HRM Explained |
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HRM stands for Human Resource Management. Where the common focus of traditional industrial relations was based on a 'them and us' scenarios, where there is a distinct lack of cooperation between the employer and employee interest groups. There are a lot of different views on how HRM first came about, some observers state that it was a natural progression from motivational studies, some state that it was from the works of Drucker in the 1950's others state that it was just good personnel management. HRM came to prominence during the 1980's when it became apparent that traditional management styles could no longer remain in an ever changing business environment. Out went the traditional focus of management, in came the concept of the evolving business needing evolving strategies. HRM is all about the need to utilise employees as the most vital resource of any business, and how they must be used to gain competitive advantage in the marketplace. Hendry & Pettigrew (1986) suggest that HRM has a strategic edge which needs to properly implemented. They suggest that to achieve strategic HRM, four areas need to be adhered to: '(a) the use of planning, (b) a coherent approach to the design and management of personnel systems, based on an employment policy and manpower strategy, (c) matching HRM activities and policies to some explicit business strategy, (d) seeing the people of the organisation as a 'strategic resource' for achieving 'competitive advantage'' Guest (1989) offers an interesting insight into the differences between HRM and the traditional industrial relations systems: 'A production model where the central role of the personnel department was to support continuity of production by ensuring that staff were in place and that a clear and consistent set of industrial relations guidelines were operated .... A human resource model reflecting a people orientated focus throughout the organisation, including respect for the individual, full utilisation of individual abilities and sophisticated policies for employee involvement' Most HRM models suggest the following approaches were common in HRM policies during the 1980-90's:
HRM must encompass:
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