By Michael Armstrong
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Additional info for A Handbook of Human Resource Management Practice 10th Edition
Personnel management, like the ‘soft’ version of HRM, attaches importance to the processes of communication and participation within an employee relations system. 1. HRM places more emphasis on strategic fit and integration. 2. HRM is based on a management and business orientated philosophy. 3. HRM attaches more importance to the management of culture and the achievement of commitment (mutuality). 4. HRM places greater emphasis on the role of line managers as the implementers of HR policies. 5.
Technology – the challenge is to make technology a viable, productive part of the work setting. Intellectual capital – this is the source of competitive advantage for organizations. The challenge is to ensure that firms have the capability to find, assimilate, Human resource management ❚ 27 ● compensate and retain human capital in the shape of the talented individuals they need who can drive a global organization that is both responsive to its customers and ‘the burgeoning opportunities of technology’.
The adaptability of employees determines the strategic flexibility of the firm. The commitment and loyalty of employees determine the firm’s ability to maintain competitive advantage. Cappelli and Singh (1992) propose that competitive advantage arises from firmspecific, valuable resources that are difficult to imitate, and stress ‘the role of human resource policies in the creation of valuable, firm-specific skills’. Other writers confirmed this view. For example: HRM is an ‘approach to labour management which treats labour as a valued asset rather than a variable cost and which consequently counsels investment in the labour resource through training and development and through measures designed to attract and retain a committed workforce’.
A Handbook of Human Resource Management Practice 10th Edition by Michael Armstrong