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Industrial and organizational psychology

During the 1970s, American business began experiencing challenges due to the substantial increase in competitive pressures. Companies experienced globalizationderegulation, and rapid technological change which caused the major companies to enhance their strategic planning – a process of predicting future changes in a particular environment and focus on ways to promote organizational effectiveness. This resulted in developing more jobs and opportunities for people to show their skills which were directed to effective applying employees toward the fulfillment of individual, group, and organizational goals. Many years later the major/minor of human resource management was created at universities and colleges also known as business administration. It consists of all the activities that companies used to ensure more effective utilization of employees.[7]

Now, human resources focus on the people side of management.[7] There are two real definitions of HRM (Human Resource Management), one is that it is the process of managing people in organizations in a structured and thorough manner.[7] This means that it covers the hiring, firing, pay and perks, and performance management.[7] This first definition is the modern and traditional version more like what a personnel manager would have done back in the 1920s. [7] The second definition is that HRM circles the ideas of management of people in organizations from a macromanagement perspective like customers and competitors in a marketplace. [7] This involves the focus on making the “employment relationship” fulfilling for both management and employees. [7]