Changing Hrm Landscape Essay

3192 words - 13 pages

Changing HRM Landscape

Changing HRM Landscape

Table of Contents

1) Introduction2
2) The theoretical and changing HRM landscape2
Insight of HRM history for modern practitioners 3
3) Significance of HR best practices and organisational behaviour (OB) tools within a MNC 3
4) Assumptions underpinning the way in which HR best practices are being propagated within a MNC, particularly in different cross-cultural environments. 5
5) The influence of culture on HR best practices………………………………………………………. 5
6) Conclusion…………………………………………………………………………………………………………… 6
7) References…………………………………………………………………………………………………………… 6


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). As the ramifications of the labour problem became too big to ignore, there was a wave of academics and employers looking at how labour management could be looked at in more strategic terms. This movement from employers and academics to a more strategic approach ushered on HRM practices familiar today. Additional insight by Kaufman (2014) of modern HRM practices are sophisticated and advanced versions derived from practices a century ago.
By the 1970’s PM had been viewed in a bad light and so a name change was suggested to Human Resource Management (HRM). This concept started gaining traction when a multi-million grant was awarded by the Ford Corporation looking at labour problems in economic development. From this study the strategic aspects of the human resource function were highlighted and noted that it should contribute to major decision making within organisations. This would allow human resources to be used in an effective manner to achieve organisational goals. (Kerr et al., 1960, in Kaufman 2014). With PM and HRM terms becoming more interchangeable amalgamation began to occur with HRM eventually being separated from the connotations associated with PM began to fade (Kaufman, 2014). Pivotal contributions to the HRM field were Michigan and Harvard Business Schools (Legge, 2005; Reichel & Mayrhofer, 2009, in Kaufman, 2014).

Beginning with Harvard a group of professors from Harvard Business School published a series of articles and books stating a new approach to HRM. The theme was around a new paradigm that was built around the emergent commitment model of managing people (Walton, 1985, in Kaufman, 2014). Kaufman (2014). The ideas and terms from this new HRM model have evolved into the high performance work systems (HPWS) that have associated high performance work practices (HPWPs) (Appelbaum et al., 2000; Huselid, 1995; Nadler, Gerstein, & Shaw, 1992, in Kaufman, 2014).
Second, the University of Michigan. HRM activities needed to become an integrated system that aligned with organisational strategy. This lead to a breakthrough by the Michigan School of Business that made a push to incorporate strategy into HRM (Kaufman, 2014). This in turn contributed to getting SHRM off the ground. Kaufman (2014) points out that SHRM researchers initially focused on external-oriented typologies of business strategies, such as cost minimization versus product differentiation (Porter, 1980) and prospector versus defender (Miles & Snow, 1978). Due to the limited scope of these strategies SHRM started moving towards a strategy that was more internal-driven and psychology-friendly based on the resource based view (RBV) of the firm (Barney, 1991; Lengnick-Hall, Lengnick-Hall, Andrade & Drake, 2009 in Kaufman, 2014). RBV looks at a firms internal resources that can be a source of sustainable competitive advantage and superior organisational performance if they are rare, inimitable, valuable and non-substitutable. Wright, Dunford &...

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