A Handbook of Human Resource Management Practice 10th by Michael Armstrong

By Michael Armstrong

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Example text

Personnel management, like the ‘soft’ version of HRM, attaches importance to the processes of communication and participation within an employee relations system. 1. HRM places more emphasis on strategic fit and integration. 2. HRM is based on a management and business orientated philosophy. 3. HRM attaches more importance to the management of culture and the achievement of commitment (mutuality). 4. HRM places greater emphasis on the role of line managers as the implementers of HR policies. 5.

High performance systems make an impact as long as they are embedded in the management infrastructure. 2 continued Patterson et al (1997) The research examined the link between business performance and organization culture and the use of a number of HR practices. HR practices explained significant variations in profitability and productivity (19% and 18% respectively). Two HR practices were particularly significant: (1) the acquisition and development of employee skills and (2) job design including flexibility, responsibility, variety and the use of formal teams.

For example, workplace-level strategic plans are more likely to emphasize employee development in workplaces with an HR specialist rather than a personnel specialist, and HR specialists are more likely to be involved in the development of strategic plans than are personnel specialists. Both HRM in its proper sense and HCM as defined above treat people as assets. ’ However, there is more to both HRM and HCM than simply treating people as assets. Each of them also focuses on the importance of adopting an integrated and strategic approach to managing people, which is the concern of all the stakeholders in an organization, not just the people management function.

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