Every organization, regardless of its size, engages in human resource management (HRM). Dr. Hagan (2009) defined HRM as all activities relating to attracting, deploying, motivating, retaining, rewarding, and developing of a qualified, competent, high-performance work force.
HRM is also the design of formal systems in an organization that ensure the effective and efficient use of human talent to accomplish organizational goals (SHRM 2008, 6). Each company’s HRM policies and practices can be implemented, reflecting various factors including the history of the firm, the preferences of top management, the leadership of the HRM function, presence of labor unions, and government regulations.
Moreover, HRM activities include every day practices. Line managers assume responsibility for the task of managing people and the effective employee relationship through daily work. All employees also share the responsibility of making the HRM activities work effectively. Thus, successful HRM requires actively involving three key players: employees, line managers, and HR professionals (Schuler 2004).
In addition, HRM has generally been viewed from two different perspectives: hard and soft (Storey 1995). The hard model focuses on the labor force as expense. It emphasizes costs in the form of head counts, like other factors of production. In contrast, the soft model stresses the human aspects of HRM. It treats employees as valued assets, a source of competitive advantage through their commitment. It, therefore, focuses on generating employee commitment by communication, motivation, and leadership.
