There are many business leaders such as John Chambers of Cisco Systems & Howard Schultz of StarbucksTM who consider the employees of their organisation as their assets and want to ensure that the talent that they have is retained and work with same amount of excitement and satisfaction for years to come (Jackson, Schuler, & Werner., 2009). These manpower resources who work in organisations performing various jobs in return for payments, incentives and other benefits are called Human Resources (H.R) and the people who manage the resources i.e their recruitment, salaries, performance evaluators are known as Human Resource Personnel’s (What is Human Resources, 2010).
Human resources drive the company to do the best by using finance, knowledge and other available resources. These human talents must be managed and cared for to ensure the organisational goals are attained. The function that enables this task is called Human Resource Management (HRM) (Bohlander, G. & Snell, S., 2007). HRM ensures that the Human talent is effectively utilised by doing the following basic functions such i.e manpower planning, recruiting, managing performances, training, development, salaries, benefits and industrial relations (Dowling, J. P., Festing, M., & Engle, D. A., Sr., 2008).
Wilton (2011, p.6) states that decades ago organisation had a separate department which was considered to be more administrative in function such as working on payroll, leave record keeping, conducting safety related trainings and dealing between trade unions (industrial relations) etc known as Personnel Department which managed HR activities as well. However, in mid 1980’s focus was shifted to more of people management techniques which has now emerged to become people centric known as HRM. HRM today in organisations still continue to do the prevalent administrative functions along with a gamut of other activities. He further states that in the old approach HR was a responsibility of Personnel Department which has now been replaced by making line Managers responsible for this function and there has been a shift from Pluralism (Trade Union to employer dealing) to Unitary or Individualism management (employee to employer dealing).
Storey (2007, p.7.), defines HRM of today as and I quote, “Human resource management is 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 personnel techniques.”
HRM approach differs from soft to Hard in organisations. ‘Soft’ HRM primarily means that if an organisation aligns its HR policies to that of the organisational goals, treats their employees as talents and assets they will automatically be able to ensure quality and adaptability in their workforce and will be able to retain and nurture committed employees who strive hard to achieve organisational goals. Soft HRM is based on the use of...