Free Business Dissertations - Human Resource Management Is One Of The Fundamental Components Of All
Human resource management is one of the fundamental components of all management activities. As Torrington, Hall and Taylor (2005) argue it is a component which is about organising and enabling people within a business to make things happen in a productive way. HRM requires management then that keeps balance between people’s needs in an organisation and the organisational strategic objectives. Traditional HRM theories of the 60s and 70s held that the more staff a company acquired the better its performance would be, (Torrington, Hall & Taylor, 2005). However, due to the needs for firms to reduce long-term costs focused on creating competitive advantages with the new competitive global marketplace of the 21st century HRM activities are argued as serving modern business more effectively than traditional ‘personnel management’ by its emphasis on quality over quantity in terms of the human resources of any given company.
Boxall and Steeneveld (1999) argue that there is no need to prove the relationship between organisational performance and human resource management since it is self-evident that the quality of HRM is a significant element on performance in achieving firms’ strategic objectives. It is unsurprising then to see strategic human resource management rapidly adopted as a key feature in achieving strategic business success. Therefore HR strategies today are more than about seeking a discrete strategic document but focus instead on the key factors of HRM strategies that are consistent with overall organisational strategy. The key concepts related to HR strategies are defined as external environment, the workforce, the organisation’s culture, the organisational strategy and the technology of work (Baron & Kreps, 1999). Therefore it is vital to understand the dominant trends in the business environment both internal and external. The first and most important trend is globalisation of economic activity accompanied with rise of companies trading internationally as well as people management as a result of the reconstruction of global enterprises. In the literature globalisation is described in terms of shifts in traditional patterns of international investment, manufacturing and trade (Dicken, 1992). Thus the conflict between the diversity of local cultures and multinational operations has had significant influences on HR strategies and policies.
Secondly improvements in technology, in particular information technology, are revolutionising methods of HRM in tandem with increased global competition. Torrington, Hall and Taylor (2005) argue that the numbers of people and skills available in labour markets as well as the complexity of employment regulations are significant factors in human resource decision making processes. Bearing in mind these key trends it is useful to look at specific human resource management performances in a national context.
Dissertations - Free Business Dissertations
