Human Resource Management High School Essay Example | Topics and Well Written Essays - 3250 words

Human Resource Management High School - Essay Example While making profit remains the ultimate goal of every business enterprise; it is considered that financial performance is not the only one that has impact on revenues. In other words, the 'rule of the bottom line', which was popular in the early XX century has much less weight nowadays. Taking into account overall organisational performance implies increasing role of management to the business success. "Top managers bring to the administrative setting a variety of idiosyncratic values, beliefs and behaviours the posture of the organisation, its actions and, consequently, its performance, reflect the bounded rationality, multiple goals, competencies and skills of its leaders." (Ramaswami and Thomas 1994, p. 74). Multiple management concepts developed in past decades tend to determine key factors and to use them effectively to increase organisational performance. For example, TQM (Total Quality Management) focuses on the quality of the final product as a way to increase competitive advantage and performance of the company. Among others the concept of HRM (Human Resource Management) operates an assumption that performance of the business can be increased through people working in it. One of the key accents in HMR is made on the importance of balancing between outsourcing jobs to external workers and completing them within the company: "firms must choose between alternative governance structures. When firms rely on outside suppliers, they are relying on market contracting as a form of governance. When they rely on internal employees, they are relying on organizational hierarchy." (Gainey et al 1999, p. 113) Outsourcing has always been and will be the best way to complete a job, in which your company does not tend to specialise. The technology has significantly changed the contemporary look of outsourcing. Companies had to work with available performers in the past. Nowadays with the recent rapid development of IT, new market of outsourcing services has emerged. Internet and Web services have made it possible to choose among all the companies in the world for outsourcing. Needless to say, IT industry was the first one greatly influenced by outsourcing. "Not long ago, everybody thought the big salaries were in IT. IT jobs have been exported to developing countries" (Gordon 2004, p. 41). US Case US have become the first country that felt significant changes made by the development of outsourcing. Following principles of increasing labor efficiency stressed in various innovative management concepts (HRM was one of them), managers started to transfer manufacturing processes to China and Indonesia significantly decreasing costs associated with labour. Anxiety among US workers was set at rest by the strategic position of companies: executives reassured outsourcing will only relate to 'blue collar' jobs, which do not require special skills. "Old technology, [experts] claimed: manufacturing is passe. The U.S. would enter the new global economy with the new technology. Information, services, cutting-edge research and development--these would be the clean, high-paying jobs that would keep America on top." (Jasper 2003, p. 10) However outsourcing was not constrained by 'blue collar' jobs. John McCarthy, analyst of