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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). Whereby the "Agents" in keeping with the interest of the shareholders and organisational goals turn to use financial motivational aspects like bonuses, higher payrolls, pensions, sick allowances, risk payments, perks to reward and retained their employees and enhance their performance. There is a strong lobby propounding the view that human resources and their management are the source of competitive advantage for the business, rather than, say, access to capital or use of technology. It is therefore logical to suggest that, attention needs to be paid to the nature of
this resource and its management as this will impact on human resource behaviour and
performance and consequently the performance of the organisation. Indeed Boxall and
Steeneveld (1999) argue that there is no need to prove the relationship between firm critical influence on performance and labour management as it is self evident that the quality of human resource management is a critical influence on the performance of the firm. Concern for strategic integration, commitment flexibility and quality, has called for attention for employees motivation and retention. Given this perception, the principal in an organisation feels unable to predict an agent's behaviour in any given situation and so brings into play various measures to do with incentives in other to tie employee's needs to those of their
organisation. Thus getting employee's identification with respect to the organisation, and thus increasing their commitment level. As an approach to mediate the employment contract, elements of human resource strategy (especially those to do with rewards and retention) can offer a way of ensuring an efficient transaction process that enables both ...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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Human Resource Management Book Report/Review essay example
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