At present then, the contribution of HRM in improving a firm’s performance and in the overall success of any organisation (alongside other factors) is being highlighted in the literature (see e.g. Guest, 1997; Schuler and Jackson, 2005; 2007).
The main aim for now would be to define the HRM. First of all, Stephen Bach noticed that decade ago people have argued about the definition of HRM, it happened due to the fact that people have not had the knowledge in this area as it is now. In Managing Human Resources: Personnel Management in Transition, Stephen Bach (2005:3). However, Bach (p.4) shows that the debate has not finished because he disagreed with Boxall and Purcell's (2003:1) statement that HRM is about: "... all those activities
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So, the main idea of the strategic model is to perform the operational function between a company and workers. This model sees employees as a factor in the production process. Employees are considered passive and treated as numbers and skills that need to be deployed at the right price (Legge, 1995, p.66-67). Hard HRM is as calculative and tough minded as any other branch of management, communicating through the tough language of business and economics. The hard HRM approach is quite similar to scientific management because employees are reduced to passive objects that are not prized as a whole people but estimated on whether they have the skills or attributes that is needed for company (Legge, 1995; Vaughan, 1994; Storey, 1987; Drucker et al, 1996; Keenoy, 1990).For example, hard HRM employ only those that suit them (e.g. they have appropriate skill or attributes). After hiring process, HRM creates trainings to help the employees adapt to the company. The best example is employees in McDonald’s. McDonald’s does not give any opportunity to develop personality. The idea of working in a McDonald’s is only working and performing out tasks.
On the other hand, soft HRM makes an accent on "human" and is connected with the human relations ideas of Herzberg and McGregor (Storey, 1987). Legge called it "Developmental Humanism" (Legge, 1995, p.66-67).
A hard HR strategy treats employees as a resource, just like any other resource, to be monitored and used in an efficient manner in order to achieve the strategic objectives of the organisation; a soft HR strategy views employees as valuable assets, a major source of competitive advantage and of vital importance in achieving strategic objectives.
Today, the human resource has developed more than those functions. HRM needs to launch and maintain cordial relations between management and the employees (Bhatt, 2014, para.1). It needs to design a system that not only protects employees’ benefits but also preserve their legal rights. Also, it needs to help workers in managing their career plans by providing them proper and accurate training and guidance (Bhatt, 2014, Objectives of HRM section, para.1). It needs to construct and endorse ground-breaking cultures and beliefs that help in the growth and success of the
Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’
Human Resource Management (HRM) is the terminology used to illustrate formal systems devised for the management of people within an organization. It is the method of managing an organization or company that is directly related to the employees of that particular organization. The success of a business often rely heavily on the performance of managing human resource. Maximizing the desires and benefits of an organization and helping a business grow by rewarding employees to help motivate and push them in their performance is one of the main aim of HRM. By doing this, it will have a positive impact on both the company and it’s entire organization.
‘Human Resource Management is a strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities and commitment is critical to achieving sustainable competitive advantage or superior public services.’ (Bratton and Gold, 2012, p.7). Therefore, it is important to understand the concept of human resource management model and how does it work and influence organization. While many model of HRM emerged, soft and hard model are both most widely adopted (Truss, et al., 1997). Both soft and hard HRM model are emphasizing to integrate the HR policies with business strategic, but the main distinction is how organization sees individual, which is as resource in hard model or as human in soft
There are a few theories supporting the act of HRM. Two of these theories; Resource-based View and Ability and Motivation and Opportunity theories give off an impression of being the most well-known theoretical frameworks used in the studies that connect HRM and organizational performance. The Resource-Based View (RBV) theory which mixes ideas from organizational economics (Penrose, 1959) and strategic management (Barney, 1991) has it that HRM conveys included worth through the strategic development of the organization’s rare, significant, difficult to emulate and difficult to substitute HR. The RBV sets up that competitive advantage no more lies in regular assets, technology or economies of scale, subsequent to these are anything but easy
Many of the recent objectives set by the business at ‘Board Level’ to reduce costs have required the need for the HRM function to take a role in the business, to be able to achieve the required levels.
Guest (1987) and Storey (1992) in their definitions of soft and hard models of HRM view the key distinction as being whether the emphasis is placed on the human or the resource. Soft HRM is associated with the human relations movement, the utilization of individual talents, and McGregor's (1960) Theory Y perspective on individuals (developmental humanism). This has been equated with the concept of a 'high commitment work system' (Walton 1985b), 'which is aimed at eliciting a commitment so that behaviour is primarily self-regulated rather than controlled by sanctions and pressures external to the individual and relations within the organization are based on high levels of trust' (Wood 1996: 41). Soft HRM is also associated with the goals of flexibility and adaptability (which themselves are problematic concepts, as we shall see in more detail later), and implies that communication plays a central role in management (Storey and Sisson 1993).
Soft HRM related to the Harvard Model by Beer (1984) is focusing on increasing performance of employees by enhancing competencies and commitment towards the company and its overall business goals (Bloisi, 2007). Whereas in Soft HRM achieving a competitive advantage and cost-effective HRM are possible by focusing on sustainable training, development, motivation and involvement of employees (Storey, 2007), Hard HRM gains these effects by replacing the workforce of a company, which
(See Appendix I) The results don’t show a great deal of variance, however, if we compare them to the results of 2003, it shows that they have improved in three areas – contribution to business performance, influence on board decisions and closeness to the business.
Social networks are popular infrastructures for communication, relations, and information sharing on the internet, popularly known as social network such as My Space Twitter and Facebook supply communication, storage and social applications for hundreds of millions users. Users set up social links to friends and influence their social links to distribute content, organise measures for particular users or share resources, therefore, these social networks provide proposal for organising event users to users communication, and also between the internet’s most accepted destinations. Currently work has been seen as a form of group of socially improved applications that influence the correlation from social networks to improve security and performance of online social network applications as well as spam email improvement Garriss, (2006) On one hand, significant interactive with friends relationship are essential to developed confidence and trustworthiness in the system.
HRM provide long time benefits for the workers, business and civilization. The benefits are in shape of financial and non-financial for all of them. It also helps the profit margin of a business and provides good quality for services.( Michael Armstrong, 2006)
David Guest (1987: 505) commented that: ‘Human resource management appears to lean heavily on theories of commitment and motivation and other ideasderived from the field of organizational behaviour’. These theories are summarized below.
HRM is mainly the policies and management to recruit, develop and retain employees who will later on help the organisation achieves its goals. Having competitive, knowledgeable and satisfied employees can be a real advantage for the organisation and can directly contribute for the organisational success.