... and Jackson (1999) described the evolution from personnel management as a two-phased transformation, the first is from personnel management to HRM, and the second is from HRM to strategic HRM. Human Resource Management theory is an extension of the ideas of personnel management and group dynamics (Gratton, 1994). Under personnel management, the 'managing' of employees, in areas such as salary, bonus schemes, personal and social matters, was the role of the personnel department. Under HRM, a great many, if not all of these roles, are passed over to, or delegated to, line managers in all departments (Tyson and York, 1996). Various strategies and techniques are consistent with the HR policies and practices that successful companies use to achieve competitive advantage through people. Strategic HRM is defined as the linking of the HR function with strategic goals and objectives of the organisation. Its aim is to improve business performance and develop ...

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