The Evolution of HRM

Topics: Human resource management, Human resources, Management Pages: 25 (8341 words) Published: October 22, 2013
Table of Contents
Define problem with HR9
Overview The Evolution of HRM11
The Early Years : Personnel Management13
Enter Human Resources Management15
Personnel versus Human Resources Management17
Evaluate Accountability of HR19
Organizational Systematic21
HRM Research From A Perspective of Organizational Systematic23 International Human Resources Management24
Strategic International HumanResources Management24
The Impact of Globalisation On HRM26

As we enter the new millennium, more and more companies are recognizing the importance of managing their human resources as effectively as possible. They are also recognizing that doing so, however, cannot be done without recognition and incorporation of the global context. It is virtually impossible to read a business periodical or newspaper anywhere in the world without seeing stories detailing the success of a company due to how effectively it manages its people. As the environment becomes more global, managing people also become more challenging, more unpredictable and uncertain and more subject to rapid change and surprise. Thus what we are witnessing within human resource management (HRM) is the rapid appreciation for and development of all aspects of global and international activities and issues associated with and affected by HRM. And because the importance of managing people effectively in the global context is so great, many companies are devoting a great deal more time, attention, skill and effort into doing it well. Worldwide socioeconomic developments such as globalization, increasing speed towards a service economy, shorter product life cycles, change in workforce demographics, focus on customer loyalty, the increasing war on the talent and emphasis on financial performance challenges the human resource function in its role in creating added value to the organization (Brockbank 2002 and Bucknall and Ohtaki 2005). Leading management thinkers suggest that “it is not technology but the art of human and humane management” that is the continuing challenge for executives in the 21st century (Druncker, Dyson, handy, Saffo & Senge, 1997). Similarly, Smith and Kelly (1997) believe that “future economic and strategic advantage will rest with the organizations that can most effectively attract, develop and retain a diverse group of the best and the brightest human talent in the market place”. In general to maintain competitive advantage in the marketplace, firms need to balance the resources available to the firm to achieve the desired results of profitability and survival. The resources available to the firm fall into three general categories; physical, organizational and human. Know how to gain a competitive advantage in the global market, Porter (1990) noted, management of the human resources is the most critical of the three. The idea of treating human resource as a mean of gaining a competitive advantage in both domestic and the global marketplace. The effective management of human resources in a firm to gain a competitive advantage in the marketplace requires timely and accurate information on current employees and potential employees in the labor market. With the evolution of computer technology, meets this information required has been greatly enhanced through the creation of HRM. A basic assumption that the management of employee information will be critical process that helps a firms maximize the use of its human resources and maintain competitiveness in its market.

Global competition is becoming the norm, and at current growth rates, trade between nations will exceed total commerce within nations by 2015 (Daft, 1997). In industries such as semiconductors, automobiles,...
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