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"Is HRM in Crisis".

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HRM ASSIGNMENT To critically appraise the statement "Is HRM in Crisis" we need to define HRM. The most commonly used definition of HRM is given below. Meaning of HRM � HRM can be defined as the field of management which relates to planning, organizing, directing & controlling the functions of procurement, development, maintenance & utilization of labor force with a view to attaining organizational goals economically & effectively. Various thinkers have got various views as to what is the function of HRM in the workplace. Presented below are two models: HRM Models Walton views HRM as promoting the feeling of mutuality between management & employees; � Mutual Goal � Mutual Influence � Mutual Respect � Mutual Rewards � Mutual Responsibility Karen Legge views HRM as; � Tool to integrate people with strategic business plan � Tool to integrate people into an appropriate organization culture � Tool to obtain & retain people & use it as a competitive advantage Need For HRM � Increased complexity of organization & employment communication & a distinction between owners, managers & workers. � Decreased number of employers and self employed and enlarged size of work force � Enhanced need for training in view of increased requirement of specialized skills � Public interventions & legal complications in employer - employee relationships IS HRM IN CRISIS? The 1990's saw a major change in the terms of the context and content of HRM. There are many views as to the most appropriate policies for the management of human resources effectively. Delayering has led to work empowerment and work intensification but at the same time has given rise to redundancy. The management of these seemingly opposite factors has led the practitioners and academics to sometimes use the term Crisis in an attempt to define the current state of the field and the need to develop a new thinking. Crisis means to decide, a decisive moment or a turning point. ...read more.


market - High turnover - Waste and inefficiency - Widespread strikes - Union growth - Government intervention/takeover 1920's Welfare Capitalism: * Progressive employers sought to win workers' cooperation and loyalty through positive HR practices such as: - Above-market pay - Job security - Employee benefits - Promotion from within - Employee participation plans 1930's: The great Depression * The specter of bankruptcy forced companies to drastically reduce labor costs through wage cuts and layoffs * Loose labor market made it far cheaper for employers to "motivate" workers through threats of layoffs than the promises of high wages and fair treatment * The above led to the New Deal (Wagner Act in the US; various labor acts in Canada) and the unprecedented growth of unions 1940's World War II * The combination of wartime production demands, government wage-price controls, and the need to negotiate collective agreements forced many companies to expand their personnel staffs and systematize their HR practices * Many companies developed for the first time such basic HR practices as job classification systems, hiring standards, uniform pay grades, and written disciplinary procedures 1960's Group relations: * The design of work itself (rather than facilitating worker communication and cooperation by creating groups) is the key to worker motivation * Small groups become the key to eliciting worker extra effort * Small groups and work design motivate workers by promoting self-actualization and making work more interesting and fulfilling 1970's to 1980's: Quality of Work Life * Growing disaffection among workers with unchallenging jobs and heavy-handed management prompted managers to rethink the way work was organized and managed * Moreover, several recessions, deregulation, and mounting foreign competition brought considerable pressures to bear on managers. Management learned that quality, not only cost, was a key to market success. * New initiatives, such as self-managed work teams, increased the value of people to management, (hence the shift from the term "personnel management" to "HRM") ...read more.


we also got to know what advantage we have among our competitors.Becker and huselid (1998) provided the most detailed model offered to date. In essence this model suggests that business strategies drive the design of the Human resource system. The HR system directly impacts employee skills and motivation and the structure and design work. These factors influence employee behaviour which translates into improved operation performance. The Strategic Management Process and its Implications for Human Resource Management An organization is able to maintain competitive advantage only when it has a distinct advantage which makes it superior than its rivals. It is possible when the organization takes into account all the 5 m's of which Man or human resource as it is called now, is the most important. It needs to identify the implications of its strategic decisions on the human resources in the organization and shall alter its plan so as to give a positive outcome in terms of job satisfaction and willingness to work towards the achievement of the organisational objective. It is evident from the above discussion that strategic formulation, which takes into account the fact that the organization wishes to maintain the competitive advantage must take its human resources in to account at every stage of the strategy. To conclude, it would be wise to say that HRM is an effective strategic tool for sustaining competitive advantage. As far as the issue whether HRM is in crisis or not, all we can say that there are certain changes needed to be made in the way policies are to be formulated looking at the events of the new millennium and HR practitioners have to formulate policies that are flexible enough to cope with the changes that may or may not be predicted. As Sparrow and Marchington put it "HRM has always been in crisis for the past century and it would be very strange if things are not that way now. However, it helps to cope with the crisis if some of its dimensions are understood" ( HRM- The new Agenda ,1998) ...read more.

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