Human resource management

1
Human resource management
Human resource management (HRM, or simply HR) is a function in organizations designed to maximize
employee performance in service of their employers strategic objectives.
[1]
HR is primarily concerned with how
people are managed within organizations, focusing on policies and systems.
[2]
HR departments and units in
organizations are typically responsible for a number of activities, including employee recruitment, training and
development, performance appraisal, and rewarding (e.g., managing pay and benefit systems).
[3]
HR is also
concerned with industrial relations, that is, the balancing of organizational practices with regulations arising from
collective bargaining and governmental laws.
[4]
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, and diversity and inclusion.
In startup companies, HR's duties may be performed by trained professionals. In larger companies, an entire
functional group is typically 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. HR is also a field of research study
that is popular within the fields of management and industrial/organizational psychology, with research articles
appearing in a number of academic journals, including those mentioned later in this article.
In the current global work environment, all global companies are focused on retaining the talent and knowledge held
by the workforce. All companies are focused on lowering the employee turnover and preserving knowledge. New
hiring not only entails a high cost but also increases the risk of the newcomer not being able to replace the person
who was working in that position before. HR departments also strive to offer benefits that will appeal to workers,
thus reducing the risk of losing knowledge.
History
Antecedent theoretical developments
HR spawned in the early 20th century and was influenced by Frederick Taylor (1856-1915) .). 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
processlaborsparking inquiry into workforce productivity.
The human relations movement grew from the research of Elton Mayo and others, whose Hawthorne studies
(1924-1932) serendipitously documented how stimuli, unrelated to financial compensation and working conditions,
yielded more productive workers. Contemporaneous work by Abraham Maslow, Kurt Lewin, Max Weber
(1864-1920), Frederick Herzberg, and David McClelland (1917-1998) formed the basis for studies in industrial and
organizational psychology, organizational behavior and organizational theory, giving room for an applied discipline.
Human resource management
2
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 ( la Andrew Carnegie, John Rockefeller) and in public policy (a l 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
associationsthe Chartered Institute of Personnel and Developmentwas 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 studiesthe School of Industrial and
Labor Relationswas 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 associationthe 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 a machine. "Human resources
management", consequently, became the dominant term for the functionthe 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 depicted in several 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". Additionally, 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. Additionally, the BBC sitcom dinnerladies main character Philippa is an HR manager.
Practice
Business function
Dave Ulrich lists the functions of HR as: aligning HR and business strategy, re-engineering organization processes,
listening and responding to employees, and managing transformation and change.
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 employee's representatives (usually a labor union).
Consequently, HR, usually through 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.
Human resource management
3
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 half a million HR practitioners in the United States and thousands more worldwide. The Chief HR Officer
or HR Director 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 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. 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.
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.
Education
Further information: List of human resource management graduate degree programs
The School of Industrial and Labor Relations at Cornell 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. Other universities with entire
colleges dedicated to the study of HR include Michigan
State University, University of Minnesota, University
of Illinois at Urbana-Champaign, and Renmin
University of China. 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.
Professional associations
Human resource management
4
Main article: List of human resource management 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, with over 250,000 members in 140 countries.
[5]
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. 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.
A largely academic organization that is relevant to HR is the Academy of Management that has an HR division. This
division is concerned with finding ways to improve the effectiveness of HR.
[6]
The Academy publishes several
journals devoted in part to research on HR, including Academy of Management Journal
[7]
and Academy of
Management Review,
[8]
and it hosts an annual meeting.
Publications
Academic and practitioner publications dealing exclusively with HR:
Cornell HR Review
[9]
HR Magazine (SHRM)
[10]
Human Resource Management
[11]
Human Resource Management Review
[12]
International Journal of Human Resource Management
[13]
Perspectives on Work (LERA)
[14]
Related publications:
Academy of Management Journal
Academy of Management Review
Administrative Science Quarterly
[15]
International Journal of Selection and Assessment
[16]
Journal of Applied Psychology
[17]
Journal of Management
[18]
Journal of Occupational and Organizational Psychology
[19]
Journal of Personnel Psychology
[20]
Organization Science
[21]
Personnel Psychology
[22]
Human resource management
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References
[1] Johnason, P. (2009). HRM in changing organizational contexts. In D. G. Collings & G. Wood (Eds.), Human resource management: A critical
approach (pp. 19-37). London: Routledge.
[2] Collings, D. G., & Wood, G. (2009). Human resource management: A critical approach. In D. G. Collings & G. Wood (Eds.), Human
resource management: A critical approach (pp. 1-16). London: Routledge.
[3] Paauwe, J., & Boon, C. (2009). Strategic HRM: A critical review. In D. G. Collings & G. Wood (Eds.), Human resource management: A
critical approach (pp. 38-54). London: Routledge.
[4] Klerck, G. (2009). Industrial relations and human resource management. In D. G. Collings & G. Wood (Eds.), Human resource management:
A critical approach (pp. 238-259). London: Routledge.
[5] SHRM Website: About SHRM (http:/ / www.shrm.org/ about/ )
[6] http:/ / aom. org/ Divisions-and-Interest-Groups/ Human-Resources/ Human-Resources-Division. aspx
[7] http:/ / amj. aom. org/
[8] http:/ / amr. aom. org/
[9] http:/ / www. cornellhrreview. org/
[10] http:/ / www.shrm.org/ Publications/ hrmagazine/ Pages/ default. aspx
[11] http:/ / onlinelibrary.wiley. com/ journal/ 10. 1002/ %28ISSN%291099-050X
[12] http:/ / www.journals.elsevier.com/ human-resource-management-review/
[13] http:/ / www.tandfonline. com/ toc/ rijh20/ current#.Uxhl2YXCyDs
[14] http:/ / leraweb. org/ publications/ perspectives-work
[15] http:/ / www.johnson.cornell. edu/ Administrative-Science-Quarterly. aspx
[16] http:/ / onlinelibrary.wiley. com/ journal/ 10. 1111/ %28ISSN%291468-2389
[17] http:/ / www.apa. org/ pubs/ journals/ apl/ index. aspx
[18] http:/ / jom.sagepub. com/
[19] http:/ / onlinelibrary.wiley. com/ journal/ 10. 1111/ (ISSN)2044-8325
[20] http:/ / www.hogrefe.com/ periodicals/ journal-of-personnel-psychology/
[21] http:/ / pubsonline. informs.org/ loi/ orsc
[22] http:/ / onlinelibrary.wiley. com/ journal/ 10. 1111/ %28ISSN%291744-6570
External links
Wikimedia Commons has media related to Human resources management.
Library resources about
Human resource management
Resources in your library (http:/ / tools. wmflabs. org/ ftl/ cgi-bin/ ftl?st=wp& su=Human+ resource+ management)
Resources in other libraries (http:/ / tools. wmflabs. org/ ftl/ cgi-bin/ ftl?st=wp& su=Human+ resource+ management& library=0CHOOSE0)
A website for HR Professionals (http:/ / www. mkhrm. com)
Article Sources and Contributors
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