One of the first specific statements of the concept of human resource management came from the Michigan School in 1984. They stated that human resource systems and the structure of an organization should be managed in line with organizational strategy - which is why they refer to it as the matching model. They went on to state that there is a human resource cycle consisting of four generic functions that take place in every organisation:
- Selection - matching the right employees to jobs within the organization.
- Appraisal - performance management.
- Rewards - the reward system is imperative to an organizations success, if your employees feel that their efforts are going unnoticed production levels drop. It is one of the most under - utilized managerial tools for driving performance in an organization. Every company should reward short and long term achievements not forgetting that for an organisation to succeed in the future it must perform in the present.
- Development: developing employees with exemplary qualities.