Human Resource Theories and Concepts

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MGW 2430

The purpose of this essay is to analyse and explain, using Human resources models, concepts and assumptions, how and why people are of value to organisations and how and why it is assumed that HRM/SHRM can contribute to company success through valuing and managing its employees.

According to Legge (2009 pg77), human resource management is defined as the strategic and approach to the management of an organization's most valued assets which is the people or the staff members. There is a traditional definition or way of human resource management and a strategic way of human resource management. Traditional Human resources management is all about policies, systems and everyday practices that influence the employee’s attitudes, performance and conduct. Strategic human resource management is when Human resource management becomes driven by planning, forecast, and decision-making process that is based of thorough analysis about the employee’s behaviour and well being.

According to Liddicoat (2010), there are some human resource models that company adopt in order to come up with effective and efficient human resource management. These include traditional HRM, Strategic HRM, High performance work systems and Personnel management. For example, Google has adopted the strategic HRM model. Google uses the strategic Human resource Management (SHRM). At Google, recruitment is the first and most vital step in the company’s Human Resource philosophy. Google has a centralised recruiting team which includes specialists, to fill the organisation’s growing job positions. Google’s main strategy is to attract and retain the best employees, and pay more attention to them; it does this through the company’s ‘disruptive approach’ for employee recruitment. Google has managed to attract many professionals from every industry and university by taking proper measures to change the traditional way of work thus attracting and retaining the best employees (Macken, 2010). Unlike the traditional HRM, Strategic HRM uses more sophisticated methods for improving overall employee motivation and productivity. Also, unlike in the traditional HRM, more systematic tools are used in the Strategic HRM.

Ironically, Google is regarded as one of the best companies with the best Human resource practices yet one of the most under-paying employers in the industry. However, the Google Human Resource strategy complements the business model and vision at Google- where employees are attracted not to short-term monetary benefits but rather to the support system that can aid them to create anything (Josef 2011). This goes hand in hand with the basic HR model that supports long term outcomes by assuming that benefits of HRM for individuals, the organisation and society in general this also proves that in modern world, financial rewards to not necessarily play a pivotal role in motivating employees or having the best strategic Human Resource. According to Meisinger (2008), Google has adopted a program termed “pay-for-performance” which focuses on providing monetary reward for strong performance as well as training for overcoming weakness for underperformers. Google has a strategic HRM that emphasises on employee development through on-the job learning, and training through classes conducted by highly-educated academics thus investing in human resource. Also at Google, employee’s ideas are considered and can be approved for implementation therefore enhancing the creativity and morale of the employees. Unlike in some companies where employees are never consulted on anything but rather just are paid high amounts.

The second HR model that is commonly us by organisations is the Personnel Management model. Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization. Under the Personnel management model, a...
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