For any enterprise to function effectively, it must have money, materials, supplies, equipment, ideas about the services or products to offer those who might use its outputs and finally people, which is the human resource, to run the enterprise. The effective management of people at work is Human Resource Management, Armstrong (1996). Human Resource Management has emerged as a major function in most organizations and is the focus for a wide-ranging debate concerning the nature of the contemporary employment relationships. Managing human resources is one of the key elements in the coordination and management of work organizations.
Several new technologies are used to ensure the creation and delivery of services and goods in modern economies. Whatever means are used, the role of individuals and groups as employees and the ability of management to effectively deploy such a resource is vital to the interest of both the employee and organization. Traditionally, Human Resource concerns itself with recruitment, selection, placement, training, compensation and industrial relations among others, (Armstrong 1996).
Beer et al (1984) define Human Resource Management as the involvement of all management decisions and actions that affect the nature of the relationship between the organization and its employees-the human resources. According to Beer et al (1984), general management make important decisions daily that affect this relationship, and this leads to a map of Human Resource Management territory, the core of which they refer to as the four ‘Cs’ and these are;
Competence of employees: High competence creates a positive attitude towards learning and development.
Commitment of employees: High commitment means that employees will be motivated to hear, understand and respond to management’s communication relating to the organization of work.
Congruence between the goals of employees and those of the organization: Higher congruence is a reflection of policies and practices which bring about a higher coincidence of interest among management, shareholders and workers alike. Cost effectiveness of Human Resource Management practices: means that the organization’s human resource cost, that is wages, benefits, training and indirect costs such as strikes, turnover and grievances, have been kept equal to or less than those of competitors.