Concept of Human Resource Management - Literature review Example

Name: Professor: Course: Date of Submission: Human Resource Management The emerging dynamic human resources management (HRM) has experienced significant changes aimed at utilizing organizational manpower for efficacy and improved productivity. As globalization engulfs the HRM realm, many businesses and non-profit making organizations have been compelled to adopt new human resource practices in order to match the global corporate environments. Increased competition and economic changes have greatly influenced HRM practices applied by different companies including manpower recruitment and training, general human resource development, outsourcing of human resource functions, and employment terms. According to Strohmeir (2007), the current technological advancement has deeply influenced the human resource management with the increased internet connectivity leading to adoption of a new styles of managing manpower; the online human resource management (e-HRM). The technology based management portfolio has gained great acceptability in several organizations posing potential remarkable changes in the management of human resources from the traditional approaches. HRM practices have become major tools for attaining enhanced competitive advantage, particularly in the aspect of attracting and retaining the best skills from the global job market. The unique HR practices implemented by different business organizations greatly determine their operational effectiveness and efficiency as well as the overall productivity and profitability. HRM practices such as training, strategic compensation, and employee development play a critical role in determining employees’ commitment towards organizational operations and performance. With traditional competition mechanisms becoming less responsive to the current market business environment changes, different firms have turned to human resource management as a great source of competitive advantage (Poloski & Vidovic 2008). The ability to create highly skilled and innovative work force and the establishment of a working environment that allows maximum use of human resource potential is slowly becoming the determinant for organization success and survival. The last two decades have experienced significant developments in the literature concerning human resource practices that largely focus on the changes in HR practices to accommodate changes in the market environments. The main purpose of this piece is to analyze literature concerning human resources management practices to establish current trends and the future of the practices. Historical Background of HRM The wide scope of literature on the management of human labor has seen provisions of different definitions for HRM, with all definitions capturing the concept of managing the available manpower towards achievement of organizational goals and objectives. HRM encompasses several processes including workforce recruitment and selection, management of the working environment to promote safety and health of the employees, compensation and management of labor and industrial relations (Haslinda 2009). The concept of HRM has attracted other important practices such as human resource development (HRD), which refers to strategic practices and activities implemented by different organizations to enable workers to acquire and nurture new skills aimed at meeting the prevailing demands in the job market. The HRM discourse can be traced in the works of Adam Smith, who is considered the father of capitalism in which he emphasized on the concept of labor division for enhancement of effective productivity. According to Haslinda (2009), the origin of human resource management concept dates back to the early 1800s, during the era of apprenticeship and craftsmanship in England. The concept developed significantly throughout the century marked by industrial management that saw the integration of scientific management and the psychological perspectives of the workforce. HRM finds its roots from the concept of personal management that came into use after the Second World War, focused on the hiring and firing human labor. Despite the introduction of HRM, some scholars continue to assert that there is limited difference between the concept of personal management and HRM because both tenets revolve around acquisition and organization of human resource towards achievement of organizational objectives. HRM has evolved alongside human resource development, which came into existence following the 1980s recession that adversely affected the manufacturing industries compelling such firms to initiate new ways of overcoming the impacts (Baddeley, Martin, & Tyler 1998). Following such demands, different business organizations particularly multinational recognized the importance of exploiting the maximum potential of the available of workforce. Human resource development was thereby introduced to ensure organizational commitment assuring employees of continuous training or skill development to improve their job efficacy and productivity (Kuvaas & Dysvik 2010). According to Baddeley, Martin and Tyler (1998), development of the human resource concept can be attributed to the response to the effects of the Industrial Revolution on the people. The rise of the Industrial Welfare movement saw significant changes in the working environments as workers pushed for better treatment by employers, which agitated the need to focus on strategies of meeting their demands. Robert Owen, often referenced as the father of personnel management, championed the introduction of several workforce benefits in the textile industry such as reduction in working hours, staff purchasing privileges and meal allowances for works (Baddeley, Martin, & Tyler 1998). Industrial welfare movements fueled the move towards changing the way the industrial sector manage their workforce through pushing for changes in the working conditions. The movement saw employers embark on different HR practices aimed at addressing the raised welfare concerns including practices outside the workplace such as offering of financial assistance, home purchase and funding of employee education programs. Recent Development Human Resource Management One of the recent developments in HRM revolves around the move towards integration of human resource practices with organization’s business strategies to achieve competitive advantage. This development has steered the creation of the contemporary principle of strategic HRM currently implemented in organizations. Strategic human resource management (SHRM) recognizes human capital as central to the development of competitive advantage. According to Inyang (2001), harnessing of unique talents from the job market including highly innovative minds, high productive workers, and high performance employees plays a critical in the development of business organization’s competitive advantage in the market. The SHRM concept has been adopted as response to the continued tendency by some scholars to equate HRM with personnel management (PM) that have failed to materialize in the current economic dynamism around the globe. Implementation of SHRM has transformed the tradition HRM strategies through introduction of the new focus on the linkage between the employer and the employee relationship and the corporate missions and objectives. Unlike traditional HRM, which focused on administrative roles, the current SHRM focuses on ensuring strategic coordination that establishes the integrated HRM policies; and considerations with the organizational strategies in order to foster improved performance and productivity (Inyang 2001). Past human resource functions have been focused on administrative roles such as cost control, supervision of the workforce, and significant focus on training and development, compensation, motivation, improved performance and organizational commitment (Green et al. 2006). SHRM strategies emphasize on the ability of HR managers to align human resource practices with organizational strategies. The approach is focused on the overall performance of the organization as opposed to the focus in HRM where individual performance is seen a major determinant of organization’s success. Another current development in the field of human resource management includes the new e-HRM concept that is increasingly associated with the rapidly growing internet connectivity across the globe. The e-HRM involves the application of information technology in the process of managing human resources (Torres-Coronas & Aria-Oliva 2005). Technology plays a critical role in promoting the connection and integration different players regardless of their location. This development has emerged crucial among multinational corporations that require co-ordination of human resources in subsidiaries located in different parts of the globe. The new strategy enables different actors in the operations of an organization to interact and network thereby promoting cooperation in the day-to-day operations. The e-HRM strategy involves other concepts such the virtue HRM that refers to a network of internal and external players providing human resource services to a firm without necessary having to meet physically. The strategy is important in the success of business organizations because connects planners, line managers, employees, employers, and consultants among other stakeholders that are crucial for the overall success of the entire organization (Strohmeir 2007). E-HRM takes control of all human resource practices including workforce recruitment and employee selection, pay deal and benefits, training and development of employees. In addition, e-HRM applies the same concept as the existing models but with extensive application of information technology in execution of all human resource management functions. According to Strohmeir (2007), HR consultants’ studies have indicated a rapid adoption and implementation of e-HRM especially among the multinational organizations. The field of human resource management has experienced significant changes in HR practices owing to the growing focus on human resources as a potential means of overcoming economic challenges and promotion of sustainability. Top performing business organizations across the globe have gone beyond the concept of employer choice; and instead adopted branding as their main strategy for attracting and retaining skilled employees (Rocco & Plakhotnik 2009). The current baby boomer trends and the higher number of individuals retiring in some countries like Canada have seen organizations focus on talent search strategies as opposed to previous recruitment and selection schemes (Holland, Sheehan & De Cieri 2007). In addition, the current economic uncertainties have compelled world organizations to consider outsourcing of some of the human resource functions. The outsourcing strategy provides organizations with numerous benefits including cost reduction, accessibility of better technology with cost implications, and adequate flexibility. Current management systems have seen significant changes in organizational structure with limitation of rigidity to establish a free working environment (Blau & Shvydko 2011). Organizations have changed their focus from supervision to empowerment of individual workers to improve performance and enhance productivity. The focus of creating knowledge stimulating environment has become a key strategy for advancing the skill and knowledge of workers. The Future in Human Resource Management Practices As the world moves towards full business globalization, changes in the way organizations manage their human resources at the domestic level will be inevitable if such organizations are to compete effectively and survive in the highly dynamic global business environment. Globalization has emerged as the main contributor in the numerous changes in human resource practices currently experienced by different organizations. Adoption of the strategic human resource management strategy as the most appropriate way of developing competitive advantage for different firms is likely to see relegation employees’ welfare issues to background of business activities (Holland, Sheehan & De Cieri 2007). This is because this strategy introduces a new approach to employer-employee relations based on business strategies. The current economic uncertainties, also likely to extend to the future, will see organizations focus on HRM practices that provide a competitive advantage at the minimum cost implications possible. Such changes will see changes from long-term employment strategies in favor of short-term performance based contracts. Organizations may turn-out to be reluctant in investing in the development of employees. This trend will further result in many organizations preferring to poach skilled and experienced employees from competitors in order to eliminate the need to invest hugely on development and training programs. In addition, the human resource management will most likely experience increased outsourcing of core human practices with the aim of cutting down operational costs. Other changes that may be experienced in the human resource practices aimed at limiting the capital invested in managing HR may include increased number of contract-based employees, part-time employees, and employment remote working strategies (Paul, Oluseyi & Christopher 2011). The ongoing advancement in computer technology and internet accessibility will lead to increased implementation of electronic human resource management strategies which applies information technology to accomplish most of human resource manage functions. Many organizations will be forced to conduct most of their HRM functions through the internet, thereby limiting the number of personnel required in human resource departments. Furthermore, organizations will emphasize on HR managers capable of integrating human resource strategies with the organization strategies for enhanced competitive advantage. On the other hand, increased competition in the job market as a result of globalization will compel organizations to revise their recruitment and selection strategies to meet international standards. In addition, several organizations will be forced to change their compensation and benefit packages to accommodate skilled and innovative employees from developed countries. The advent of business globalization will lead to a demand for human resource strategies capable of managing workforce diversity to permit actualization of full employee potential. The focus on human resource as the only sustainable way of promoting competitiveness in the market may result in great emphasis on employee well- being in order to realize their full potential. Conclusion The concept of human resource management has received a wide coverage in business related literature. The diverse scope of literature on HRM covers its origin, the diverse HR practices employed by different organizations, current developments in the field, and the likely future trends. The concept of human resource management has evolved from personnel management that emerged during the craftsmanship era in England to the current model known as strategic human resource management. The evolution of HRM has been attributed to numerous factors including the Industrial Revolution, the Welfare Movement, technological advancements, and the advent of globalization. Some of the current developments in the field include the strategic human resource management, e-HRM, implementation of employee branding strategy, increased focus on human resource as a tool for competition and increasing outsourcing of HR practices. Following the focus on globalization, the field of human resource management is likely to experience numerous changes including outsourcing of e-HRM practices in organizations, changes in the recruitment and selection strategies and significant sidelining of efforts aimed at promoting employees’ welfare. Other changes like to take place in the highly unpredictable global environment include changes to short-term employment terms from long-term contracts and introduction of other working arrangements such as remote working and part-time jobs to limit operational costs. References Baddeley, M, Martin, R & Tyler, P 1998, ‘Transitory shock or structural shift? the impact of the early 1180s recession on British’, Applied Economics, vol.30, no.1, pp. 19-30. Blau, D & Shvydko, T 2011, ‘Labor market rigidities and the employment behavior of older works’, Industrial Labor Relations Review, vol.64, no. 3, pp.464-484. Green, Jr. K.W, Wu, C, Whitten, D & Medlin, B 2006, ‘The impact of strategic human resource management on firm performance and HR professional work attitude and work performance’, International Journal of Human Resource Management, vol. 17, no. 4, pp.559-579. Haslinda, A 2009, ‘Evolving terms of human resources management and development’, The Journal of International Social Research, vol. 2, no. 9, pp.181-186. Holland, P, Sheehan, C & De Cieri, H 2007, ‘Attracting and retaining talent: exploring human resources development trends in Australia’, Human Resource Development International, vol.10, no.3, pp. 247-262. Inyang, B. J 2001, ‘Harmonizign human resource management (HRM) practice in public and private sector’, Human Resource Management, vol. 10, no. 7, pp.8-14. Kuvaas, B & Dysvik, A 2010, ‘Does best practice HRM only work for intrinsically motivated employees?’International Journal of Human Resource, vol.21, no.13, pp. 2339-2357. Paul, O, Oluseyi, S & Christopher, C 2011, ‘Current trends and future directions of human resource management practices: a review of literature’, European Journal of Economics, Finance and Administrative Sciences, no. 29, pp. 19-25. Poloski, V.N & Vidovic, M 2008, ‘HRM as a significant factor for achieving competitiveness through people: the Croatian case’, International Advances in Economic Research, vol. 14, no.3, pp.303-315. Rocco, T & Plakhotnik, M 2009, ‘Literature reviews, conceptual frameworks, and theoretical framework: terms, functions, and distinctions’, Human Resource Development Review, vol. 8, no. 1, pp. 120-130. Strohmeier, S 2007, ‘Research in e-HRM: review and implications. Human Resource Management Review,’ vol.17, pp.19-37. Torres-Coronas, T & Arias-Oliva, M 2005, E-humna resource management: managing knowledge people, London, UK: Idea Group Inc. Read More