THE DEVELOPMENT OF HUMAN RESOURCE

MANAGEMENT FROM A HISTORICAL

PERSPECTIVE AND ITS IMPLICATIONS FOR
THE HUMAN RESOURCE MANAGER
ABSTRACT
This paper introduces the development of Human Resource Management (HRM) from a
historical perspective and explains the debate between HRM and personnel
management. Thus, the paper identifies the historical developments and their impacts
on HRM, outlines the development and functions of HRM, explains the differences
between HRM and Personnel Management, evaluates hard! and soft! approaches to
HRM, illustrates how diversit" is an issue in Human Relations (HR) practice and finall"
considers HRM as an international issue. #t concludes with a discussion about hard! and
soft! models of HRM and its implications for the human resource manager.
INTRODUCTION
The term $human resource management$ has been commonl" used for about the last
ten to fifteen "ears. Prior to that, the field was generall" %nown as $personnel
administration.$ The name change is not merel" cosmetics.
Personnel administration, which emerged as a clearl" defined field b" the &'()s (at least
in the *+), was largel" concerned the technical aspects of hiring, evaluating, training,
and compensating emplo"ees and was ver" much of $staff$ function in most
organi,ations. The field did not normall" focus on the relationship of disparate
emplo"ment practices on overall organi,ational performance or on the s"stematic
relationships among such practices. The field also lac%ed a unif"ing paradigm.
HRM developed in response to the substantial increase in competitive pressures
-merican business organi,ations began experiencing b" the late &'.)s as a result of
such factors as globali,ation, deregulation, and rapid technological change. These
pressures gave rise to an enhanced concern on the part of firms to engage in strategic
planning//a process of anticipating future changes in the environment conditions (the
nature as well as level of the mar%et) and aligning the various components of the
organi,ation in such a wa" as to promote organi,ational effectiveness.
Human resource management (HRM), also called personnel management, consists of
all the activities underta%en b" an enterprise to ensure the effective utili,ation of
emplo"ees toward the attainment of individual, group, and organi,ational goals. -n
organi,ation0s HRM function focuses on the people side of management. #t consists of
practices that help the organi,ation to deal effectivel" with its people during the various
phases of the emplo"ment c"cle, including pre/hire, staffing, and post/hire. The pre/hire
phase involves planning practices. The organi,ation must decide what t"pes of 1ob
openings will exist in the upcoming period and determine the necessar" 2ualifications for
performing these 1obs. 3uring the hire phase, the organi,ation selects its emplo"ees.
+election practices include recruiting applicants, assessing their 2ualifications, and
ultimatel" selecting those who are deemed to be the most 2ualified.
#n the post/hire phase, the organi,ation develops HRM practices for effectivel"
managing people once the" have $come through the door.$ These practices are
designed to maximi,e the performance and satisfaction levels of emplo"ees b" providing
them with the necessar" %nowledge and s%ills to perform their 1obs and b" creating
conditions that will energi,e, direct, and facilitate emplo"ees0 efforts toward meeting the
organi,ation0s ob1ectives.
THE HISTORICAL BACKGROUND OF HUMAN RESOURCE MANAGEMENT
Human resource management has changed in name various times throughout histor".
The name change was mainl" due to the change in social and economic activities
throughout histor".
Industrial Wl!ar
#ndustrial welfare was the first form of human resource management (HRM). #n &455 the
factories act stated that there should be male factor" inspectors. #n &4.4 legislation was
passed to regulate the hours of wor% for children and women b" having a 6) hour wee%.
3uring this time trade unions started to be formed. #n &464 the &st trade union
conference was held. This was the start of collective bargaining. #n &'&5 the number of
industrial welfare wor%ers had grown so a conference organi,ed b" +eebohm Rowntree
was held. The welfare wor%ers association was formed later changed to 7hartered
#nstitute of Personnel and 3evelopment.
R"ruit#nt and Sl"ti$n
#t all started when Mar" 8ood was as%ed to start engaging girls during the &st world war.
#n the &st world war personnel development increased due to government initiatives to
encourage the best use of people. #n &'&6 it became compulsor" to have a welfare
wor%er in explosive factories and was encouraged in munitions factories. - lot of wor%
was done in this field b" the arm" forces. The armed forces focused on how to test
abilities and #9 along with other research in human factors at wor%. #n &'(& the national
institute of ps"chologists established and published results of studies on selection tests,
interviewing techni2ues and training methods.
A"%uisiti$n $! $t&r Prs$nnl A"ti'itis
3uring the (nd world war the focus was on recruitment and selection and later on
training: improving morale and motivation: discipline: health and safet": 1oint consultation
and wage policies. This meant that a personnel department had to be established with
trained staff.
Industrial Rlati$ns
7onsultation between management and the wor%force spread during the war. This
meant that personnel departments became responsible for its organi,ation and
administration. Health and safet" and the need for specialists became the focus. The
need for specialists to deal with industrial relations was recogni,ed so that the personnel
manager became as spo%esman for the organi,ation when discussions where held with
trade unions;shop stewards. #n the &'.)0s industrial relations was ver" important. The
heated climate during this period reinforced the importance of a specialist role in
industrial relations negotiation. The personnel manager had the authorit" to negotiate
deals about pa" and other collective issues.
L(islati$n
#n the &'.)0s emplo"ment legislation increased and the personnel function too% the role
of the specialist advisor ensuring that managers do not violate the law and that cases did
not end up in industrial tribunals.
Fl)i*ilit+ and Di'rsit+
#n the &'')0s a ma1or trend emerged where emplo"ers were see%ing increasing flexible
arrangements in the hours wor%ed b" emplo"ees due to an increase in number of part/
time and temporar" contracts and the invention of distance wor%ing. The wor%force and
patterns of wor% are becoming diverse in which traditional recruitment practices are
useless. #n the "ear ())), growth in the use of internet meant a move to a (<;. societ".
This created new 1obs in e/commerce while 1obs were lost in traditional areas li%e shops.
This meant an increased potential for emplo"ees to wor% from home. =rgani,ations
need to thin% strategicall" about the issues these developments raise. HRM managers
role will change as changes occur.
In!$r#ati$n T"&n$l$(+
+ome s"stems where #T helps HRM are> +"stems for e/recruitment: =n/line short/listing
of applicants: 3eveloping training strategies on/line: Ps"chometric training: Pa"roll
s"stems: ?mplo"ment data: Recruitment administration: References: Pre/emplo"ment
chec%s. #T helps HR managers offload routine tas%s which will give them more time in
solving complex tas%s. #T also ensures that a greater amount of information is available
to ma%e decisions.
HISTORICAL MILESTONES IN HRM DEVELOPMENT
Table & identifies some of the ma1or milestones in the historical development of HRM.
@rederic% Ta"lor, %nown as the father of scientific management, pla"ed a significant role
in the development of the personnel function in the earl" &'))s. #n his boo%, Shop
Management, Ta"lor advocated the $scientific$ selection and training of wor%ers. He also
pioneered incentive s"stems that rewarded wor%ers for meeting and;or exceeding
performance standards. -lthough Ta"lor0s focus primaril" was on optimi,ing efficienc" in
manufacturing environments, his principles laid the ground/wor% for future HRM
development. -s Ta"lor was developing his ideas about scientific management, other
pioneers were wor%ing on appl"ing the principles of ps"cholog" to the recruitment,
selection, and training of wor%ers. The development of the field of industrial ps"cholog"
and its application to the wor%place came to fruition during 8orld 8ar #, as earl"
vocational and emplo"ment/related testing was used to assign militar" recruits to
appropriate functions.
The Hawthorne +tudies, which were conducted in the &'()s and &'5)s at 8estern
?lectric, spar%ed an increased emphasis on the social and informal aspects of the
wor%place. #nterpretations of the studies emphasi,ed $human relations$ and the lin%
between wor%er satisfaction and productivit". The passage of the 8agner -ct in &'5A
contributed to a ma1or increase in the number of unioni,ed wor%ers. #n the &'<)s and
&'A)s, collective bargaining led to a tremendous increase in benefits offered to wor%ers.
The personnel function evolved to cope with labor relations, collective bargaining, and a
more complex compensation and benefits environment. The human relations philosoph"
and labor relations were the dominant concerns of HRM in the &'<)s and &'A)s.
HRM was revolutioni,ed in the &'6)s b" passage of Title B## of the 7ivil Rights -ct and
other anti/discrimination legislationCas well as presidential executive orders that
re2uired man" organi,ations to underta%e affirmative action in order to remed" past
discriminator" practices. ?2ual emplo"ment opportunit" and affirmative action mandates
greatl" complicated the HRM function, but also enhanced its importance in modern
organi,ations. -s discussed more full" in a later section, these responsibilities continue
to comprise a ma1or part of the HRM 1ob. @inall", changes in labor force demographics,
technolog", and globali,ation since the &'4)s have had a ma1or impact on the HRM
function. These factors also are discussed in more detail in a later section.
Ta*l ,- Milst$ns in t& D'l$.#nt $! Hu#an Rs$ur" Mana(#nt
&4')/
&'&)
@rederic% Ta"lor develops his ideas on scientific management. Ta"lor advocates
scientific selection of wor%ers based on 2ualifications and also argues for
incentive/based compensation s"stems to motivate emplo"ees.
&'&)/
&'5)
Man" companies establish departments devoted to maintaining the welfare of
wor%ers. The discipline of industrial ps"cholog" begins to develop. #ndustrial
ps"cholog", along with the advent of 8orld 8ar #, leads to advancements in
emplo"ment testing and selection.
&'5)/
&'<A
The interpretation of the Hawthorne +tudies0 begins to have an impact on
management thought and practice. Dreater emphasis is placed on the social
and informal aspects of the wor%place affecting wor%er productivit". #ncreasing
the 1ob satisfaction of wor%ers is cited as a means to increase their productivit".
&'<A/
&'6A
#n the *.+., a tremendous surge in union membership between &'5A and &'A)
leads to a greater emphasis on collective bargaining and labor relations within
personnel management. 7ompensation and benefits administration also
increase in importance as unions negotiate paid vacations, paid holida"s, and
insurance coverage.
&'6A/
&'4A
The 7ivil Rights movement in the *.+. reaches its apex with passage of the
7ivil Rights -ct of &'6<. The personnel function is dramaticall" affected b" Title
B## of the 7R-, which prohibits discrimination on the basis of race, color, sex,
religion, and national origin. #n the "ears following the passage of the 7R-,
e2ual emplo"ment opportunit" and affirmative action become %e" human
resource management responsibilities.
&'4A/
present
Three trends dramaticall" impact HRM. The first is the increasing diversit" of
the labor force, in terms of age, gender, race, and ethnicit". HRM concerns
evolve from ??= and affirmative action to $managing diversit".$ - second trend
is the globali,ation of business and the accompan"ing technological revolution.
These factors have led to dramatic changes in transportation, communication,
and labor mar%ets. The third trend, which is related to the first two, is the focus
on HRM as a $strategic$ function. HRM concerns and concepts must be
integrated into the overall strategic planning of the firm in order to cope with
rapid change, intense competition, and pressure for increased efficienc".
THE DIFFERENCE BETWEEN HRM AND PERSONNEL MANAGEMENT
+ome experts assert that there is no difference between human resources and
personnel management. The" state that the two terms can be used interchangeabl", with
no difference in meaning. #n fact, the terms are often used interchangeabl" in help/
wanted ads and 1ob descriptions.
@or those who recogni,e a difference between personnel management and human
resources, the difference can be described as philosophical. Personnel management is
more administrative in nature, dealing with pa"roll, compl"ing with emplo"ment law, and
handling related tas%s. Human resources, on the other hand, is responsible for
managing a wor%force as one of the primar" resources that contributes to the success of
an organi,ation.
8hen a difference between personnel management and human resources is
recogni,ed, human resources is described as much broader in scope than personnel
management. Human resources is said to incorporate and develop personnel
management tas%s, while see%ing to create and develop teams of wor%ers for the benefit
of the organi,ation. - primar" goal of human resources is to enable emplo"ees to wor%
to a maximum level of efficienc".
Personnel management can include administrative tas%s that are both traditional and
routine. #t can be described as reactive, providing a response to demands and concerns
as the" are presented. E" contrast, human resources involves ongoing strategies to
manage and develop an organi,ation0s wor%force. #t is proactive, as it involves the
continuous development of functions and policies for the purposes of improving a
compan"!s wor%force.
Personnel management is often considered an independent function of an organi,ation.
Human resource management, on the other hand, tends to be an integral part of overall
compan" function. Personnel management is t"picall" the sole responsibilit" of an
organi,ation!s personnel department. 8ith human resources, all of an organi,ation!s
managers are often involved in some manner, and a chief goal ma" be to have
managers of various departments develop the s%ills necessar" to handle personnel/
related tas%s.
-s far as motivators are concerned, personnel management t"picall" see%s to motivate
emplo"ees with such things as compensation, bonuses, rewards, and the simplification
of wor% responsibilities. @rom the personnel management point of view, emplo"ee
satisfaction provides the motivation necessar" to improve 1ob performance. The opposite
is true of human resources. Human resource management holds that improved
performance leads to emplo"ee satisfaction. 8ith human resources, wor% groups,
effective strategies for meeting challenges, and 1ob creativit" are seen as the primar"
motivators.
8hen loo%ing for a 1ob in personnel management or human resources, it is important to
reali,e that man" companies use the terms interchangeabl". #f "ou are offered a
1ob as a personnel manager, "ou ma" be re2uired to perform the same duties as
a human resource manager, and vice versa. #n some companies, a distinction is
made, but the difference is ver" subtle.
HRM DEVELOPMENT AND IMPLEMENTATION RESPONSIBILITIES
8hile most firms have a human resources or personnel department that develops and
implements HRM practices, responsibilit" lies with both HR professionals and line
managers. The interpla" between managers and HR professionals leads to effective
HRM practices. @or example, consider performance appraisals. The success of a firm0s
performance appraisal s"stem depends on the abilit" of both parties to do their 1obs
correctl". HR professionals develop the s"stem, while managers provide the actual
performance evaluations.
The nature of these roles varies from compan" to compan", depending primaril" on the
si,e of the organi,ation. This discussion assumes a large compan" with a si,able HRM
department. However, in smaller companies without large HRM departments, line
managers must assume an even larger role in effective HRM practices.
HR professionals t"picall" assume the following four areas of responsibilit"> establishing
HRM policies and procedures, developing;choosing HRM methods,
monitoring;evaluating HRM practices, and advising;assisting managers on HRM/related
matters. HR professionals t"picall" decide (sub1ect to upper/management approval)
what procedures to follow when implementing an HRM practice. @or example, HR
professionals ma" decide that the selection process should include having all candidates
(&) complete an application, (() ta%e an emplo"ment test, and then (5) be interviewed b"
an HR professional and line manager.
*suall" the HR professionals develop or choose specific methods to implement a firm0s
HRM practices. @or instance, in selection the HR professional ma" construct the
application blan%, develop a structured interview guide, or choose an emplo"ment test.
HR professionals also must ensure that the firm0s HRM practices are properl"
implemented. This responsibilit" involves both evaluating and monitoring. @or example,
HR professionals ma" evaluate the usefulness of emplo"ment tests, the success of
training programs, and the cost effectiveness of HRM outcomes such as selection,
turnover, and recruiting. The" also ma" monitor records to ensure that performance
appraisals have been properl" completed.
HR professionals also consult with management on an arra" of HRM/related topics.
The" ma" assist b" providing managers with formal training programs on topics li%e
selection and the law, how to conduct an emplo"ment interview, how to appraise
emplo"ee 1ob performance, or how to effectivel" discipline emplo"ees. HR professionals
also provide assistance b" giving line managers advice about specific HRM/related
concerns, such as how to deal with problem emplo"ees.
Fine managers direct emplo"ees0 da"/to/da" tas%s. @rom an HRM perspective, line
managers are mainl" responsible for implementing HRM practices and providing HR
professionals with necessar" input for developing effective practices. Managers carr" out
man" procedures and methods devised b" HR professionals. @or instance, line
managers>
#nterview 1ob applicants
Provide orientation, coaching, and on/the/1ob training
Provide and communicate 1ob performance ratings
Recommend salar" increases
7arr" out disciplinar" procedures
#nvestigate accidents
+ettle grievance issues
The development of HRM procedures and methods often re2uires input from line
managers. @or example, when conducting a 1ob anal"sis, HR professionals often see%
1ob information from managers and as% managers to review the final written product.
-dditionall", when HR professionals determine an organi,ation0s training needs,
managers often suggest what t"pes of training are needed and who, in particular, needs
the training.
HRM SPECIALT/ AREAS OR FUNCTIONS OF HRM
TR-3#T#=G-F +P?7#-FTH -R?-+
Trainin(0D'l$.#nt
7onducts training needs anal"sis: designs;conducts;evaluates training programs:
develops;implements succession planning programs.
C$#.nsati$n0Bn!its
3evelops 1ob descriptions: facilitates 1ob evaluation processes: conducts;interprets
salar" surve"s: develops pa" structure: designs pa"/for/performance and;or
performance improvement programs: administers benefits program.
E#.l$+0Industrial Rlati$ns
Helps resolve emplo"ee relations problems: develops union avoidance strategies:
assists in collective bargaining negotiations: oversees grievance procedures.
E#.l$+#nt0R"ruitin(
-ssists in the HR planning process: develops;purchases HR information s"stems:
develops;updates 1ob descriptions: oversees recruiting function: develops and
administers 1ob posting s"stem: conducts emplo"ment interviews, reference chec%s, and
emplo"ment tests: validates selection procedures: approves emplo"ment decisions.
Sa!t+0Halt&0Wllnss
3evelops accident prevention strategies: develops legal safet" and health policies:
implements;promotes ?-P and wellness programs: develops -#3+ and substance
abuse policies.
EEO0A!!ir#ati' A"ti$n
3evelops and administers affirmative action programs: helps resolve ??= disputes:
monitors organi,ational practices with regard to ??= compliance: develops policies for
ensuring ??= compliance, such as sexual harassment policies.
HRM Rsar"&
7onducts research studies, such as cost/benefit anal"sis, test validation, program
evaluation, and feasibilit" studies.
G?8 HRM +P?7#-FTH -R?-+
W$r1 and Fa#il+ Pr$(ra#s
3evelops and administers wor% and famil" programs including flextime, alternative wor%
scheduling, dependent/care assistance, telecommuting, and other programs designed to
accommodate emplo"ee needs: identifies and screen child/ or elder/care providers:
administers emplo"er0s private dependent/care facilit": promotes wor% and famil"
programs to emplo"ees.
Cr$ss2Cultural Trainin(
Translate the manners, mores, and business practices of other nations and cultures for
-merican business people. =ther cross/cultural trainers wor% with relocated emplo"ees0
families, helping them ad1ust to their new environment.
Mana(d2Car
-s a compan"0s health/care costs continue to escalate, emplo"ers are embracing
managed/care s"stems, which re2uire emplo"ees to assume some of the costs.
?mplo"ers hire managed/care managers to negotiate the best options for emplo"ees.
Mana(in( Di'rsit+
3evelop policies and practices to recruit, promote, and appropriatel" treat wor%ers of
various ages, races, sexes, and ph"sical abilities.
CONTEMPORAR/0 DIVERSIT/ ISSUES
HRM departments within organi,ations, 1ust as the organi,ations themselves, do not
exist in a vacuum. ?vents outside of wor% environments have far/reaching effects on
HRM practices. The following paragraphs describe some of these events and indicate
how the" influence HRM practices.
-s mentioned previousl", the enactment of federal, state, and local laws regulating
wor%place behavior has changed nearl" all HRM practices. 7onsider, for instance, the
impact of anti/discrimination laws on firms0 hiring practices. Prior to the passage of these
laws, man" firms hired people based on reasons that were not 1ob/related. Toda", such
practices could result in charges of discrimination. To protect themselves from such
charges, emplo"ers must conduct their selection practices to satisf" ob1ective standards
established b" legislation and fine/tuned b" the courts. This means the" should carefull"
determine needed 1ob 2ualifications and choose selection methods that accuratel"
measure those 2ualifications.
+ocial, economic, and technological events also strongl" influence HRM
practices. These events include>
-n expanding cultural diversit" at the wor%/place
The emergence of wor% and famil" issues
The growing use of part/time and temporar" emplo"ees
-n increased emphasis on 2ualit" and team/wor%
The occurrence of mergers and ta%eovers
The occurrence of downsi,ing and la"offs
The rapid advancement of technolog"
-n emphasis on continuous 2ualit" improvement
- high rate of wor%force illiterac"
These events influence HRM practices in numerous wa"s. @or example>
+ome firms are attempting to accommodate the needs of families b" offering
benefit options li%e maternit" leave, child care, flextime, and 1ob sharing.
+ome firms are attempting to accommodate the needs of older wor%ers through
s%ill upgrading and training designed to facilitate the acceptance of new
techni2ues.
+ome firms are educating their emplo"ees in basic reading, writing, and
mathematical s%ills so that the" can %eep up with rapidl" advancing technologies.
*nions often influence a firm0s HRM practices. *nioni,ed companies must adhere to
written contracts negotiated between each compan" and its union. *nion contracts
regulate man" HRM practices, such as discipline, promotion, grievance procedures, and
overtime allocations. HRM practices in non/unioni,ed companies ma" be influenced b"
the threat of unions. @or example, some companies have made their HRM practices
more e2uitable (i.e., the" treat their emplo"ees more fairl") simpl" to minimi,e the
li%elihood that emplo"ees would see% union representation.
Fegal, social, and political pressures on organi,ations to ensure the health and safet" of
their emplo"ees have had great impacts on HRM practices. =rgani,ations respond to
these pressures b" instituting accident prevention programs and programs designed to
ensure the health and mental well/being of their emplo"ees, such as wellness and
emplo"ee assistance programs.
Toda"0s global econom" also influences some aspects of HRM. Man" firms reali,e that
the" must enter foreign mar%ets in order to compete as part of a globall" interconnected
set of business mar%ets. @rom an HRM perspective, such organi,ations must foster the
development of more globall"/oriented managers> individuals who understand foreign
languages and cultures, as well as the d"namics of foreign mar%et places. These firms
also must deal with issues related to expatriation, such as relocation costs, selection,
compensation, and training.
HARD AND SOFT APPROACHES TO HRM
Human resource as defined b" 3essler (())<) is the strateg" for ac2uiring, using,
improving and preserving the organisations human resource. #t could be well agued that
in most cases the human aspect is forgotten in relation to how the" manage people,
leaving most staff unsatisfied creating a high staff turn over which affects organisational
performance. #t is therefore an utmost importance that people as opposed to 1ust
emplo"ees/need to be managed in awa" that consistent with broad organisational
re2uirement such as 2ualit" or efficienc". -s in most cases organisational effectiveness
depends on there being a tight 0fit0 between human resource and business strategies.
Human resource as could be said is all about ma%ing business strategies wor%. #t is
therefore important that emphasis is placed on how to best match and develop
00appropraite00human resource management (HRM) approach;s"stem of managing
people in the tourism hospitalit" and leisure industr" (THF). Thus, we would therefore be
loo%ing at some of the HRM approaches used such as the Harvard model: hard and soft
approach in con1unction with the real world of the THF industr" and to determine whether
the hard approach is more appropriate.
Human resource management (HRM) as described b" Ileiman (()))) has a concept
with two distinct forms: soft and hard approach, where the soft approach of HRM is
associated with human relation and the hard on the other hand sees people as human
resource.
The +oft HRM is the notion that wor%ers respond better when an organisation
recognises their individual needs and addresses them as well as focusing on the overall
business ob1ectives. The wor% of Maslow in stating that humans have a 0hierarch"0 of
needs, which the" will exert considerable energ" towards achieving, claims that
organisations that recognises and addresses these needs will have a happier, more
fulfilled, more lo"al and productive wor%force (+HRM =nline). -s argued b" Goe (())6)
the wa" to success is through deep empath" of other people either b" observing how to
best 0connect0 with others in the wor%place, and motivate and inspire them as a result. -s
illustrated b" +imon (&'6)) all of these soft HRM can of course be balanced b" hard
HRM: the notion that successful organisations are those that best deplo" their human
resource in the wa" that the" would deplo" an" other resource.
The Hard HRM on the other hand therefore sees people as human resources. Holding
that emplo"ees are a resource in the same wa" as an" other business resource and
the" must therefore be: obtained as cheapl" as possible, used sparingl", developed and
exploited as much as possible. -s indicated b" Ileiman (()))) under this model of
HRM, control is more concerned with performance s"stem, performance management
and tight control over individual activities with the ultimate goal being to secure the
competitive advantage of the organisation. The hard HRM therefore is primaril" concern
to promote human resource strateg" and align with business strateg". #t ma" also
include out sourcing, flexibilit", performance management, hence downsi,ing or wor%
intensification, sees wor%ers as another resource to be exploited and can operate
against the interest of wor%ers.
The Harvard model on the other hand as indicated b" Fado and 8ilson (&''<) sees
emplo"ees as resource, but human where the managers are responsible to ma%e
decisions about the organisation and emplo"ee relation. The emplo"ment relation is
seen as a blending of business and societal expectations and because it recognises the
role societal outcomes pla", it could be argued that the Harvard model provides a useful
basis for comparative anal"sis. The Harvard model also cover the four HRM polic" areas
which are human resource flows, reward s"stem, emplo"ee influence, wor% s"stem,
which leads to the four 7s: competence of emplo"ees, commitment of emplo"ees,
congruence of organisation;emplo"ees goals and cost effectiveness of HRM. -s could
be agued striving to enhance all four 7s could lead favourable conse2uences for
individual well/ being, societal well/being and organisational effectiveness either as long/
term conse2uences.
CONCLUSION
The penalties for not being correctl" staffed are costl". Planning staff levels re2uires that
an assessment of present and future needs of the organi,ation be compared with
present resources and future predicted resources. -ppropriate steps should then
be planned to bring demand and suppl" into balance. The central aim of modern
human resource management is to enhance the effective use, involvement and
contribution of emplo"ees throughout the organi,ation. This, clearl", re2uires a
great deal of information accretion, classification and statistical anal"sis as a
subsidiar" aspect of personnel management. 8hat future demands will be is onl"
influenced in part b" the forecast of the human resource manager, whose main
tas% ma" well be to scrutini,e and modif" the crude predictions of other managers.
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3essler, Dar". Human Resource Management. &)th ed. ?nglewood 7liffs, GJ>
Pearson;Prentice/Hall, ())<.
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