Definition and importance of HRM for companies

Résumé du document

In this new age of globalization, organizations defined as an entity and a social system (Gibson, 1994, p4) are being made to function in a business environment which demands quick responses to change, such as new laws or social trends, in order not to perish. It is obvious that only ?people' are able to anticipate these changes and set up an adequate strategy to tackle the situation with getting clobbered. Therefore, Human Resource Management is definitely as a key factor for the success for these organizations. But firstly we need to develop a clear understanding regarding what the concept of HRM actually involves.

Extraits

[...] But first of all, what does the concept of HRM involve? That is why in this essay, the definition of HRM and the core roles in this activity will first be highlighted, followed by the study of the link between HRM and organisation's performance, and the debates related to that issue. The term Personnel Management, which knows its apogee in the sixties, is still currently used, although it tends to be replaced by Human Resource Management (HRM). Both of them are responsible for recruiting, improving communication within the company, payroll administration and some other basic staffing functions, but HRM also has the difficult task of answering questions such as, how can we make sure that we do not discriminate against our employees in any way, or how can we make sure that our employees are committed and motivated? [...]

[...] HRM can be characterised as the latest in a series of incarnations that personnel practitioners have developed since the origins of the profession over 100 years ago (Torrington et al,2005,p23). Indeed, HRM's ancestor was born according to the basic idea that workers will perform better if they are treated well. At that time, during the industrial revolution of the nineteenth century, the working-conditions as well as the living conditions were hard and poor. So in order to improve the performance, characters such as Cadbury or Schneider in France adopted a paternalist approach. They provided decent housing, reduced working hours and sick pay. [...]

[...] Besides, people currently work more and more at home, selling their services to the companies. So the question is how HRM can manage this trend and be sure to have access to the best workers? Bibliography Beer et al, (1984), HRM: A general Manager's Perspectives, Free press, NY, from Michael Armstrong, (2003), A Handbook of HRM practice, 9th Edition, Kogan Page. www.cipd.co.uk , Chartered Institute for Personnel and Development Gibson, Ivancevich, Donnelly (1994), Organizations: behaviour, process, structures, 8th Edition, published by Irwin Goss. [...]

[...] Unlike the best practice theory, the contingency approach (Michigan model), believes that there is no universal solution - it depends upon the organisation, its size, its strategy, its environment and other important factors. This a key debate in HRM, because it will affect the HR policy (rewards, planning, etc) and so the HRM outcomes, such as turnover and absenteeism. This debate leads to another question: can we consider humans as resources? Because as everybody knows, resources are things we use as and when needed, that we pick up and put down when it suits us (lecture notes, p6). It is more politically correct to regard HRM as managing people. [...]

[...] Of course, taking care of the employees' welfare was the right thing to do, but the final goal was the performance of the organisation, as is shown with the model below. A basic model of HRM and organisational performance Since the beginning, HR managers have had to face the following issue: best practice or best fit, or in other words Hard HRM (Michigan model) or Soft HRM (Harvard model). Those concepts have been highlighted by Storey (1989). The latter stresses the ‘human' aspects of HRM. [...]