What is Human Resources (HR)?

(Boxall & Purcell, 2022)

HR as the characteristics that are
intrinsic to human beings, which
people can apply to the various tasks
and challenges of their lives.
Human resources include the
knowledge, skills, and energies people
can use in their daily roles, which Karl
Marrx (1867) called labor-power or
capacity for labor.
People are independent agents who
possess human resources,which are
the talents they can deploy and
develop at work and which they take
with them when they leave an
organization.
What is Human Resource
Management (HRM)?

Management process to HRM

process

HRM is a process of acquiring,

training, appraising, and
compensating employees, and of
attending to their labor
relations, health and safety, and
fairness concerns
Cost efficient labour:HRM focuses on making a
firm's human capabilities productive at an
affordable cost, a fundamental economic motive in
capitalist societies. This consideration impacts
management in business and public sector
organizations, affecting budget constraints and
contracting requirements.

organizational flexibility. It refers to an

organization's ability to adapt successfully. To
survive, companies must adapt to competitive
business environment and practices in terms of
technology, structure, work organization, work
relationships and human resource management all
at once
Human resource advantage:HRM management
is primarily economic, aiming to support a firm's
economic viability through cost-effective and
flexible employment. As a competitive
challenge unfolds, managers consider HRM's
role in gaining a competitive advantage through
elite employee management or workforce
management.

Social legitimacy is a crucial aspect of human

resource management, requiring firms to adapt
to regulatory, normative, and cultural-cognitive
forces to achieve economic performance goals.
Management power in firms can be beneficial or
detrimental, influencing stakeholders' interests and
societal well-being. However, it can also lead to
personal rewards and financial instability.
Strategic HRM: The best-fit school
“The best-fit school of strategic
HRM argues that the variety we
see in HRM in the real world
implies that managers inevitably
tailor their HRM to their specific
context” (Boxall & Purcell,
2011:69).
Best fit: broad analytical frameworks
" Societal fit in HRM involves
economic and social factors
beyond law, including adaptation
to national conditions, labor
market difficulties, and cultural
norm differences across
countries.(Boxall & Purcell,
2011:72).
"The notion of industry fit
encapsulates the relationship
between firms and the economic,
technological and socio-political
factors that are specific to their
particular industry" (Boxall & Purcell,
Organizational fit refers to
"whether managers can, and
should, mould their HR
strategies to fit in with other
critical features of their
particular business, including its
wider strategy and its structural
features" (Boxall & Purcell,
2011:79).
Strategic HRM: The best-practice
School
The 'best practice school'
approach "argues that all firms
will be better off if they identify
and adopt those HR strategies
which are shown to be 'best' for
organizing work and managing
people" (Boxall & Purcell,
2011:63)
Micro foundations and macro models
Micro foundations are individual
economic decisions and behaviors,
building blocks of macroeconomics.
They enhance the realisticity and
consistency of macroeconomic models
and provide insight into the effects of
economic policies.
Macro models describe the economy's
behavior, focusing on variables like
national output, inflation, and
unemployment, used for analyzing
trends, forecasting, and evaluating
policy effects.
Seven practice
1. Employment security
2. Selective hiring
3. Self-managed teams or
teamworking
4. High pay contingent on company
performance
5. Extensive training
6. Reduction of status differences
7. Sharing information
The resource-based view of the firm
The RBV is a prominent framework in
strategic management that explains how
firms achieve and sustain competitive
advantage. It emphasizes the importance of
internal resources as the key drivers of
success, rather than just focusing on
external factors like industry structure.
Resources: These are intangible or tangible assets
that a firm owns or controls and can use to produce
goods or services. Resources can be tangible (e.g.,
equipment, technology) or intangible (e.g., brand
reputation, employee skills).
VRIO Framework: This framework helps identify
resources that can lead to sustainable competitive
advantage. Resources need to be valuable
(contribute to customer satisfaction), rare (not
widely possessed by competitors), imperfectly
imitable (difficult for competitors to copy), and
organized (effectively deployed within the firm).
Capabilities: These are the skills and abilities of a
firm to use its resources effectively to achieve its
goals. Capabilities are built on resources and can be
a source of competitive advantage if they meet the
VRIO criteria.
Competitive Advantage: When a firm possesses
resources and capabilities that competitors lack or
cannot easily imitate, it can achieve a competitive
advantage, allowing it to outperform its rivals in the
market.
HR strategy in services typically
revolves around creating policies,
procedures, and initiatives that
align with the specific needs and
goals of service-oriented
businesses. Here are some key
components often found in HR
strategies for service industries:
HR strategy in private sector
Services
Developing an effective HR strategy
in the private sector services
involves various considerations
tailored to the specific industry and
organizational goals.
Standardized and simple services
Standardized and simple services
encompass activities like service stations,
public transport, fast-food outlets,
supermarkets, cleaning, security, and
home care, catering to customers'
straightforward needs and price-sensitive
preferences.
The scripted model of HRM
The scripted model of Human Resource
Management (HRM) is a theoretical
approach that outlines specific
procedures for managing HR functions like
recruitment, selection, training,
performance appraisal, and employee
relations..
Family firms and the informal model of
HRM
Family firms often adopt an informal
model of HRM, prioritizing flexibility,
loyalty, and long-term relationships over
formal policies and procedures found in
non-family businesses.
The high-involvement model in service
Work
The high-involvement model in service
work emphasizes employee engagement,
motivation, and commitment in delivering
high-quality service to customers,
fostering superior service experiences.
Professional and expert models of
HRM
Professional and expert models of
Human Resource Management
(HRM) encompass various
frameworks and approaches that
organizations adopt to effectively
manage their human capital. Here
are some prominent models