The Traditional Approach To Human Resource Management

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Society is changing. The need for competitive advantage has become paramount for organizations to stay profitable in today’s economy. Gone are the days when providing a quality product or service at a reasonable price, was enough to be profitable. Maintaining the status quo will not allow the survival of these businesses. Globalization is gaining strength and momentum; increasing the need and pressure for cost efficiencies. Many organizations are re-evaluating their labor processes to find new cost savings and efficiencies. Estimates are that 47% of all current jobs will be replaced with automation (Giang, 2015).
The implementation of new technology and robotics are reducing the need for great numbers of employees (Noe, Hollenbeck, Gerhart, …show more content…

The traditional approach of HRM focuses on company policies and legal issues for day to day activities. It’s an administrative linkage that doesn’t allow HRM to plan strategic goals because it doesn’t allow for HRM feedback before company decisions are made (Noe et. al., 2015). This works well with many companies; however it doesn’t allow HRM to affect future policies and goals, which can cause problems in the long run. With the rising ability of machines to replace direct human labor, this will cause dramatic shifts in skillsets demanded and closing companies who haven’t prepared for …show more content…

This allows them to put in their feedback and to understand how their departments work will change in the future. By including management, it will help lower dissonance and allow for more communication. The next step will be to figure out if automation is the right move for a firm. Automation can be costly to set up, so analysis of the return on investment is paramount. HRM can be used to create value for companies by allowing feedback with other departments in defining goals that will lead towards strategic company objectives. This allows HRM a necessary seat at the strategic planning table (Noe et. al., 2015).Goals are what a company hopes to achieve in the medium to long term, 5-10 year plans. The strategy used will determine how well a company does to attain

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