Most Valuable Asset Of A Company Business Essay


The most valuable asset of a company is human resource . To be prosperous, a company has to make operative productivity a main goal. Human Resource Management (HRM) term has changed in a number of times through history. Across pre-historic periods, there continued consistent methods for selection of tribal leaders. The exercise of protection and condition as hunting was bypassed on from generation to generation. From 2000 B.C. to 1500 B.C., the Chinese used employee-screening techniques, and the Greeks used an apprentice system (History of Human Resource Management, 2010). During the late 1700s and main 1800s, because of the quick development of Great Britain, the United States evolved from an agrarian state to an industrial nation. This Industrial Revolution, developed a separate class of managers and employees in the factories (The Emergence of Modern Industrialism, 2010) .Labor unions were established to protect employees' rights During 1790-1820. The Fair Labor Standards Deed of 1938, enforced by the U.S. Department of Labor,established combined minimum wage standards, youngster labor regulations, and increased wages for overtime. Both regulations and association theory instituted the antecedent for human resource association today.

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The main purpose of this research is to present the definition of Human Resource Management HRM from many theories in the history and also the meaning ,objective ,scope and function of Human Resource Management (HRM)

Before studying about the meaning of HRM . Typically, the term of "Human resource" or sometime call "Personnel" mean the persons employed.The company or organization is the group of people who working for gold of the company.

3.1 Definitions of Human Resource Manangement (HRM)

There are numerous definition of Human Resource Management.There is no universally agreed definition HRM. Some source is defined as ' a system of activities and strategies that focus on successfully managing employee at all levels of an organization to achieve organizational goals'(Byars & Rue,2006) The level of productivity can vary by the skill levels the employees .

"The comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforce - human resources - in ways that contribute to organizational effectiveness." (DeNisi and Griffin, 2004)

In it wide sense HRM can be used as the term means any approach to managing people like 'All those activities associated with the management of employment relationships in the firm'( Boxall and Purcell, 2003). Another definition which focuses on training in order to increase the ability and commitment of employee to enhance business performance , Storey ( 1995: 5) ' a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personal techniques'

Guest (1987 ) and Storey (1992) defined term of HRM in 2 ways 'soft' and 'hard' HRM .The "hard" focused on senior manager , the decision - making is quicker and more cost- effective workforce , concern about reducing the cost for example ; low salaries , close supervision. On the other hand, The "soft" focus on improving the quality , commitment and flexibility of employee and enhance the commitment.Staff being treated nicely! 

The organization should balance the two ways of HR .For example if the company uses too soft approach staff when all staff benefits are added up , the cost of staff will increasing this is the disadvantage.

As the debate of HRM has progressed more definition have additionally been given for example; 'high-commitment management (HCM) which use rather than soft HRM and for hard HRM there is 'strategic HRM' use instead.

The ' Matching Model' is one of HRM model, developed by academic at the Michigan Business School,introduced the concept of strategic human resource using a set of HR policies and practices that are integrated with each other and with goal of the organization.Price ( 2004 : 45-46)'the key area of HR policies and system is selection of most suitable people to encounter the business needs,performance in the pursuit of company objective.As you can see ,the matching model is closely associated along side the 'hard HRM'.The deployment of employee to encounter the organization objective

At Harvard University ,Beer et al .(1984) developed 'The map of HRM territory,the concept is there are a variety of stakeholders in the organization such as the government , a group of employee .This model focus on the prescriptive element of the benefit of stakeholder or employee. It likes the 'soft HRM' and this model also developed a set of propositions that make the company more effectively.This displays an assumption that it is probable to balance the crucial integration associated alongside hard HRM with the softer HRM of high commitment practice.

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As I mention about various definitions of Human Resource Management (HRM) before in section 3.1 in this section I will illustrate about HRM in my understanding .HRM refers to the practices , policies and systems that influence worker's behavior , performance and attitudes.Some time mean " people practices" . Figure 3 shows HRM practices or HRM strategic consist of analysis and design of work , HR planning ,Recruiting , Selection ,training and development , compensation , performance management. This is show that how HRM practice effectively support business objective and goals.HRM practice also increasing the organization performance by customer satisfaction and contributing to employees,productivity innovation and development of a favorable standing in the firm's community.

HRM can contribute to quality , profitability and other business goals including supporting and enhancing business organization.

Human Resource Management in Context, 3rd David Farnham

Published by the CIPD.Copyright © David Farnham 2010

What Is Human Resource

Management Jones & Bartlett Learning,