Essay on Human Resource Management in Business

3179 Words Apr 22nd, 2005 13 Pages

Human Resource Management in Business
Sylvan R. Wilcox
Warner Southern College

Human Resource Management (HRM) is no longer a personnel office that is simply a record-keeping and maintenance function. Huselid (1995) points out that there is a positive correlation that has developed between HRM as a strategic ally and company performance. HRM research has grown from an atheoretical origin to view organizational activities from an interdisciplinary perspective (Jennings, 1994) that is concerned with a movement toward methodological and theoretical development (Ferris & Judge, 1991). This review will look at the different ways HRM plays into the overall scheme of providing
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The works by these theoreticians have drawn on the resource based view of the organization (Barney, 1991, 1995) and have argued that few of the more traditional sources of sustainable competitive advantage, like technology and access to financial resources, create value in a manner that is nonsubstitutable (Ferris et al., 1999). According to Ferris et al. (1999), the slight differences of the human resource value creation process are extremely difficult to imitate, as they are "path dependent and causally ambiguous." Each of the research programs that have been carried out is important and distinct in their own regard, but they also share a common characteristic. The similarity is that research in these areas is relatively new and has historically not had the benefit of a richly developed theoretical base to build upon. However, this trend appears to be changing as researchers have developed conceptual models of HRM that have moved research away from its atheoretical origins (Ferris et al., 1999).
One change that has come about from the research is the creation of professional employer organizations (PEO) that provide HR services to small and medium organizations that must outsource their HR activities (Klass, 2003). Various reasons exist for organizations having to outsource their HR activities, and

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