Hi, need to submit a 4000 words essay on the topic Overview of HRM.Download file to see previous pages As this research shall argue, however, contrary to the popular assumption that compensation schem

Hi, need to submit a 4000 words essay on the topic Overview of HRM.

As this research shall argue, however, contrary to the popular assumption that compensation schemes are the primary method for doing so, it is the collectivity of HR functions which impinge upon, and have the potential to transform the mentioned culture. In other words, while one cannot deny the fundamental role which compensation plays in affecting employee motivation levels, enhancing organisational commitment and, ultimately, transforming the dominant organisational culture, it would be fallacious and, consequently, indefensible to ignore a host of other HRM practices which, taken as a collectivity, effectively modify organisational culture and increase employees' commitment.

This section introduces several perspectives of HRM in both the U.S. society and the Western European society. In the management research literature in the United States of America, scholars are more concerned about the functions and roles played by HRM. The function of HRM has experienced an evolutionary process in business organisations. It used to be reactive, operational, and domestic. It was 'personnel management'. After 1990s, human capital has become more and more important due to the emergence of the new economy. Both researchers and practitioners have realized the strategic role played by HRM. The resource-based theory (Barney, 2001) looks within the firm itself. This suggests human assets are one of the major sources bringing about core competence for the business organisations. HRM thus becomes an important issue. Huselid (1995. 1998) propose High Performance Work Practices (HPWP), Pfeiffer (1994) propose the best practice models. From American literature on HRM, one can see the strong inclination of universalism, the optimism on human potential development.

The European scholars, however, are more concerned about the contextual factors shaping the HRM practices of companies. According to Brewster (1996), the societal culture, ownership structures, government attitude to foreign investment, the roles of union are major factors determining HRM policies and practices in context-specific situations. Such perspective helps to understand the unique situations and differences between nations in their HRM practices as well as how MNCs try to adapt to local practices.

In international business literature, Evans, Tayeb (2001) argue that human resource management makes contribution to organisational performance by playing three roles. The basic role is building the foundations of attracting, motivating and retaining people in place. The second role is realigning it to the environmental change and reconfiguring the different elements as time evolves.