Human Resource Management in New Economy

Abstract

This article reviews the concepts of human resource management to determine factors that lead to increased efficiency and effectiveness. At present, many organizations face social and economic changes arising externally and internally due to new economic environments, resulting in the need for continuous improvement of human resources. The concepts of human resource management were developed from two groups of philosophers’ models, those proposed by the Harvard Group and Michigan Group in the United States and those by the Soft Group and Hard Group in the United Kingdom. The philosophers in the Soft Group paid attention to human resources more than management, while the Hard Group did the reverse. The concepts of human resources can be placed in two groups, the first being those that recognize human resources as an ideal concept which determine principles to organize economics, politics, and society,  the second being those that include the role of human resource management as related to the concept of economic value added. This second group believes that humans can produce under the principle of economics emphasizing profit and loss, resulting in organization effectiveness and performance. The philosophy of human resource management can be explained in terms of economic theory, systems theory, and psychological theory. Moreover, objectives and mission in management should be identified in the human resource management process. The main tasks of a human resource department have been identified as unit under the organizational structure to indicate a mission of development which integrates personnel development, professional development, performance management, and organization development to increase personal effectiveness.