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Free Human Resources Literature Review
richard | October 20, 2011

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LITERATURE REVIEW

1.1 Human Resource Management

In a rapid competitive business environment, the procedures of outlining the role, function and process of Human Resource Management (HRM) within a dynamic and uncertain environment are ongoing for many decades. In the early 1980s numerous books and articles were published by American Business Schools professors to support the widely recognition of HRM concept, and the environmental volatility in today’s contemporary business that specifically identify conflict and heterogeneity (Soderlund and Bredin, 2005). Due to its diverse origins and many influences, HRM covers essential aspects of central concern in organisations such as individual, practice, educational theory, social and organisational psychology, sociology, industrial relations, and organisational theory (Soderlund and Bredin, 2005)..

To date there is no widely acceptable definition for HRM and what it entirely involves in our daily business world (Brewster and Larsen, 2000). Fewer satisfactory definitions have been propounded by different writer such as (Soderlund and Bredin, 2005), whom perceived HRM as 1) an ‘executive personnel responsibility’, that mainly concern with management activities; 2) classified HRM as management philosophy that concerns with people treatment and, finally 3) discerned HRM as interaction management between the firm and its people.

Due the conflicting theoretical conception and hypothetical disagreement about the general acceptance of the definition, Price (2007) definition would be used to in this literature because it better explained and cover huge areas of the study. According to Price (2007):

“A philosophy of people management based on the belief that human resources are uniquely important to sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. Human resource management is aimed at recruiting capable, flexible and committed people, managing and rewarding their performance and developing key competencies”.

The dynamic and uncertainty in HR contemporary organisations are tremendously moving towards a radical dimension (Analoui, 2007). Recent debate by many researchers have laid more emphasis about matching and incorporating the HR-department with other strategic functioning departments within organisation (Soderlund and Bredin, (2005); Analoui, (2007); Price, (2007).

1.2 HR IN A CONTEMPORARY ORGANISATION

HR is essentially crucial in today’s contemporary organisations because it induce high-performance management through the use of employees; by enhancing their levels of customer’s service, productivity, growth, profits and quality control (Armstrong, 2000). Lado and Wilson (1994, p 701) outlined a separate interconnected activities, roles, processes and other aspects that are aimed to attracting, maintaining, and developing the firm HR activities in contemporary organisations, such as: 1) planning; 2) recruitment and selection 3) training; 4) performance management; 5) benefits and rewards; 6) compensation; 7) and 8) career development (Banhegyi et al., (2008) and (Robbins & Coulter, (2002).

1.2.1 Planning

Planning in Human Resource has been discussed in different HRM contexts for many years (Wren, 1994). HR planning was initially an important aspect of job analyses and was often used as bases for determining strengths and weaknesses among the employees and to develop the skills and competences they needed (Gallagher, 2000). As individual career plans started to gain more popularity, companies gradually started to pay more attention to the certain skills and competences among individual employees as a way of aligning and dealing with the companies’ succession planning (Kuratko and...
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