The competition in the field of business has increased a lot and this is the reason why a business organisation needs to change its policies and procedures to run with the global flow. Due to the several consequences of the global crisis, each country faces sudden changes in order to stay in the field of business. Change is the indispensable part of every business in the present scenario (Amigoni, 2009). The success or failure of a business organisation depends a lot on the various factors including globalization, political and economical situations and socio-cultural trends. Undoubtedly such factors not only give strong impact on the efficiency, productivity, profitability and ability of the organisation rather it helps to maintain changed environment. Every business organisation focuses on profit making while maintaining its position in the market. It is very important to manage people specifically to manage employee in order to satisfy the financial demand of the organisation (Baldwin, 2008). Most of the organisation in the recent era considers that the employees are the most important assets. This is the reason why every organisation should focus on their policies, procedures and managerial practices. It paves the path for an improved productivity, enough motivation while reducing profit margins. This is very important to manage people for the sake of the organisation.

Having a group of skilled professionals is not enough for any business organisation (DeMey, 2010). It needs to manage people to utilise their capabilities and potentialities in the most proper manner for profit making. Creating a team and sustaining with it are very essential for any organisation. It requires building up a team with motivated and visionary individuals. Advance economy demands a boost in the employment. Managing people with suitable employment programs is a very crucial component for a sustainable strategic recovery process (Armstrong, 2008). Basically, there are four factors which can be considered to avoid any sort of economical challenge for a business organisation through managing people. It includes spending cuts, active labour market policies, well-designed unemployment benefit policies and the quality of social dialogue. This essay is focused to evaluate critically the validity of HRM function in this constantly changing and ever more competitive environment. The target is to bring out whether work organizations require multi-skilled, proactive and customer focused staff in order to be successful (Garham, 2007).

Banks (2008) has explained that the Human resource management or HRM refers to the approach of managing people. It is grounded on four fundamental principles. First of them is to consider human resources as the most important asset of an organisation and effective management of them lead to the success of the business organisation. Closely linked personnel policies and procedures of the organisation contribute a lot on the achievement of overall objectives through strategic planning. The corporate culture and values which lead to the proper organisational climate and managerial behaviour influence the level of achievement for the organisation (Buchner, 2008). The main target of HRM is to integrate all the members of the organisation to reach to one single goal or common purpose. This essay attempts to focus on how Human Resource Management attributes on organisation’s performance and culture. Human Resource Management refers to the acquisition, motivation, development and management of the human resources of an organisation. It targets to develop an appropriate corporate culture through the introduction of several programs reflecting and supporting the core values of the organisation ensuring its success (Bizmanualz, 2008).

The department of Human Resource Management is focused on what to do and then in doing so in terms of recruiting, paying, training people or dealing with several problems of employee relation problems. The department has become an indispensable part of the management. The basic target is to maintain better human relations in an organisation through developing, applying and evaluating various policies, procedures and programmes related to human resources. This is important for the realisation of several objectives of an organisation (Hawley, 2009). The basic factor of Human Resource Management is to get better results collaborating people. The department of Human Resource Management is solely concerned with people at work and their relationships within the enterprise. As far as the function is concerned, HRM maintains several functions like manpower planning, selection, performance appraisal, salary administration, training and management development with designing special programmes designed to improve communication systems, involvement, commitment, and productivity (Hockley, 2009). HRM works to attain maximum individual development, maintain desirable working relationship between employees and employers, employees and employees through an effective modelling of human resources which consist with recruitment, selection, development, utilization, compensation and motivation for employees (Hodg, 2009).

illustration not visible in this excerpt

Figure 1: Human Resource Management Model

Source: Idea from (Hodg, 2009)

Hutton (2009) has stated that the human Resource Management delivers competitive advantage for the organisation. The concept of Human Resource Management leads to three different meanings. First concept takes working people as very valuable sources. So, this is better to invest time and effort for the development of those employees. Second concept emphasises on those human resources as they have special characteristics and it is not good to treat them as materialistic resources (Houldsworth, 2006). The approach is to humanise organisational life while introducing human values of that specific organisation. Human Resource management does not focus on the employees as individuals but there is a need to emphasis on other kinds of social realities, units and processes of the organisation. It includes the role of an individual within the organisation consisting of the person and the superior authorities. It also includes inter-team processes, and the entity of the total organisation.

Human Resource Management refers to the qualitative improvement of human beings who can be considered as the most valuable assets of an organisation (Jacques, 2008). It is all about an outgrowth of the old process and approach coming out of the parent disciplines including personnel management and behavioural science. It refers to a more comprehensive and deep-rooted than training and development consisting of a multi-disciplinary from the very beginning. HRM enables employees to improve the competency and capability to play their role and perform at their best on the path of fulfilling the objectives of an organisation. The production model of HRM leads to the personnel management (James, 2008). This model is characterised of being an employee-oriented emphasising on the maximisation of individual skills and motivate employees with the workforce producing high levels of commitment related with strategic goals. Human Resource Management is connected with both the structure of work in a firm and with all the related employment practices (Kopits, 2009). It is not all about the ‘people practices’ rather the concept of managing people refers to both the individual and collective dimensions. Personnel management in the traditional form was non-strategic separates from business. Personnel administration is an important part of Human Resource Management. The major attention of Human Resource Management is to develop people along with their competencies (Krausert, 2009).



ISBN (eBook)
ISBN (Book)
File size
541 KB
Catalog Number
Institution / College
Oxford University
managing people




Title: Managing People