Behavioural Aspects


Human resource management (HRM) refers to the ‘strategic and coherent approach to the management of an organisation’s most valued assets: the people working there who individually and collectively contribute to the achievement of its objectives for sustainable competitive advantage’ (Armstrong).

People are of central importance in most organisations and their recruitment, management and motivation forms part of the human resource management function.

The definition mentions competitive advantage and this reinforces the link between HRM and strategy.

The aim of HRM

If HR strategies are to be effective and successful then HRM must be effective across four main areas, namely:

  • Commitment – Requires good motivation and leadership.
  • Competence – Requires good recruitment, assessment, training and staff development.
  • Congruence – Requires good job design.
  • Cost-effectiveness – This normally comes from the achievement of the above points.

Theories of HRM

The two theories that will be examined are:

  • Vrooms expectancy theory; and
  • Agency theory