Over the last quarter century, Human Resource (HRM) management has superseded the earlier and largely paternalistic, Personnel (PM) management. Much debate has centred on whether HR is merely a progression of the earlier PM with its concentration of recruitment, training, pay, and welfare at work. With the advent of employment and health & safety legislation in the 1970’s and 1980’s, much of the justification for PM was now enshrined in law. HRM focused more on business needs with a spotlight on the contribution of people resources to competitiveness and general improvement of business performance.
HRM was quickly elevated to a more senior management status given its need to be closely aligned to the overall business strategy if it were to contribute directly to the overall success and profitability of the organisation. Additionally, HRM sought to align the employees’ interests closely with those of their employer. With its emanation from the USA, HRM has to an extent diluted the role of trade unions as the insurers of employee interests. This definition of HRM, championed by Guest, was characterised by a “hard-soft” continuum that distinguished between a resource-based benign management perspective and a more rigid perspective where HR policy is closely aligned to business strategy and budgetary goals of the business. Similarly, a “tight-loose” scale was used to characterise the progression from the older reactive PM practice to the newer proactive people management approach underpinned by a strong theoretical base.
CIPD, the professional body for over 5,000 HR people in Ireland, define HR strategy as,
“an approach to the management of human resources that provides a strategic framework to support long-term busine...
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...iversal set of strategic prescriptions for all personnel management situations, at all times [pp316-317].
Over two decade ago, Farnham concluded that both ‘old’ PM and ‘new HRM models continued to coexist and cautioned that little evidence existed of a widespread adoption of a strategic approach to HRM in most organisations
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HRM in any company is a weighty issue that needs much attention where business performance is linked to a HR strategy (Caldwell 2008; Ulrich et al. 2008). In the recent past, competition has become stiff, such that organizations need to come up with other means to compete in the extremely dynamic market world. Thus, companies have shifted their emphasis to Strategic Human Resource Management (SHRM) where they enhance and empower their personnel in order to increase the productivity and the services offered into the market (Mello 2006). This goes against the traditional ways of increasing the means of competition where organizations place emphasis on tangible resources. In the past, organizations competed in terms of machinery and acquisitions. This has changed greatly due to the changing customer tastes and the diversity of the market in the present (Delery & Doty 1996; Lengnick-Hall et al. 2009).
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Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
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