How Can Human Resource Management Help the Theory of Constraints

How Can Human Resource Management Help the Theory of Constraints

Brian J. Galli
Copyright: © 2022 |Pages: 15
DOI: 10.4018/978-1-6684-3873-2.ch007
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Abstract

Now, more companies consider human resource management (HRM) as part of strategic business management. A critical analysis of The Goal: A Process of Ongoing Improvement by Goldratt as it relates to HRM allows for discussion and evaluation of HRM implications. However, does HRM implementation support achieving a companies' strategic objectives? If so, how is it related to The Goal? This report seeks answering these questions by evaluating HRM in the book's context. This article discusses the role of HRM in companies, HRM principals that impact operations, roles of stakeholders and their value in the Theory of Constraints (TOC), HRM and its impact on the TOC, roles of HRM management and leadership, and the relationship between technology and human resources. Discussing these topics, this article provides an overview of HRM's impact on organizations. The main findings indicate that HRM implementation is a strategic management resource to be implemented by any businesses.
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2. Literature Review

The following section analyzes the concepts of Human Resources Management (HRM), the book The Goal: A Process of Ongoing Improvement, and the Theory of Constraints (TOC). It begins with a brief explanation of the HRM concept and its impact on organizations. Following these concepts, a brief review of The Goal is conducted. Finally, the selection describes the impact of implementing TOC on the achievement of a company’s objectives.

The following section provides literature in the concepts mentioned above.

2.1. Human Resource Management (HRM)

For the development of this paper, it is important to emphasize there is no one common definition of HRM, but it was identified that some researchers share the notion that HRM assumes a significant role in organizations. HRM is considered, in this paper, as the process by which companies manage their main resources, including employees, to achieve objectives (Dessler, 2017). According to Aswathappa (2005), HRM includes the processes that should be implemented by managers such as hiring, motivating, and engaging employees (Atkinson, 1999; Bakker, 2010). In other words, HRM can be considered as management strategies that optimize decision-making processes and improve profitability and performance of a company (Dessler, 2017). HRM impacts management processes, as discussed in the book, The Goal.

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