Organizational HRM
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Human Resource Management in a Business Context

Human Resource Management in a Business Context, 3rd edition
by Alan Price
 Human Resource Management in a Business Context provides an international focus on the theory and practice of people management. A thorough and comprehensive overview of all the key aspects of HRM, including articles from HRM Guide and other sources, key concepts, review questions and case studies for discussion and analysis.
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Organizational HRM

  Introduction

This is a world of organizations: more and more elements of life which were once a matter of personal action are now integrated into organizational frameworks. (...) They set financial, service or production targets which determine the activities of their employees.

People managers (a term used in the widest sense here to include line managers) have a critical role in monitoring and controlling performance in order to achieve these targets. In the Introduction to HRM we stressed that HRM is a 'holistic' approach to people management. To make the best use of an organization's human resources it is necessary to manage not only its people but also the corporate structure and culture.

For a background on organization theory see the following pages of notes on the HRMGuide.co.uk site:

Organization Theory - tracing the psychological, sociological, economic and systems influences on the topic.

Classical Organization Theory - how Max Weber saw bureaucracy as the most efficient form of organization.

Classical Organization Theory - modified - Henri Fayol's rational interpretation of organization management.

Criticisms of Classical Organization Theory - Chris Argyris' summary of criticisms.

 Organizations and the business environment

Like Russian dolls, most organizations are part of larger entities. They are the complex products of a world subject to the international division of labour, geographic rationalization and product differentiation. There is nothing unusual in a business section in Cork reporting to a Dublin-based department within the Irish operating division of the European subsidiary of a US multinational (...).

In the section on HRM and the Business Environment we saw that organizations also interact with their environment through the regulatory, economic and cultural frameworks in which they operate.(...)

Different structures affect the way in which people are managed. HRM is intimately bound up with the way firms are organized. Businesses throughout the world require the same basic human resource activities: they recruit new employees; they develop and train their staff; they have reward systems; etc. But these issues are handled in different ways, reflecting the expectations and acceptable behaviour patterns within national business cultures. (...)

 Dimensions of organization

How can we differentiate one organization from another? (...) From our perspective, the first question to ask is: who manages the people? Should the management of people be part of the role of every manager in an organization; or does it demand an expertise which can be expected only from trained specialists? (...) One view is that managing people is what business is all about and therefore that every manager and supervisor should deal with the individuals within their area of responsibility.(...)

In reality, examples are found along the entire range from specialist to non-specialist. The decision to manage people in a particular way depends on a number of factors, including the basic organizational dimensions of goals, size and structure.

  Organizational goals

The rhetoric of HRM attaches great importance to strategy and the linking of employee performance to organizational goals. What are these goals? They are expressions of a company's purpose and long-term objectives.
 
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