Human Resource Management - Essay Example

Fordism is considered to be among the most influential theory towards development of human resource management. Fordismis an industrial production that is developed from taylrism methods. The main aim of fordism is maximizing tight control on movements and planning of executing plans. Fordism supported domestic mass production and the allocation of high wages among laborers. It was under fordism concept that mass consumption considerations got integrated with accountabilities on production. The philosophy of fordism has influenced business operation management that keeps transforming to address demands in the complex and competitive market environment (Armstrong 1).

With modernization, organizations grew larger and the demand for human resource management kept increasing. With fordism in place human resource management emerged. Skills became fragmented and specialized as positions were highly differentiated. Organizations, therefore, updated service delivery to answer to the demands of the customers. Fordism highly supported division of labor mass production is widespread and most production companies still implement fordism principles in their administration of human resource management.

Long hours and labor that is cheap are factors that are still profitable to the small manufacturing companies. However, the fordism principles cannot be as successful as before but they have highly helped in shaping the future of human resource management in most industries. There is so much improvement in technology, complexity of social environment and so many other changes. The human resource management being applied today has some traces of fordism but fordsim alone cannot be successful (Petit 220).

The concept of institutional economics is a foundation of human resource management. The neoclassical and neo-institutional schools of economics argue that the economic theories are a foundation and great implications of the human resource management theory. The macro-prudential policies provide policy makers with a set of policy instruments to complement changes. The instruments implicate the policy makers to make fine judgment on risks to financial stability and traditional concerns on monetary policy.

Caution when making judgments is highly encourages by the monetary policies. The macro-prudential policies are the main components of human resource management. People are highly affected by the changing customs and changing institutions and the institutional economics are pecuniary and emphasize on collective action of various groups (Jackson 450). Institutional economics has become a major influence on human resource management. It is associated with training behaviors within organizations for a long time.

Essentially human resource management deals with training behaviors in organizations for better production and achievement of higher profits. This shows the connection that exists between institutional economics and human resource management (Rutherford 300). If a close examination is carried out on institutional economics, one realizes that the internal labor market theory as well as other theories are a foundation and continue to have important implications on research and the analytical approaches in the human resource management field.

Management of human resources today is highly influenced by institutional economics. Most of the functions of human resources have been borrowed or are as a result of institutional economics being a foundation. Human resource managers are able to address change from the theories of institutional economics (Brian 1090). Works CitedArmstrong, Michael. Armstrongs Handbook of Human Resource Management Practice.` London: Kogan Page, 2009Brian T. McCann. "New Product Deployment: The Moderating Influence of EconomicInstitutional Context.

" Strategic Management Journal 35.7 (2014): 1090-1101Jackson, William A. "Post‐Fordism and Population Ageing." International Review of AppliedEconomics 20.4 (2006): 449-467.Petit, Pascal. "Structural Forms and Growth Regimes of the Post-Fordist Era." Review OfSocial Economy 57.2 (1999): 220-243.Rutherford, Malcolm. "J.M. Clark and Institutional Economics: Remarks on the Receipt OfThe Veblen-Commons Award." Journal of Economic Issues (M.E. Sharpe Inc.) 47.2 (2013): 295-310.