Heidari Shahdaveh Mohammad Hassan


The current financial crisis, which has engulfed East Asia since July 1997 and has subsequently spread to Russia and Brazil, is one of the most pressing challenges facing countries and businesses in today's global business environment. Development represents the structural making of the world characterized by the free flow of technology and human resources across national boundaries as well as the spread of Information Technology (IT) and mass media presenting an ever-changing and competitive business environment. Two major limitations are observed in the treatment of the twin issues of the responses to the East Asian economic crisis and the coverage of the literature on Development. While the response to the crisis has focused on macroeconomic aspects, the issue of Development has been addressed predominantly in and with respect to the developed economies of Western Europe, North America and Japan. This paper is an attempt to address these two limitations. Since the human factor is the key in the new era of Development, the primary objective of this paper is to present a conceptual framework for effective management of human resources as a response to the growing interaction of Development and business performance. Three central arguments are made in this paper. (1) That a growing body of evidence converge to suggest that changes taking place in the global business environment often are not accompanied by complementary changes in human resource management practices leading to a situation whereby the failure of some firms is due to the mismanagement of people rather than to problems with technical systems per se. (2) That this is because organizations have achieved relatively low levels effectiveness in implementing Strategic Human Resource Management (SHRM) practices especially in emerging economies of South East Asia and other developing countries like Nigeria that are exposed to the challenges and opportunities of Development. (3) That in order to manage employees for competitive edge in a period of Development, human resource personnel must possess competencies relevant for implementing such strategic HRM policies and practices. Guided by theoretical perspectives such as the firm’s resource-based theory of competitive advantage and empirical evidence, this paper develop propositions draws implications for the strategic management of human resources to prepare organizations for the challenges of Development.


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development, management, human resources


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