Human resource management (HRM, or simply HR) is the management of an organization's workforce, or human resources. It is
responsible for the attraction, selection, training,assessment, and rewarding of employees, while also overseeing
organizational leadership and culture, and ensuring compliance with employment
and labor laws. In circumstances where employees desire and are legally
authorized to hold a collective bargaining agreement, HR will
typically also serve as the company's primary liaison with the employees'
representatives (usually a labor
union).
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. The function was initially dominated by
transactional work such as payroll and benefits administration, but due to globalization, company
consolidation, technological advancement, and further research, HR now focuses
on strategic initiatives like mergers and acquisitions, talent
management, succession planning, industrial and labor
relations, anddiversity and inclusion.
Whereas in startup
companies HR's
duties may be performed by a handful of trained professionals or even by non-HR
personnel, larger companies typically house an entire functional group
dedicated to the discipline, with staff specializing in various HR tasks and
functional leadership engaging in strategic decision making across the business. To
train practitioners for the profession, institutions of higher education,
professional associations, and companies themselves have created programs of
study dedicated explicitly to the duties of the function. Academic and
practitioner organizations likewise seek to engage and further the field of HR,
as evidenced by several field-specific publications.
Antecedent theoretical
developments
HR
spawned from the human relations
movement, which began in the
early 20th century due to work by Frederick Taylor in lean manufacturing. Taylor explored what he termed "scientific management" (later referred to by others as
"Taylorism"), striving to improve economic efficiency in manufacturing jobs. He eventually keyed in on
one of the principal inputs into the manufacturing process—labor—sparking
inquiry into workforce productivity
The
movement was formalized following the research of Elton Mayo, whose Hawthorne studies serendipitously documented how stimuli unrelated to financial
compensation and working conditions—attention and engagement—yielded more
productive workers. Contemporaneous work by Abraham Maslow, Kurt Lewin, Max Weber, Frederick Herzberg, and David McClelland formed the basis for studies in organizational behavior and organizational theory, giving room for an applied discipline.
Birth and evolution of
the discipline
By
the time enough theoretical evidence existed to make a business case for
strategic workforce management, changes in the business landscape (a là Andrew Carnegie, John Rockefeller) and in public policy (a là Sidney and Beatrice Webb, Franklin D. Roosevelt and the New Deal) had transformed the employer-employee relationship, and the
discipline was formalized as "industrial and labor relations". In 1913, one of the oldest known professional
HR associations—the Chartered Institute of Personnel and Development—was founded in England as the Welfare Workers' Association, then changed its name a decade later to the Institute of Industrial Welfare Workers, and again the next decade to Institute of Labour Management before settling upon its current name. Likewise
in the United States, the world's first institution of higher education
dedicated to workplace studies—the School of Industrial and Labor Relations—was formed at Cornell University in 1945
During
the latter half of the 20th century, union membership declined significantly,
while workforce management continued to expand its influence within organizations.
"Industrial and labor relations" began being used to refer
specifically to issues concerning collective
representation, and many companies
began referring to the profession as "personnel administration". In
1948, what would later become the largest professional HR association—the Society
for Human Resource Management (SHRM)—was founded as the American Society for Personnel Administration (ASPA).
Nearing
the 21st century, advances in transportation and communications greatly
facilitated workforce mobility and collaboration. Corporations began viewing
employees as assets rather than as cogs in machine. "Human resources
management", consequently, became the dominant term for the function—the
ASPA even changing its name to SHRM in 1998. "Human capital
management" is sometimes used
synonymously with HR, although human capital typically refers to a more narrow
view of human resources; i.e., the knowledge the individuals embody and can
contribute to an organization. Likewise, other terms sometimes used to describe
the field include "organizational management", "manpower
management", "talent management", "personnel
management", and simply "people management".
In popular media
HR
has been portrayed in several instances of popular media. On the U.S.
television series of The
Office, HR representative Toby Flenderson is sometimes seen as a nag because he constantly reminds coworkers
of company policies and government regulations Long-running American comic strip Dilbert also frequently portrays sadistic HR policies through character Catbert, the "evil director of human resources". An HR manager is also the title character in the
2010 Israeli film The
Human Resources Manager.
Practice
Business function
HR's
overarching mission has been compartmentalized by industry expert Dave Ulrich as four-fold: (1) aligning HR and business strategy (strategic
partner), re-engineering organization processes (administration expert),
listening and responding to employees (employee champion), and (4) managing
transformation and change (change agent).[8]
In
practice, HR is responsible for employee experience during the entire
employment lifecycle. It is first charged with attracting the right employees
through employer branding. It then must select the right employees through the recruitment process. HR then onboards new hires and oversees their training and
development during their tenure with
the organization. HR assesses talent through use of performance appraisals and then rewards them accordingly. In fulfillment of the latter, HR may sometimes
administer payroll and employee benefits, although such activities are more and more being outsourced,
with HR playing a more strategic role.
At
the macro-level, HR is in charge of overseeing organizational leadership and culture. HR also ensures compliance with employment and labor laws, which differ by geography, and often oversees
health, safety, and security. In circumstances where employees desire and are
legally authorized to hold a collective bargaining
agreement, HR will typically also
serve as the company's primary liaison with the employees' representatives
(usually a labor union). Consequently, HR, usually through industry
representatives, engages in lobbying efforts with governmental agencies (e.g.,
in the United States, the United
States Department of Labor and the National
Labor Relations Board) to further its
priorities.
The
discipline may also engage in mobility management, especially pertaining to expatriates; and it is frequently involved in the merger and acquisition process. HR is generally viewed as a support
function to the business, helping to minimize costs and reduce risk.
Careers
There
are almost half a million HR practitioners in the United States and thousands
more worldwide. The Chief HR Officer is the highest ranking HR executive in most
companies and typically reports directly to the Chief Executive Officer and works with the Board of Directors on CEO succession.
Within
companies, HR positions generally fall into one of two categories: generalist
and specialist. Generalists support employees directly with their questions,
grievances, and projects. 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. Being an HR manager consistently ranks as one of the best jobs, 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.
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 USD $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. For 2010, HR consulting was ranked the #43 best
job in America by CNN Money.
Education
Higher education
The School of Industrial
and Labor Relations atCornell University was the world's first school for college-level study in HR.
Several
universities offer programs of study pertaining to HR 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 It continues to offer education at the
undergraduate, graduate, and professional levels; and it operates a joint
degree program with the Samuel Curtis Johnson
Graduate School of Management, which HR Patriot termed the "crown jewel for aspiring HR
professionals".
Other
universities with entire colleges dedicated to the study of HR include Michigan State University, University of Illinois at Urbana-Champaign, and Renmin University of China. Dozens of other universities house departments and institutes
related to the field, either within a business school or in another college.
Professional
associations
HR
education also comes by way of professional associations, 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] with over 250,000
members in 140 countries.[20] It offers a suite of Professional in Human Resources (PHR) certifications through its HR
Certification Institute. TheChartered Institute of
Personnel and Development,
based in England,
is the oldest professional HR association, with its predecessor institution
being founded in 1919.
Several
associations also serve niches within HR. 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 &
Developmentand Recognition Professionals International.
Opinion about this article : Organizing is the determining,
grouping and arranging of the various activities needed necessary for the
attainment of the objectives, the assigning of the people to these activities,
the providing of suitable physical factors of environment and theindicating of
the relative authority delegated to each individual charged with the execution
of each respective activity.
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