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Human resource managementFrom Wikipedia, the free encyclopedia

"Human Resources Manager" redirects here. For the 2010 Israeli film, see The Human Resources Manager.

Human resource management (HRM) is the strategic and coherent approach to themanagement of an

organization's most valued assets - the people working there who individually and collectively contribute to the

achievement of the objectives of the business.[1]The terms "human resource management" and "human

resources" (HR) have largely replaced the term "personnel management" as a description of the processes

involved in managing people in organizations.[1]In simple words, HRM means employing people, developing

their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational

requirement.

Contents

[hide]

1 Features

2 Academic theory

3 Business practice

3.1 HRM

strategy

4 Careers and education

5 Professional

organizations

6 Functions

7 See also

8 References

[edit]Features

Its features include:

Organizational management

Personnel administration

Manpower management

Industrial management[2][3]
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But these traditional expressions are becoming less common for the theoretical discipline. Sometimes even

employee andindustrial relations are confusingly listed as synonyms,[4]although these normally refer to the

relationship between management and workers and the behavior of workers in companies.

The theoretical discipline is based primarily on the assumption that employees are individuals with varying

goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing

cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the

enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient

training, and failures of process.

Human Resource Management(HRM) is seen by practitioners in the field as a more innovative view of

workplace management than the traditional approach. Its techniques force the managers of an enterprise to

express their goals with specificity so that they can be understood and undertaken by the workforce, and to

provide the resources needed for them to successfully accomplish their assignments. As such, HRM

techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise

overall. HRM is also seen by many to have a key role in risk reduction within organisations.[5]

Synonyms such aspersonnel managementare often used in a more restricted sense to describe activities that

are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and

administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define

personnel management as being:

a series of activities which: first enable working people and their employing organisations to agree about the

objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled"

(p. 49).

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at all levels in the business

and which are related to the implementation of strategies directed towards creating and sustaining competitive

advantage" (p. 352).

[edit]Academic theory

Research in the area of HRM has much to contribute to the organisational practice of HRM. For the last 20years, empirical work has paid particular attention to the link between the practice of HRM and organisational

performance, evident in improved employee commitment, lower levels of absenteeism and turnover, higher

levels of skills and therefore higher productivity, enhanced quality and efficiency[6]. This area of work is

sometimes referred to as 'Strategic HRM' or SHRM ([7].
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Within SHRM three strands of work can be observed[8]: Best practice, Best Fit and the Resource Based View

(RBV).

The notion of best practice - sometimes called 'high commitment' HRM - proposes that the adoption of certain

best practices in HRM will result in better organisational performance. Perhaps the most popular work in this

area is that of Pfeffer[9] who argued that there were seven best practices for achieving competitive advantage

through people and 'building profits by putting people first'. These practices included: providing employment

security, selective hiring, extensive training, sharing information, self-managed teams, high pay based on

company performance and the reduction of status differentials. However, there is a huge number of studies

which provide evidence of best practices, usually implemented in coherent bundles, and therefore it is difficult

to draw generalised conclusions about which is the 'best' way (For a comparison of different sets of best

practices see Becker and Gerhart, 1996[10]

Best fit, or the contingency approach to HRM, argues that HRM improves performance where there is a close

vertical fit between the HRM practices and the company's strategy. This link ensures close coherence between

the HR people processes and policies and the external market or business strategy. There are a range of

theories about the nature of this vertical integration. For example, a set of 'lifecycle' models argue that HR

policies and practices can be mapped onto the stage of an organisation's development or lifecycle[11].

Competitive advantage models take Porter's (1985) ideas about strategic choice and map a range of HR

practices onto the organisation's choice of competitive strategy. Finally 'configurational models'[12] provide a

more sophisticated approach which advocates a close examination of the organisation's strategy in order to

determine the appropriate HR policies and practices. However, this approach assumes that the strategy of the

organisation can be identified - many organisations exist in a state of flux and development.

The Resource Based View (RBV), argued by some to be at the foundation of modern HRM [13], focusses on the

internal resources of the organisation and how they contribute to competitive advantage. The uniqueness of

these resources is preferred to homogeneity and HRM has a central role in developing human resources that

are valuable, rare, difficult to copy or substitute and that are effectively organised.

Overall, the theory of HRM argues that the goal of human resource management is to help an organization to

meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key

word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an

organisation's employees, and the overall strategic direction of the company (Miller, 1989).

The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have

an interdisciplinary examination of people in the workplace. Fields such aspsychology, industrial relations,

industrial engineering,sociology,economics, and critical theories:postmodernism,post-structuralism play a

major role. Many colleges and universities offer bachelor and master degrees in Human Resources

Management or in Human Resources and Industrial Relations.
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One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM

function:[14]

Strategic business partner

Change Agent

Employee champion

Administration Expert

[edit]Business practice

Human resources management involves several processes. Together they are supposed to achieve the above

mentioned goal. These processes can be performed in an HR department, but some tasks can also be

outsourced or performed by line-managers or other departments. When effectively integrated they provide

significant economic benefit to the company. [15]

Workforce planning

Recruitment (sometimes separated into attraction and selection)

Induction, Orientationand Onboarding

Skills management

Training and development

Personnel administration

Compensation in wage orsalary

Time management

Travel management (sometimes assigned to accounting rather than HRM)

Payroll (sometimes assigned to accounting rather than HRM)

Employee benefits administration

Personnel cost planning

Performance appraisalto motivate

Labor relations

[edit]HRM strategy

An HRM strategy pertains to the means as to how to implement the specific functions of HRM. An

organization's HR function may possess recruitment and selection policies, disciplinary procedures,

reward/recognition policies, an HR plan, or learning and development policies, however all of these functional
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areas of HRM need to be aligned and correlated, in order to correspond with the overall business strategy. An

HRM strategy thus is an overall plan, concerning the implementation of specific HRM functional areas.

An HRM strategy typically consists of the following factors:-

"Best fit" and "best practice" - meaning that there is correlation between theHRM strategy and the overall corporate strategy. As HRM as a field seeks to

manage human resourcesin order to achieve properly organizational goals, an

organization's HRM strategy seeks to accomplish such management by

applying a firm's personnel needs with the goals/objectives of the

organisation. As an example, a firm selling cars could have a corporate

strategy of increasing car sales by 10% over a five year period. Accordingly,

the HRM strategy would seek to facilitate how exactly to manage personnel in

order to achieve the 10% figure. Specific HRM functions, such as recruitment

and selection, reward/recognition, an HR plan, or learning and development

policies, would be tailored to achieve the corporate objectives.

Close co-operation (at least in theory) between HR and the top/senior

management, in the development of the corporate strategy. Theoretically, a

senior HR representative should be present when an organization's corporate

objectives are devised. This is so, since it is a firm's personnel who actually

construct a good, or provide a service. The personnel's proper management is

vital in the firm being successful, or even existing as a going concern. Thus,

HR can be seen as one of the critical departments within the functional area of

an organization.

Continual monitoring of the strategy, via employee feedback, surveys, etc.

The implementation of an HR strategy is not always required, and may depend on a number of factors, namely

the size of the firm, the organizational culture within the firm or the industry that the firm operates in and also

the people in the firm.

An HRM strategy can be divided, in general, into two facets - the people strategy and the HR functional

strategy. The people strategy pertains to the point listed in the first paragraph, namely the careful correlation of

HRM policies/actions to attain the goals laid down in the corporate strategy. The HR functional strategy relates

to the policies employed within the HR functional area itself, regarding the management of persons internal to

it, to ensure its own departmental goals are met.

[edit]Careers and education

Further information:Graduate degree programs in human resources management
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Cornell University's School of Industrial and Labor Relationswas the world's first school for college-level study in HRM

Several universities offer programs of study pertaining to HRM and broader fields. Cornell Universitycreated

the world's first school for college-level study in HRM (ILR School).[16]University of Illinois at Urbana-

Champaign also now has a school dedicated to the study of HRM, while several business schoolsalso house a

center or department dedicated to such studies; e.g.,University of Wisconsin-Madison, University of

Minnesota, Michigan State University,Ohio State University,Roosevelt University,and Purdue University.

There are both generalist and specialist HRM jobs. There are careers involved with employment, recruitment

and placement and these are usually conducted by interviewers, EEO (Equal Employment Opportunity)

specialists or college recruiters. Training and development specialism is often conducted by trainers and

orientation specialists. Compensation and benefits tasks are handled by compensation analysts, salary

administrators, and benefits administrators.

[edit]Professional organizations

Professional organizations in HRM include the Society for Human Resource Management, the Australian

Human Resources Institute (AHRI), theChartered Institute of Personnel and Development (CIPD), the

International Public Management Association for HR (IPMA-HR), Management Association of Nepal (MAN) and

the International Personnel Management Association of Canada (IPMA-Canada), Human Capital Institute.

National Human Resource Development Network in India.

[edit]Functions

The Human Resources Management (HRM) function includes a variety of activities, and key among them is

deciding what staffing needs to have and whether to use independent contractors or hire employees to fill these

needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance

issues, and ensuring your personnel and management practices conform to various regulations. Activities also

include managing your approach to employee benefits and compensation, employee records and personnel

policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because

they can't yet afford part- or full-time help. However, they should always ensure that employees haveand are

aware ofpersonnel policies which conform to current regulations. These policies are often in the form of

employee manuals, which all employees have.

Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human

Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes
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the broader range of activities to develop personnel inside of organizations, including, e.g., career

development, training, organization development, etc.

There is a long-standing argument about where HR-related functions should be organized into large

organizations, e.g., "should HR be in the Organization Development department or the other way around?"

The HRM function and HRD profession have undergone major changes over the past 2030 years. Many years

ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring

and paying people. More recently, organizations consider the "HR Department" as playing an important role in

staffing, training and helping to manage people so that people and the organization are performing at maximum

capability in a highly fulfilling manner.

[edit]See also

Nomenclature

Human resources

Enterprise Feedback Management (EFM)

E-HRM

[edit]References

1. ^ ab Armstrong, Michael (2006).A Handbook of Human Resource

Management Practice (10th ed.). London: Kogan Page. ISBN0-7494-4631-

5.OCLC62282248.

2. ^ "personnel management".The Columbia Encyclopedia (Sixth Edition ed.).

Columbia University Press. 2005. Retrieved 2007-10-17. "personnel

management - see industrial management".

3. ^ Encyclopdia Britannica (kl ed.). "Personnel administration is also

frequently called personnel management, industrial relations, employee

relations".

4. ^ Encyclopdia Britannica.

5. ^ Towers, David. "Human Resource Management essays". Retrieved 2007-

10-17.

6. ^ Golding, N. (2010) "Strategic Human Resource Management" in Beardwell,

J. and Claydon, T. (2010) Human Resource Management A Contemporary

Approach, FT Prentice Hall
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7. ^ Storey, J. (2007) "What is strategic HRM?" in Storey, J. (2007) Human

Resource Management: A Critical Text, Thompson

8. ^ Paauwe, J. (2009) 'HRM and Performance: Achievement, Methodological

Issues and Prospects' Journal of Management Studies, 46 (1)

9. ^ Pfeffer, J. (1994) Competitive advantage through people, Harvard Business

School Press

10.^ Becker, B. and Gerhart, B. (1996) 'The impact of human resource

management on organisational performance' Academy of Management

Journal 39 (4) 779-801

11.^ Kochan, T. and Barocci, T. (1985) Human Resource Management and

Industrial Relations, LittleBrown

12.^ Delery, J. and Doty, H. (1996) 'Modes of theorizing in SHRM' Academy of

Management Journal, 39(4), 802-835

13.^ Prahalad, C. and Hamel, G. (1990) 'The core competences of the

organisation' Harvard Business Review

14.^ Ulrich, Dave (1996). Human Resource Champions. The next agenda for

adding value and delivering results. Boston, Mass.: Harvard Business School

Press.ISBN0-87584-719-6.OCLC34704904.

15.^ The Strategic Impact of High Performance Work Systems

16.^ "About Cornell ILR".Cornell University School of Industrial and Labor

Relations. Retrieved 23 August 2009.

Wilkinson, A. (1988)."Empowerment: theory and practice".Personnel

Review27 (1): 4056.doi:10.1108/00483489810368549. Retrieved 2007-10-

17.[dead link]

Legge, Karen (2004). Human Resource Management: Rhetorics and

Realities (Anniversary ed.). Basingstoke: Palgrave Macmillan.ISBN1-403-

93600-5. OCLC56730524.Categories:Human resource management |Organizational studies and human resource management

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Human Resource Management Sa3

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