The essay has been prepared to determine the extent to which it can be agreed with the statement ‘Human resource management deals with people not profits’. Throughout the study of human resource management it is learnt that human resource management is nothing but managing people who work for an organization in order to attain organizational goals, more precisely, make profits (profitable organization) or serve people (not for profit organization) .That is why it is likely to think that human resource management deals with only profit and in this process people are used as a media- meaning if all other units working inside the organization are held constant, the way to gain organizational goal starts from human resource management to profit through the effective use of people. But in reality the scenario is just the other way around. Assuming all other organizational units’ activities to be constant, the way to achieve organizational goal starts from people to profit through the effective use of human resource management. So HRM works as the means to gain organizational goals by dealing directly and only with people not profit. The essay highlights the emergence of HRM, some of the key concepts and issues to support the fact that human resource management deals with people not profit. The essay will also highlight how human resource management deals with people in not for profit organization as well to support the above discussion.
Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. (About.com,2000). Interestingly enough the concept of this definition may have been created in current times, however its existence goes a few centuries back. HRM has virtually evolved from the 1700’s and is now practiced throughout the world. But what caused HRM to appear in organizations? Let’s take a brief insight on how and why HRM was implemented. In the 1700’s, there were only local workshops which consisted of blacksmiths, carpenters, craftsmen etc. as organizations cease to exist. The population consisted of rich people with power as well as poor people with no power at all. Orders for products would be given to the local workshops in return for money but at times the rich would not maintain the agreement to cut back on expenses. Hence the poor people lacking power were incapable of living in justice. As the years went on, organizations began to fold and the common folk were employed as laborers. Evidently, the rich people with power who owned the organizations and structured compensation for laborers that didn’t let them make a proper living so that they could enjoy more profits. Due to such unfairness the laborers created a union (representative workers in an industry) that would go against the organization policies resulting in strikes, violence, etc. With the advent of "labor unions" in the 1790's, the power in the hands of the employees multiplied considerably and increased at a rapid pace by the 1800s and furthermore in the 1900s( Khilawala, R. 2009) . To solve these problems the union leader would meet with the owner of the organization to negotiate. A solution came forward and the HRM system was implemented in the organization to handle the issues of the employees. The troubles between the employees and employers regarding the circumstances of work created the HRM system. Therefore history explains itself that if profits were the only goal of the organization then the organization couldn’t run properly as HRM is needed to satisfy the emotions and feelings of employees. In recent times HRM has the same weight as the other departments and in some companies it has more.
Human resource management deals with people issues from the moment they are recruited till the time they no longer work for the organization .HRM deals with areas such as appraisal, training and development, remuneration,...
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