There appears to be no single definition of the term human resource management that is accepted by both people management practitioners and the academic community. HRM is used in two ways, the one is used generically to describe the body of management activities and the other is equally widely used to denote a particular approach to the management of people that is clearly distinct from 'personnel management'. It suggests a distinctive philosophy towards people-oriented organisational activities (Torrington,Hall,Taylor, 2002).
Strategy researchers suggest that achieving competitive advantage, something that all companies are striving for, depends upon the firm's ability to utilise existing knowledge and its ability to generate new knowledge more efficiently and effectively relative to competitors (Mahoney, 1995; Penrose, 1959; Prahalad & Hamel, 1990; Nonaka, 1994). Human resource practices can contribute to the mobilisation and utilisation of knowledge in a number of ways (e.g. Lado & Wilson, 1994). The human resource practice that we are going to study here is the recruitment and selection of employees, and specifically through the use of psychometrics.
As argued by Cable and Turban (2001), the current shortage of talent in the labour market has led to a strong competition for the best and the brightest people. They also observed that recruitment is only the beginning of the employment relationship, and thus the quality of people it yields for selection will affect the success of later HRM practices. Thus, the ability of HRM practices to positively impact organisational effectiveness is rooted in the effectiveness of recruitment practices. Therefore, any HRM practices that can enhance an organisation's capacity to obtain and retain top talent will strengthen the relationship between HRM practices and organisational effectiveness.
Definition of terms
This assignment examines the validity and reliability of the psychometrics used during the selection and recruitment in a...