Overview of HRM Essay Example | Topics and Well Written Essays - 4000 words

Overview of HRM - Essay ExampleAs this research shall argue, however, contrary to the popular assumption that compensation schemes are the primary coil method for doing so, it is the collectivity of HR functions which impinge upon, and have the potential to transform the mentioned culture. In other words, while one cannot deny the fundamental consumption which compensation plays in affecting employee motivation levels, enhancing organisational commitment and, ultimately, transforming the dominant organisational culture, it would be fallacious and, consequently, indefensible to ignore a host of other HRM practices which, taken as a collectivity, in effect modify organisational culture and increase employees commitment.This section introduces several perspectives of HRM in both the U.S. society and the Western European society. In the management research literature in the United States of America, scholars are more concerned about the functions and roles played by HRM. The function of HRM has experienced an evolutionary process in business organisations. It used to be reactive, operational, and domestic. It was personnel management. After 1990s, human capital has become more and more important due to the emergence of the new economy. Both researchers and practitioners have realized the strategic role played by HRM. The resource-based theory (Barney, 2001) looks within the firm itself. This suggests human assets are one of the major sources bringing about core competence for the business organisations HRM therefore becomes an important issue. Huselid (1995 1998) propose High Performance Work Practices (HPWP), Pfeiffer (1994) propose the best practice models. From American literature on HRM, one can see the ardent inclination of universalism, the optimism on human potential development.The European scholars, however, are more concerned about the contextual factors shaping the HRM practices of companies. According to Brewster (1996), the societal culture, ownersh ip structures, giving medication attitude to foreign investment, the roles of union are major factors determining HRM policies and practices in context-specific situations. Such perspective helps to understand the unique situations and differences between nations in their HRM practices as swell up as how MNCs try to adapt to local practices.In international business literature, Evans, Tayeb (2001) argue that human resource management makes contribution to organisational performance by playacting three roles. The basic role is building the foundations of attracting, motivating and retaining people in place. The second role is realigning it to the environmental change and reconfiguring the different elements as time evolves. As the competition becomes fierce and