It has been more than five decades since the principles, research, theory and implementation of human resources management (HRM) were developed. Altered and upgraded by important internal and external business changes, HRM was evolved, from a management function with small attribution and influence, to a source of viable competitive advantage in the world economy in the course of action of many enterprises (Ferris et al., 1999).
HRM uses the human factor aiming in the achievement of business strategic goals and the satisfaction of the personal needs of those working for the business. International literature summarises HRM as:
- a wider dimension of management, which includes working relations, HRM and organisational behaviour
- a method that ensures the internal consistency of the organisation and the smooth operation of human resources in relation with external factors
- an advantage for a company, directly related with its competitiveness since it is influencing the quality characteristics of its product
- an operational department of an organisation, where economical changes very often affect the way the organisation is behaving towards its employees (Baum, 1995; Stone, 2002).
Undoubtedly, HRM in a business or organisation combines all the above and a lot more. According to Beardwell and Holden (1994), HRM constitutes a key element for the development of internal cooperation and effective exercise of management functions in an organisation. According to the beliefs of other scientists the actions of HRM many times have an important role in the creation of a viable competitive advantage, via human capital investment and efficient recruitment (Ferris et al., 1999; Langbert, 2000).