Principels of organizational mangement - Essay Example

Hence, for instance, a UK manager who initiates business activities in the US business environment has to verify if his strategies conform to the business culture and institutional settings of the region. Researchers are of the opinion that the concept of HRM was the US contribution to the business world. American HRM started since 1890s with the emergence of NCR Corporation specifically when it initiated a separate personnel office (Ed. Pieper. 1990, p.41). In addition to this, several aspects including enterprise capitalism, free individualism, diverse workforce which comprised of immigrants also contributed to the growth of HRM in America (Ibid).

Consequently, traditional business concept of ‘personal management’ gave way to collaborative business operation which gave much emphasis on creating large and diverse pool of human capital which would be cost effective and potential enough. Thus employee participation and managerial functions became the most inevitable part of American business organizations. As the new method was highly effective, it helped American organizations to be more competitive in the global market. Consequently, American organizations became highly competitive; and caught the attention of the entire business world.

Organizations across the globe tried their own experiments on the strategic implementation of HRM. Despite the common features of all HRM models, as Bratton and Gold (2001) state, ‘there is a qualitative difference between HRM and traditional personal management’. According to the writers’ view, it includes strategic character of transformational leadership, and involvement of line managers as the notable features of modern HRM. The features of American approaches to HRM, according Schuler and Johnson include mainly five characteristics that make US model of business management distinctive from other European models (Cited in Fenton, Gooderham & Nordhang 2005).

Given below are the