An organization gains competitive advantage by using its people effectively, drawing on their proficiency and skill to meet clearly defined objectives.
HRM is aimed at recruiting competent, flexible and committed people, managing and rewarding their performance and developing key competencies.
The rise of modern human resource management is more than just a change in terminology from personnel management to human resource management. There have been many changes in HRM which relocate the mindsets of employers to look at their employees as a unique, valued asset and not as an expense to condense.
Modern HRM wants the workforce to be effective by doing the right thing rather than being efficient by doing things right and to work smart rather than work hard.
In contemporary times HRM is concerned with the mental models and mindsets of the people of the company.
Commitment is a central feature of contemporary HRM where modern organisations are moving their management styles from one based on control, to one based on commitment.
Nowadays, human resource management is not just about administering people but also about shaping the culture and traditions of the organisation.
Mutuality in labour relations is focused on current HRM practices based on commitment.
Adversarial labour relations, which was the outcome of traditional HRM is being replaced with mutuality with joint planning and problem solving.
Open communication is also a vital improvement in contemporary HRM. Traditionally employees were expected to ‘do as you’re told’.
Currently the trend for many organisations is open communication, where employees are encouraged to voice out their ideas and opinions.
Flatter organization structures and minimum status differentials have contributed much to this novel communication process.
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