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Explanation of the theoretical conceptThe theoretical concept of Human resource management is based around the strategy of initiating the composition and implementation of working practices that as well as being conducive to promoting the organisations business objectives also seeks to plan in a strategic manner for issues that may arise to affect the business As opposed to being an agent that reacts to internal and external changes after the fact this is a defining characteristic that separates it from the concept of personnel managementHuman resource management can also encompass the development and fostering of an appropriate culture within the organisation and ideally examples of genuine HRM strategies are both related to the organisations overall aims but are also systematically integrated with each other as part of an overall plan The concept of integration is the core idea of HRMFor example Beer and Spector 1985 remarkA business enterprise has an external strategyIt also needs an internal strategy a strategy for how its internal forces are going to be developed deployed motivated and controlledthe internal and external strategies must be linked In the longer term though the essence of Human Resources Strategy is the analysis of the whole organisation and its needs and scope for development rather than a purely mundane day to day management of people Encompassing the whole sphere of employment issues from the organisations needs skills required amount of employees needed type of contracts given etceteras to also the training and future development of the staff team as well as recruitment policies With consideration of these issues -always in line with a consideration of the organisation objectives- a strategic plan can be drawn up This plan however must also be flexible enough to respond to external factors such as changes in employment law changes to demographics relating to the local labour market skills shortages plus of course competition and increasesreductions in demand for the organisations productsservicesHuman resource Management achieves these strategic aims on a
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