Human Resource Management - Wikipedia
Human Resource Management - Wikipedia
management
Human resource management (HRM or HR) is the strategic and coherent approach to the
effective and efficient management of people in a company or organization such that they
help their business gain a competitive advantage. It is designed to maximize employee
performance in service of an employer's strategic objectives.[1] Human resource
management is primarily concerned with the management of people within organizations,
focusing on policies and systems.[2] HR departments are responsible for overseeing
employee-benefits design, employee recruitment, training and development, performance
appraisal, and reward management, such as managing pay and employee benefits
systems.[3] HR also concerns itself with organizational change and industrial relations, or the
balancing of organizational practices with requirements arising from collective bargaining
and governmental laws.[4]
The overall purpose of human resources (HR) is to ensure that the organization can achieve
success through people.[5] HR professionals manage the human capital of an organization
and focus on implementing policies and processes. They can specialize in finding, recruiting,
selecting, training, and developing employees, as well as maintaining employee relations or
benefits. Training and development professionals ensure that employees are trained and
have continuous development. This is done through training programs, performance
evaluations, and reward programs. Employee relations deals with the concerns of employees
when policies are broken, such as in cases involving harassment or discrimination. Managing
employee benefits includes developing compensation structures, parental leave programs,
discounts, and other benefits. On the other side of the field are HR generalists or business
partners. These HR professionals could work in all areas or be labour relations
representatives working with unionized employees.
HR is a product of the human relations movement of the early 20th century when researchers
began documenting ways of creating business value through the strategic management of
the workforce.[6] It was initially dominated by transactional work, such as payroll and benefits
administration, but due to globalization, company consolidation, technological advances, and
further research, HR as of 2015 focuses on strategic initiatives like mergers and acquisitions,
talent management, succession planning, industrial and labor relations, and diversity and
inclusion. In the current global work environment, most companies focus on lowering
employee turnover and on retaining the talent and knowledge held by their workforce. New
hiring not only entails a high cost but also increases the risk of a new employee not being
able to replace the position of the previous employee adequately. HR departments strive to
offer benefits that appeal to workers, thus reducing the risk of losing employee commitment
and psychological ownership.
History
HR emerged as a specific field in the early 20th century, influenced by Frederick Winslow
Taylor (1856–1915). Taylor explored what he termed "scientific management" (sometimes
referred to as "Taylorism"), striving to improve economic efficiency in manufacturing jobs. He
eventually focused on one of the principal inputs into the manufacturing process—labor—
sparking inquiry into workforce productivity.[8]
In the Soviet Union, Stalin's use of patronage exercised through the "HR Department"
equivalent in the Bolshevik Party, its Orgburo, demonstrated the effectiveness and influence
of human-resource policies and practices,[17][18] and Stalin himself acknowledged the
importance of the human resource,[19] exemplified in his mass deployment of it, as in the five-
year plans and in the Gulag system.
During the latter half of the 20th century, union membership declined significantly,[20] while
workforce-management specialists continued to expand their influence within organizations.
In US, the phrase "industrial and labor relations" came into use to refer specifically to issues
concerning collective representation, and many companies began referring to the proto-HR
profession as "personnel administration".[21] Many current HR practices originated with the
needs of companies in the 1950s to develop and retain talent.[22]
In the late 20th century, advances in transportation and communications greatly facilitated
workforce mobility and collaboration. Corporations began viewing employees as assets.
"Human resources management" consequently, became the dominant term for the function—
the ASPA even changing its name to the Society for Human Resource Management (SHRM)
in 1998.[16]
In popular media
Several popular media productions have depicted human resource management in operation.
The U.S. television series The Office, HR representative Toby Flenderson is sometimes
portrayed as a nag because he constantly reminds coworkers of company policies and
government regulations.[24] Long-running American comic strip Dilbert frequently portrays
sadistic HR policies through the character Catbert, the "evil director of human resources".[25]
An HR manager is the title character in the 2010 Israeli film The Human Resources Manager,
while an HR intern is the protagonist in 1999 French film Ressources humaines. The main
character in the BBC sitcom dinnerladies, Philippa, is an HR manager. The protagonist of the
Mexican telenovela Mañana es para siempre is a director of human resources. Up In the Air is
centered on corporate "downsizer" Ryan Bingham (George Clooney) and his travels. As the
film progresses, HR is portrayed as a data-driven function that deals with people as metrics,
which can lead to absurd outcomes for real people.
Practice
Business function
Dave Ulrich lists the function of HR as:[26]
1. Fair Labor Standards Act of 1938: It establishes a minimum wage and protects the right of
certain workers to earn overtime.
2. 1964 Federal Civil Rights Law : It prohibits workplace discrimination and bans the use of
race, age, sex, or gender as the basis for decisions to hire or fire workers.
3. Family and Medical Leave Act : It implies that eligible employees may take twelve weeks of
unpaid leave for family and medical reasons.
An important responsibility of HR is to ensure that a company complies with all laws and
regulations, thus protecting the company from legal liability.[27] In circumstances where
employees exercise their legal authorization to negotiate a collective bargaining agreement,
HR will typically also serve as the company's primary liaison with employee representatives
(usually a labor union). Consequently, the HR industry lobbies governmental agencies (e.g., in
the United States, the United States Department of Labor and the National Labor Relations
Board) to advance its priorities.
One of the frequent challenges of HRM is dealing with the notion of unitarism (seeing a
company as a cohesive whole, in which both employers and employees should work together
for a common good) and securing a long-term partnership of employees and employers with
common interests.[30]
Careers
There are half a million HR practitioners in the United States and millions more worldwide.[31]
The Chief HR Officer or HR Director is the highest ranking HR executive in most companies.
He or she typically reports directly to the chief executive officer and works with the Board of
Directors on CEO succession.[32][33]
Within companies, HR positions generally fall into one of two categories: generalist and
specialist. Generalists support employees directly with their questions, grievances, and work
on a range of projects within the organization. They "may handle all aspects of human
resources work, and thus require an extensive range of knowledge. The responsibilities of
human resources generalists can vary widely, depending on their employer's needs."
Specialists, conversely, work in a specific HR function. Some practitioners will spend an entire
career as either a generalist or a specialist while others will obtain experiences from each
and choose a path later. The position of HR manager has been chosen as one of the best
jobs in the US, with a #4 ranking by CNN Money in 2006 and a #20 ranking by the same
organization in 2009, due to its pay, personal satisfaction, job security, future growth, and
benefit to society.[34][35]
Human resource consulting is a related career path where individuals may work as advisers
to companies and complete tasks outsourced from companies. In 2007, there were 950 HR
consultancies globally, constituting a US$18.4 billion market. The top five revenue generating
firms were Mercer, Ernst & Young, Deloitte, Watson Wyatt (now part of Towers Watson), Aon
(now merged with Hewitt), and PwC consulting.[36] For 2010, HR consulting was ranked the
#43 best job in America by CNN Money.[37]
Some individuals with PhDs in HR and related fields, such as industrial and organizational
psychology and management, are professors who teach HR principles at colleges and
universities. They are most often found in Colleges of Business in departments of HR or
Management. Many professors conduct research on topics that fall within the HR domain,
such as financial compensation, recruitment, and training.
Training
Technology allows HR professionals to train new staff members in a more efficient manner.
This gives employees the ability to access onboarding and training programs from virtually
anywhere. This eliminates the need for trainers to meet new hires face-to-face when
completing necessary paperwork for new employees. Training in virtual classrooms makes it
possible for HR professionals to train a large number of employees quickly and to assess
their progress through computerized testing programs.[38] Some employers choose to
incorporate an instructor with virtual training so that new hires are receiving training
considered vital to the role. Employees have greater control over their own learning and
development; they can engage in training at a time and place of their choosing, which can
help them manage their work–life balance. Managers are able to track the training through
the internet, which can help to reduce redundancy in training and training costs.
Services
Recruitment and Talent Acquisition: HR consulting firms assist organizations in identifying,
attracting, and hiring the right talent to meet their business needs.[41]
Legal Compliance: HR consulting firms ensure that organizations are compliant with labor
laws and regulations, including employment standards, workplace safety, and anti-
discrimination policies.
Education
Some universities offer programs of study for human resources and related fields. The
School of Industrial and Labor Relations at Cornell University was the world's first school for
college-level study in HR.[43] It currently offers education at the undergraduate, graduate, and
professional levels, and it operates a joint degree program with the Samuel Curtis Johnson
Graduate School of Management.
Many colleges and universities house departments and institutes related to the field, either
within a business school or in another college. Most business schools offer courses in HR,
often in their departments of management. In general, schools of human resources
management offer education and research in the HRM field from diplomas to doctorate-level
opportunities. The master's-level courses include MBA (HR), MM (HR), MHRM, MIR, etc. (See
Master of Science in Human Resource Development for curriculum.) Various universities all
over the world have taken up the responsibility of training human-resource managers and
equipping them with interpersonal and intrapersonal skills so as to relate better at their
places of work. As Human resource management field is continuously evolving due to
technology advances of the Fourth Industrial Revolution, it is essential for universities and
colleges to offer courses which are future oriented.[44]
In the United States of America, the Human Resources University trains federal employees.
Professional associations
There are a number of professional associations, some of which offer training and
certification. The Society for Human Resource Management, which is based in the United
States, is the largest professional association dedicated to HR,[31] with over 285,000
members in 165 countries.[45] It offers a suite of Professional in Human Resources (PHR)
certifications through its HR Certification Institute. The Chartered Institute of Personnel and
Development, based in England, is the oldest professional HR association, with its
predecessor institution being founded in 1918.
Several associations also serve niches within HR. The Institute of Recruiters (IOR) is a
recruitment professional association, offering members education, support and training.[46]
WorldatWork focuses on "total rewards" (i.e., compensation, benefits, work life, performance,
recognition, and career development), offering several certifications and training programs
dealing with remuneration and work–life balance. Other niche associations include the
American Society for Training & Development and Recognition Professionals International.
Publications
Academic and practitioner publications dealing exclusively with HR:
Cornell HR Review[50]
HR Magazine (SHRM)[51]
Human Resource Management[52]
Journal of Management[59]
Journal of Occupational and
Organizational Psychology[60]
Organization Science[62]
Personnel Psychology[63]
See also
Aspiration management
Domestic inquiry
Employment agency
Human resource management system
Organization development
Organizational theory
Realistic job preview
Recruitment
Notes
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