Definition of HRM
HRM can be defined as a strategic and coherent approach to the
management of an organization's most valued assets - the people working
there who individually and collectively contribute to the achievement of its
objectives. A distinction has been made by Storey (1989)^13 between the 'hard'
and 'soft' versions of HRM.
VERSIONS OF HRM
Hard HRM
The hard approach to HRM emphasizes the quantitative, calculative and
business-strategic aspects of managing the headcount resource in as
'rational' a way as for any other economic factor. It adopts a business-oriented
philosophy that emphasizes the need to manage people in ways that will
obtain added value from them and thus achieve competitive advantage. It
regards people as human capital from which a return can be obtained by
investing judicially in their development. Fombrun et al (1984) quite explicitly
presented workers as another key resource for managers to exploit. As Guest
(1999)^14 comments:
The drive to adopt HRM is... based on the business case of a need to respond
to an external threat from increasing competition. It is a philosophy that
appeals to managements who are striving to increase competitive advantage
and appreciate that to do this they must invest in human resources as well as
new technology.
He also commented that HRM 'reflects a long-standing capitalist tradition in
which the worker is regarded as a commodity'.
The emphasis is therefore on:
the interests of management;
adopting a strategic approach that is closely integrated with business
strategy;
obtaining added value from people by the processes of human
resource development and performance management;