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It is clear that performance of each company depends not only on hard work of its personnel, but also on the "human side" of the employees, i.e.: their competence, motivation, attitudes, communication and other variables. Most researchers admit that HRM is the core of company's general efficiency.
In the present project I will analyze the paradigm of HRM in the context of organizational theories, describe the origin of modern HRM and analyze the practice and strategies of effective HRM on the analysis of IBM Corporation.
Also the history of organization is obviously as old as the history of a civilization itself, the history of HRM is much younger. Emerging in 1960s, the paradigm of HRM relied, however, on previous researches and findings of organizational scientists. As Price (2000) believes, HRM "hasn't come out of nowhere" as throughout the whole XX century and even earlier both practitioners and scholars attempted to design the theories explaining human behavior at work and the ways to raise its effectiveness. The findings in the paradigms of group theory, leadership and management, communication and motivation helped development of modern HRM as a single paradigm
The first tentative ideas of HRM date back to the early XX century. These ideas are associated with American schools of management, particularly with F. Taylor's "scientific management" and E. Mayo's "school of human relations".
Frederick Taylor was the first who underlay business practice with significant theoretical findings. Taylor assumed that material side is not the major motivation of the employees. Instead, people need to be managed in order to work more effectively. Taylor suggested the policy of stick and carrot based on the principles of punishments for poor performance and appraisals for better working efficiency. Besides, Taylor was the first to identify the needs of the employees and hire nurse and psychologists to his company (Storey, 2001).
Elton Mayo reconsidered Taylor's ideas significantly. During his longitudinal Hawthorne experiments Mayo found as well that salary is not the best motivation for people. Instead, he found out that people are sociable by their nature and they work effectively if they receive a positive feedback from administration. Other pivotal findings of Mayo were (i) people's need for communication, (ii) existence of informal groups and (iii) group moral (Gillespie et al, 1993).
In 1930s the ideas of HRM were reconsidered by Kurt Lewin who developed own theories of group dynamic and leadership. Lewin was one of the first who explained psychology of groups, identified the reasons and motives of human behavior at work and suggested the ways of their effective management. Lewin's theory of leadership still remains a classic in modern HRM. Besides, Japanese school of management is based on Lewin's findings in a larger extent (Lewin, 1947).
During 1950s the diverse human relations and human factors approaches were united into a broad organizational approach. This period was the heyday of organizational science as during this period major concepts that underlie modern HRM were developed. The most important of such theories is obviously Abraham Maslow's (1954) theory of motivation. Maslow's ...Show more


In terms of globalization and growing competitiveness of the market companies need to rely more on skilled and motivated personnel then on technologies and products. Whereas technologies may be stolen and products may be duplicated by competitors the only way to sustain companies' competitive advantage is to invest in its personnel.
Author : vschaden
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