Summary - Chapter 5 - Organization Theory *As shown, the summary of this chapter consists of a total of 2 pages, so this is NOT a comprehensive summary. However, it clearly shows and explains the main thoughts and topics.
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International Business Administration
Organization Theory
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Chapter 5: Managing human resources
Human resource management (or HRM) is a strategic approach to how people as an asset should be
managed effectively.
While talking about HRM, people often refer to the soft or hard practices, also seen as the so-called
Harvard and Michigan models. In soft practices, work is seen as an integral part of life, providing positive
feelings. In hard practices, people assume that employees would rather work under hard power management
than under soft power management.
The main types of organizational resources are:
- Backup supply
- Corporate assets (assets obtained for making a profit, including human capital)
In the practice of HRM, there are several core functions:
Recruiting people:
Concentrates on people’s attraction by using a variety of different recruitment strategies, such as job
agencies, online networks, or job ads.
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