The Modern Era in Human Resource Management

 The Modern Era in Human Resource Management

In the end of 20th century due to heated competition in global free market Human resource management evolution took a new turn and leapt in to one of most discussed topics among industry experts, specifially in technology and knowledge-based industries emphasised the fact that Human resource asset rather than liability and how important it is to have proper managerial approach towards the Human resource.

Human resource management is not technology it is an art of managing people (Drucker,1997). As per Smith and Kelly (1997) Organisations which can recruit, groom, and retain the most diverse team of the best and talented people in one’s industry will have competitive advantage in the fast-evolving future economy. To maintain competitive advantage organisations need to manage available resources to achieve desired financial outcome as well as to survive in highly competitive market (Greer,1995)

Resources of an organisation can be categorised in to three parts,

• Physical

• Organisational

• Human

To gain advantage in competitive market critical point is managing human resources (Porter,1998). Extensively developed employee skills, distinguish organisation structures, established management process, and developed systems can help organisation to leap into high position rather than tangible resources such as equipment.

To develop a successful Human resource management system, organisation should have effective human management procedures. As per Chandler and McEvoy (2000), One Human resource management system cannot be considered as the most universally effective system. Different organisation use different Human resource management approach or combination approaches which suit the organisation.

 According to Boxall (1996) most rewarded, Inspired employees who works in a well-established, mutually respected work environment contribute high production level to the organisation. Initially Pfeffer (1994) suggested sixteen practices which considered to be best practices but later those sixteen refined in to bellow mentioned seven practices:

• Employment security

• Selective Hiring

• Self-managed team/team working

• High compensation contingent on organizational performance.

• Extensive training

• Reduction in status difference

• Sharing information

Redman and Matthews (1998) identified some distinctive practices which assist organisation in quality strategies:

• Cautious selection and Recruitment – Selecting the best suited candidate to the job role in first instance itself.

• Extensive compensation system – Incentives, bonus, or allowances available for employees who are willing to multi-task.

• Team working and flexible job design – Encouraging unified work atmosphere and creating empowered job roles in organisation.

• Extensive training – Developing specified learning modules according to the job role.

• Employee involvement – Inter-personal communication with the employees regarding key changes in company, consider employee suggestions and feedback when making decisions or devising strategic plan.

• Performance appraisals – Recognising employee who performed above or beyond their through customer feed backs and rewarding them through bonus or incentive.

(Brian P. Mathews, Tom Redman,1998)

Human resource management is component in organisation which developed to deliver highest employee performance in their respective production to achieve employer’s strategic objective which can give a competitive advantage to the organisation (Johnson,2009)

References

1. Boxall, P. (1996). The Strategic HRM debate and the Resource-based View of the Firm. Human Resource Management Journal, 6:59-75.

2. Brian P. Mathews, Tom Redman, (1998). “Service quality and human resource management: A review and research agnda”,Personal Review, Vol 27 Iss:1 pp.57-77.

3. Drucker, P. F (1997). “The Global Economy and the nation-state, “Foreign Affairs, Vol. 76, no 5

4. Smith, A & Kelly, E. (1997). Stuttering: A dynamic, multi-factorial model. In R. Curlee and G. Siegel (eds). Nature and treatment of stuttering: New directions (pp. 20-217).Boston:Allyn & Bacon.

5. Porter, M.E. (1998). “The Competitive Advantage of Nations”, Free Press, New York.

6. Greer, Charles R. (1995). “Strategy and Human Resources: A General Managerial Perspective” Prentice Hall, the University of Michigan.

7. Pfeffer, W. (1994). “Introduction to HRM” Tata McGraw-Hill Publishing Company Ltd. Pp. 270.