Relating human resource management to 'The Goal' by Eli Goldratt

Abstract

In recent years, the business industry changes had caused a reassessment of human resource management (HRM) positions and structures. In the past, human resources (HR) was centralised. However, with the consistent organisational culture changes, HR is becoming decentralised and its operations integrated other departments. Today, HRM is an integral part of business processes similar other departments (finance, accounting, and so forth). However, with regards to specialised areas, like compensation and recruitment, HR remains centralised. Analysis of 'The Goal' by Goldratt demonstrates its relation to HRM. This paper discusses and assesses the implications of HRM on a company's operations. It explains how HRM is related to the theory of constraints (TOC) and how both concepts help to achieve the company's true goal.