The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM.
The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM.
HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the “employment relationship” fulfilling for both the management and employees.
HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the “employment relationship” fulfilling for both the management and employees.
Ppersonnel management is essentially “workforce” centered whereas human resource management is “resource” centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control.
Ppersonnel management is essentially “workforce” centered whereas human resource management is “resource” centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control.
"Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and can contribute to an organization
"Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and can contribute to an organization
The professional discipline and business function that oversees an organization's human resources is called human resource management (HRM, or simply HR)
In governing human resources, three major trends are typically considered:
In governing human resources, three major trends are typically considered:
Demographics: the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc.
Diversity: the variation within the population/workplace. Advocates of "workplace diversity" advocate an employee base that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation etc.
Skills and qualifications: as industries move from manual to more managerial professions so does the need for more highly skilled graduates. If the market is "tight“ employers must compete for employees by offering financial rewards, community investment, etc.
A distinctive approach to employment management which seeks to achieve
A distinctive approach to employment management which seeks to achieve
competitive advantage through the strategic deployment of a highly
committed and capable workforce using an array of cultural, structural and
personnel techniques. (Storey, 2001: 6)
Strategic HRM is an approach to making decisions on the intentions and plans of the organization concerning the employment relationship and its recruitment, training, development, performance management, reward and employee relations strategies, policies and practices. The key characteristic of strategic HRM is that it is integrated. HR strategies are generally integrated vertically with the business strategy and horizontally with one another. The HR strategies developed by a strategic HRM approach are essential components of the organization's business strategy.
Strategic HRM is an approach to making decisions on the intentions and plans of the organization concerning the employment relationship and its recruitment, training, development, performance management, reward and employee relations strategies, policies and practices. The key characteristic of strategic HRM is that it is integrated. HR strategies are generally integrated vertically with the business strategy and horizontally with one another. The HR strategies developed by a strategic HRM approach are essential components of the organization's business strategy.
Human resource management The formal structure within an organization responsible
Human resource management The formal structure within an organization responsible
for all the decisions, strategies, factors, principles,
operations, practices, functions, activities and methods
related to the management of people.
Human resource management system
Human resource management system
A software application combining various human
resource functions, such as benefits, payroll, recruiting,
training, etc., into one package.
Human resource information system (HRIS)
Human resource information system (HRIS)
A computer database used to gather, store, maintain and retrieve relevant employee and HR-related information.
Human resource metrics: Measurements used to determine the value and effectiveness of HR strategies. Typically includes such;
Human resource metrics: Measurements used to determine the value and effectiveness of HR strategies. Typically includes such;
items as cost per hire,
turnover rates/costs,
training and
human capital ROI,
labor /productivity rates and costs,
benefit costs per employee, etc.
Human Resource Specialist A term used to define an individual who has expertise
Human Resource Specialist A term used to define an individual who has expertise
and responsibility for a specific area or function in the
field of Human Resources (i.e. compensation, benefits,
Human resource auditing The process of assessing HR programs and services to determine effectiveness or efficiency.
Human resource auditing The process of assessing HR programs and services to determine effectiveness or efficiency.
One major concern about considering people as assets or resources is that they will be commoditized and abused. Some analysis suggests that human beings are not "commodities" or "resources", but are creative and social beings in a productive enterprise. The 2000 revision of ISO 9001, in contrast, requires identifying the processes, their sequence and interaction, and to define and communicate responsibilities and authorities. In general, heavily unionised nations such as France and Germany have adopted and encouraged such approaches. Also, in 2001, the International Labour Organization decided to revisit and revise its 1975 Recommendation 150 on Human Resources Development,[2] resulting in its "Labour is not a commodity" principle. One view of these trends is that a strong social consensus on political economy and a good social welfare system facilitates labor mobility and tends to make the entire economy more productive, as labor can develop skills and experience in various ways, and move from one enterprise to another with little controversy or difficulty in adapting.
One major concern about considering people as assets or resources is that they will be commoditized and abused. Some analysis suggests that human beings are not "commodities" or "resources", but are creative and social beings in a productive enterprise. The 2000 revision of ISO 9001, in contrast, requires identifying the processes, their sequence and interaction, and to define and communicate responsibilities and authorities. In general, heavily unionised nations such as France and Germany have adopted and encouraged such approaches. Also, in 2001, the International Labour Organization decided to revisit and revise its 1975 Recommendation 150 on Human Resources Development,[2] resulting in its "Labour is not a commodity" principle. One view of these trends is that a strong social consensus on political economy and a good social welfare system facilitates labor mobility and tends to make the entire economy more productive, as labor can develop skills and experience in various ways, and move from one enterprise to another with little controversy or difficulty in adapting.
Another important controversy regards labor mobility and the broader philosophical issue with usage of the phrase "human resources". Governments of developing nations often regard developed nations that encourage immigration or "guest workers" as appropriating human capital that is more rightfully part of the developing nation and required to further its economic growth. Over time, the United Nations have come to more generally support the developing nations' point of view, and have requested significant offsetting "foreign aid" contributions so that a developing nation losing human capital does not lose the capacity to continue to train new people in trades, professions, and the arts
Another important controversy regards labor mobility and the broader philosophical issue with usage of the phrase "human resources". Governments of developing nations often regard developed nations that encourage immigration or "guest workers" as appropriating human capital that is more rightfully part of the developing nation and required to further its economic growth. Over time, the United Nations have come to more generally support the developing nations' point of view, and have requested significant offsetting "foreign aid" contributions so that a developing nation losing human capital does not lose the capacity to continue to train new people in trades, professions, and the arts
The Conference Board has found six key people-related activities that human resources completes to add value to a company: 1. Yönetim: Effectively managing and utilizing people. 2. Başarı değerlendirme: Trying performance appraisal and compensation to competencies. 3. Yetkinlikleri geliştirme: Developing competencies that enhance individual and organizational performance. 4. Yenilik, yaratıcılık: Increasing the innovation, creativity and flexibility necessary to enhance competitiveness. 5. Kariyer, iş tasarımı, halef-selef planlaması: Applying new approaches to work process design, succession planning, career development and inter-organizational mobility. 6. Kişi iş ve teknoloji uyumunu sağlama: Managing the implementation and integration of technology through improved staffing, training and communication with employees.
The Conference Board has found six key people-related activities that human resources completes to add value to a company: 1. Yönetim: Effectively managing and utilizing people. 2. Başarı değerlendirme: Trying performance appraisal and compensation to competencies. 3. Yetkinlikleri geliştirme: Developing competencies that enhance individual and organizational performance. 4. Yenilik, yaratıcılık: Increasing the innovation, creativity and flexibility necessary to enhance competitiveness. 5. Kariyer, iş tasarımı, halef-selef planlaması: Applying new approaches to work process design, succession planning, career development and inter-organizational mobility. 6. Kişi iş ve teknoloji uyumunu sağlama: Managing the implementation and integration of technology through improved staffing, training and communication with employees.
Hr executives are focusing on the following core challenges: (1) balancing the global and the local – managing, hiring and identifying talent globally while retaining important local insights (2) managing a flexible and virtual workforce – but not at the cost of loyalty and career development (3) retaining the best talent – maintaining employee engagement in the face of a less committed, more flexible workforce.
Hr executives are focusing on the following core challenges: (1) balancing the global and the local – managing, hiring and identifying talent globally while retaining important local insights (2) managing a flexible and virtual workforce – but not at the cost of loyalty and career development (3) retaining the best talent – maintaining employee engagement in the face of a less committed, more flexible workforce.
