How Would You Account for the Rise of Hr
How would you account for the rise of the human resource function within large firms?
Word Count: 1928
MSc in Management Year One
How would you account for the rise of the human resource function within large firms
The term “human resources” is used to refer to the department of a business or organization that deals with the hiring, administration and training of staff (Oxford Dictionary, 2012). The field of HR management is a bit more complicated to define, as it seems to have a variety of meanings. This confusion reflects the different interpretations found in the existing literature and probably mirrors the evolution of the field. Boxall and Purcell’s (2003) define HRM as “all those activities associated with the management of the employment relationship in the firm.” The HR function encompasses everything from recruitment, training and development, performance management, compensation and benefits, employee relations and communications to organizational effectiveness and management development. The field of HR has developed tremendously since the industrial revolution. Like management accounting it was originally seen as a boundary function but it has now shifted to an absolute central position in the firm. The rise of the human resources function is not limited to multinational companies. Small and medium enterprises engage more and more in a mix of human resources practices and there is evidence that this implementation has improved performance levels (Chandler & McEvoy, 2000). However, for the purpose of this essay, we will focus specifically on large firms where the HR function is much more developed. There are many different factors that account for the fast development of this function in MNEs. The first and maybe most ‘historical’ factor is strongly linked with the traditional function of HR. The development of a strict set of labour regulations increased the importance of HR as protection against possible legal actions (coercive mechanisms).
Word Count: 1928
MSc in Management Year One
How would you account for the rise of the human resource function within large firms
The term “human resources” is used to refer to the department of a business or organization that deals with the hiring, administration and training of staff (Oxford Dictionary, 2012). The field of HR management is a bit more complicated to define, as it seems to have a variety of meanings. This confusion reflects the different interpretations found in the existing literature and probably mirrors the evolution of the field. Boxall and Purcell’s (2003) define HRM as “all those activities associated with the management of the employment relationship in the firm.” The HR function encompasses everything from recruitment, training and development, performance management, compensation and benefits, employee relations and communications to organizational effectiveness and management development. The field of HR has developed tremendously since the industrial revolution. Like management accounting it was originally seen as a boundary function but it has now shifted to an absolute central position in the firm. The rise of the human resources function is not limited to multinational companies. Small and medium enterprises engage more and more in a mix of human resources practices and there is evidence that this implementation has improved performance levels (Chandler & McEvoy, 2000). However, for the purpose of this essay, we will focus specifically on large firms where the HR function is much more developed. There are many different factors that account for the fast development of this function in MNEs. The first and maybe most ‘historical’ factor is strongly linked with the traditional function of HR. The development of a strict set of labour regulations increased the importance of HR as protection against possible legal actions (coercive mechanisms).