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5CHR – Business Issues and the

context of Human resources

[email protected]

14.9.17
What is it all about ?
• Organisations do not operate in a vacuum.

• Their context comprises a vast and diverse range of variables such as


technological development, legal systems, demographic trends and even
natural disasters.

• It is not only necessary to understand how these impact on organisations,


but how these factors interact with each other, and the choices that
organisations have in deciding how to respond.

• It is dynamic, evolving, to an extent unpredictable and out of our control.

• The challenge is to develop a working understanding


• of this complexity and the impact on HR
Books etc

Looks at the Unit

Learning Outcomes

Assignment

Assignment is due by….


Learning Outcome 1
• Understand the key contemporary
business issues
• Main external factors
• Examine impact upon organisations and
HR
Assignment
• Produce a paper for inclusion in a delegate pack
on
“ The evolving role of HR in the contemporary
business world”

• 3000 words
• Academic Concepts, theories, practice
• Critical assessment with evidence
• Referenced (Harvard)
Learning objectives today
Introducing themes, explore in depth next week…

LO1 -To be able to understand key contemporary business


issues and main external factors affecting different
organisations and the impact on HR

LO2 – To be able to understand how organisational and HR


strategies and practices are shaped and developed (to be
continued next week)

These relate to the first three bullet points of the assignment –


AC 1.1, AC 2.1 and AC 2.2
A Definition of HRM:
No Universal Definition!

Taylor Woodhams p5 :

• HRM mark 1:
is likened to traditional personnel management

• HRM mark 2:
is strategic and delivered by HR professionals
and line managers - body of activity related to
the organisations relationship with people
An evolution……

Bureaucracy Scientific Human


management relations

Hierarchy of authority Work processes based on Focus on human


  scientific study relationships and
Rules and procedures   socialisation
  Job-specific training  
Strategy determined by   Teamworking and
senior managers and sources Specialisation and team development
of expertise division of labour  
    Managers
Emphasis on technical Management and worker collaborating with
efficiency co-operation groups
     
Dissonance between Emphasis on cost savings Emphasis on non-
intended and actual and incentive payments financial reward
behaviour  
  Integration of
business and human
needs
CIPD Map
• Profession Map

Link to insight Strategy and Solution

Does the map reflect


the state of HR today?
Re-imagine work

• Watch this video


• Discuss what you think? Re-
imagine work
Think of an Organisation
• Why think of it ?
• Issues ?
• Impact ?
• What will it do next ?
The future of HR – Ulrich
• https://www.youtube.com/watch?
v=57PmDk73u7I

David Ulrich discusses 10 aspects that


mark the future of HR. “Are we there yet?”

• We will look at Ulrich’s models in others


sessions
Features of New
Organisational Forms
• Hierarchy: fewer levels, use of teams
• Division of labour: expanded job roles
• Rules and schedules: relationship based
• Systems: directed toward managing change
• Integration: horizontal through direct contact
• Control: decentralised, target, culture or HRM based
• Rewards: based on group performance
• Alliances: used for global market penetration
• Organising across: complex and multi-dimensional

Farnham…..
The Business Environment
Porters 5 forces
• Threat of new entrants
• Power of suppliers
• Power of buyers
• Threat of substitutes
• Rivalry among competitors

Leads to Differentiation, low cost leadership


or focus
SWOT Analysis

Internal

External
Looking forward…
Next week we will continue to look at LO1 and 2

Complete your STEEPLE analysis.

Prepare a sort presentation on your business covering purpose, strategy, forces,


direction, sector, market - share your STEEPLE analysis – how is HR set up /
objectives

Look at Ulrichs models – three legged stool – does it exist in your organisation ?

CIPD / Kogan Page for main text books. Look at CIPD website. Contact Library for
other information

Thank you for your work today and good luck with your first assignment.
You may bring in hard copies of your work so far for me to look at next week
if you wish.
Miles and Snow
DEFENDER PROSPECTOR
Few products, niche market, block Responds to change, innovates,
new entrants, high control, wider range, move with times,
centralised, stable, quality, decentralised, exploit local markets,
specialist – Rolex, Ferrari, Rolls less control – 3M
Royce
ANALYSER REACTOR
Stable market, watch others, adopts Uncertain market, lot of info, lack
ideas, good value, not innovators strategy, lacks structure, reactive
Figure 1.1: Current Roles in the HR Function
Figure 1.3: The Harvard model of HRM
Outsourcing
sub-contracting HR activities

Benefits:
• less costly than in-house
• access to knowledge and expertise
• access to appropriate facilities

Problems:
• legal implications
• controlling contractor’s performance
• security of organisation information
Figure 1.2: Possible links between HRM and
business performance
HR effectiveness
Quality of goods
and services

Business
strategy

HR HR Financial
practices outcomes performance

HR
strategy
Productivity

Adapted from Guest et al (2003)


HR Strategy
‘a set of ideas, policies and practices which management adopt to achieve a people-management objective’
Tyson (1995)

Mainly concerned with:

• Vertical integration or ‘external fit’


• Horizontal integration or ‘internal fit’

‘Improved organisation performance’


Reading / Evidence
• Group activity to source evidence to match
in to a STEEPLE – students create their
own STEEPLE to bring in next week

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