What are the effects of Human Resource Management on corporate performance and employees?

Essay by m_University, Bachelor'sB, October 2009

download word file, 12 pages 0.0

This essay is to discuss what the effects of Human Resource Management are on both corporate performance and employees. In order to do that I will first define what Human Resource Management is by looking at some of the existing definitions. I will then look at the relationship of HRM and performance using Paauwe's and Richardson's model. I will introduce the theoretical framework of the HRM and its effects on employees and corporate performance by briefly discussing different approached to strategic HRM starting with best-practice approach and moving to resource-based and fit views. I will then look for the evidence of effects of HRM by discussing some of the available studies that were conducted by scholars in real life business settings. I will try to identify the limitations of the various studies and assess the overall evidence of the relationship of HRM and organisational and employees performance.

Finally, I will look at the suggestions of many specialists in the field of HRM and try to identify the necessary conditions that would lead to an irrefutable proof of the relationship of HRM on performance and the nature of such relationship.

To be able to discuss effects of HRM on corporate performance and employees it is first essential to define what the term means. Despite the fact that the word HRM is being widely used in both academic and business worlds there is no single, agreed definition of human resource management. The numerous available definitions vary greatly and in the broadest approach, "HRM refers to all aspects of managing people in the workplace" (Boddy, 2005, p.339). This definition however, does not say much about what HRM is about and how does it differ from personnel management. Other writers suggested more...