The Stages of Shifting to HRM from Personnel Management

Human resource management reacted toward emerging problems as piece-meal on the

first place. Linking the issues of HRM to the overall strategy of the organization is known as
effective HRM. This is performed to change or reinforce an organizations culture. It involves the
most effective HRM practices and policies that are integrated into corporate strategies and
policies. In two senses, the integration is required. First was securing the inclusion and
acceptance of a HRM view in the decisions of line managers and integrating issues of HRM in
the strategic plans of the organization.
With respect to various functions, like, training, recruitment, and etc, the policies of
HRM must be internally consistent. They must reflect upon the core values of the organization
and must also be consistent with the strategies of business. Arousal of business strategy was the
problem in integrating HRM view. For instance, it was difficult to match strategies that could
differentiate amongst different business activities with policies of HRM, as different policies of
HRM may be required by each one of them.
Building strong cultures was the second stage. Particular organizational goals can be
promoted through strong cultures. Through a shared set of managerially sanction values, such as,
innovation, service, quality, and etc, uniting the employees is the main aim of a strong culture.
However, in the rapidly changing and highly competitive environment in which the employers
operate, there can be a tension between the need to be flexible and to adapt to changed
circumstances and a strong organizational culture. In an organization with a strong culture, the
rapid change demanded by the market is sometimes difficult. For instance, when a radical change
in service and the product was required by the market, like, from mainframe to personal

computers, it was difficult for IBM to effect changes in time, due to its strong organizational
culture and firmly-held beliefs regarding services and products.
The third stage is that in effective HRM, there was a perspective that peoples attitude are
a variable cost. This perspective was replaced and concluded that people are a resource, like,
social capital that can contribute to competitive advantage and can be developed. It is accepted
increasingly that through committed, motivated, trained, and well-educated employees at all
levels, the competitive advantage can be gained. For the plausible argument that development
and training are the central pillars of HRM, this recognition is now almost universal. Fourth
stage is related to the perspective that the interests of shareholders or management and
employees are conflicting and divergent. However, it is considered that it must not be this way,
although, it was true in the past.
A commonality of interests is promoted and identified by organization that practices
effective HRM. Training is one of the significant examples, as it increases the value of the
employee to the goals of enterprise of better performance and productivity, and it enhances
higher earning capacity for employees and employment security. Another example is pay
systems, which promote goal-setting and higher performance levels through two-way
communication, which provides intrinsic rewards to the employees through a participatory
process, and establishes unified objectives and goals. At the same time, it also increases earnings
without a significant increase in labor cost.
Top-down communication was the fifth stage. To keep power within the control of
management it controlled the information flow. This change made knowledge more productive
and facilitated the creation of commitment and trust. In effective HRM, increasing employee
policies and participation replaced the control from the top, as it fostered flexibility and

commitment that helped organizations in changing. For example, ways in which two-way
communication and information sharing systems were introduced and participatory schemes
were installed by the larger Japanese enterprises.
In achieving the objectives, HRM becomes a part of those enterprises that tend to have
underlying values, missions and corporate philosophies that shape their corporate culture.
Through emphasis on involvement and communication, employee co-operation was often
required in the goal of managing change successfully at short intervals in some type of
enterprises, like, those in which continuous technological change takes place.
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Keywords: HRM, policies.