Human Resource Management - Book Report/Review Example

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Human Resource Management

ownership is separated from the day-to-day running of the organisation. It assumes that in all but owner- managed organisations the owner or owners (known in agency theory as the "principal") of an organisation must vest authority to an "agent"-corporate management- to act on their behalf. Harrison R and Kessels J. (2004, Pp 25-26). The principal recognises the risk, here and act on the assumption that any agent will look to serve its own as well as the principal interests as it fulfils it contract with that principal. However, this is not the situation in real life situation. As all agents are perceived to be opportunistic (Williamson, 1985; Seth and Thomas, 1994). These approaches to examining the problems of human exchange derived from the field of finance and economics but they are often applied to the study of shareholders Risk Management (SHRM) (Harrel-Cook and Ferris, 1997). Agency theory is therefore used to analyse this conflict in interest between the principal . (shareholders of organisations) and their agents (leaders of these organisations). ...Show more

Summary

The field of human resource (HR) management is one of the many interesting area of research that has witnessed a paradigm shift within the last few decades (Huselid, A. M., (1995), Doty &Delery 1996). Within this area of research, an increasing body of literature contains the argument that, high performance work practices, including comprehensive employee's recruitment, selection procedures, incentives compensation and performance management systems, and extensive employee's involvement and training can improve the knowledge, skills and abilities of firms (Huselid,1995, Doty &Delery 1996).
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