Theory Of HRM

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Introduction
Human resource management (HRM), historically known as personnel management, deals with formal system for managing people at work and is one of the fundamental aspects of organizational and managerial life. According to Nankervis, Compton, Baird, & Coffey (2011), HRM is simply defined as convergence of three factors that consist of human beings, resources and management where human being have actual and potential resources (knowledge, skills and capabilities) that can be harnessed through effective management techniques to achieve short and long organizational goals as well as personal needs. The purpose of HRM is to improve productive contribution of people to organization in ways that are strategically, ethically, and socially …show more content…

There are two models of HRM which are the Harvard concept and Strategic Human Resources Management concept (SHRM). Harvard concept is often referred as a soft approach which emphasized that HRM should lead to employee commitment and it was posited by Walton (1985a) that the fulfilment of many employee needs is taken as a goal rather than merely a means to an end. Keenoy (1990) described that Harvard concept as “philosophically grounded in the recognition of multiple stakeholders and belief that the practice and benefits of HRM can be achieved through neo-pluralist mechanisms”. Guest, (1997) pointed out that “soft” HRM fulfils employee needs as an end in itself and favourable attitudes generated from the used of appropriate HRM practices and positive employee attitudes. Storey (1987) also concludes that effective communications, motivation and leadership will result in employee commitment to organization and improved performance. It is therefore essential that HRM programs balances with the good of the employee; sustainability of organizational performance alongside any intervention or program must be …show more content…

Keenoy (1990) viewed that SHRM concept is “almost uniformly unitarist in orientation and display quite singular endorsement of managerial values. Guest (2002) concludes that “hard” HRM as it only concerned with effective utilisation of employees and Storey (1987) has further stressed that SHRM emphasizes the qualitative, calculative and business strategic aspects of managing the head count resource in as “natural” a way as for any other economic

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