Managing Human Resources in Modern Organization

The topic of the Research Paper

The topic of the present research paper is the developments in human resource management that have taken place to date with the focus of modern demands of management.

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Introduction

The paper investigates developments in human resource management from the past management practices up to very recent trends in that area. The focus is how human resource management is seen as critical to contribute toward the concept of modern management so that companies today can compete in globalization by gaining higher profits and other related gains.

Background

Today, with globalization and free trade, the whole world has become the battlefield for the companies operating today. Hence, it is being emphasized that these companies move toward the modern approach of management which can provide them with strategies required in today’s competitive environment. The paper as such investigates the developments of human resource management and examines how far these developments have helped today’s businesses in maintaining modern management strategies.

Objectives of the Research Paper

The objective of the present research paper is to point out several areas in which human resource management has contributed toward the understanding of modern management.

Literature Review

Role of Human Resource Management

Directly connected to the human capital of a company, human resource management is one of the critical areas for the success or failure of an organization and it is widely argued that present-day HRM improvements are complementary with “strong unions” when it comes to organizing a modern company (Donald, 1993). The progress in human resources is now well reported for its significance in a company’s organization. Several scholars (for example, Legge, Poole and Warner, 1998; 1995; Poole, 1999; Sisson and Storey, 2000 Schuler and Jackson, 1999; as cited in Budhwar and Debrah, 2001), have put forward numerous developmental models and theories regarding the human resource development and managing a modern organization. However, it is a correct observation to remark that problems are still present in human resource management literature when it comes to managing modern organizations through the center of attention has shifted with time. The development of human resource management in managing a modern organization was the primary area that engaged the field experts in the 1980s; at that time the central issue was how to convert workforce potential into human resource management (HRM) to better manage a modern organization. Later on, this transited to the matters which were associated with the assimilation of industrial elements into a human resource for better management. Afterward, HRM was incorporated into the strategies of market growth; here the role of line managers was stressed for better management and expanding profits; eventually, the entire focus of HRM fell on the market growth as a basis of competitive advantage for a company’s management; this discussion is still going on in HRM literature as to how profitability helps to manage a company. As such HRM was first reactive; then it transformed as prescriptive, and then became administrative; subsequently, the role of HRM became proactive, descriptive, and finally executive. All these stepwise developments focused on better management of a company. Today challenges for HRM for better management are in the development of HRM strategies for management on modern lines? The answer is expected to be found in the investigation of similarities and differences of HRM operations in different countries and companies working it them: similarities and differences, the influence of culture, policies, other managerial matters, etc. on HRM are said to yield critical insights to cater for modern demands of management (Budhwar and Debrah, pp. 1-3, 2001).

With the waves of globalization today, the present HRM practices have been identified globally now international human resource management (IHRM) is well-recognized in today’s human resource management discourse. Like a great many people today work outside their home countries or are work with companies in home countries with foreign ownership, competition has taken a global view. Technological advances, widening of trade, massive emigrations, etc. have made today’s management and business activities truly global: human capital is now viewed from a global perspective which an organization must incorporate in its fabric of management. Furthermore, the leading importers of the world, the UK, Germany, the US, and Japan, are expected to increase their economic progress; it is the extension of the global idea of human resource management and gives the modern organization a ground for preparation. Briscoe and Schuler relate an incredible account of effective management in the context of globalization and management along modern lines. They mention Overland Data, a company that has 70% of the international market covered for its equipment with only 250 workers spread worldwide. Most fascinating is the information that small companies like Overland Data now follow the management models of human resources in a way that bigger organizations do. In addition, there are complex underlying patterns of management within all organizations that need to be examined for additional know-how about global human resource management (Briscoe, & Schuler, pp. 2004). One more instance is that of Town Grocery in North Carolina (Armand et al., 2005).

HRM Activity

It is now well recognized that for modern management that human resource management is a mixture of many different activities: management of the human resource, human capital, and its development through proper standards for rewards. Yet pointing out specifically what staffing needs a company has is the most critical activity for modern management. Ahead is the phase of decision-making to accomplish those needs; many options are open in this as well. Autonomous contractors can be contacted; the workforce can be recruited and trained to pack those gaps of needs. The chief focus is on satisfying the company’s staffing needs as the starting point along modern management lines. This is viewed as a very broad area of activities within a company. The next phase is to reach out to the needs of the employees like compensation and benefits. Furthermore, it is also included in the HRM activities that the employees’ awareness of the policies and measures of the organization is also included in modern management strategies; this is chiefly to make the workplace democratic (McNamara, 2008).

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Entrepreneurial practices are also considered very central in HRM since they add value to the HRM and shape the overall output and productivity of an organization: job analysis, employees’ training, and planning of careers are some of the crucial areas. Entrepreneurial activities linked with HRM have led businesses to make several changes. Outsourcing of many human resource activities is one result. While deciding on outsourcing as a vital business strategy, the most imperative point is to choose the place or region for that activity. Research informs that the future of outsourcing and HRM activities hold great benefits for modern management (Margaret, 2000).

Findings and Analysis and Conclusion

The recent progress in HRM has resulted in a great many developments in key areas: shifting the process of decision making to middle management; workers are seen to have a crucial role in the operation of an organization for superior outcomes; the autonomous and participative environment is another important factor; reward for personal achievement is seen critical. Now stress is placed on flexibility in HR procedure: adaptation to personal needs of the workforce; customer care and service are completely different concepts in modern management; value addition is being accentuated; knowledge management is another nucleus of today’s HRM practices. Some more areas along with the above-noted ones are now considered crucial for great profitability which is now targeted by managing the above-noted functions and activities along modern lines of business (Idalberto, 2001).

Works Cited

  1. Armand, G., Liz, T., & Golbou, G. (2005). Does my business need a human resource function? A decision-making model for small and medium-sized firms. New England Journal of Entrepreneurship.
  2. Briscoe, D. R., & Schuler, R. S. (2004). International human resource management: policies & practices for the global enterprise. New York: Routledge, pp. 1-50.
  3. Budhwar, P. S., & Debrah, Y. A. (2001). Human resource management in developing countries. London: Routledge, pp. 3-50.
  4. Donald, W. (1993). Are strong unions compatible with the new model of human resource management? Industrial Relations (Canadian).
  5. Idalberto, C. (2001). Advances and challenges in human resource management in the new millennium. Public Personnel management.
  6. Margaret, M. E. (2000). Entrepreneurial activities in human resource management. American International College Journal of Business. 
  7. McNamara, C. (2008) Human resource management. Web.
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