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Human Resource Management in Context

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the ability of the function to identify the contours of change and to be proactive <strong>in</strong> meet<strong>in</strong>g<br />

its challenges. Whether or not it is accorded any opportunity to <strong>in</strong>fl uence strategic responses<br />

is a matter of debate and dispute.<br />

1.10 Conclusion<br />

The arrival of HRM co<strong>in</strong>cided with a period of economic restructur<strong>in</strong>g experienced by many<br />

Western economies. But, whilst HRM was temporarily identifi ed with a given governmental<br />

and organizational ‘project’ designed to improve bus<strong>in</strong>ess and economic performance, the term<br />

is no longer tied to a particular orientation towards people management, managerial philosophy,<br />

or style. However, certa<strong>in</strong> ideas rema<strong>in</strong> <strong>in</strong>fl uential—even if they are still the object of<br />

debate and dispute—and revolve around the performance advantages that are stated to accrue<br />

to those organizations who secure alignment between the organization’s strategic goals and its<br />

HR policies and practices. The promotion of this relationship has allowed those responsible for<br />

people management to argue for an <strong>in</strong>creased <strong>in</strong>volvement <strong>in</strong> the strategic decision-mak<strong>in</strong>g of<br />

the organization—with a consequent enhancement of the HR function. The <strong>in</strong>fl uential work of<br />

authors such as David Ulrich has also provided the HR function with a means by which that<br />

leverage might be achieved through the development of core HR roles. But, whilst Ulrich’s work<br />

rema<strong>in</strong>s <strong>in</strong>fl uential, the strategic role he envisaged for HR is still elusive.<br />

Although the debates concern<strong>in</strong>g HRM occurred at a highly propitious time for the function,<br />

the devolution of much HR activity to l<strong>in</strong>e managers meant that the clear-cut l<strong>in</strong>k between HR<br />

practices and organizational performance was less evident, obscured as it was by the <strong>in</strong>volvement<br />

of a third party. In addition, organizational responses to competitive pressures have not<br />

necessarily <strong>in</strong>volved companies tak<strong>in</strong>g the ‘high road’ <strong>in</strong> terms of people management practices.<br />

Instead of a longer-term <strong>in</strong>vestment <strong>in</strong> worker skills coupled with the provision of more sophisticated<br />

managerial styles and abilities, many UK companies adopted a more familiar ‘low-road’<br />

approach, reduc<strong>in</strong>g costs through the <strong>in</strong>creased use of IT systems, the deployment of fl exible<br />

approaches towards employment, and reductions <strong>in</strong> headcount.<br />

The process of change shows no sign of abat<strong>in</strong>g, and the HR function, together with l<strong>in</strong>e<br />

managers, needs to develop eff ective strategies for meet<strong>in</strong>g future challenges. As work cont<strong>in</strong>ues<br />

for many to be cont<strong>in</strong>gent, HRM is faced with the endur<strong>in</strong>g challenge of foster<strong>in</strong>g and<br />

ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g commitment to an organization and its goals <strong>in</strong> an environment where employees<br />

might have multiple employers and be employed on a variety of contractual bases. Seek<strong>in</strong>g<br />

employee engagement has now gone beyond the ideas of commitment witnessed <strong>in</strong> the 1980s<br />

and 1990s. This has been subsumed by an approach that seeks to secure a fi t between the values<br />

and personality of the employee and the employer ‘brand’. But such emotional engagement and<br />

labour are be<strong>in</strong>g challenged by <strong>in</strong>creased calls for a more eff ective work–life balance, with HR<br />

be<strong>in</strong>g required to consider the employee <strong>in</strong> more holistic ways that spill over the traditional<br />

boundaries between work and home.<br />

Discussion questions<br />

1 What do you understand by the term ‘HRM’? What does it consist of? How is it different from<br />

‘personnel management’?<br />

2 How would you account for the growth of <strong>in</strong>terest <strong>in</strong> HRM? Which factors do you th<strong>in</strong>k are central to<br />

its cont<strong>in</strong>ued appeal and why?<br />

3 Go to the People <strong>Management</strong> web site (www.peoplemanagement.co.uk) and survey some general<br />

HR jobs. How are the terms ‘personnel management’ and ‘HRM’ be<strong>in</strong>g used? You might fi nd<br />

Storey’s twenty-seven po<strong>in</strong>ts-of-difference table helpful <strong>in</strong> mak<strong>in</strong>g your assessment.<br />

4 What are the ma<strong>in</strong> reasons beh<strong>in</strong>d the devolution of much HR activity to l<strong>in</strong>e managers? What<br />

challenges do you th<strong>in</strong>k will have been faced by both l<strong>in</strong>e managers and the HR function and how<br />

could organizations overcome them?<br />

5 What are the future challenges for people management?<br />

Chapter 1<br />

Introduc<strong>in</strong>g human resource management 21

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