It is evident that personnel management has been stronger in providing an integrative framework for employment decisions and management actions by means of employment policies than in structuring employment systems to implement particular business strategies.
These two ideas have tended to be kept apart, with some writers stressing more the philosophical and ethical roots of personnel management, and others the resourcing aspects. The theory of HRM thus the potential to sharpen up the discipline of personnel management. HRM is more explicit in both areas in the exposition of a philosophy underlying employment strategy, and in its analysis of business strategy and associated employment strategies.
Personnel management and HRM, nevertheless, share the same ambivalence about the relationship between these, with the fault lines strongly reflected in the differences of approach taken by Fombrun and the Harvard school.
On the other hand, the differences, if any between HRM and personnel management as practiced today and how HRM has been assimilated into personnel management are then explored (Armstrong, 2006).
In conclusion, this study has reviewed HRM’s relationship with business strategy by considering, first, what we mean by strategy. By breaking down strategy into different elements-goals, policies, plans, decisions, and programmed.
HRM is involved in the process of culture building through changing structures and organizational systems and the promotion of behavioural norms and values. At another level, the capacity of an organization to make effective corporate strategies depends on the quality of management and decision making. HRM contributes to this through management selection and development over time, and through organization structure, with its impact on information flow.
HRM should be concerned with the process of learning which leads to the formation to better corporate strategies. Coming closer to the present and the level of activity usually associated with HRM, plans and programmes generate a wide range of activity concerned with employee skills, rewards, and motivation.
Armstrong, M. (2006). A Handbook of human resource management practice. (10th Ed.). London: Kogan Page Publishers.
Fombrum, C.J., Tichy, N., & Devana, M.A. (1984). Strategic human resource management.
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Torrington, D., & Chapman, J. (1983). Personnel management. New Jersey: Prentice-Hall,