A Handbook of Human Resource Management Practice 10th - download pdf or read online

By Michael Armstrong

ISBN-10: 0749446315

ISBN-13: 9780749446314

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Extra resources for A Handbook of Human Resource Management Practice 10th Edition

Example text

The commitment-oriented nature of HRM The importance of commitment and mutuality was emphasized by Walton (1985a) as follows: The new HRM model is composed of policies that promote mutuality – mutual goals, mutual influence, mutual respect, mutual rewards, and mutual responsibility. The theory is that policies of mutuality will elicit commitment, which in turn will yield both better economic performance and greater human development. Guest (1987) wrote that one of the HRM policy goals was the achievement of high commitment – ‘behavioural commitment to pursue agreed goals, and attitudinal commitment reflected in a strong identification with the enterprise’.

Intellectual capital The concept of human capital is associated with the overarching concept of intellectual capital, which is defined as the stocks and flows of knowledge available to an organization. These can be regarded as the intangible resources associated with people who, together with tangible resources (money and physical assets), comprise the market or total value of a business. Bontis (1996, 1998) defines intangible resources as the factors other than financial and physical assets that contribute to the value-generating processes of a firm and are under its control.

These characteristics make it difficult to evaluate human capital bearing in mind that the ‘features of human capital that are so crucial to firm performance are the flexibility and creativity of individuals, their ability to develop skills over time and to respond in a motivated way to different contexts’. It is indeed the knowledge, skills and abilities of individuals that create value, which is why the focus has to be on means of attracting, retaining, developing and maintaining the human capital they represent.

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A Handbook of Human Resource Management Practice 10th Edition by Michael Armstrong

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