The Role of Human Resource Management Essay
The role of human resource management Part contents
1 Introduction to human resource management
2 Human resource planning and resourcing
3 Work and job design
Introduction to human resource management LEARNING OUTCOMES
After studying this chapter, you should be able to: identify the historical developments and their impact on HRM outline the development and functions of HRM understand the differences between HRM and personnel management evaluate ‘hard’ and ‘soft’ approaches to HRM understand how diversity is an issue in HR practice consider the HRM as an international issue.
The opening vignette gives a somewhat pessimistic view of the role of people in the workplace. …show more content…
This was the same Andrew Fastow who designed Enron’s entire management system around a ﬁrm faith that employees pursued only their own self-interest. ‘You must allow people to eat what they hunt,’ he used to say, ‘only then will they hunt well.’ It was this philosophy that made
Enron adopt one of the most extreme systems of individual incentives: when you started a new venture within Enron, you got phantom stocks relevant only to your venture. As long as your efforts made money, you got rich, irrespective of what happened to other parts of the company.
As a result, everyone in Enron, including Fastow, acted like hunters – looking out only for themselves. The results of such behaviour are now well known.
This is an interesting contrast, and it is by no means unusual. Most managers know that they themselves, and most other people, care about others close to them in their personal lives – their children, old friends, perhaps even some of their neighbours – and that they would happily incur some costs to help these people. At the same time, they also believe that, at work, people care only about their own self-interest. Even if they do not explicitly believe that, they design their companies’ organisational and managerial processes as if the