Human Resource Management, or HRM, is relatively new to many countries; however, in the United States of America the term has been employed for over fifty years.

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Michelle Armit        HRM Coursework        14/03/03

        Human Resource Management, or HRM, is relatively new to many countries; however, in the United States of America the term has been employed for over fifty years. It appeared as a personnel function system, which promised flexibility, responsiveness, and a noticeable increase in the value of the employee. In addition, HRM promised to increase importance to the individual and the longer-term strategic issues due to the reduction in heavy industries and increase in services and high technology in the most productive way.

        This approach to personnel amplified in the late eighties, due to increasing globalisation, increased competitive pressures, and a generally ruthless business environment. It is these issues that initiated managers to improve internal corporate efficiency therefore improving external competitiveness. This resulted in the expansion of all resources, including the human resource.

        There does not seem to be a single definition of the term ‘Human Resource Management’ (HRM) which both people management practitioners and the academic community agree with. In addition,

         “Trade unionists argue that HRM is a slippery concept meaning different things to different people”  (Monks, 1994).

        Guest (1987) refers to a model of HRM that is distinguished by:

        “...being people-orientated throughout with an ethic of respect for the individual, maximisation of individual talent, well developed well-integrated policies and practices, genuine consultation and involvement, and clear challenging goals with feedback”.

        Legge (1989) supports this view further; he defines HRM as being a central strategic management task,

        “It is the ability of a company to utilise its personnel at all levels to create and sustain a competitive advantage.”

        An organisation achieves comparative advantage by applying its people effectively, putting emphasis on their knowledge and initiative to meet a clearly distinct purpose. HRM is aimed at recruiting competent, devoted people, managing and rewarding their performance and developing key capabilities.

        Human resource management has many distinguishing features, its prompt has been the success of the Japanese at managing people, and despite the fact their firms seldom have personnel departments, so HRM represents a rethink by personnel professionals. It places increased importance on development through training and career planning and has the capability of persuading all managers that the improvement of their human resources is their job and not the personnel departments. (See appendix 1)

        HR managers should be organised to adopt and tackle threats in their activities and they should remain in close contact with counterparts in other organisations. “They should, at the same time, function as eyes and ears of the organisation.”

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Source: www.hinduonnet.com

        For every organisation, obtaining the most experienced employees and corresponding them to the job, which suits them best, is important for the success of this organisation. Human resource managers were introduced to provide a link between senior management and prospect employees. In the past human resource managers were associated with performing the administration function of an organisation, for example managing employee benefits questions or employing, interviewing, and appointing new personnel in agreement with policies and requests that top management have established. Today's human resources managers control these tasks and, gradually more, consult top executives in relation ...

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