By Michael Armstrong, Stephen Taylor
From an across the world revered professional on administration themes comes this totally revised 10th anniversary version of his vintage textbook.
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Extra resources for A Handbook of Human Resource Management Practice
30 ❚ Managing people The Accounting for People Task Force Report (2003) stated that HCM involves the systematic analysis, measurement and evaluation of how people policies and practices create value. The report defined HCM as ‘an approach to people management that treats it as a high level strategic issue rather than an operational matter “to be left to the HR people” ’. The Task Force expressed the view that HCM ‘has been under-exploited as a way of gaining competitive edge’. As John Sunderland, Task Force member and Executive Chairman of Cadbury Schweppes plc commented: ‘An organization’s success is the product of its people’s competence.
Importantly, organizations have to focus on organizational capital – the knowledge they own and how it should be managed. Change, change and more change – the greatest challenge companies face is adjusting to – indeed, embracing – non-stop change. They must be able to ‘learn rapidly and continuously, and take on new strategic imperatives faster and more comfortably’. 2 Human capital management Human capital management (HCM) has been described as ‘a paradigm shift’ from the traditional approach to human resource management (Kearns, 2005b) – a large claim.
According to Kearns, in HRM ‘the HR team is seen as a support service to the line’ – HR is based around the function and the HR team performs ‘a distinct and separate role from other functions’. Conversely, ‘HCM is clearly seen and respected as an equal business partner at senior levels’ and is ‘holistic, organization-wide and systems-based’ as well as being strategic and concerned with adding value. The claim that in HRM employees are treated as costs is not supported by the descriptions of the concept of HRM produced by American writers such as Beer et al (1984).
A Handbook of Human Resource Management Practice by Michael Armstrong, Stephen Taylor
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