CHAPTER - 2

STRATEGIC HUMAN RESOURCE MANAGEMENT

2.1 Human Resource Management
The concept of human resource management (HRM) has attracted a lot of
attention from academics and practitioners alike since it first emerged in the
mid-1980s. The former often suspect both the practicality and morality of
HRM. The latter have often absorbed some if not all of the HRM philosophy
and attempted to put it into effect with varying degrees of success for various
good and bad reasons.

The overall purpose of HRM is to ensure that the organization is able to
achieve success through people. As Ulrich and Lake (1990)^1 has remarked:
'HRM systems can be the source of organizational capabilities that allow firms
to learn and capitalize on new opportunities'.

Specifically, HRM aims to:
 enable the organization to obtain and retain the skilled, committed and
well-motivated workforce it needs;
 enhance and develop the inherent capacities of people - their contribu-
tions, potential and employability - by providing learning and contin-
uous development opportunities;
 develop high-performance work systems that include 'rigorous
recruitment and selection procedures, performance-contingent
incentive compensation systems, and management development and
training activities linked to the needs of the business' (Becker et al,
1997)^2 ;
 develop high-commitment management practices that recognize that
employees are valued stakeholders in the organization and help to
develop a climate of cooperation and mutual trust;
 create a climate in which productive and harmonious relationships can
be maintained through partnerships between management and
employees;