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Kavita
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HUMAN RESOURCE MANAGER
HUMAN RESOURCE
MANAGEMENT
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Kavita
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ABSTRACT
This paper introduces the development of Human
Resource Management (HRM) from a historical
perspective and explains the debate between HRM and
personnel management. Thus, the paper identifies the
historical developments and their impacts on HRM,
outlines the development and functions of HRM, explains
the differences between HRM and Personnel
Management, evaluates hard! and soft! approaches to
HRM, illustrates how diversit" is an issue in Human
Relations (HR) practice and finall" considers HRM as an
international issue. #t concludes with a discussion about
hard! and soft! models of HRM and its implications for the
human resource manager.
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Kavita
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!NTRO"UCT!ON
The term $human resource management$ has been
commonl" used for about the last ten to fifteen "ears. Prior
to that, the field was generall" %nown as $personnel
administration.$ The name change is not merel"cosmetics.
Personnel administration, which emerged as a clearl"
defined field b" the &'s (at least in the *+), was largel"
concerned the technical aspects of hiring, evaluating,
training, and compensating emplo"ees and was ver"
much of $staff$ function in most organiations. The field did
not normall" focus on the relationship of disparate
emplo"ment practices on overall organiational
performance or on the s"stematic relationships among
such practices. The field also lac%ed a unif"ing paradigm.
HRM developed in response to the substantial increase in
competitive pressures -merican business organiations
began experiencing b" the late &'s as a result of such
factors as globaliation, deregulation, and rapid
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technological change. These pressures gave rise to an
enhanced concern on the part of firms to engage in
strategic planning//a process of anticipating future
changes in the environment conditions (the nature as well
as level of the mar%et) and aligning the various
components of the organiation in such a wa" as to
promote organiational effectiveness.
Human resource management (HRM), also called
personnel management, consists of all the activities
underta%en b" an enterprise to ensure the effective
utiliation of emplo"ees toward the attainment of
individual, group, and organiational goals. -n
organiation0s HRM function focuses on the people side of
management. #t consists of practices that help the
organiation to deal effectivel" with its people during the
various phases of the emplo"ment c"cle, including pre/
hire, staffing, and post/hire. The pre/hire phase involves
planning practices. The organiation must decide whatt"pes of 1ob openings will exist in the upcoming period and
determine the necessar" 2ualifications for performing
these 1obs. 3uring the hire phase, the organiation selects
its emplo"ees. +election practices include recruiting
applicants, assessing their 2ualifications, and ultimatel"
selecting those who are deemed to be the most 2ualified.
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#n the post/hire phase, the organiation develops HRM
practices for effectivel" managing people once the" have
$come through the door.$ These practices are designed to
maximie the performance and satisfaction levels of
emplo"ees b" providing them with the necessar"
%nowledge and s%ills to perform their 1obs and b" creating
conditions that will energie, direct, and facilitate
emplo"ees0 efforts toward meeting the organiation0s
ob1ectives.
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THE H!STOR!CA# BACKGROUN"
O$ HUMAN RESOURCE
MANAGEMENT
Human resource management has changed in name
various times throughout histor". The name change was
mainl" due to the change in social and economic activities
throughout histor".
1. Industrial Welfare
#ndustrial welfare was the first form of human resource
management (HRM). #n &455 the factories act stated that
there should be male factor" inspectors. #n &44
legislation was passed to regulate the hours of wor% for
children and women b" having a 6 hour wee%. 3uring
this time trade unions started to be formed. #n &464 the &sttrade union conference was held. This was the start of
collective bargaining. #n &'&5 the number of industrial
welfare wor%ers had grown so a conference organied b"
+eebohm Rowntree was held. The welfare wor%ers
association was formed later changed to 7hartered
#nstitute of Personnel and 3evelopment.
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2. Recruitment and Selection
#t all started when Mar" 8ood was as%ed to start engaging
girls during the &st world war. #n the &st world war
personnel development increased due to government
initiatives to encourage the best use of people. #n &'&6 it
became compulsor" to have a welfare wor%er in explosive
factories and was encouraged in munitions factories. - lot
of wor% was done in this field b" the arm" forces. The
armed forces focused on how to test abilities and #9 along
with other research in human factors at wor%. #n &'& the
national institute of ps"chologists established and
published results of studies on selection tests, interviewing
techni2ues and training methods.
3. Acquisition of other Personnel Activities
3uring the nd world war the focus was on recruitment
and selection and later on training: improving morale and
motivation: discipline: health and safet": 1oint consultation
and wage policies. This meant that a personnel
department had to be established with trained staff.
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!. "le#i$ilit% and &iversit%
#n the &''0s a ma1or trend emerged where emplo"ers
were see%ing increasing flexible arrangements in the
hours wor%ed b" emplo"ees due to an increase in number
of part/time and temporar" contracts and the invention of
distance wor%ing. The wor%force and patterns of wor% are
becoming diverse in which traditional recruitment practices
are useless. #n the "ear , growth in the use of internet
meant a move to a +"stems for e/
recruitment: =n/line short/listing of applicants: 3eveloping
training strategies on/line: Ps"chometric training: Pa"roll
s"stems: ?mplo"ment data: Recruitment administration:
References: Pre/emplo"ment chec%s. #T helps HR
managers offload routine tas%s which will give them more
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time in solving complex tas%s. #T also ensures that a
greater amount of information is available to ma%e
decisions.
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H!STOR!CA# M!#ESTONES !N HRM
"E%E#O&MENT
Table & identifies some of the ma1or milestones in the
historical development of HRM. @rederic% Ta"lor, %nown
as the father of scientific management, pla"ed a
significant role in the development of the personnel
function in the earl" &'s. #n his boo%, Shop
Management, Ta"lor advocated the $scientific$ selection
and training of wor%ers. He also pioneered incentive
s"stems that rewarded wor%ers for meeting and;or
exceeding performance standards. -lthough Ta"lor0s focus
primaril" was on optimiing efficienc" in manufacturing
environments, his principles laid the ground/wor% for
future HRM development. -s Ta"lor was developing his
ideas about scientific management, other pioneers were
wor%ing on appl"ing the principles of ps"cholog" to the
recruitment, selection, and training of wor%ers. Thedevelopment of the field of industrial ps"cholog" and its
application to the wor%place came to fruition during 8orld
8ar #, as earl" vocational and emplo"ment/related testing
was used to assign militar" recruits to appropriate
functions.
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The Hawthorne +tudies, which were conducted in the
&'s and &'5s at 8estern ?lectric, spar%ed an
increased emphasis on the social and informal aspects of
the wor%place. #nterpretations of the studies emphasied
$human relations$ and the lin% between wor%er satisfaction
and productivit". The passage of the 8agner -ct in &'5A
contributed to a ma1or increase in the number of unionied
wor%ers. #n the &'
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HRM 1ob. @inall", changes in labor force demographics,
technolog", and globaliation since the &'4s have had a
ma1or impact on the HRM function. These factors also are
discussed in more detail in a later section.
(a$le 1) *ilestones in the &evelo+ment of ,uman
Resource *anaement
&4'/
&'&
@rederic% Ta"lor develops his ideas on scientific
management. Ta"lor advocates scientific
selection of wor%ers based on 2ualifications and
also argues for incentive/based compensation
s"stems to motivate emplo"ees.
&'&/
&'5
Man" companies establish departments devotedto maintaining the welfare of wor%ers. The
discipline of industrial ps"cholog" begins to
develop. #ndustrial ps"cholog", along with the
advent of 8orld 8ar #, leads to advancements in
emplo"ment testing and selection.
&'5/
&'
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#ncreasing the 1ob satisfaction of wor%ers is cited
as a means to increase their productivit".
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to $managing diversit".$ - second trend is the
globaliation of business and the accompan"ing
technological revolution. These factors have led
to dramatic changes in transportation,
communication, and labor mar%ets. The third
trend, which is related to the first two, is the focus
on HRM as a $strategic$ function. HRM concerns
and concepts must be integrated into the overall
strategic planning of the firm in order to cope with
rapid change, intense competition, and pressure
for increased efficienc".
THE "!$$ERENCE BET'EEN HRM
AN" &ERSONNE# MANAGEMENT
+ome experts assert that there is no difference between
human resources and personnel management. The" state
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that the two terms can be used interchangeabl", with no
difference in meaning. #n fact, the terms are often used
interchangeabl" in help/wanted ads and 1ob descriptions.
@or those who recognie a difference between personnel
management and human resources, the difference can be
described as philosophical. Personnel management is
more administrative in nature, dealing with pa"roll,
compl"ing with emplo"ment law, and handling related
tas%s. Human resources, on the other hand, is responsible
for managing a wor%force as one of the primar" resources
that contributes to the success of an organiation.
8hen a difference between personnel management and
human resources is recognied, human resources is
described as much broader in scope than personnel
management. Human resources is said to incorporate and
develop personnel management tas%s, while see%ing to
create and develop teams of wor%ers for the benefit of the
organiation. - primar" goal of human resources is to
enable emplo"ees to wor% to a maximum level of
efficienc".
Personnel management can include administrative tas%s
that are both traditional and routine. #t can be described as
reactive, providing a response to demands and concerns
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as the" are presented. E" contrast, human resources
involves ongoing strategies to manage and develop an
organiation0s wor%force. #t is proactive, as it involves the
continuous development of functions and policies for the
purposes of improving a compan"!s wor%force.
Personnel management is often considered an
independent function of an organiation. Human resource
management, on the other hand, tends to be an integral
part of overall compan" function. Personnel management
is t"picall" the sole responsibilit" of an organiation!s
personnel department. 8ith human resources, all of an
organiation!s managers are often involved in some
manner, and a chief goal ma" be to have managers of
various departments develop the s%ills necessar" to
handle personnel/related tas%s.
-s far as motivators are concerned, personnel
management t"picall" see%s to motivate emplo"ees with
such things as compensation, bonuses, rewards, and the
simplification of wor% responsibilities. @rom the personnel
management point of view, emplo"ee satisfaction provides
the motivation necessar" to improve 1ob performance. The
opposite is true of human resources. Human resource
management holds that improved performance leads to
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emplo"ee satisfaction. 8ith human resources, wor%
groups, effective strategies for meeting challenges, and
1ob creativit" are seen as the primar" motivators.
8hen loo%ing for a 1ob in personnel management or
human resources, it is important to realie that man"
companies use the terms interchangeabl". #f "ou are
offered a 1ob as a personnel manager , "ou ma" be
re2uired to perform the same duties as a human
resource manager, and vice versa. #n some
companies, a distinction is made, but the difference
is ver" subtle.
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HRM "E%E#O&MENT AN"
!MEMENTAT!ON
RES&ONS!B!#!T!ES
8hile most firms have a human resources or personnel
department that develops and implements HRM practices,
responsibilit" lies with both HR professionals and line
managers. The interpla" between managers and HR
professionals leads to effective HRM practices. @or
example, consider performance appraisals. The success
of a firm0s performance appraisal s"stem depends on the
abilit" of both parties to do their 1obs correctl". HR
professionals develop the s"stem, while managers provide
the actual performance evaluations.
The nature of these roles varies from compan" to
compan", depending primaril" on the sie of the
organiation. This discussion assumes a large compan"with a siable HRM department. However, in smaller
companies without large HRM departments, line
managers must assume an even larger role in effective
HRM practices.
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HR professionals t"picall" assume the following four areas
of responsibilit"> establishing HRM policies and
procedures, developing;choosing HRM methods,
monitoring;evaluating HRM practices, and
advising;assisting managers on HRM/related matters. HR
professionals t"picall" decide (sub1ect to upper/
management approval) what procedures to follow when
implementing an HRM practice. @or example, HR
professionals ma" decide that the selection process
should include having all candidates (&) complete an
application, () ta%e an emplo"ment test, and then (5) be
interviewed b" an HR professional and line manager.
*suall" the HR professionals develop or choose specific
methods to implement a firm0s HRM practices. @or
instance, in selection the HR professional ma" construct
the application blan%, develop a structured interview
guide, or choose an emplo"ment test. HR professionals
also must ensure that the firm0s HRM practices areproperl" implemented. This responsibilit" involves both
evaluating and monitoring. @or example, HR professionals
ma" evaluate the usefulness of emplo"ment tests, the
success of training programs, and the cost effectiveness
of HRM outcomes such as selection, turnover, and
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recruiting. The" also ma" monitor records to ensure that
performance appraisals have been properl" completed.
HR professionals also consult with management on an
arra" of HRM/related topics. The" ma" assist b" providing
managers with formal training programs on topics li%e
selection and the law, how to conduct an emplo"ment
interview, how to appraise emplo"ee 1ob performance, or
how to effectivel" discipline emplo"ees. HR professionals
also provide assistance b" giving line managers advice
about specific HRM/related concerns, such as how to deal
with problem emplo"ees.
Fine managers direct emplo"ees0 da"/to/da" tas%s. @rom
an HRM perspective, line managers are mainl"
responsible for implementing HRM practices and providing
HR professionals with necessar" input for developing
effective practices. Managers carr" out man" procedures
and methods devised b" HR professionals. @or instance,
line managers>
• #nterview 1ob applicants
• Provide orientation, coaching, and on/the/1ob training
• Provide and communicate 1ob performance ratings
• Recommend salar" increases
• 7arr" out disciplinar" procedures
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• #nvestigate accidents
• +ettle grievance issues
The development of HRM procedures and methods often
re2uires input from line managers. @or example, when
conducting a 1ob anal"sis, HR professionals often see% 1ob
information from managers and as% managers to review
the final written product. -dditionall", when HR
professionals determine an organiation0s training needs,
managers often suggest what t"pes of training are needed
and who, in particular, needs the training.
,R* SP-IAL(/ AR-AS 0R "(I0S 0" ,R*
TR-3#T#=G-F +P?7#-FT -R?-+
(rainin&evelo+ment
7onducts training needs anal"sis:
designs;conducts;evaluates training programs:
develops;implements succession planning programs.
om+ensationenefits
3evelops 1ob descriptions: facilitates 1ob evaluation
processes: conducts;interprets salar" surve"s: develops
pa" structure: designs pa"/for/performance and;or
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performance improvement programs: administers benefits
program.
-m+lo%eeIndustrial Relations
Helps resolve emplo"ee relations problems: develops
union avoidance strategies: assists in collective bargaining
negotiations: oversees grievance procedures.
-m+lo%mentRecruitin
-ssists in the HR planning process: develops;purchases
HR information s"stems: develops;updates 1ob
descriptions: oversees recruiting function: develops and
administers 1ob posting s"stem: conducts emplo"ment
interviews, reference chec%s, and emplo"ment tests:
validates selection procedures: approves emplo"ment
decisions.
Safet%,ealthWellness
3evelops accident prevention strategies: develops legal
safet" and health policies: implements;promotes ?-P and
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wellness programs: develops -#3+ and substance abuse
policies.
--0Affirmative Action
3evelops and administers affirmative action programs:
helps resolve ??= disputes: monitors organiational
practices with regard to ??= compliance: develops
policies for ensuring ??= compliance, such as sexual
harassment policies.
,R* Research
7onducts research studies, such as cost/benefit anal"sis,
test validation, program evaluation, and feasibilit" studies.
G?8 HRM +P?7#-FT -R?-+
Wor and "amil% Prorams
3evelops and administers wor% and famil" programs
including flextime, alternative wor% scheduling, dependent/
care assistance, telecommuting, and other programs
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designed to accommodate emplo"ee needs: identifies and
screen child/ or elder/care providers: administers
emplo"er0s private dependent/care facilit": promotes wor%
and famil" programs to emplo"ees.
ross6ultural (rainin
Translate the manners, mores, and business practices of
other nations and cultures for -merican business people.
=ther cross/cultural trainers wor% with relocated
emplo"ees0 families, helping them ad1ust to their new
environment.
*anaed6are
-s a compan"0s health/care costs continue to escalate,
emplo"ers are embracing managed/care s"stems, which
re2uire emplo"ees to assume some of the costs.
?mplo"ers hire managed/care managers to negotiate the
best options for emplo"ees.
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*anain &iversit%
3evelop policies and practices to recruit, promote, and
appropriatel" treat wor%ers of various ages, races, sexes,
and ph"sical abilities.
0(-*P0RAR/ &I7-RSI(/ ISS-S
HRM departments within organiations, 1ust as the
organiations themselves, do not exist in a vacuum.
?vents outside of wor% environments have far/reaching
effects on HRM practices. The following paragraphs
describe some of these events and indicate how the"
influence HRM practices.
-s mentioned previousl", the enactment of federal, state,
and local laws regulating wor%place behavior has changed
nearl" all HRM practices. 7onsider, for instance, the
impact of anti/discrimination laws on firms0 hiringpractices. Prior to the passage of these laws, man" firms
hired people based on reasons that were not 1ob/related.
Toda", such practices could result in charges of
discrimination. To protect themselves from such charges,
emplo"ers must conduct their selection practices to satisf"
ob1ective standards established b" legislation and fine/
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tuned b" the courts. This means the" should carefull"
determine needed 1ob 2ualifications and choose selection
methods that accuratel" measure those 2ualifications.
• +ocial, economic, and technological events also
strongl" influence HRM practices. These events
include>
• -n expanding cultural diversit" at the wor%/place
• The emergence of wor% and famil" issues
• The growing use of part/time and temporar"
emplo"ees
• -n increased emphasis on 2ualit" and team/wor%
• The occurrence of mergers and ta%eovers
• The occurrence of downsiing and la"offs
• The rapid advancement of technolog"
• -n emphasis on continuous 2ualit" improvement
• - high rate of wor%force illiterac"
These events influence HRM practices in numerous wa"s.
@or example>
• +ome firms are attempting to accommodate the
needs of families b" offering benefit options li%e
maternit" leave, child care, flextime, and 1ob sharing.
• +ome firms are attempting to accommodate the
needs of older wor%ers through s%ill upgrading and
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training designed to facilitate the acceptance of new
techni2ues.
• +ome firms are educating their emplo"ees in basic
reading, writing, and mathematical s%ills so that the"
can %eep up with rapidl" advancing technologies.
*nions often influence a firm0s HRM practices. *nionied
companies must adhere to written contracts negotiated
between each compan" and its union. *nion contracts
regulate man" HRM practices, such as discipline,
promotion, grievance procedures, and overtime
allocations. HRM practices in non/unionied companies
ma" be influenced b" the threat of unions. @or example,
some companies have made their HRM practices more
e2uitable (i.e., the" treat their emplo"ees more fairl")
simpl" to minimie the li%elihood that emplo"ees would
see% union representation.
Fegal, social, and political pressures on organiations to
ensure the health and safet" of their emplo"ees have had
great impacts on HRM practices. =rganiations respond
to these pressures b" instituting accident prevention
programs and programs designed to ensure the health
and mental well/being of their emplo"ees, such as
wellness and emplo"ee assistance programs.
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Toda"0s global econom" also influences some aspects of
HRM. Man" firms realie that the" must enter foreign
mar%ets in order to compete as part of a globall"
interconnected set of business mar%ets. @rom an HRM
perspective, such organiations must foster the
development of more globall"/oriented managers>
individuals who understand foreign languages and
cultures, as well as the d"namics of foreign mar%et places.
These firms also must deal with issues related to
expatriation, such as relocation costs, selection,
compensation, and training.
,AR& A& S0"( APPR0A,-S (0 ,R*
Human resource as defined b" 3essler (
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in most cases organisational effectiveness depends on
there being a tight 0fit0 between human resource and
business strategies.
Human resource as could be said is all about ma%ing
business strategies wor%. #t is therefore important that
emphasis is placed on how to best match and develop
00appropraite00human resource management (HRM)
approach;s"stem of managing people in the tourism
hospitalit" and leisure industr" (THF). Thus, we would
therefore be loo%ing at some of the HRM approaches
used such as the Harvard model: hard and soft approach
in con1unction with the real world of the THF industr" and
to determine whether the hard approach is more
appropriate.
Human resource management (HRM) as described b"
Ileiman () has a concept with two distinct forms: soft
and hard approach, where the soft approach of HRM is
associated with human relation and the hard on the other
hand sees people as human resource.
The +oft HRM is the notion that wor%ers respond better
when an organisation recognises their individual needs
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and addresses them as well as focusing on the overall
business ob1ectives. The wor% of Maslow in stating that
humans have a 0hierarch"0 of needs, which the" will exert
considerable energ" towards achieving, claims that
organisations that recognises and addresses these needs
will have a happier, more fulfilled, more lo"al and
productive wor%force (+HRM =nline). -s argued b" Goe
(6) the wa" to success is through deep empath" of
other people either b" observing how to best 0connect0 with
others in the wor%place, and motivate and inspire them as
a result. -s illustrated b" +imon (&'6) all of these soft
HRM can of course be balanced b" hard HRM: the notion
that successful organisations are those that best deplo"
their human resource in the wa" that the" would deplo"
an" other resource.
The Hard HRM on the other hand therefore sees people
as human resources. Holding that emplo"ees are a
resource in the same wa" as an" other business resource
and the" must therefore be: obtained as cheapl" as
possible, used sparingl", developed and exploited as
much as possible. -s indicated b" Ileiman () under
this model of HRM, control is more concerned with
performance s"stem, performance management and tight
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control over individual activities with the ultimate goal
being to secure the competitive advantage of the
organisation. The hard HRM therefore is primaril" concern
to promote human resource strateg" and align with
business strateg". #t ma" also include out sourcing,
flexibilit", performance management, hence downsiing or
wor% intensification, sees wor%ers as another resource to
be exploited and can operate against the interest of
wor%ers.
The Harvard model on the other hand as indicated b"
Fado and 8ilson (&''
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HRM. -s could be agued striving to enhance all four 7s
could lead favourable conse2uences for individual well/
being, societal well/being and organisational effectiveness
either as long/ term conse2uences.
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CONC#US!ON
The penalties for not being correctl" staffed are costl".
Planning staff levels re2uires that an assessment of
present and future needs of the organiation be
compared with present resources and future predicted
resources. -ppropriate steps should then be planned
to bring demand and suppl" into balance. The central
aim of modern human resource management is to
enhance the effective use, involvement and
contribution of emplo"ees throughout the organiation.
This, clearl", re2uires a great deal of information
accretion, classification and statistical anal"sis as a
subsidiar" aspect of personnel management. 8hat
future demands will be is onl" influenced in part b" the
forecast of the human resource manager, whose main
tas% ma" well be to scrutinie and modif" the crude
predictions of other managers.
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RE$ERENCES
• 3essler, Dar". Human Resource Management. &th
ed. ?nglewood 7liffs, GJ> Pearson;Prentice/Hall,
- Managerial Tool for 7ompetitive
-dvantage. 7incinnati> +outh/8estern 7ollege
Publishing, .
• Fado, -.-., and M.7. 8ilson. $Human Resource
+"stems and +ustained 7ompetitive -dvantage> -
7ompetenc"/Eased Perspective.$ -cadem" of
Management Review &', no. < (&'' 6''K.
• Goe, Ra"mond -., et al. Human Resource
Management> Daining a 7ompetitive -dvantage. Ath
ed. Eoston> McDraw/Hill, 6.
• +HRM =nline. +ociet" for Human Resource
Management. -vailable from http>;;www.shrm.org.
• +imon, H.-., The Gew +cience of Management
3ecision, Gew or%, G> Harper and Row, &'6.
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• +wanson, ?. E. and M. J. 7ulnan, $3ocument/Eased
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9uarterl", ,