Endeavours to show that human resource managers (HRM) should be involved in business strategy and should be more ‘business‐oriented’. Acknowledges that there is a tendency to see HRM in just two forms ‐ the ‘hard line’ and the ‘soft’ approach — the first built around the belief that HRM exists to serve strategic business needs, and the second emphasizing people are a resource unlike any other. Discusses a model that is contained within the article listing out the short‐term (annual) goals (4), and also the longer‐term (7). Intimates this gives companies a real paradox and that flexibility can be obtained ‐ but only by breaking the psychological contract crucial to retaining key skills.
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