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The Role of Human Resource Management

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The role of human resource management Part contents
1 Introduction to human resource management

1

2 Human resource planning and resourcing

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3 Work and job design

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Chapter

1

Introduction to human resource management LEARNING OUTCOMES
After studying this chapter, you should be able to: identify the historical developments and their impact on HRM outline the development and functions of HRM understand the differences between HRM and personnel management evaluate ‘hard’ and ‘soft’ approaches to HRM understand how diversity is an issue in HR practice consider the HRM as an international issue.
The opening vignette gives a somewhat pessimistic view of the role of people in the workplace.
Often it is the job of the human resource manager to develop policies and practices that serve the organisation, but she or he also needs to think about the people. If the people are nurtured then the organisation can develop. As can be seen below, this was not the case with Enron.

Enron: something’s got to give
Human beings are not governed purely by their own self-interest, so our management and HR systems should not assume they are.
For more than a year, Andrew Fastow – the erstwhile chief financial officer of Enron and the key architect of the off-balance-sheet entities that caused Enron’s sudden death – ran rings around the prosecutors investigating the collapse of the energy giant.

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CHAPTER 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Suddenly, he has pleaded guilty to charges that are likely to land him in prison for 10 years, forfeited $29 million he personally made from operating the off-balance-sheet entities, and agreed to fully co-operate with the prosecutors.
What caused Fastow’s about-turn was the likely indictment of his wife, Lea Fastow. The only condition he made for his plea bargain was

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