By Michael Armstrong

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A Handbook of Human Resource Management Practice 10th Edition

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7. Empowering employees to manage their own self-development and learning. Human resource management ❚ 11 8. Developing reward strategies designed to support a performance-driven culture. 9. Improving employee involvement through better internal communication. 10. Building greater employee commitment to the organization. 11. Increasing line management responsibility for HR policies. 12. Developing the facilitating role of managers as enablers. CHARACTERISTICS OF HRM The characteristics of the HRM concept as they emerged from the writings of the pioneers and later commentators are that it is: ● ● ● ● ● ● ● diverse; strategic with an emphasis on integration; commitment-oriented; based on the belief that people should be treated as assets (human capital); unitarist rather than pluralist, individualistic rather than collective in its approach to employee relations; a management-driven activity – the delivery of HRM is a line management responsibility; focused on business values.

Personnel management, like HRM, recognizes that line managers are responsible for managing people. The personnel function provides the necessary advice and support services to enable managers to carry out their responsibilities. 3. The values of personnel management and at least the ‘soft’ version of HRM are identical with regard to ‘respect for the individual’, balancing organizational and individual needs, and developing people to achieve their maximum level of competence both for their own satisfaction and to facilitate the achievement of organizational objectives.

They can also choose whether or not to remain with the organization. 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.

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