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Today, the concept of human potential management (HPM) and argues that
the old concept of human resource management (HRM) should be replaced
by HPM. Argues that treating human beings as a resource to be used,
utilized or manipulated like any other resource is demeaning. Further, with
the increasing number of highly skilled knowledge workers, resentment of
the word “resource” is likely to increase, since knowledge workers are
inclined to be hostile to manipulation. They would prefer the organization to
enable them to fulfil their true potential and, in so doing, help the
organization to achieve its objectives. Also presents a definition of HPM and
highlights the features which differentiate it from HRM.
The Objective :
The methods :
The results :
Comments :
Introduction
Other critics have felt that HRM is like putting old wine into new bottles, i.e.
it is merely changing the name from personnel administration to HRM, yet
retaining most of the traditional personnel administration functions. Apart
from these criticisms, a review of the concept in the context of the changing
environment and changing profile of human capital is long overdue.
Although critics of HRM have put forward some rational arguments, they
have not come up with any constructive suggestion or new concept to
replace HRM. This is analogous to the famous painter who once put one of
his new paintings on the wall of the town hall with a note that anyone noticing
any flaw in the painting should put a mark at the appropriate point. In the
evening when he came to see the painting, he was pained to see his
painting spoiled as it was full of marks. A few days later, he did another
painting and again put it on the wall of the town hall with a note saying that
anyone noticing any flaw should improve it. This time when he came back
in the evening, he found his painting intact without any mark. The moral of
the story is that in the absence of any other alternative appropriate
terminology, the terms HRM and HRD are still in vogue and have, in fact,
become much more popular then ever before. Understanding the
sentiments of the critics towards the term HRM and its disputed usage, an
attempt has been
made in this paper to develop a new terminology and concept for this key
aspect of management. But before this, a brief examination of the words
“resource” and “human” is given. According to The Concise Oxford
Dictionary (1982), resource is a “means of supplying some want or
deficiency, a stock or resource on which one can draw when necessary”. In
this sense, resource is something which can be manipulated or controlled
by management or the organization at its wish and to its advantage. This
itself seems to be undermining human beings, as a human is something that
is “opposite to animals, machines, mere objects, etc.”, because humans
have “superior mental development and power of articulate speech” (The
Concise Oxford Dictionary, 1982). Unfortunately, this aspect of “human”
seems to be missing in the definitions of HRM, owing to both the
overemphasis of the word “resource” and perhaps its connotations in
traditional notions of “personnel administration”, in which personnel were
“administered”. Therefore, although HRM was thought to be an
improvement, it still considered human beings as “resources” to be
managed, perhaps because it was felt that they were incapable of self-
management. In this sense, HRM deprives employees of using their
“superior mental development” and full potential as it assumes that, like any
other resource, human beings can be manipulated and exploited. Monday
and Noe (1990) define HRM as “the utilization of human resources to
achieve organizational objectives”. In this definition, it would appear that the
term “utilization” does not exclude utilization through coercion. In this sense,
therefore, utilization could lead to demoralization and to a lack of motivation
and, ultimately, be counter-productive to organizational growth and
development. This means that the concept of HRM is still about treating
human beings not only as a means to achieving organizational objectives,
but also as being peripheral to the organization. With this kind of mindset,
organizations are likely to see employees as just cogs in a wheel. All this
also raises an ethical question, i.e. should organizations manipulate human
beings by creating systems and structures which undermine the superior
mental ability of human beings? Casse (1994) feels that it is ethically wrong
to equate people with
[ 177 ]
resources and says, “people often resent being described in such terms”.
Elaborating on this point further, he says: The expression HRM immediately
relegates people into the category of corporate resources … It implies that
the corporation’s sole mission is to produce and sell goods and services in
order to make a profit, this goal to be accomplished by means of its various
resources – among them, the human beings. HRM conveys the idea that
people are employed in order to be used, that their raison d’être is not to
enjoy but to serve.
[ 178 ]
Given these distinctive features, HPM is a step forward from Miles’ (1975)
three alternative theories of management and provides a fourth model or
theory. In terms of assumptions, policies and expectations, it can be added
as a fourth model as shown in Table I.
Conclusion
[ 179 ]
[ 180 ]
Satish Kumar Kalra Human potential management: time to move beyond
the concept of human resource management?
as mere resources but as real partners”. Hence, it is time to move from HRM
to HPM and help organizations to change their mindset towards this. HPM
in this sense has to play a proactive role and this, itself, is the challenge for
the HPM professional in the present-day dynamic environment.