taking a strategic, integrated, and coherent approach, HRM can significantly contribute to achieving organizational success.
Ulrich's three-legged stool has evolved into a five-functional approach, emphasizing the strategic role of HR managers as business partners, change agents, administrative experts, employee advocates, and human capital developers (Ulrich & Brockbank, 2005). This approach recognizes the critical role HR plays in driving transformational and cultural change and aligning HR policies with legal and regulatory requirements. HR managers must also advocate for employees' interests and develop their skills to support the organization's long-term growth. As leaders themselves, HR managers must contribute to promoting a culture of innovation, collaboration, and excellence. This comprehensive approach highlights the importance of HR in driving organizational success and provides a roadmap for HR managers to support their organizations' growth and development.
KEY CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT
Human resource management (HRM) has evolved as a strategic approach to managing human resources, emphasizing employees as a critical component of organizational success. The approach is based on a psychological contract, job design, organizational structure, remuneration, recruitment, training and development, employee relations, and the utilization of human resources. This approach recognizes the value of engaged employees, creates challenging and meaningful job designs, promotes a flexible team-based structure, rewards individual contributions, and fosters positive relationships between employees and management.
HRM also emphasizes the importance of creating a learning organization culture, recruiting the right people, and developing their skills to align with the organization's goals. By focusing on these key characteristics, HRM can help organizations achieve their goals and maintain a competitive advantage (Boxall and Purcell, 2003).
The Universalist versus Contingency Argument is a longstanding debate within the field of Human Resource Management (HRM). The 'best practice' school argues that there is a specific set of HRM policies and practices that can be applied universally across organizations to achieve the best results. This approach is endorsed by scholars such as Pfeffer (1998) and Huselid (1995). However, the 'best fit' school argues that certain HRM policies and practices are more effective when aligned with specific company strategies.
This approach acknowledges that there is no 'one-size-fits-all' solution to HRM, and policies must be tailored to fit the needs of each organization. The contingency approach gives managers the freedom to choose HRM strategies, influenced by factors like organizational structure, culture, and external environment, but not determined by them. It emphasizes managerial decision-making, while the debate between Universalist and contingency arguments centers on standardization versus customization in HRM.
UNLEASHING THE POWER OF STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic
human resource management (SHRM) aligns HR strategies with business strategies
to support organizational success (Armstrong, 2014). SHRM is based on five key
propositions: HRM is critical to organizational success, HR strategies should
be integrated with business strategies, people are essential to implementing
business strategy, people are a source of competitive advantage, and a
systematic approach is required for HR strategy development. SHRM enables
organizations to create a skilled and motivated workforce, essential for
achieving objectives, and organizations should view their people as a source of
competitive advantage, adopting a systematic approach to HR strategy
development.
REFERENCES
Henderson, R. I. (2017).
Managing People, Not Just Jobs: The Art of People Management. Journal of
Business and Management, 23(1), 78-85.
Armstrong, M. (2014).
Revolutionizing HRM: Treating People as Assets and Aligning HR with Strategy.
Human Resource Management International Digest, 22(2), 2-5.
Ulrich, D., &
Brockbank, W. (2005). The Evolving Role of HR Managers: A Five-Functional
Approach to Driving Organizational Success. Human Resource Management, 44(4),
351-363.
Boxall, P., &
Purcell, J. (2003). Key Characteristics of Human Resource Management: A
Comprehensive Analysis. International Journal of Human Resource Management, 14(2),
215-233.
Pfeffer, J. (1998). Seven
practices of successful organizations. California Management Review, 40(2),
96-124.
3 Comments
The article clearly elaborates the strategic role of HR managers as business partners, change agents, administrative experts, employee advocates, and human capital developers. The key to playing the role is to know your employee. The HR manager should have a clear understanding on the needs and wants of each and every employee or at least a summary of needs and wants of employees of each department within the organization depending on the size of the organization the HR manager is responsible for. Learning the ways and strategies to get this information up the HRM hierarchy has been a big challenge to many HR managers. Specially depending on the size of the organization and the approachability down to the bottom of the hierarchy of the organization the HR manager is handling.
ReplyDeleteAn insightful article. I do strongly agree with your statement "HR strategies should be integrated with business strategies". It is important to periodically review and make necessary updates to your organization's HR strategy in response to changes within the organisation. ("5 Critical Steps to Future-Proofing Your Human Resources Strategy," n.d.)
ReplyDelete(https://www.insperity.com/blog/5-critical-steps-to-future-proofing-your-human-resources-strategy/#:~:text=Your%20HR%20strategy%20should%20be,as%20well%20as%20larger%20ones.)
Insightful article Manoj. Personal management and human resource management are two different approaches to managing employees in an organization. Personal management is focused on administrative tasks such as recruitment, training, and compensation, while human resource management takes a more strategic approach that emphasizes employee development, engagement, and culture. This approach recognizes that employees are a valuable asset to the organization and that their growth and development are critical to achieving long-term success. By adopting a human resource management approach, organizations can create a supportive work environment, attract and retain top talent, and achieve their goals.
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