THEORIES OF HRM FOR NET COMMERCE/MANAGEMENT/LABOUR WELFARE

• THEORIES OF HRM FOR NET COMMERCE/MANAGEMENT/LABOUR WELFARE
  HUMAN RESOURCE MANAGEMENT
• COMMITMENT THEORY

1. POPULARIZED IN 1980 BY THE MANAGEMENT THEORIST RICHARD WALTON
2. WHOSE NORMATIVE APPROACH ADVOCATES THAT ORGANIZATION MOVE  FROM A STRATEGY OF CONTROL TO A STRATEGY OF COMMITMENT IN THE MANAGEMENT OF THE EMPLOYEES
3. TRADITIONAL METHODS WERE NO LONGER AN APPROPRIATE MEANS F ORGANIZING AND MANAGING PEOPLE
4. COMMITMENT THEORY IS AN APPROACH TO THE MANAGEMENT OF PEOPLE THAT EMPHASIZE THE NEED TO DEVELOP ORGANIZATIONAL COMMITMENT AMONGST THE EMPLOYEE ON THE ASSUMPTIONS THAT WILL LEAD TO POSITIVE OUTCOME SUCH AS LOWER LABOUR TURNOVER,BETTER MOTIVATION AND IMPROVEMENT PERFORMANCE
5. HIGH COMMITMENT MANAGEMENT IS USED WHICH COVER A DIVERSE RANGE OF HUMAN RESOURCE PRACTICES AND TECHNIQUES ( ALSO KNOWN AS HIGH COMMITMENT PRACTICES/ HIGH INVOLVEMENT MANAGEMENT

• ORGANIZATION BEHAVIOR THEORY

1. THEORIES ARE USED FOR HUMAN RESOURCE PURPOSE TO MAXIMIZE THE OUTPUT FROM INDIVIDUAL GROUP MEMBERS
2. FOCUSES ON HOW PEOPLE BEHAVE WITH IN THE ORGANIZATION INDIVIDUALLY OR IN GROUPS AND HOW THE ORGANIZATION FUNCTION IN TERMS OF THEIR STRUCTURE,PROCESS AND CULTURE
3. THE CENTRAL IDEA OF THE STUDY OF ORGANIZATIONAL BEHAVIOR IS THAT A SCIENTIFIC APPROACH CAN BE APPLIED TO THE MANAGEMENT OF WORKERS
4. AREAS OF ACTION :

1. IMPROVING JOB PERFORMANCE
2. PROMOTING INNOVATION
3. ENCOURAGING LEADERSHIP

• MOTIVATION THEORY

• MOST AND VITAL AND ESSENTIALS TASKS OF MANAGEMENT IS TO MOTIVATE THE RESOURCES IN ORDER TO MAXIMIZE THE PERFORMANCE AND ACHIEVE CORPORATE PERFORMANCE
• VIEW HUMAN BEING MOTIVATED BY A COMPLEX SET OF INTERRELATED FACTORS SUCH AS MONEY,NEED FOR AFFILIATION AND DESIRE FOR MEANINGFUL WORK
• ARGUED THAT EACH DIFFERENT EMPLOYEE WILL SEEK A DIFFERENT GOALS,HAVE A DIVERSITY OF TALENTS IN COMPLETING THE TASKS AND ADD THEIR UNIQUENESS TO THE ORGANIZATION
• FROM MOTIVATIONAL PERSPECTIVE,THE MANAGERIAL TASK COULD BE SAID TO BE CLEAR,DETERMINE THE BEST USE OF RESOURCES.ASSIST EMPLOYEE IN THE ACHIEVEMENT OF THE ORGANIZATION GOALS

• AMO THEORY

• BOXELL AND PURCELL SET OUT A THEORY BASED ON AMO FORMULA WHICH STATES THAT PERFORMANCE IS A FUNCTION OF ABILITY,MOTIVATION AND OPPORTUNITY TO PARTICIPATE
• THE EMPLOYEE CAN PERFORM WELL :_

1. THEY CAN DO THE JOB BECAUSE THEY HAVE NECESSARY SKILLS AND KNOWLEDGE( A=ABILITIES)
2. WILL DO THE JOB BECAUSE THEY WANT TO AND ARE ADEQUATELY INCENTIVISED ( M=MOTIVATION)
3. WORK ENVIRONMENT PROVIDE THE NECESSARY SUPPORT AND AVENUES

·         ( O = OPPORTUNITY)

·         THEORY ALSO DEFINE THE LINKAGES AMONGST ALL OF ITS COMPONENTS AND THE IMPACT

·         FORMULATE THE BASIS OF DEVELOPING HR SYSTEMS THAT CAN ATTEND TO EMPLOYEE INTERESTS

• HUMAN CAPITAL THEORY

1. SUGGEST THAT INDIVIDUALS AND SOCIETIES DERIVE ECONOMIC BENEFITS FROM INVESTMENTS IN PEOPLE
2. THE BASIC PURPOSE OF THE THEORY IS TO FIND OUT THE WAYS HOW PEOPLE IN THE ORGANIZATION CAN CONTRIBUTE THEIR KNOWLEDGE,SKILLS AND ABILITIES AND EXPERIENCES TO ENHANCE THE ORGANIZATION CAPABILITY AND TO FIND OUT THE SIGNIFICANCE OF THE CONTRIBUTION.

• RESOURCE DEPENDENCY THEORY

1. ORIGINATED IN 1970S WITH THE PUBLICATION OF THE EXTERNAL CONTROL OF THE ORGANIZATION A RESOURCE DEPENDENCE PERSPECTIVE BY JEFFREY PFEFFER AND GERALD R SALANCIK
2. RESOURCES ARE KEY TO ORGANIZATIONAL SUCCESS AND THAT CONTROL OVER RESOURCES IS A BASIS OF POWER
3. DIFFERENT PARTIES GAIN POWER OVER EACH OTHER BY CONTROLLING VALUED RESOURCES

• INSTITUTIONAL THEORY

1. THE RELEVANCE OF INSTITUTIONAL THEORY TO HUMAN RESOURCE MANAGEMENT WAS INITIALLY DERIVED FROM THE VIEW THAT ORGANIZATIONAL PRACTICES ARE EITHER A DIRECT REFLECTION OF OR RESPONSE TO RULES AND STRUCTURES BUILT INTO THEIR LARGE ENVIRONMENT
2. THE INSTITUTIONAL ENVIRONMENT IS THE SOURCE OF LEGITIMIZATION,REWARDS OR INCENTIVES FOR AS WELL AS CONSTRAINS OR SANCTIONS ON ORGANIZATIONAL ACTIVITIES.

• TRANSACTION COST THEORY

1. BASED ON THE ASSUMPTIONS THAT ORGANIZATIONS DEVELOP STRUCTURES AND SYSTEMS THAT ECONOMISE THE COST OF TRANSACTIONS THAT TAKE PLACE DURING THE COURSE OF THEIR OPERATIONS
2. GOODS AND SERVICES ARE PRODUCED THROUGH DIVISION OF LABOUR
3. DEFINED THROUGH ORGANIZATIONAL RULES AND HRM ACTIVITIES PURPOSELY DESIGNED TO IMPROVE PERFORMANCE,SUPPRESS OPPORTUNISTIC BEHAVIOR AND DISCOURAGE BOUNDED RATIONALITY
4. MANAGEMENT ACTIONS MUST BE MUTUALLY CONSISTENT AND MUTUALLY SUPPORTIVE IF WANTS  THE STAFF TO ACCEPT THE ORGANIZATIONAL RULES

• AGENCY THEORY
• FOCUSES ON THE DIVERGENT INTERESTS AND GOALS OF THE ORGANIZATION’S STAKEHOLDERS AND THE WAY THAT EMPLOYEE REMUNERATION CAN BE USED TO ALIGN THESE INTERESTS AND GOALS
• EMPLOYER AS PRINCIPAL AND EMPLOYEE THE ROLE OF AGENTS
• THE REMUNERATION PAYABLE TO THE EMPLOYEE IS THE AGENCY COST
• THE AGENCY THEORY SAYS THAT PRINCIPAL MUST CHOOSE A CONTRACTING SCHEME THAT HELPS THE ALIGN THE INTERESTS OF AGENTS WITH THE PRINCIPAL’S OWN INTEREST
• CONTRACT CAN BE CLASSIFIED

1. BEHAVIOR ORIENTED ( MERIT PAY)
2. OR OUTCOME ORIENTED ( STOCK OPTION SCHEME.PROFIT SHARING AND COMMISSION)
   
   

• CONTINGENCY THEORY

1. ASSUMES THAT HRM PRACTICES ARE DEPENDENT ON THE ORGANIZATION ENVIRONMENT AND CIRCUMSTANCES
2. ASSOCIATED WITH THE NOTION OF FIT IT
3. SUGGEST THAT MOST APPROPRIATE STYLE OF MANAGEMENT IS DEPENDENT UPON SITUATION
4. CONTINGENCY MANAGERS TYPICALLY PAYS ATTENTION TO BOTH THE SITUATION AND THEIR OWN STYLES AND MAKE EFFORTS TO ENSURE BOTH INTERACT EFFICIENTLY
5. CONGRUENCE BETWEEN THE ORGANIZATION HR STRATEGIES ,POLICIES AND PRACTICES AND BUSINESS STRATEGIES