Human resource management (HRM) is a relatively young field,
which has undergone a rapid evolution. From its initial roots as the function
involved in the administrative aspects of hiring, firing, and payroll, it has
seen stages where Union relations/avoidance, employee satisfaction, and legal
compliance have served as dominant areas of emphasis and expertise (Noe,
Hollenbeck, Gerhart & Wright, 1997). Most recently a trend has developed
toward justifying the expenditures for and existence of the HR function. HR
departments and programs have become an element of the firm's profit equation
to be minimized as a cost and maximized as a value-adding component of firm
strategy. In fact, some in the popular business press have characterized HR
departments as bureaucratic wastelands and suggested doing away with them
(Stewart, 1996). Consequently, HR practitioners have become preoccupied with
demonstrating the value of the HR function, particularly through showing its
impact on firm performance (Pfeffer, 1997; Ulrich, 1997).