HUMAN RESOURCEHUMAN RESOURCE

A source of A source of competitive competitive advantage?advantage?

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003 Theory and Practice, Palgrave, 2003 http://www.palgrave.com/business/brattonandgold/

Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006

Chapter 1 Chapter 1

Human ResourceHuman Resource

What are the new challenges at What are the new challenges at the beginning of the new the beginning of the new

millenium?millenium?

1. Technology impact1. Technology impact2. World is shrinking2. World is shrinking3. Better and more 3. Better and more communicationcommunication4. Higher visibility4. Higher visibility5. Demographics5. Demographics6. Continuous transition6. Continuous transition7.7.8.8.9. 9.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

a a strategic approachstrategic approach to to employment relationsemployment relations

which emphasizes that which emphasizes that leveraging leveraging people people

capabilitiescapabilities is critical is critical to achieving to achieving sustainable sustainable

competitive advantagecompetitive advantage, , this being achieved this being achieved through a through a distinctive distinctive

setset of integrated of integrated employment polices, employment polices,

programmes and programmes and practices.practices.

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People at work.People at work.

Who they are?Who they are?

Where do they Where do they work?work?

When do they work?When do they work?

Why o they work?Why o they work?

What do they do?What do they do?

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

An historical perspectiveAn historical perspective

1950-19801950-1980Personnel Personnel

Regulatory, administrative, Regulatory, administrative, industrial relations aspectsindustrial relations aspects

1980-20001980-2000Human Resource, internal Human Resource, internal

sources of competitive sources of competitive advantage, employer-advantage, employer-employee relations employee relations

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An historical An historical perspectiveperspective

Hard & SoftHard & Soft

Hard: Hard: resourceresource

Soft: Soft: humanhuman

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An historical perspectiveAn historical perspective

Hard & SoftHard & Soft

Hard: Hard: resourceresourceSoft: Soft: humanhuman

__________________________________Human Resource Human Resource

= = People in work organisationsPeople in work organisations

______________________________________employee relations + leveraging employee relations + leveraging people’s capabilities + achieving people’s capabilities + achieving

sustainable competitive advantage + sustainable competitive advantage + distinctive set of integrated distinctive set of integrated

employment policies, programmes, employment policies, programmes, and practices. and practices.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Key ingredientsKey ingredients

PeoplePeople

IntegrationIntegration

Line managersLine managers

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Human CapitalHuman Capital

People are worth People are worth investing in as a form investing in as a form

of capital: people’s of capital: people’s performance and the performance and the results achieved can results achieved can be considered as a be considered as a

return on investment return on investment and assessed in terms and assessed in terms of costs and benefitsof costs and benefits

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Human CapitalHuman Capital

What people bring (in a What people bring (in a variable and unpredictable variable and unpredictable

way) to the workplace: way) to the workplace: intelligence, aptitudes, intelligence, aptitudes,

commitment, tacit commitment, tacit knowledge, skills, ability to knowledge, skills, ability to

learn, and will results in learn, and will results in behaviors favourable to the behaviors favourable to the

success of the success of the organisation.organisation.

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Nature of employment Nature of employment relationshiprelationship

Dynamic, interlocking Dynamic, interlocking economic, legal, social, economic, legal, social,

and psychological and psychological relations that exists relations that exists between individuals between individuals

and their work and their work organisations.organisations.

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Nature of employment relationshipNature of employment relationship

Economic: pay-effort bargainEconomic: pay-effort bargain

Legal: law and statutory rights and Legal: law and statutory rights and obligations affecting both partiesobligations affecting both parties

Social: individuals are members of Social: individuals are members of social groups and respond to social social groups and respond to social

normsnorms

Antropological: sharing of values, Antropological: sharing of values, beliefs and underlying assumptionsbeliefs and underlying assumptions

Psychological: two way exchange Psychological: two way exchange of perceived promises and of perceived promises and

obligationsobligations

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Psychological contractPsychological contract

Impact (beyond Impact (beyond expectations) onexpectations) on

CommitmentCommitmentWork motivationWork motivation

Task performanceTask performanceOn behalf of the individualOn behalf of the individual

andandOrganisational supportOrganisational support

On behalf of the On behalf of the organisation organisation

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Psychological contractPsychological contract

==A metaphor that A metaphor that

captures a variety of captures a variety of largely unwritten largely unwritten expectations and expectations and

understandings of the understandings of the two parties about their two parties about their

mutual (perceived) mutual (perceived) obligations. obligations.

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Psychological Psychological contractcontract

______________________

What do you think What do you think about the concept about the concept

of the psychological of the psychological contract?contract?

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Human Resource Human Resource Multidimensional Multidimensional Activity requires Activity requires

awareness ofawareness of ______________________

PrerogativesPrerogatives

ContingenciesContingencies

SkillsSkills

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Human Resource Human Resource PrerogativesPrerogatives ______________________

PlanningPlanningStaffingStaffing

DevelopingDevelopingMotivatingMotivating

MaintainingMaintainingMaking RelationsMaking Relations

Making Change HappenMaking Change HappenAuditingAuditing

EvaluatingEvaluating

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Contingencies Contingencies affectingaffecting

Human Resource Human Resource ______________________

External contextExternal context

Organisational strategyOrganisational strategy

OrganisationOrganisation

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Human Resource Human Resource SkillsSkills

______________________

Technical, cognitive, Technical, cognitive, interpersonal, interpersonal,

mentoring, mentoring, teaching, influence, teaching, influence,

legal, legal, communication.communication.

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Human ResourceHuman ResourceBrings the attention onBrings the attention on

______________________

• Integration with strategic Integration with strategic planningplanning

• Importance of the Importance of the psychological contractpsychological contract

• Importance of learningImportance of learning• Focus on the individualFocus on the individual

• ProactivityProactivity• Performance outcome.Performance outcome.

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Paradoxes of Paradoxes of Human ResourceHuman Resource

______________________

Increase of demand for Increase of demand for productivity and autonomy of productivity and autonomy of workers (new organisational workers (new organisational

design) conflicts with demand design) conflicts with demand for loyalty and commitment for loyalty and commitment

(undermined)?(undermined)?

________________________A paradox involves ambiguity A paradox involves ambiguity

and inconsistency: actions and inconsistency: actions undertaken in contrast with undertaken in contrast with

goalsgoals______________________

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Human Resource Human Resource ApproachApproach

Extent to which it has been Extent to which it has been adoptedadopted

______________________

• Systemic adoption: Systemic adoption: scarce, no paradigm shift scarce, no paradigm shift

yetyet

• Individual HR practices: Individual HR practices: there has been a there has been a

remarkable take up.remarkable take up.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

SummarySummary______________________

1.1. Primacy of peoplePrimacy of people2.2. Polisemy of human Polisemy of human

resource terminologyresource terminology3.3. Reciprocal Reciprocal

commitmentcommitment4.4. Different mind sets of Different mind sets of

personnel, hard and personnel, hard and soft human resourcessoft human resources5.5. HR ParadoxHR Paradox

6.6. Likelyhood of Likelyhood of paradigm shift paradigm shift

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

AssignmentAssignment

______________________

www.airbus.com

www.walmart.com

www.virgin.com

____________________

Evaluate goals of HREvaluate goals of HR

Department as Department as

described on websites.described on websites.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Searching the webSearching the web

______________________

www.hrhq.com

www.peoplemanagement.co.uk

www.ahri.com.au

www.ipm.co.za

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003