Human Resource Management: A Detailed Literature Review Analysis

This literature review examines Human Resource Management (HRM) from various perspectives. It defines HRM as the strategic management of an organization's workforce to maximize profitability and gain a competitive advantage. The review explores the major functions of HRM, including planning, organizing, staffing, and controlling, highlighting the importance of setting goals and objectives. It delves into recruitment and selection processes, emphasizing the significance of training and development for skill enhancement. The review also discusses wage and salary administration, performance-based incentives, and the role of HR managers in delegating responsibilities. Several HRM models, such as the Guest, Warwick, and Harvard models, are analyzed, providing frameworks for organizing HR functions and achieving organizational goals. The review emphasizes the importance of strategic HRM practices, employee empowerment, and engagement activities for organizational development and improved performance. It concludes by highlighting the positive impacts of HRM on productivity, employee commitment, and overall business outcomes.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
LITERATURE REVIEW ...............................................................................................................4
REFERENCES................................................................................................................................8
2

LITERATURE REVIEW
According to Mondy and Martocchio, (2016) human resource management is defined as
an art of managing the manpower inventory of the organization in successful manner. Focus is
given for maximizing profitability of the organization. HRM is primarily concerned with
management of people in the organization. Globalization has created challenge for organization
to adopt strategic approaches for gaining competitive advantage for the business. It is imperative
that managers and supervisors in the company should take initiatives for handling the manpower
in organized manner. Moreover, major functions of HRM includes planning, organizing, staffing,
coordinating and controlling. Mathis and Meglich, (2016) has mentioned that it is vital that goals
and objectives should be set by top management of the company so that on the basis of that long
term and short term objectives for the firm can be determined.
Critical and significant functions that are performed by managers includes recruitment
and selection, training and development, designing and formulating wages policy. In addition to
that functions of HRM deals with payroll and benefits administration. Nowadays it has become
important to manage the functional activities of the firm in effective manner. Human resource
management focuses on maximizing the efficiency and productivity of the staff members.
Hendry, (2012) has explained that it becomes responsibilities of top management of the
company to formulate policies and action plan so that subordinates can be directed towards
accomplishment of goal of the company. It is a critical and complex process to hire staff
members by organizing recruitment and selection process. It requires systematic techniques for
selecting potential and capable candidates to apply for the vacant job positions in the company.
Internal and external recruitment are two different types of methods that could be used
for filling the vacant job position in the enterprise. Job promotions and job rotation are two
methods that could be adopted for shifting existing staff members to higher job positions in the
firm. External recruitment can be organized by giving advertisement in the newspaper and it will
aid for attracting potential and capable candidates to fill the vacant job position in the company.
Armstrong and Taylor, (2014) has mentioned that company needs to impart necessary skills and
capabilities to the employees so that they can complete their assigned task and work activities on
due time. It is assertive that needs and requirement of skills in a candidate should be identified so
that measures can be taken for making improvements in them. Training programs that are
3

organized in the company supports for making positive improvements in skills and capabilities
of the staff members. Employees become capable for completing their assigned work and job in
successful manner. It aids in carrying out the operational and functional activities of the firm in
successful manner. After procurement and development of employees next process that is needed
to be completed is wage and salary administration and in this appropriate wages and
compensation are given to employees so that they can meet their basic needs.
In addition to that performance based incentives are also given to the employees so their
and motivational and morale can be enhanced. Bennett and Ho, (2014) has described that Hr
mangers are responsible for handling the manpower of the company and it is required that they
should be provided with authority so that they can delegate jobs and responsibility to the
subordinates. There are many models of HRM that has been given by researchers and these
models provide framework for organizing the HR functions of the firm in effective manner.
Purce, (2014) has mentioned that methodologies and practices that are explained in HRM models
needs to be followed so that required outputs can be received through applying these models.
Guest model of HRM provides effective framework that could be used for managing the
human resource management of the organization. Jiang and Baer, (2012) has explained that there
are six dimension that are included in the Guest model of HRM and it includes HRM strategy,
HRM practices, HRM outcomes, Behavior outcomes, performance outcomes, financial
outcomes. The model has been made on the assumption that modern approaches of Human
resource maangement. Strategic approaches of HRM have been derived from traditional
practices that are used in organizatiosn and it had supported for accomplishing the required
objectives of the HRM model. According to this model different practices of HRM that are
adopted in an organization supports for gaining outcomes that are beneficial for receiving long
term and short term objectives of the company in successful manner.
Different practices that are implemented includes Organizational job design and policy
formulation and implementation of policies also comes under this approach. Moreover,
recruitment, selection, training and development and performance appraisal techniques supports
for doing the appraisal in effective manner. Communication system of the organization is also
included under the HRM practices that are implemented in the organization. Shackleton, (2015)
has described that flow of information and data needs to be proper so that all the action plans that
4

have been made by the management of the company can be implemented in successful manner.
Along with this there are many outcomes that are received and it includes human resource
outcomes in the form of employee commitment, efficient staff members and flexibility and
adaptability in the employees. In addition to that there are some organizational outcomes that are
also received through HRM practices that are being implemented. High job performance that is
given by staff members is most significant outcome that is achieved through the HRM practices
that are implemented in the company. Cognitive and problem solving skills of the staff members
is improved and it helps in reducing retention rate of the employees and lowering absenteeism in
the organization.
In addition to that high cost effectiveness and full utilization of human resources is one
more significant benefit that is being received through implementation of HRM practices in the
company. Similarly, Warwick model of HRM explains about center proposition around five
major elements. The main elements that are included under Warwick model are outer context
which is about macro environmental factors. In addition to that inner context includes micro
environmental elements that gives impact on the overall performance of the business. Business
strategies and HR practices are used in this model that supports for achieving the goal and
objectives of the company. Moreover, the organizations that implement the practices gets
successful in achieving the goal and objectives of the firm.
According to Bryson, James and Keep, (2013) Harward model of HRM describes about
six critical components that are needs to be considered as a significant component of HRM.
Major dimension includes Stakeholder interest in which Shareholders, management, employee
groups, government and community are included. Different situational factors that are
considered includes Workforce characteristic, Law and societal values, labor market unions,
tasks and technology, business strategy and conditions. HRM policies that are mage includes
Employee influences, Human resource flow, Reward system and work systems.
All the three elements works as an input that provides outputs in the form of HRM
outcomes and it includes Commitment, competence, congruence, cost effectiveness, and efficient
manpower. One more element that is being included under this model is Long term
consequences that consist of Individual well being, organizational effectiveness, societal well
being and enhancement in revenues of the company. Kundu and Gahlawat, (2015) has described
5

that process of recruiting staff members, providing orientation, training and development,
assessment of employees, providing wages and compensation, maintaining proper relations with
the staff members. Nowadays importance is been given for adopting strategic HRM practices so
that innovative practices that are implemented in the company. Townley, (2014) has mentioned
that HRM practices that are implemented in the company. Along with this these practices also
aids in organizational development and improving overall performance of the company. It
becomes duty and accountability of the HR department to ensure that organization inspire
employee empowerment and carry out employee engagement activities.
Along with this reference checking of candidates and arrangement of training programs
are some activities that are performed by the HR department of the firm. Wide areas in which
human resource practices deals includes recruitment and selection, performance management,
employee motivation, communication and administration and training and welfare programs that
needs to be performed in the company. HRM renders a strategic approach for managing the
manpower of the firm and making improvement in workforce environment. These practices also
helps the staff members in contributing in a positive manner for accomplishing the goals and
objectives of the firm in successful way. Herman, (2013) has defined that overall productivity of
the organization improves when innovative approaches are used in handling the manpower
inventory of the firm. HRM is moving from traditional approaches to strategic roles and it is
helping for fulfilling the long term and short term goals of the firm in successful manner.
Impacts are observed on the performance of the business in positive way.
6

REFERENCES
Books and journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bennett, J.M. and Ho, D.S., 2014. Human resource management. In PROJECT MANAGEMENT
FOR ENGINEERS (pp. 231-249).
Bryson, J., James, S. and Keep, E., 2013. Recruitment and selection. Managing human
resources. Human Resource Management in transition. pp.125-149.
Hendry, C., 2012. Human resource management. Routledge.
Herman, V., 2013. A study on local government autonomy in recruitment and selection functions
in Ilala municipal council (Doctoral dissertation).
Jiang, K. and Baer, J.C., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Kundu, S.C. and Gahlawat, N., 2015. RECRUITMENT AND SELECTION TECHNIQUES
USED IN CORPORATE SECTOR: A COMPARATIVE STUDY OF INDIAN AND
MULTINATIONAL COMPANIES. Journal of Organisation & Human Behaviour. 4(4).
Mathis, R.L. and Meglich, P., 2016. Human resource management. Nelson Education.
Mondy, R. and Martocchio, J.J., 2016. Human resource management. Pearson
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Shackleton, V., 2015. Recruitment and selection. Elements of Applied Psychology, p.153.
Townley, B., 2014. Selection and appraisal: reconstituting. New Perspectives on Human
Resource Management (Routledge Revivals). p.92.
7