The above presents one of our oldest concerns about managing people: Most organizations are far from considering people as their most important asset. They are also far from applying common sense practices such as those to be found in Pfeffer’s book, The Human Equation (Harvard Business School Press, 1996). These organizations are now entering the knowledge era, using IT solutions to solve their old HRM problems in one out of 10 cases, and in an uncreative way. Those in the world of HRM are being accused of living in an ivory tower, managing the human side of their organizations in ways that lack relevance in the new information era. The impetus for the HRM change comes from recognition of recent developments in the HRM profession and a realization that current practices do not reflect those changes, especially those concerning IT strategies. The problem often results in policies, practices, and strategies that may be outdated.
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