An Analysis of Traditional and Modern Human Resource Practices.

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Research Thesis

An Analysis of Traditional and Modren Human Resource practices. Abstract

This study compares and contrasts how Human Resource Management activities implemented in different organizations to achieve organization prosperity. The finding reveals that there were significant differences across the study companies. Moreover the study results demonstrate that although traditional Human Resource policies are in practice in many organizations, but complementary strategic Human Resource practices are profoundly important in the organizational prosperity.

Chapter I

Introduction

Human resources (HR) are the backbone of an organization (Gerhart & Milkovich 1990, Pfeffer 1998). Moreover, the continuing prosperity of a firm is likely to be enhanced by adopting the strategic Human Resource practices and align these practices to the overall company’s mission and goals. Traditionally, HR has always played the role of a support function, catering to resourcing, training and motivation requirements, and the modern organization demands a more enhanced participation from the HR department.

Traditionally, many human resource departments measured their accomplishments by how busy they had been (Cascio, 1991): how many people they had recruited or interviewed, how many hours of training they had provided, or how many grievance procedures they had handled. This practice responded to a view of HR as an administrative support function needed to carry out personnel-related activities. With the passage of time more organizations have recognized that their people are a source of competitive advantage. Modern analysis emphasizes that human beings are not "commodities" or "resources", but are creative and social beings that make class contributions beyond 'labor' to a society and to civilization. As a result, HR departments are evolving from playing a merely administrative role to becoming "strategic partners" responsible for contributing to the achievement of business objectives. This evolution requires that new ways of defining and assessing HR success be developed. From our research study we come to know that current or strategic human resource management is in practice in many multinational highly performing organizations. On the other hand in most of the local, Governmental and smaller companies personnel departments have been transformed to the Human Resource department while maintaining the same old staff and not inducting Human Resource experts i.e. there is just the change of name and not the structural change. People who are not even aware of the basic terminologies of Human Resource Management are helpless in implementing and performing the core functions of Human Resource Management. We developed a questionnaire to asses the Human Resource trend in organizations. We also conducted interviews of Human resource managers to find out the problems in implementing the current Human Resource activities. We found that in the implementation of current Human Resource practices is the reluctance to change. Employees and even decision makers don’t want to change their traditional ways of working and they are not willing to take challenges. In the end we suggest some conclusions about how current Human Resource Management can be implemented in organizations to achieve prosperity.

Concept of Human Resources

Multinational corporations brought the concept of HRM in mid 90’s, it was significantly was set up with a mandate of accelerated industrialization of Pakistan. A significant step to proliferate the concept of management was the setting up of the Pakistan Institute of Management (PM) which emerged as a leading organization in the Human Resource Development (HRD) field in the 1960’s.

Later on, State Bank of Pakistan and private sector commercial banks and insurance companies set up their in-house T&D establishments....
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