HRM: Theoretical Framework
Human resource is an increasingly broadening term that refers to managing human capital, the people of an organization. The field has moved from a traditionally administrative function to a strategic one that recognizes the link between talented and engaged people and organizational success. The field draws upon concepts developed in industrial/organizational psychology and system theory. Human resource has at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production although this perspective is changing as a function of new and ongoing research into more strategic approaches at national levels. This first usage is used more in terms of human resources development, and can go beyond just organizations to the level of nations.[i] The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as human resources management. Human resource management (HRM) is a business practice to managing the workforce. It is one of several important functions in modern organizations. HRM helps to structure employee and candidate information by skills, profiles and career preferences. It is helping talent supply and demand by enabling communication, self-selection, and evaluation of human resources needs. Usually, human resource management use computer systems to support these functions including payroll, HR and skills database. A human resource management system also includes the activities of human resources planning, selection, recruitment, orientation, training, performance appraisal and compensation. Though human resources have been part of business and organizations since the first days of agriculture, the modern concept of human resources began in reaction to the efficiency focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in the United States started the human relations movement, which viewed workers in terms of their psychology and fit with organizations, rather than as interchangeable parts. This movement grew throughout the middle of the 20th century, placing emphasis on how leadership, cohesion, and loyalty played important roles in organizational success. Although this view was increasingly challenged by more quantitatively rigorous and less “soft” management techniques in the 1960s and beyond, human resources development had gained a permanent role within organizations, agencies and nations, increasingly as not only an academic discipline, but as a central theme in development policy. HRM is allied with people at work in an organization. It manages working employees and workers in industry, offices and in all private or public fields or employment. It is defined as, that phase of management, which deals with effective control, and use of manpower as distinguished from other sources of power. In brief, HRM has to deal with people at work. It relates to employees both as individuals as well as a group in order to obtain better results with their working in association with others and their effective participation in organization’s works.
HRM: Concept and Meaning
Human resource management (HRM) is the strategic and coherent approach to the management 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.[ii] 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. In simple sense, HRM means employing people, developing their resources,...