Human Resource Theories and Concepts

1594 Words Apr 8th, 2013 7 Pages
MGW 2430

The purpose of this essay is to analyse and explain, using Human resources models, concepts and assumptions, how and why people are of value to organisations and how and why it is assumed that HRM/SHRM can contribute to company success through valuing and managing its employees.

According to Legge (2009 pg77), human resource management is defined as the strategic and approach to the management of an organization's most valued assets which is the people or the staff members. There is a traditional definition or way of human resource management and a strategic way of human resource management. Traditional Human resources management is all about policies, systems and everyday practices that influence the employee’s attitudes
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It includes conducting job analysis, planning personnel needs, and recruitment, selecting the right people for the job, orienting and training, determining and managing wages and salaries, providing benefits and incentives, appraising performance, resolving disputes, communicating with all employees at all levels. Although this model sound reasonable, it is sometimes very difficult to use it as mostly a manger is responsible for the needs and welfare of a whole organisational workforce. This can make the manager responsible for the human resource management not to pick up some issues that are of concern to the employees.

Olympus is Japanese company that manufacturers cameras and electronic equipments. They adopted the personnel management model of HR and this was not used correctly thus leading to almost closure of the company and with a series of frauds and scandals leaked by the staff. The Olympus CEO, two weeks after he was hired as Chief executive Officer, found out that the company had murky accounting practices and suspicious acquisitions. A third party report into the scandal in December said Olympus had been left vulnerable by its reliance on a “one-man” leadership system and executives remaining in post unchecked for lengthy periods of time (Axelrod et al 2009). Investigators also found that the corporate governance system at the firm was “flawed and insufficient”, and that the HR department had encouraged bad…

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