Field of Human Resource Management

1 Field of Human Resource Management Adrian Wilkinson, Tom Redman, Scott A. Snell and Nicolas Bacon The purpose of this chapter is to outline organizations, the mantra of ‘people are our some of the key elements of human resource most valuable asset’ has largely been a management (HRM), and to introduce our rhetorical one in most organizations; and the framework for this volume. The field of HRM research evidence has often not backed it continues to evolve in today’s organizations, up (cf., Snell, Shadur, and Wright, 2002). in part due to the economic, technological, Historically, organizations have not rested and social realities that influence the nature of their fortunes on human resources. The HR business. In a global economy, a wide range of function remains among the least influen- factors—that vary from global sourcing and tial in most organizations, and competitive labor arbitrage to regional trade agreements strategies have not typically been based and labor standards to cultural differences on the skills, capabilities, and behaviors of and sustainability to strategic alliances and employees. In fact, the harsh reality is that innovation—all point to the vital nature of labor is still often viewed merely as a cost HRM. In large part this is because from a to be minimized, particularly in tough times. strategic standpoint, observers have noted that Executives have more often tried to minimize traditional sources of advantage such as access the impact of employees on performance by to capital, protected markets, or proprietary substituting capital for labor where possible, technologies are rapidly eroding, and that and designing bureaucratic organizations that survival depends more often on the ability to separate those who think from those who innovate, adapt, and learn, and transfer that actually do the work (Snell, Youndt, and learning globally. As one might guess, these Wright, 1996). capabilities rest squarely on the management But there are some encouraging signs of people. that much of this is changing. As Quinn But while few will argue against the (1992: 241) noted, ‘with rare exceptions, premise that HRM issues are critical in today’s the economic and producing power of the 4 THE SAGE HANDBOOK OF HUMAN RESOURCE MANAGEMENT firm lies more in its intellectual and service to the organization. This raises the importance capabilities than in its hard assets.’And again, of the employee’s experience at work and this clearly highlights the importance of outcomes (Chapter 22) as well as their work- human resource management. life balance (Chapter 29). To explore how HRM is changing, and to examine best practice across its array A macro perspective of activities, we organize this chapter as follows. First, we present a 2 × 3 matrix From a more macro perspective, the human that summarizes both micro- and macro- element of HRM addresses collective agree- perspectives on elements of HRM across: ments between employees and organizations (a) a human focus, (b) a resource focus, that characterize industrial relations and and (c) a management focus. Second, we collective bargaining (Chapter 18) as well as describe the structure of the book and how the formal policies and procedures that ensure individual chapters deal with the issues raised rights of redress for discipline and grievances by this matrix of HRM perspectives. (Chapter 19). From a broad perspective, the human focus of HRM concerns issues related to ethics (Chapter 28), equal opportunity A HUMAN FOCUS (Chapter 14), health and safety (Chapter 17), as well as fairness and workplace justice dur- The history and evolution of HRM (Chapter 2) ing downsizing and redundancy (Chapter 20). emphasizes its longstanding concern with a human focus. Historically, this focus placed a strong emphasis on employee A RESOURCE FOCUS rights and needs and employee wellbeing in general. This focus was much in evi- Balancing the needs and interests of employ- dence in early developments in the areas of ees against the needs and interests of occupational health and safety (Chapter 17) the organization is often a difficult task and grievance management (Chapter 19) in in HRM. The contradictions and tensions particular. More recently we can see this between different models of HRM, such focus reflected in broad debates about work as that between an ‘employee champion’ design (Chapter 16), the work-life balance and a ‘business partner’ role in the organi- (Chapter 29), and equality and diversity zation have received considerable attention (Chapter 14). in the literature (Ulrich, 1997; Francis and At its root, HRM focuses on managing the Keegan, 2006). Although HRM by its very employment relationships and the implicit, as nature has a decidedly human focus, it also well as explicit agreements that are estab- focuses on employees as a resource in driving lished between individuals and organizations. performance. Many of the practices that are In many instances, HR plays the role of typically associated with HRM focus on employee advocate or ‘champion’ in ensuring increasing productivity and enhancing the the equitable treatment of employees in order competitiveness of the firm. to ensure that the interests of employees as well as the organization are protected. A micro perspective A micro perspective From a micro perspective, HRM focuses on individual practices that ensure employee From a micro standpoint, HRM includes man- ability and motivation to perform effectively. aging the nature of employment (Chapter 4). Recruitment and selection (Chapter 9), for It also includes issues of employee involve- example, constitute important organizational ment and participation (Chapter 15) that investments to ensure that the best and characterize the attachment of individuals the brightest talent is brought into the FIELD OF HUMAN RESOURCE MANAGEMENT 5 organization to fulfill its particular needs. affects the employer’s choice of specific Training and development (Chapter 10), practices (see Chapter 5). The evolution in turn, augment the staffing process to of HR strategy (Chapter 6) has taken build the talent base of the organization and organizations from a fairly static view close the gap on required skills, abilities, focused on person-job fit, to one focused on and other factors. Management development organizational and cultural fit, to managing programs (Chapter 11) help to ensure a strong a global workforce where practices differ cadre of executives is available to succeed across regions and cultures (Chapter 8). current leaders, and to provide a succession In cases of hyper-competition and rapid of experiences that develops this talent over change, HR strategies help to create and time. Performance appraisal (Chapter 12) leverage an agile workforce that can adapt involves both the administrative and devel- to change and drive innovation. This often opmental requirements of performance man- includes the use of contingency workers, agement. It addresses ability-related factors, strategic partnerships, and alliances that and seeks to motivate employees to improve span organizational boundaries (Chapters 26 individual and organizational performance. and 27). At the extreme, these approaches Given these aims it ties directly to the have an aggregate impact on industry inno- management of rewards (Chapter 13) and vation and national economic performance the various methods organizations use such (Chapter 24). as pay for performance, incentives, and the like. Finally, job design (Chapter 16) addresses the motivational basis of work A MANAGEMENT FOCUS and the micro-structural requirements of the organization. While much of the literature on HRM has focused on the needs and concerns of employ- A macro perspective ees (as humans) in organizations, as well as their potential contribution as resources From a more macro perspective, a resource contributing to organizational performance, focus of HRM addresses the set of prac- an important subset of concerns relate to the tices for managing the aggregate of human management of the HR function itself. In capital in organizations and nation states many ways, the evolution of the HR function, (Chapter 24). Much of this literature is its organization, and the professionalization informed by the resource-based view of orga- of HR managers, represent some of the nizations as it applies to HRM (Chapter 25). biggest changes occurring over the last From a competitive standpoint, executives decades. recognize that their talent base is a source of advantage, and as a consequence, they A micro perspective take care to develop strategies that build and deploy their work forces in ways that enhance Although the earliest roles and responsibil- firm performance (Chapter 21). Different ities of HR managers emerged from the models of macro HRM (Chapter 3) capture administrative and transactional requirements the universalistic ‘best practice’ approach to of employment and personnel issues, the HRM, the contingency approaches, and the contemporary setting requires HR managers configurational approaches which emphasize to adopt a more strategic set of roles that focus the combination of practices that reinforce on managing change, building organizational and support one another. Just as individual culture, and becoming a partner in the business talents combine to create a collective capa- (Chapter 7). The skills, knowledge, and bility in organizations, multiple HR practices behaviors of HR managers and leaders in this also combine to create an overall strategy context are substantially

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