Human Resource Management and Varying Levels of Success between Major National Economies - Essay Example

One of the positive aspects of the theory of relationship in HRM  is that it covers all the aspects of human resource management such as people, activities, and systems. It also enhances positive relationships within organizations in order to enhance greater success at the workplace. Thirdly, the theory enhances the development and motivation of employees in order to perform better in the workplace. In terms of negative criticisms, the theory does not clearly explain how the various relations within an organization enhance success in international business across countries. The theory also fails to explain how HRM is linked to the strategic management of an organization.

Wright and Snell (1991) argue that abilities and skills are environmental inputs; behaviors of employees are throughputs, and satisfaction and performance of employees are outcomes. Therefore, the function of the HRM is to recruit, retain, utilize, and displace competencies in organizations (Jackson and Schuler, 1995). The primary positive aspect of the theory is that it provides key functions of HRM which help HR managers to perform their duties of managing personnel effectively. Therefore, the theory provides a key understanding of how HR managers can manage employees effectively to achieve higher results and success in international business (Wright and Snell (1991, p. 216). The main criticism of the theory is that it focuses more on systems than processes; it identifies the various items that are included in an open system rather than explaining how these items work in a human resource department.

It also neglects most aspects of human resource management including policies on labor relations and human resource policies at the workplace. The transfer of human resource policy and practice occurs due to international competition pressure, organizational politics, and international integration (Yu and Wu, p. 122). In terms of positive aspects, the theory enables the understanding of the success of HRM practices in different countries. 

It is also important for the understanding of international management strategies including integration and Human Resource “best practices” that universally apply to organizations operating in international markets. However, this theory encourages common international HRM practices which undermine the independence of local policies and organizations (Liao et al, 2010). The theory also fails to explain the key roles of human resource management in acquiring and retaining employees in competitive and challenging business environments.

Conclusion

            The three theories examined in this presentation are theories of Gospel (1992), Wright and Snell (1991), and Yu and Wu (2009). The theory of Gospel (1992) is important for explaining various relations within organizations but its negative criticism is that it fails to link various relations to international business and strategic concepts. Wright & Snell (1991) argue that abilities and skills are environmental inputs; behaviors of employees are throughputs, and satisfaction and performance of employees are outcomes. Yu and Wu (2009) explain the transfer of human resource policies internationally. Lastly, Gospel (1992) suggests that there are three views of human resource management: Work relations, employment relations, and industrial relations.