Human Resource Management is a crucial aspect of an organization's life, one that guides and appraises the performance of its employees and manages the work force in alignment with the corporate strategies. HRM polices create significant effects on the organizational performance, since it directly relates to the internal equity of the organization, which are its valued employees.
This proposal is based on a comparative assessment of the effects and relationship of Human Resource Management policies and regulations in the developing and the developed countries. This research will seek an in-depth analysis of the policies that are penetrative in the industrial sector of both the developed and the developing countries; in an attempt to study what are the differences that exist in either of the two industries. We will seek to identify and distinguish between polices of the West (mainly of the United States) with those of Iran (a developing country), that will conclude into justifiable comparisons among the rules and regulations related to the personnel management in these countries.
Main Concepts Definition
Human Resource Management: The human resource management (HRM) is a set of practices of management aimed at mobilizing and developing human resources for greater performance of the organization (Jaeger, 1990).
Organizational performance: According to Richard et al. (2009) organizational performance encompasses three specific areas of firm outcomes:
Financial performance (profits, return on assets, return on investment, etc.);
Product market performance (sales, market share, etc.); and
Shareholder return (total shareholder return, economic value added, etc).The term Organizational effectiveness is broader (Richard, 2009).
Developed Countries: Developed countries have a high income per capita, i.e., a higher average per capita income above $ 10,000 a year, a powerful and technologically advanced industry, a high standard of living, reflected in the development of infrastructure and in the quantity and quality of health services, educational, cultural, etc. Moreover, a good part of the population has a high level of consumption (Coyle, 2000).
Developing Countries: The underdeveloped countries have low per capita income, which normally does not reach $ 2,000 per year, a small or emerging industrial development, but often depends on foreign investment and is based on labour and the high potato energy, natural resources primarily for export, a strong dependence on foreign technology, trade and credit, a reduced standard of living, with poor services and inaccessible to a large proportion of the population, poor infrastructure, a high rate illiteracy, a very high population growth, and low consumption (Gabris, Mitchell, 2005). In addition, political instability, corruption and social inequality are commonplace in these States (Mullins, 2010).
Topic and Justification
The proposed topic of the research will be:
“A comparative study of the relationship and effects of HRM (Human Resources Management) policies, on the Organizational performance of Industrial Sectors in both the Developing and the Developed Countries”.
HRM policies are a key to the progress of organizations in developed societies where it is an important element to develop and maintain the human ...