Human Resource Management Concepts Evolution

Words: 978
Topic: Business & Economics

Any organization that aspires to be efficient and effective in its operations requires a vibrant Human Resource Management (HRM) strategy. Fredrick Taylor, a mechanical engineer, introduced the concept and practice of HRM in the early twentieth century. He referred to it as “scientific management” (Taylor 7). He aimed to increase the efficiency of employees about the output in the manufacturing industry.

Over the years, HRM has evolved into a key pillar in corporate management. Scholars and practitioners of HRM have come up with several propositions that aim at defining the practice. Consequently, concepts that buttress the HRM framework and practice have emerged. These include teamwork, employee retention, and performance management.


Teamwork entails a “group of people working on a common task, in complementary roles, towards a common goal and whose outcomes are greater than those possible by any one person working independently” (Griffith University 5). Teamwork creates a functional synergy for people working in an organization.

This synergy boosts their combined output while at the same time, drives them to achieve effectively the common goal of an organization (Dym & Little 39). For instance, two people who have personal differences are obliged to put everything aside for the sake of the team’s common goal.

Elton Mayo was the first to document the concept of teamwork in his book The Human Problems of an Industrialized Civilization (Mayo 47). In the early twentieth century, teamwork existed, though it was not very visible.

Over the years, teamwork has become a very important HRM practice in many organizations. Mars, leading pet care and confectionery company, has identified teamwork as one of its pillars under “the responsibility principle” (10). Since the company embraced the concept of teamwork, the performance of its employees has significantly improved.

The team mentality is critical for teamwork to thrive, hence the need for team formation. Teams usually go through the forming, storming, norming, and performing stages to emerge as effective teams (Tuckman 396). For instance, in Japan and Korea, employees have a natural inclination to put the goals of their companies ahead of their interests.

Employee Retention

Many companies grapple with the challenge of high employee turnover. However, the natural desire for change by employees seldom appears to be the cause of employee turnover. Sometimes, it is because a company does not do things right. This high turnover hurts a company in several ways.

Some of these impacts include negative corporate outlook, increased training costs, loss of organizational memory, and exit of talent. In some cases, companies need to come up with an employee retention strategy to solve this human resource problem. The process involves a company “deliberately recognizing the value of people, finding out why people are leaving the company, and then develop the strategy” (Drake 14).

According to William G. Bliss, an entrepreneurship consultant, the cost of employee turnover is often about 150% of what the company would otherwise spend on a retained employee. For instance, if an employee receives $50,000 per year as his salary, the amount would increase to $75,000 in case the employee leaves the company. Google is a good example of a company that has realized the need for retaining their employees (Google Company, n.pag ).

They have an elaborate strategy that makes their employees have a sense of belonging (Google Company, n.pag.). Initially, Google was experiencing high employee turnover until they resorted to reviewing their HRM strategy to strengthen their employee retention rate. This strategy involves competitive salary rates, substantive benefits, and timely salary reviews.

International Business Machines (IBM), on its part, emphasizes that its employees have a balance between family and work life. IBM believes that personal life satisfaction of its employees equally leads to satisfaction with their jobs. This helps in retaining its staff and subsequently improving the performance of the company.

Performance Management

Performance management “is the process of identifying, measuring, managing, and developing the performance of human resources in an organization” (Lussier & Hendon 285). Performance management is a concept used to improve human behavior and outcomes in an organization. It has emerged as a dynamic HRM tool that most organizations use to evaluate the output of their employees.

Undertaking performance appraisals for employees is often crucial in managing their performance. These appraisals are usually assessments of how the company’s workforce is responding to their job targets and organizational goals.

The management of the performance of a company’s human resource largely determines its profitability. It is, therefore, imperative for any organization seeking to increase its margins to institute robust performance management strategies. For instance, in the United States, an experience often influences one’s promotion at the workplace.

However, it is possible for young and talented employees to rise faster into senior positions if proper performance management standards guide the process. The hallmark of any performance management strategy is the utilization of human behavior and perceptions to judge its output.

This is a very dynamic way of assessing and improving the performance of a company. On its part, Dole reduced calls to their help desk by 30% by improving the performance of their employees through performance management. Initially, several clients would call in to complain about their system’s performance (Compuware Corporation, 2013).


HRM is an integral component of corporate management, which every organization should always seek to improve on at all the costs. Teamwork, employee retention, and performance management are fundamental anchors of HRM. Though distinct in characterization, these three concepts normally function in a complementary fashion. Synchrony of these concepts increases the efficiency and ultimately the profits of any company.

Teamwork creates an environment of common purpose among diversely talented employees with different personalities. Employee retention helps in retaining the needed talent within the organization. Performance management facilitates the appropriate utilization of these talents in generating the output needed by the company. That is just how these concepts complement each other.

Works Cited

Drake International. Employee Retention: Reducing Recruitment by Increasing Retention. 2012. Web. 7 April 2014. <>.

Dym, Clive L and Patrick Little. Engineering Design: A Project-Based Introduction. New York: John Wiley, 2004. Print.

Griffith University. “Teamwork Skills Toolkit.” Griffith University. 4 Sept. 2011. Web. 7 April 2014. <>.

Lussier, Robert N and John Hendon. Human Resource Management: Functions, Applications, Skill Development. Thousand Oaks CA: SAGE Publications, 2013. Print.

Mars. “The Five Principles of Mars.” 6 Feb. 2003. Web. 7 April 2014. <>.

Taylor, Fredrick Winslow. The Principles of Scientific Management. New York: Harper & Brothers, 2007. Print.

Tuckman, Bruce W. “Developmental Sequence in Small Groups.” Psychological Bulletin 63.6 (1965): 384-399. Print.