Lecture 8 & 9: Managing People – Employing effective human resources Chapter 12
Key Focuses of this lecture:
- Understand the role of Human Resource Management within organisations.
- Create an awareness of the regulatory environment in which HRM operates.
- Understand the 3 phases of the employment relationship (acquisition, maintenance and
- Attracting an Effective Workforce
1. What is Human Resource Management?
Human: relating to, or characteristic of humankind
Resources: a stock or supply of money, materials, staff, and other assets that can be drawn on (by
a person or organization) in order to function effectively;
* Definition 1: very narrow sense, because employees also have goals
“Those management functions concerned with attracting, maintaining and developing people in
the employment relationship”
* Definition 2: what functional aspects does it cover?
“The processes and activities aimed at utilising all employees to achieve organisational goals”
* HRM happens in every organisation; who does it and how it gets done is often a function of the
size of the firm and the ideology of its management; but whether it is a dedicated HR function or
not, people get recruited, they need to do their jobs and they might need training, and get paid
and pay. Employment relationships also come to an end at some time; whether it’s voluntary or
involuntary, it’s a part of HRM – people management process.
* Everyone experiences HRM, if not necessarily practice it, then it is important to know your rights,
and understand how things are supposed to work; acquiring this knowledge helps the
understanding of why we do things the way we do in organisations and where things are going
wrong, so you don’t get caught up in a costly mistake (whether this is being dragged through a
personal grievance, or simply hiring a useful person and having to get rid of them). The people
you employ, the way they do their job, i.e. perform, are crucial determinants of firm performance
– they are crucial to a firm’s competitive advantage.
What HRM looks like in an organisation
What HRM looks like in an organisation is dependent on organisational size; all organisations do