To be a firm operating in the Twenty-first century requires an organization to continually grow and improve in order to survive in the hugely competitive business climate that exists today. As a result, it is important that a firm knows how to make effective use of all its resources and thus achieve competitive advantage against its competitors. One resource in particular proves to be immeasurable in terms of importance and can be considered a company’s greatest asset - the human resource. Focusing on company structure and culture, acknowledging the role these factors – amongst others – play in attracting, driving and retaining skilled and hardworking employees can make a huge difference for a company’s bottom line ('A treasure too valuable to waste', 2010). Being able to identify promising individuals and differentiating potentials when hiring or promoting staff, establish adaptable organizational structures that encourage work-life balance, promote diversity and inspire employees is an invaluable management skill that allows firms to efficiently make use of its human resources. This type of management is otherwise known as Human Resource Management (HRM) ('A treasure too valuable to waste', 2010).
This essay aims to discuss how HRM can be used to increase employee commitment and organisational performance through the use of different human resource management models. The definition of HRM will be further discussed and the different models that firms may use to achieve objectives. Furthermore, the mentioned benefits of HRM will be contrasted with it’s unique challenges, through a detailed critiquing. The models discussed are the Harvard Model and the Strategic Human Resource Management Model. Lastly, a practical analysis will be conducted in order to develop recommendations for how firms can overcome some of these challenges before conclusion.
Defining HRM