Best Practice Models of HRM & Strategy
(Human Resource Management)
Chandrakanta Subedi (Student ID: 5179105)
PETER W. LEI
Faculty of Management
International Business Academy
In partial fulfillment of the requirement of Human Resource Management for the Degree of Master of Business Administration, Coventry University April 2013
Word counts: 3364
Task: Hypothesis Statement:
Best Practice Models of HRM and Strategy are universalistic in nature and assert that regardless of context or internal factors, there is one best way of managing human resources which, if applied, will lead to better organizational performance.
Traditional practice of human resource management is known as personnel management is believed as workforce centered and more focused in operation. Managers would recruit employees and carry out administrative tasks according to management requirement and act as a bridge between employee and employer; and as a result they were as a functional specialists rather than strategic managers and often had little power status in the organization (Bloisi, 2006). In traditional model and concept of HRM employees are mean to be resources from 1900 to 1930. This concept moved further to orientation between 1935 to 1980, where the employees needs are considered. Furthermore between 1970 to 1990 HRM has been transformed into leadership style to match the needs of individual. The latest concept of HRM since 1990 has considered employees as a competitive advantage. The differences between personnel management which is believed to be the traditional practice and modern HRM, has significant differences. In terms of time and planning perspective, the personnel approach was much focused on short term, reactive or responsive to action, ad hoc concerned in a specific case & also termed unplanned and marginal with limited quality and scope where modern HRM approach plays as long term sustainability, proactive- self-driven action, and strategic not functional and integrated role. In terms of psychological contract personnel management has been playing as compliance role and HRM new approach plays a commitment role; committed towards achieving specific organizational objectives. Personnel management in terms of control system, employees were controlled by others. On the other hand in new HR practice model human resources are self controlled; and they are focused upon the objectives and are self-driven. In the perspective of employee relations, personnel management practice human resources with low trust towards managers and organization whereas new HR practices believe in high trust among employees, employer and managers (EHNERT, Ina, 2008). While talking about preferred structures and systems, the personnel management was bureaucratic, mechanistic, power-centered; information sharing were centrally focused and the roles were formally defined. The modern HRM approach focuses on flexible roles of employees meanwhile the roles of employees were kind of specialist or professional in older days and they do not need to know anything about other line management task and roles and they just would have specific specialty. Whereas in modern HRM approach, human resources are integrate largely into their line management. It means people's activities are integrated to each other within their line management (EHNERT, Ina, 2008). For evaluation criteria, personnel management focused on cost-minimization and modern HRM and its practice believe in high pay and optimal utilization for better performance. In this way we could conclude that up to the modern HRM from traditional personnel management many significant changes and improvements has taken place for better organizational performance. The evolution of modern HRM is the result of globalization of markets, technology changes, increase in global capital, close connection with industrial relation. Considering...
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