The most important part of HRM, to make it work effectively, is to use it strategically because as Storey, Wright and Ulrich indicate ‘Strategic Human Resource Management is concerned with the constellation of policies and practices relating to the interaction between people and organizations designed to enable an organisation to achieve its purposes’ (2009, p.3). Therefore, it means that SHRM makes sure that there are good relationships between staff members and managers in order to meet organization’s strategic goals.
This essay will argue that a HRM, if correctly applied, might be beneficial for companies. To provide the information about beneficial sides of the HRM, this piece of written work will be composed using various schools of thoughts: hard and soft models and literature sources. There are many various opinions stated by different authors about what Human Resource Management is and what it brings to an organization and, as Armstrong and Baron (2003, p.3) argue, ‘there is no such thing as a generally accepted theory of HRM’. Consequently, some people might think it gives opportunities to companies, while to others it is seen as a threat. Therefore, it could be argued that whether the HRM model works well in an organization depends upon the management of every single member of the workforce in all the differing activities that affect the company’s performance.
However, the main aims of an HRM model, as stated earlier, are to attract and manage employees effectively what affects in meeting a company’s strategic goals.
Armstrong (2006) suggested that it is upon its people that a company’s performance depends on. Therefore, it is essential that all employees know exactly what is expected from them, in order to make the business, or organization successful.
Although there is no accepted definition of HRM, for the purpose of this paper, Cherrington’s (1995) description will be accepted. It says that: "Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labours, and solving problems that arise"( p. 5). From this, we can conclude that HRM ensures that people are treated equally well in an organization to deliver the best service possible and that there are no problems affecting the company’s performance. This suggests that HRM is a good thing taking place within an organization. According to Bratton and Gold (2001) HRM, ‘regulate the employment relationship’ (p.14). Considering their opinion, it follows that HRM is responsible for communication between employers and employees which, in consequence, might influence a company’s, or an organization’s appearance. Torrington, Hall and Taylor (2005) think that, ‘the larger the organization, the more scope there is to employ people to specialise in particular areas of HRM’ (p.9). Therefore, in big companies, managers and their employees might focus more on one particular aspect to ensure that HRM works well and influence a business to achieve all its objectives. They also state that smaller organizations, ‘do not need, or cannot afford, HR managers at all’ (2005, p.9). Considering their point of view, the position of those small businesses might be more difficult because of the lack of HRM professionals who manage everything. In this situation it could be worth to provide training to selected...