Human resources

From Wikipedia, the free encyclopedia Jump to: navigation, search "HR" redirects here. For other uses, see HR (disam iguation!. "his article is a out Human resources. For other uses, see Human resource (disam iguation!. Human resources is a term used to descri e the individuals #ho comprise the #orkforce of an organi$ation, although it is also applied in la or economics to, for e%ample, usiness sectors or even #hole nations. Human resources is also the name of the function #ithin an organi$ation charged #ith the overall responsi ility for implementing strategies and policies relating to the management of individuals (i.e. the human resources!. "his function title is often a reviated to the initials &HR&. Human resources is a relatively modern management term, coined as early as the '()*s + #hen humanity took a shift as human rights came to a righter light during the ,ietnam -ra..citation needed/ "he origins of the function arose in organi$ations that introduced &#elfare management& practices and also in those that adopted the principles of &scientific management&. From these terms emerged a largely administrative management activity, coordinating a range of #orker related processes and ecoming kno#n, in time as the &personnel function&. Human resources progressively ecame the more usual name for this function, in the first instance in the 0nited 1tates as #ell as multinational or international corporations, reflecting the adoption of a more 2uantitative as #ell as strategic approach to #orkforce management, demanded y corporate management to gain a competitive advantage, utili$ing limited skilled and highly skilled #orkers.

ackground
"he term &human resources& as used in organi$ations descri es the #orkforce capacity availa le to devoted to achievement of their o 3ectives. "he su 3ect has dra#n upon concepts developed in industrial4organi$ational psychology and system theory. Human resources has at least t#o related interpretations depending on conte%t. "he original usage derives from political economy and economics, #here it #as traditionally called la or, one of four factors of production. "his perspective has shifted as a conse2uence of further ongoing research into more applied approaches..'/ "he su 3ect has e%panded to &human resources development&, also called &investment in human capital&. 1uch development may apply to individuals #ithin an organi$ation or applied eyond the level of the organi$ation to that of industry sectors and nations..5/

History

"he early development of the function can e traced ack to at least t#o distinct movements. 6ne element has its origins in the late '(th century, #here organi$ations such as 7ad urys at its 8ournville factory recogni$ed the importance of looking after the #elfare of the #orkforce, and their families. "he employment of #omen in factories in the 0nited 9ingdom during the First World War lead to the introduction of "Welfare 6fficers". :ean#hile, in the 0nited 1tates the concept of human resources developed as a reaction to the efficiency focus of "aylorism or "scientific management" in the early '(**s, #hich developed in response to the demand for ever more efficient #orking practices #ithin highly mechani$ed factories, such as in the Ford :otor 7ompany. 8y '(5*, psychologists and employment e%perts in the 0nited 1tates started the human relations movement, #hich vie#ed #orkers in terms of their psychology and fit #ith companies, rather than as interchangea le parts. ;uring the middle of the last century, larger corporations, typically those in the 0nited 1tates that emerged after the 1econd World War, recruited personnel from the 01 :ilitary and #ere a le to apply ne# selection, training, leadership, and management development techni2ues, originally developed y the <rmed 1ervices, #orking #ith, for e%ample, university+ ased occupational psychologists. 1imilarly, some leading -uropean multinationals, such as 1hell and =hillips developed ne# approaches to personnel development and dre# on similar approaches already used in 7ivil 1ervice training. >radually, this spread more sophisticated policies and processes that re2uired more central management via a personnel department composed of specialists and generalist teams. "he role of #hat ecame kno#n as Human Resources gre# throughout the middle of the 5*th century. "ensions remained et#een academics #ho emphasi$ed either &soft& or &hard& HR. "hose professing so+called &soft HR& stressed areas like leadership, cohesion, and loyalty that play important roles in organi$ational success. "hose promoting &hard HR& championed more 2uantitatively rigorous management techni2ues in the '()*s. ?n the later part of the last century, oth the title and traditional role of the personnel function #as progressively superseded y the emergence, at least in larger organi$ations, of strategic human resources management and sophisticated human resources departments. ?nitially, this may have involved little more than renaming the function, ut #here transformation occurred, it ecame distinguished y the human resources having a more significant influence on the organi$ations strategic direction and gaining oard+ level representation

Human resources purpose and role

?n simple terms, an organi$ation&s human resource management strategy should ma%imi$e return on investment in the organi$ation&s human capital and minimi$e financial risk. Human Resources seeks to achieve this y aligning the supply of skilled and 2ualified individuals and the capa ilities of the current #orkforce, #ith the organi$ation&s ongoing and future usiness plans and re2uirements to ma%imi$e return on investment and secure future survival and success. ?n ensuring such o 3ectives are achieved, the human resource

function purpose in this conte%t is to implement the organi$ation&s human resource re2uirements effectively ut also pragmatically, taking account of legal, ethical and as far as is practical in a manner that retains the support and respect of the #orkforce keyfunctions Human Resources may set strategies and develop policies, standards, systems, and processes that implement these strategies in a #hole range of areas. "he follo#ing are typical of a #ide range of organi$ations:

Recruitment, selection, and on oarding (resourcing! 6rgani$ational design and development 8usiness transformation and change management =erformance, conduct and ehavior management ?ndustrial and employee relations Human resources (#orkforce! analysis and #orkforce personnel data management 7ompensation, re#ards, and enefits management "raining and development (learning management!

?mplementation of such policies, processes or standards may e directly managed y the HR function itself, or the function may indirectly supervise the implementation of such activities y managers, other usiness functions or via third+party e%ternal partner organi$ations. <pplica le legal issues, such as the potential for disparate treatment and disparate impact, are also e%tremely important to HR managers.

Human resources management trends and influences

?n organi$ations, it is important to determine oth current and future organi$ational re2uirements for oth core employees and the contingent #orkforce in terms of their skills4technical a ilities, competencies, fle%i ility etc. "he analysis re2uires consideration of the internal and e%ternal factors that can have an effect on the resourcing, development, motivation and retention of employees and other #orkers. -%ternal factors are those largely out+#ith the control of the organi$ation. "hese include issues such as economic climate and current and future la or market trends (e.g., skills, education level, government investment into industries etc.!. 6n the other hand, internal influences are roadly controlled y the organi$ation to predict, determine, and monitor @for e%ample@the organi$ational culture, underpinned y management style, environmental climate, and the approach to ethical and corporate social responsi ilities.

Major trends
"o kno# the usiness environment an organi$ation operates in, three ma3or trends must e considered:

'. ;emographics: the characteristics of a population4#orkforce, for e%ample, age, gender or social class. "his type of trend may have an effect in relation to pension offerings, insurance packages etc. 5. ;iversity: the variation #ithin the population4#orkplace. 7hanges in society no# mean that a larger proportion of organi$ations are made up of " a y+ oomers" or older employees in comparison to thirty years ago. <dvocates of "#orkplace diversity" simply advocate an employee ase that is a mirror reflection of the make+up of society insofar as race, gender, se%ual orientation, etc. A. 1kills and 2ualifications: as industries move from manual to more managerial professions so does the need for more highly skilled graduates. ?f the market is "tight" (i.e., not enough staff for the 3o s!, employers must compete for employees y offering financial re#ards, community investment, etc..

Individual responses
?n regard to ho# individuals respond to the changes in a la or market, the follo#ing must e understood:

>eographical spread: ho# far is the 3o from the individualB "he distance to travel to #ork should e in line #ith the pay offered, and the transportation and infrastructure of the area also influence #ho applies for a post. 6ccupational structure: the norms and values of the different careers #ithin an organi$ation. :ahoney '(C( developed A different types of occupational structure namely craft (loyalty to the profession!, organi$ation career (promotion through the firm! and unstructured (lo#er4unskilled #orkers #ho #ork #hen needed!. >enerational difference: different age categories of employees have certain characteristics, for e%ample their ehaviour and their e%pectations of the organi$ation.

Framework Human Resources Development is a framework for the expansion of human capital within an organization or in new approaches! a municipality" region" or nation# Human Resources Development is a com$ination of training and education" in a $road context of ade%uate health and employment policies" that ensures the continual improvement and growth of $oth the individual" the organization" and the national human resourcefulness# &dam 'mith states" ()he capacities of individuals depended on their access to education*# +,Human Resources Development is the medium that drives the process $etween training and learning in a $roadly fostering environment# Human Resources Development is not a defined o$ject" $ut a series of organised processes" (with a specific learning

o$jective* .adler"/012!+2- 3ithin a national context" it $ecomes a strategic 'tructure

Human Resources ;evelopment is the structure that allo#s for individual development, potentially satisfying the organi$ation&s, or the nation&s goals. ;evelopment of the individual enefits the individual, the organi$ation@and the nation and its citi$ens. ?n the corporate vision, the Human Resources ;evelopment frame#ork vie#s employees as an asset to the enterprise, #hose value is enhanced y development, "?ts primary focus is on gro#th and employee developmentDit emphasi$es developing individual potential and skills" (-l#ood, 6lton and "rott '(()!.)/ Human Resources ;evelopment in this treatment can e in+room group training, tertiary or vocational courses or mentoring and coaching y senior employees #ith the aim for a desired outcome that develops the individual&s performance. <t the level of a national strategy, it can e a road inter sectoral approach to fostering creative contri utions to national productivity..E/

)raining and development

<t the organi$ational level, a successful Human Resources ;evelopment program prepares the individual to undertake a higher level of #ork, "organi$ed learning over a given period of time, to provide the possi ility of performance change" (Fadler '(CG!. ?n these settings, Human Resources ;evelopment is the frame#ork that focuses on the organi$ations competencies at the first stage, training, and then developing the employee, through education, to satisfy the organi$ations long+term needs and the individualsH career goals and employee value to their present and future employers. Human Resources ;evelopment can e defined simply as developing the most important section of any usiness, its human resource, y attaining or upgrading employee skills and attitudes at all levels to ma%imi$e enterprise effectiveness..A/ "he people #ithin an organi$ation are its human resource. Human Resources ;evelopment from a usiness perspective is not entirely focused on the individual&s gro#th and development, "development occurs to enhance the organi$ation&s value, not solely for individual improvement. ?ndividual education and development is a tool and a means to an end, not the end goal itself" (-l#ood F. Holton ??, James W. "rott Jr!..)/ "he roader concept of national and more strategic attention to the development of human resources is eginning to emerge as ne#ly independent countries face strong competition for their skilled professionals and the accompanying rain+drain they e%perience.

Recruitment and selection

<pplicant recruitment and employee selection form a ma3or part of an organi$ation&s overall resourcing strategies, #hich identify and secure people needed for the organi$ation to survive and succeed in the short to medium+term. Recruitment activities need to e responsive to the ever+increasingly competitive market to secure suita ly 2ualified and capa le recruits at all levels. "o e effective, these initiatives need to include ho# and #hen to source the est recruits, internally or e%ternally. 7ommon to the success of either areI #ell+defined organi$ational structures #ith sound 3o design, ro ust task and person specification and versatile selection processes, re#ard, employment

relations and human resource policies, underpinned y a commitment for strong employer randing and employee engagement and on oarding strategies. ?nternal recruitment can provide the most cost+effective source for recruits if the potential of the e%isting pool of employees has een enhanced through training, development and other performance+enhancing activities such as performance appraisal, succession planning and development centres to revie# performance and assess employee development needs and promotional potential. ?ncreasingly, securing the est 2uality candidates for almost all organi$ations relies, at least occasionally if not su stantially, on e%ternal recruitment methods. Rapidly changing usiness models demand skill and e%perience that cannot e sourced or rapidly enough developed from the e%isting employee ase. ?t #ould e unusual for an organi$ation to undertake all aspects of the recruitment process #ithout support from third+party dedicated recruitment firms. "his may involve a range of support services, such asI provision of 7,s or resumes, identifying recruitment media, advertisement design and media placement for 3o vacancies, candidate response handling, shortlisting, conducting aptitude testing, preliminary intervie#s or reference and 2ualification verification. "ypically, small organi$ations may not have in+house resources or, in common #ith larger organi$ations, may not possess the particular skill+set re2uired to undertake a specific recruitment assignment. Where re2uirements arise, these are referred on an ad hoc asis to government 3o centres or commercially run employment agencies. -%cept in sectors #here high+volume recruitment is the norm, an organi$ation faced #ith sudden, une%pected re2uirements for an unusually large num er of ne# recruits often delegates the task to a specialist e%ternal recruiter. 1ourcing e%ecutive+level and senior management as #ell as the ac2uisition of scarce or Jhigh+potentialH recruits has een a long+esta lished market serviced y a #ide range of Jsearch and selectionH or JheadhuntingH consultancies, #hich typically form long+standing relationships #ith their client organi$ations. Finally, certain organi$ations #ith sophisticated HR practices have identified there is a strategic advantage in outsourcing complete responsi ility for all #orkforce procurement to one or more third+party recruitment agencies or consultancies. ?n the most sophisticated of these arrangements the e%ternal recruitment services provider may not only physically locate, or Jem edH, their resourcing team(s! in the client organi$ation&s offices, ut #ork in tandem #ith the senior human resource management team in developing the longer+term HR resourcing strategy and plan.

4ther considerations
;espite its more everyday use terms such as "human resources" and similarly "human capital" continue to e perceived negatively and may e considered an insulting of people. "hey create the impression that people are merely commodities, like office machines or vehicles, despite assurances to the contrary :odern analysis emphasi$es that human eings are not "commodities" or "resources", ut are creative and social eings in a productive enterprise. "he 5*** revision of ?16

(**' in contrast re2uires identifying the processes, their se2uence and interaction, and to define and communicate responsi ilities and authorities. ?n general, heavily unionised nations such as France and >ermany have adopted and encouraged such approaches. "he ?nternational Ka our 6rgani$ation also in 5**' decided to revisit, and revise its '(EL Recommendation 'L* on Human Resources ;evelopment..C/ 6ne vie# of these trends is that a strong social consensus on political economy and a good social #elfare system facilitates la or mo ility and tends to make the entire economy more productive, as la or can develop skills and e%perience in various #ays, and move from one enterprise to another #ith little controversy or difficulty in adapting. <nother vie# is that governments should ecome more a#are of their national role in facilitating human resources development across all sectors. #hich includes follo#ing.citation needed/

)rans5national la$or mo$ility

<n important controversy regarding la or mo ility illustrates the roader philosophical issue #ith usage of the phrase "human resources": governments of developing nations often regard developed nations that encourage immigration or "guest #orkers" as appropriating human capital that is more rightfully part of the developing nation and re2uired to further its economic gro#th. 6ver time, the 0nited Fations have come to more generally support the developing nations& point of vie#, and have re2uested significant offsetting "foreign aid" contri utions so that a developing nation losing human capital does not lose the capacity to continue to train ne# people in trades, professions, and the arts..(/

6thical management
?n the very narro# conte%t of corporate "human resources" management, there is a contrasting pull to reflect and re2uire #orkplace diversity that echoes the diversity of a glo al customer ase. 1uch programs re2uire foreign language and culture skills, ingenuity, humour, and careful listening. "hese indicate a general shift through the human capital point of vie# to an ackno#ledgment that human eings contri ute more to a productive enterprise than 3ust "#ork": they ring their character, ethics, creativity, social connections, and in some cases pets and children, and alter the character of a #orkplace. "he term corporate culture is used to characteri$e such processes at the organi$ational level.