Human Resource Theories and Concepts
The purpose of this essay is to analyse and explain, using Human resources models, concepts and assumptions, how and why people are of value to organisations and how and why it is assumed that HRM/SHRM can contribute to company success through valuing and managing its employees.
According to Legge (2009 pg77), human resource management is defined as the strategic and approach to the management of an organization's most valued assets which is the people or the staff members. There is a traditional definition or way of human resource management and a strategic way of human resource management. Traditional Human resources management is all about policies, systems and everyday practices that influence the employee’s attitudes, …show more content…
Therefore if Olympus had valued its employees it would not have suffered the loss and the scandals would have not taken place in the first place.
According to the Resource Based View (RBV) of the Firm, the Olympus management should have been able to manage the internal resources efficiently and effectively. Also, the Olympus management should have been able to have a defined and ethical workplace culture in order to achieve high performance of the firm. Olympus management should also have focused more on competitive advantage through the integration of HR strategy with the business strategy.
The Human Resource concepts come from Concept comes from economic theory. Theoretical concept used to explain how organisations can develop a ‘unique’ fit between their business strategy and their HR strategy; Use of human and other resources to adapt to their competitive environments. Toyota is typical example of a firm that uses this concept. At Toyota, competitive advantage is highly considered and linked with the Human Resource strategy. Toyota employees are highly trained, motivated and trained highly on customer service and customer satisfaction thus making sure that the company makes profits by having the best customer service and sales service. The company has positioned itself as the high quality and low price manufacturer thus offering superior returns to customers, employees and