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The following article was published in our article directory on December 26, 2011.
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Article Category: Business
Author Name: chickie maxwell
Human resource management (HRM) refers to a tactical and consistent method of managing the most important assets of an organization - the people, who work individually and in combination towards the attainment of organizational objectives. The objectives of human resource management may be traced to the Chicago and Harvard Schools, and are known as the matching model of HRM and the Chicago framework, respectively. The Chicago school of human resource management was headed by Fombrun and associates, while Beer and associates were at the helm of the Harvard school framework. The two schools originated at about the same time in 1984.
The matching model of HRM maintained that human resource systems and organizational structures need to be managed such that it is congruent with the strategy developed by the organization. Such congruency was the basis of the name 'matching model' attached to the Chicago School. The group espoused the so-called human resource cycle which comprises four common functions carried out in practically all organizations: selection, performance, appraisal, and outcomes. Selection is usually paired with recruitment and is performed by matching the jobs with the people, whereas performance is the carrying out of an assigned function. Appraisal involves the evaluation of the people with respect to the performance of their assigned roles, and depending on the evaluation, they receive benefits, undergo training and development, or both.
On the other hand, the Harvard framework was conceptualized around the idea that human resource issues can be solved when managers create an outlook as to how they envisage employees' involvement and development within the organization, and how policies and practices of human resources management can facilitate turning the vision into a reality. Leaders of the Harvard school call their concept as their strategic vision or central philosophy. Without such central philosophy, the management of human resource is practically reduced to a group of hanging and unrelated activities. Most importantly, it was the Harvard school which advanced the precept that human resource management involves all action and decisions which concern the nature of the relationship between the employees and their organization.
The Harvard framework appears to be a better model than that of the Chicago school on account of the following advantages: (1) acknowledgment of an array of stakeholder interests; (2) recognition of the significance of give and take between the employees and the owners, and also between the owners and some interest groups, either implicitly or explicitly; (3) broadening of the scope of human resource management to the extent of the work structure, issues pertaining to management styles, and the influence of employees regarding various aspects within the organization.
In a nutshell, it is quite astonishing that in spite of trade and commerce drawing its roots since ancient times, concretized principles on the management of the most important assets of an organization is relatively new. Perhaps, man started reeling from the effects of management treating people merely as variable cost instead of resources when they began to experience stress from economic downturns. At any rate, the rallying point is still change.
Keywords: human resource management
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