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Manon Kooning, 16-03-2026
Week 1 – What is HRM?
History of HRM:
Evolution of HRM
1. 1930: Scientific Management (Taylorism)
o Focus: efficiency, standardization, routines
o Workers = machines
2. 1930–1960: Personnel Management
o Administrative role (contracts, payroll)
o HR = support function
3. 1960+: Human Resource Management
o Focus on people as resources
o More attention to motivation, development
4. 1970+: Strategic HRM
o HR linked to business strategy
o HR creates competitive advantage
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,HR perspectives:
• Cost center
→ No direct profit (traditional view)
• Revenue center
→ Generates value
• Productivity center (modern view)
→ Improves performance by improving people
HRM challenges:
• Upskilling
→ Employees need continuous learning
• Leadership
→ Strong leadership is critical for performance
Human resource management seeks to create competitive advantage through the organization’s
human resources
HR critical factors:
- Productivity
o Productivity = effectiveness + efficiency
Effectiveness: a function of getting the job done whenever and however it
must be done. It answers the question. ‘Did we do the right things?’
Efficiency: a function of how many organizational resources were used in
getting the job done. ‘Did we do things right?’
- Employee engagement
o Employee engagement = job satisfaction + ability + willingness to perform
o Ability → skills, knowledge
o Willingness → motivation
o Satisfaction → attitude toward job
o
o Starbucks example (high performers):
HR policies employees as partners
HR systems compensation structure
HR practices salaries above minimum wage, college achievement plan,
coffee master program, open forums with senior management
- Turnover = employees leaving the company
o Turnover = voluntary turnover + involuntary turnover
o Costs of turnover:
Soft costs loss productivity
Hard costs recruiting, training, onboarding
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, o
- Absenteeism = failure to report to the work as scheduled
o Leads to: Lower productivity, Higher costs, Team disruption
HRM skills
- Technical skills → HR tools/processes
- Interpersonal skills → communication
- Business skills → understanding company strategy
- Conceptual & design skills → problem-solving, system thinking
Line managers = create and maintain the people and organizational processes that create whatever the
business sells e.g. production manager
- Directly responsible for core business
- Manage people who create the product/service
Staff managers = advise line managers in some field of expertise e.g. marketing manager, finance
manager, HRM
Manager’s six HRM responsibilities:
1. Legal considerations
2. Labor cost control
3. Leadership & motivation
4. Training & development
5. Appraisal & promotion
6. Safety & security of employees
Small company:
• HR generalists (do everything)
Large company:
• HR specialists (e.g., recruitment, compensation)
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, Week 2 – Strategy Driven HRM
Strategy = making choices about:
• Where to compete
• How to compete
• How to win
Strategy process:
1. Internal analysis
2. External analysis
3. Strategic choice
External analysis tool:
• Porter’s 5 Forces
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