Human resource management

Human resource management (HRM or HR) is the management of human

resources. Commonly referred to as the HR Department[by whom?], it is
designed to maximize employee performance in service of an employer's
strategic objectives.[1][2][need quotation to verify] HR is primarily concerned with the
management of people within organizations, focusing on policies and
on systems.[3] HR departments are responsible for overseeing employee-
benefits design, employee recruitment, training and
development, performance appraisal, and rewarding (e.g., managing pay
and benefit systems).[4] HR also concerns itself with organizational
change and industrial relations, that is, the balancing of organizational
practices with requirements arising from collective bargaining and from
governmental laws.[5][need quotation to verify]
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.[citation needed] 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.
Human resources focuses on maximizing employee productivity.[citation
needed]
HR professionals manage the human capital of an organization and
focus on implementing policies and processes. They can specialise on
recruiting, training, employee-relations or benefits. Recruiting specialists
find and hire top talent. 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 concerns of employees when policies are
broken, such as in cases involving harassment or discrimination. Someone
in benefits develops compensation structures, family-leave programs,
discounts and other benefits that employees can get. On the other side of
the field are Human Resources Generalists or business partners. These
human-resources professionals could work in all areas or be labor-relations
representatives working with unionized employees.
In startup companies, trained professionals may perform HR duties. In
larger companies, an entire functional group is typically dedicated to the

=1=
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 have established
programs of study dedicated explicitly to the duties of the function.
Academic and practitioner organizations may produce 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.
Some businesses globalize and form more diverse teams. HR departments
have the role of making sure that these teams can function and that people
can communicate across cultures and across borders. Due to changes in
commerce, current topics in human resources include diversity and
inclusion as well as using technology to advance employee engagement. In
the current global work environment, most companies focus on
lowering employee turnover and on retaining the talent and knowledge held
by their workforce.[citation needed] New hiring not only entails a high cost but also
increases the risk of a newcomer not being able to replace the person who
worked in a position before. HR departments strive to offer benefits that will
appeal to workers, thus reducing the risk of losing corporate knowledge.

History[edit]
Antecedent theoretical developments[edit]
The Human Resources field evolved first in 18th century Europe. It built on
a simple idea by Robert Owen (1771-1858) and Charles Babbage(1791-
1871) during the industrial revolution. These men knew that people were
crucial to the success of an organization. They expressed the thought that
the well-being of employees led to perfect work. Without healthy workers,
the organization would not survive.[6][need quotation to verify]
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" (others later referred to "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[by whom?] into workforce productivity.[7]
Meanwhile, in England C S Myers, inspired by unexpected problems
among soldiers which had alarmed generals and politicians in the First

=2=
World War of 1914-1918, co-founded in 1921 the National Institute of
Industrial Psychology[8] (NIIP), setting seeds for the human relations
movement, which on both sides of the Atlantic built on the research of Elton
Mayo (1880-1949) and others to document through the Hawthorne
studies (1924–1932) and others how stimuli, unrelated to financial
compensation and working conditions, could yield more productive
workers.[9]Work by Abraham Maslow (1908–1970), Kurt Lewin (1890–
1947), Max Weber (1864–1920), Frederick Herzberg (1923–2000),
and David McClelland (1917–1998), forming the basis for studies
in industrial and organizational psychology, organizational
behavior and organizational theory, was interpreted[by whom?] in such a way as
to further claims[when?] of legitimacy for an applied discipline.

Birth and development of the discipline[edit]

By the time enough theoretical evidence existed to make a business
case for strategic workforce management, changes in the business
landscape (à la Andrew Carnegie, John Rockefeller) and in public policy (à
la Sidney and Beatrice Webb, Franklin D. Roosevelt and the New Deal)
had transformed the employer-employee relationship, and the discipline
became formalized as "industrial and labor relations". In 1913 one of the
oldest known professional HR associations—the Chartered Institute of
Personnel and Development (CIPD)—started in England as the Welfare
Workers' Association; it 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 in 2000.
[10]
Likewise in the United States, the world's first institution of higher
education dedicated to workplace studies—the School of Industrial and
Labor Relations—formed at Cornell University in 1945.[11] In 1948 what
would later become the largest professional HR association—the Society
for Human Resource Management (SHRM)—formed as the American
Society for Personnel Administration (ASPA).[12]
In the Soviet Union, meanwhile, 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,[13][14] and Stalin himself acknowledged the
importance of the human resource, such as in his mass deployment of it in
the Gulag system.[15]

=3=
During the latter half of the 20th century, union membership declined
significantly, while workforce management continued to expand its
influence within organizations.[citation needed] In the USA, the phrase "industrial
and labor relations" came into use to refer specifically to issues
concerning collective representation, and many[quantify] companies began
referring to the proto-HR profession as "personnel administration".[citation
needed]
Many current HR practices originated with the needs of companies in
the 1950s to develop and retain talent.[16]
In the late 20th 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,[citation needed] became the dominant
term for the function—the ASPA even changing its name to the Society for
Human Resource Management (SHRM) in 1998.[12]
"Human capital management" (HCM[17]) is sometimes used[by
whom?]
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[edit]
Several popular media productions have depicted HR. 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.[18] Long-running American
comic strip Dilbert frequently portrays sadistic HR policies through
character Catbert, the "evil director of human resources".[19] 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 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.

Practice[edit]
Business function[edit]

=4=
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.[20]
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 has four basic functions: staffing, training
and development, motivation and maintenance. Staffing is the recruitment
and selection of potential employees, done through interviewing,
applications, networking, etc. Training and development is the next step in
a continuous process of training and developing competent and adapted
employees. Motivation is key to keeping employees highly productive. This
function can include employee benefits, performance appraisals and
rewards. The last function of maintenance involves keeping the employees'
commitment and loyalty to the organization.
The discipline may also engage in mobility management, especially
for expatriates; and it is frequently involved in the merger and
acquisitionprocess. HR is generally viewed as a support function to the
business, helping to minimize costs and reduce risk.[21]
Careers[edit]
There are half a million HR practitioners in the United States and millions
more worldwide.[22] 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.[23][24]
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
=5=
human resources generalists can vary widely, depending on their
employer's needs."[25] 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.[26][27]
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.[28] For 2010,
HR consulting was ranked the #43 best job in America by CNN Money.[29]
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.
Virtual human resources[edit]
Technology has a significant impact on human resources practices. Human
resources is transitioning to a more technology-based profession because
utilizing technology makes information more accessible to the whole
organization, eliminates time doing administrative tasks, allows businesses
to function globally and cuts costs.[30] Information technology has improved
HR practices in the following areas:

 E-Recruiting
Recruiting has mostly been influenced by information technology.[31] In the
past, recruiters had relied on printing in publications and word of mouth to
fill open positions. HR professionals were not able to post a job in more
than one location and did not have access to millions of people, causing
the lead time of new hires to be drawn out and tiresome. With the use of e-
recruiting tools, HR professionals can post jobs and track applicants for
thousands of jobs in various locations all in one place. Interview feedback,
background and drug tests, and onboarding can all be viewed online. This

=6=
helps the HR professionals keep track of all of their open jobs and
applicants in a way that is faster and easier than before. E-recruiting also
helps eliminate limitations of geographic location.[31] Jobs can be posted
and seen by anyone with internet access. In addition to recruiting portals,
HR professionals have a social media presence that allows them to attract
employees through the World Wide Web. On social media they can build
the company's brand by posting news about the company and photos of
fun company events.

 Human Resources Information Systems (HRIS)

Human resources professionals generally process a considerable amount
of paperwork on a daily basis. This paperwork could be anything from a
department transfer request to an employee's confidential tax form. In
addition to processing this paperwork, it has to be on file for a considerable
period of time. The use of Human Resources Information Systems (HRIS)
has made it possible for companies to store and retrieve files in an
electronic format for people within the organization to access when needed.
This eliminates thousands of files and frees up space within the office.
Another benefit of HRIS is that it allows for information to be accessed in a
timelier manner. Instead of HR professionals having to dig through files to
gain information, it is accessible in seconds via the HRIS.[32] Having all of
the information in one place also allows for professionals to analyze data
quicker and across multiple locations because the information is in a
centralized location. Examples of some Human Resources Information
Systems are PeopleSoft, MyTime, SAP, Timeco, and JobsNavigator.

 Training
Technology makes it possible for human resources professionals to train
new staff members in a more efficient manner. This gives employees the
ability to access onboarding and training programs from anywhere. This
eliminates the need for trainers to meet with new hires face to face when
completing necessary paperwork to start. Training in virtual classrooms
makes it possible for the HR professionals to train a large number of
employees quickly and to assess their progress through computerized
testing programs.[30] Some employers even incorporate an instructor with
virtual training so that new hires are receiving the most vital training.
Employees can take control of their own learning and development by
engaging in training at a time and place of their choosing, helping them
manage their work-life balance. Managers are able to track the training

=7=
through the internet as well, which helps to reduce redundancy in training
and training costs. Skype, virtual chat rooms , and interactive training sites
are all resources that enable a more technological approach to training to
enhance the experience for the new hire.

Education[edit]

The School of Industrial and Labor Relations at Cornell University was the
world's first school for college-level study in HR.
Universities offer programs of study for 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.[33] 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 Pennsylvania State University, Rutgers, The State University
of New Jersey School of Management and Labor Relations, Michigan State
University, Indiana University, Purdue University, University of Minnesota,
Xavier Labour Relations Institute at Jamshedpur-India, University of Illinois
at Urbana-Champaign, Renmin University of China and the London School
of Economics. In Canada, the School of Human Resources Management
at York University is leading education and research in the HRM field.
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.Various universities all over the world have taken up the
responsibility of training human resource managers and equiping them with
interpersonal and intrapersonal skills so as to relate properly at the places
of work

Professional associations[edit]
Main article: List of human resource management associations

=8=
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,[22] with over 285,000 members in 165 countries.[34]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.[35] 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.[36] The Academy publishes
several journals devoted in part to research on HR, including Academy of
Management Journal[37] and Academy of Management Review,[38] and it
hosts an annual meeting.
[50]

=9=