It is widely accepted that business relies on effective human resource management (HRM) to ensure that companies hire and keep good employees and meanwhile they are able to deal with the conflicts between workers and managers. As we look at the history and content of HRM, there have been numerous changes in the world of human resources (HR) during the last decade as it shifts its focus from enhancing internal operations to maximizing contribution to the corporation’s business performance. (Mercer Human Resource Consulting, 2006)
With the economic development in china, HRM is concerned by more and more Chinese people. The development stage of HR profession in china is various in different ownerships of organizations. However, No matter what type of organizations they are, their HRM has been different compared with several years ago. In order to adapt to these evolutions in HRM, these Chinese HR managers have to face some certain challenges.
This essay will identify and analyze how HR function has evolved over the last 10 years and then give a general picture of what stage of development is the HR profession in china. At the same time, this essay also considers what major challenges are facing HR managers in china.
Changes of HR function
The HR function has had a revolution. It was not so long ago that the HR function was helping organizations on internal operations like finding out people want from their work, what an organization wants from its employees, and matching both needs. It pays more attention on improving technology and services delivery with the expectation that HR would transit to a more strategic role within the organization (Karen Piercy, 2006). Following are some aspects of the main changes of HR function.
HR as a strategic partner
Along with making changes to HR leadership, organizations worldwide are also changing their perception of the HR function. According to Mercer’s survey (2006), 67% of respondents said that HR leaders are viewed as a strategic partner, participating in strategy discussions and decisions. The same percentage of HR leaders (67%) reports to the CEO, compared to 54% in the 2003 study. All these shows that the HR function has spent less time on its traditional HR activities such as recordkeeping and delivering HR services and more time on strategic partnering.
Excellent HRM always pay more attention to the distribution of human resource in the organization. Nowadays, the role of HR plays is both HR manager and strategic partner through integrating technology and management. What they need to focus on is not only the traditional personal things but also put much more emphasis on the activities of making strategy on the development of organization. This means HR managers are supposed to treat recruitment, selection, training and development as strategic practices. Therefore employees can make a great contribution to the organization by sharing the same organization value, operation and culture.
From “human resource” to “human capital”
In the past, people in organization were treated as “resource” to the organization. But today they are seen “capital” where to invest and add value. In the last decades, workers have been treated as the necessary resource to organizations. However, this is not enough, they should be considered as human capital which adds value to the business and create more value to the organization. The difference between “resource” and “capital” is obvious. According to Wikipedia, “Human Resource” is another name for labor. But “Human capital” refers to the stock of skills and knowledge embodied in the ability to perform labor so as to produce economic value. It maybe cost but can be profitable to the organization. It is useful resource (Wancheng Wu, 2006). At the end of the 20th century, many industries were trying to boost productivity by helping employees to expand their skills (Microsoft, Encarta). This means...
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