Human Resource Management in its Environment Essay

Human Resource Management in its Environment - Essay Example It is being growing realized that the work force should no longer be seen as a liability but as a key resource that needs to be carefully nurtured and constantly developed. The last two decades saw major shifts in people management approaches and practices. The HRM of the 1980" was reactive in nature and performed staff function only. Later on, it becomes a strategic function and plays an integrated role in the company's goals and planning. People are seen as an important investment. HR is considered as a key player in achieving competitive advantage. Personal, Industrial Relations, Human Relations, HRM or what ever is the preferred moniker for the function of managing people in organizations, has existed for well over a century (Wright et al. 2005). HRM, its concepts definition, study and application have developed over the years through many approaches. Understanding models in Human Resource Management (HRM) is essential for any human resource practitioner for three reasons. Firstl y it provides a Macro perspective of HRM proactive in overall organizational setup. Secondly, the unity and diversity of these models serve as initial inputs in drafting tailor made HRM model for organizations. Thirdly, these models offer answers to quite a few dilemmas that practitioner encounter in their mission to pursuer an organizationally dove tailed and business aligned human resource function. The focus of HRM is on keeping the optimal quantity and quality of people needed to achieve the objective of the organization. HRM first emerge as a concept in the mid-1980 when American researchers produced two models. Boxall (2003) addressed them as the Michigan model and the Harvard framework. The Michigan model by Fombrun et al. (1984) asserted that HRM system and the organizational structure should be managed in a way that is congruent with organizational strategy an d that the strategic HR concept and tools needed are fundamentally different from personal management. Beer et al. (1984) defined HRM as that which maximizes organizational integration, employee commitment, flexibility and quality of work. They emphasized a need for coherence in HRM policies and role of the line managers. But it is the Harvard Model that has exerted considerable influence over the theory and practice of HRM. Harvard Model of HRM: The type of HRM policies and practices an organization prefers should be dependent upon its organizational vision, mission, strategy, Goals and objective. In quite a few cases, such HR practices shall also be devised and adopted in time with external environment of organizations. In other words, HR policies and practices are subject to influence by internal and external environment of organizations. Harvard model of HRM propounded by Michael Beer, Richard Walton, Quinn mills, P. Lawrence and Bert Spector highlighted this influence of environment on HRM is their book titled Managing human Assets published in 1984. This model also known as soft model of HRM / Harvard Map of HRM / multiple stakeholders model, argues that human resource policies are to be influenced by two