A review on human resources management (HRM) theories and effective human resource management models

Abstract

Human Resource Management (HRM) has become more important to strategic management, particularly as a result of its role in providing competitive benefit, advantage and the rush to competitiveness. Human Resources are seen as the available talents of people to an organization as potential contributors to fulfill the organization's mission, v ision, strategy and goals. Drastic changes occurred when machines and industry manufacturing methods were introduced in early 1900. Since machines and devices were introduced for manufacturing industries, laborers and workers expected very high output minimizing the labour cost. When a machine or device required several number of workers to operate its different functions, supervisory and control procedures were necessary and must for managing the workers owing to the factors like how different duties are assigned and allocated among workers, and to maintain worker relationships, communication, and job divisions. Factory authorities started to frame and design rules, regulations, work time schedule, job assignment methods and procedures, remuneration pay structures. They further designed proper and appropriate plans for getting a maximum output of the labour through job specialization. This trend was mostly influenced for the development of the theory called Scientific Management. Taylor (1856–1915) is called as the father of scientific management, who introduced several management principles and rules for organizations. This is one kind of first theoretical approaches for HRM during that period. The second theoretical approach of HRM is the human relation school developed by Mayo (1880–1949) and Roethlisberger through their Hawthorne research studies. The above theories are not classified as HRM theories, but they have a direct influence for the advancement and development of HRM theories. This review paper discusses on Human Resources Management (HRM) theories and effective human resource management models, HRM definition, nature of HRM, scope of HRM, role of HRM, importance of HRM, models and theories of HRM. Besides, HRM theories like universalistic theory, contingency theory, configurationally theory are discussed.