Human resource management

From Wikipedia, the free encyclopedia

Human resource management (HRM, or simply HR) is a function in

organizations designed to maximize employee performance in service of
their employers strategic objectives.[1] HR is primarily concerned with how
people are managed within organizations, focusing on policies and
systems.[2] HR departments and units in organizations are typically
responsible for a number of activities, including
employee recruitment, training and development, performance appraisal,
and rewarding (e.g., managing pay and benefit systems).[3] HR is also
concerned with industrial relations, that is, the balancing of organizational
practices with regulations arising from collective bargaining and
governmental laws.[4]
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. The function was
initially dominated by transactional work, such
as payroll and benefits administration, but due to globalization, company
consolidation, technological advancement, and further research, HR now
focuses on strategic initiatives like mergers and acquisitions,talent
management, succession planning, industrial and labor relations,
and diversity and inclusion.
In startup companies, HR's duties may be performed by trained
professionals. In larger companies, an entire functional group is typically
dedicated to the 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 themselves have
created programs of study dedicated explicitly to the duties of the function.
Academic and practitioner organizations likewise seek to engage and
further the field of HR, as evidenced by several field-specific publications.
HR is also a field of research study that is popular within the fields of
management andindustrial/organizational psychology, with research
articles appearing in a number of academic journals, including those
mentioned later in this article.
In the current global work environment, most companies focus on
lowering employee turnover and retaining the talent and knowledge held
by their workforce. New hiring not only entails a high cost but also

increases the risk of the newcomer not being able to replace the person
who was working in that position before. HR departments also strive to
offer benefits that will appeal to workers, thus reducing the risk of losing
knowledge.
Contents
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1 History
1.1 Antecedent theoretical developments
1.2 Birth and evolution of the discipline
1.3 In popular media
2 Practice
2.1 Business function
2.2 Careers
3 Education
4 Professional associations
5 Publications
6 See also
7 References
8 External links

History[edit]
Antecedent theoretical developments [edit]
HR spawned in the early 20th century and was influenced by Frederick
Taylor (1856-1915). Taylor explored what he termed "scientific
management" (later referred to by others as "Taylorism"), striving to
improve economic efficiency in manufacturing jobs. He eventually keyed in
on one of the principal inputs into the manufacturing processlabor
sparking inquiry intoworkforce productivity.[5]
The human relations movement grew from the research of Elton Mayo and
others, whose Hawthorne studies (1924-1932) serendipitously
documented how stimuli, unrelated to financial compensation and working
conditions, yielded more productive workers.[6] Contemporaneous work
by Abraham Maslow, Kurt Lewin, Max Weber (1864-1920), Frederick
Herzberg, and David McClelland (1917-1998) formed the basis for studies
in industrial and organizational psychology,organizational
behavior and organizational theory, giving room for an applied discipline.

Birth and evolution 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

( la Andrew Carnegie, John Rockefeller) and in public policy (a

l Sidney and Beatrice Webb,Franklin D. Roosevelt and the New Deal) had
transformed the employer-employee relationship, and the discipline was
formalized as "industrial and labor relations". In 1913, one of the oldest
known professional HR associationsthe Chartered Institute of Personnel
and Developmentwas founded in England as the Welfare Workers'
Association, then 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.[7] Likewise in
the United States, the world's first institution of higher education dedicated
to workplace studiesthe School of Industrial and Labor Relationswas
formed at Cornell University in 1945.[8]
During the latter half of the 20th century, union membership declined
significantly, while workforce management continued to expand its
influence within organizations. "Industrial and labor relations" began being
used to refer specifically to issues concerning collective representation,
and many companies began referring to the profession as "personnel
administration". In 1948, what would later become the largest professional
HR associationthe Society for Human Resource Management(SHRM)
was founded as the American Society for Personnel
Administration (ASPA).[9]
Nearing the 21st 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, became the dominant term for the
functionthe ASPA even changing its name to SHRM in 1998.[9] "Human
capital management" is sometimes used 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]
HR has been depicted in several popular media. 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.[10] Long-running American comic
strip Dilbert also frequently portrays sadistic HR policies through
characterCatbert, the "evil director of human resources".[11] Additionally, an
HR manager is the title character in the 2010 Israeli filmThe Human

Resources Manager, while an HR intern is the protagonist in 1999 French

film Ressources humaines. Additionally, the BBC sitcom dinnerladies main
character Philippa is a HR manager.

Practice[edit]
Business function[edit]
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.[12]
At the macro-level, HR is in charge of overseeing
organizational leadership and culture. HR also ensures compliance
withemployment 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.
To look at Human Resource Management more specifically, it 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
pertaining to expatriates; and it is frequently involved in the merger and
acquisition process. HR is generally viewed as a support function to the
business, helping to minimize costs and reduce risk.[13]

Careers[edit]
There are half a million HR practitioners in the United States and
thousands more worldwide.[14] The Chief HR Officer or HR Director is the
highest ranking HR executive in most companies and typically reports
directly to the Chief Executive Officerand works with the Board of
Directors on CEO succession.[15][16]

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
human resources generalists can vary widely, depending on their
employer's needs."[17] 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.[18][19]
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.[20] For 2010,
HR consulting was ranked the #43 best job in America by CNN Money.[21]
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
asfinancial compensation, recruitment, and training.

Education[edit]

The School of Industrial and Labor Relations at Cornell University was the world's
first school for college-level study in HR.

Several universities offer programs of study pertaining to 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.[22] 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 Michigan State
University, University of Minnesota,University of Illinois at UrbanaChampaign, and Renmin University of China. 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.

Professional associations[edit]
Main article: List of human resource management associations
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,[14] with over 250,000 members in 140 countries.[23] 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.[24] 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 &
Developmentand 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.[25] The Academy publishes
several journals devoted in part to research on HR, including Academy of
Management Journal[26] and Academy of Management Review,[27] and it
hosts an annual meeting.

Publications[edit]
Academic and practitioner publications dealing exclusively with HR:

Cornell HR Review[28]
HR Magazine (SHRM)[29]
Human Resource Management[30]
Human Resource Management Review[31]
International Journal of Human Resource Management[32]
Perspectives on Work (LERA)[33]

Related publications:
Academy of Management Journal[26]
Academy of Management Review[27]
Administrative Science Quarterly[34]
International Journal of Selection and Assessment[35]
Journal of Applied Psychology[36]
Journal of Management[37]
Journal of Occupational and Organizational Psychology[38]
Journal of Personnel Psychology[39]
Organization Science[40]
Personnel Psychology[41]

See also[edit]
Aspiration Management
Domestic inquiry
Organization development
Organizational theory

References[edit]
1.

Jump up^ Johnason, P. (2009). HRM in changing organizational

contexts. In D. G. Collings & G. Wood (Eds.), Human resource
management: A critical approach (pp. 19-37). London: Routledge.
2.
Jump up^ Collings, D. G., & Wood, G. (2009). Human resource
management: A critical approach. In D. G. Collings & G. Wood (Eds.),
Human resource management: A critical approach (pp. 1-16). London:
Routledge.
3.
Jump up^ Paauwe, J., & Boon, C. (2009). Strategic HRM: A
critical review. In D. G. Collings & G. Wood (Eds.), Human resource
management: A critical approach (pp. 38-54). London: Routledge.
4.
Jump up^ Klerck, G. (2009). Industrial relations and human
resource management. In D. G. Collings & G. Wood (Eds.), Human

resource management: A critical approach (pp. 238-259). London:

Routledge.
5.
Jump up^ Merkle, Judith A. Management and Ideology.
University of California Press. ISBN 0-520-03737-5.
6.
Jump up^ Mayo, Elton (1945). "Hawthorne and the Western
Electric Company". Harvard Business School. Retrieved28
December 2011.
7.
Jump up^ "About CIPD". Chartered Institute of Personnel and
Development. Retrieved 22 December 2011.
8.
Jump up^ "About Cornell ILR". Cornell University School of
Industrial and Labor Relations. Retrieved 2010-01-29.
9.
^ Jump up to:a b "About SHRM". Society for Human Resource
Management. Retrieved 22 December 2011.
10.
Jump up^ O'Brien, Michael (October 8, 2009). "HR's Take on
The Office". Human Resource Executive Online. Archived from the
original on 18 December 2011. Retrieved28 December 2011.
11.
Jump up^ "Catbert shows tougher side to human resources".
Personnel Today. August 30, 2007. Retrieved 28 December2011.
12.
Jump up^ Ulrich, Dave (1996). Human Resource Champions.
The next agenda for adding value and delivering results. Boston,
Mass.: Harvard Business School Press. ISBN 0-87584-7196. OCLC 34704904.
13.
Jump up^ Towers, David. "Human Resource Management
essays". Retrieved 2007-10-17.
14.
^ Jump up to:a b Jonathan E. DeGraff (21 February 2010). "The
Changing Environment of Professional HR Associations".Cornell HR
Review. Retrieved 21 December 2011.
15.
Jump up^ Wright, Patrick. "The 2011 CHRO Challenge: Building
Organizational, Functional, and Personal Talent". Cornell Center for
Advanced Human Resource Studies (CAHRS). Retrieved 3
September 2011.
16.
Jump up^ Conaty, Bill, and Ram Charan (2011). The Talent
Masters: Why Smart Leaders Put People Before Numbers. Crown
Publishing Group. ISBN 978-0-307-46026-4.
17.
Jump up^ "Human Resources, Training, and Labor Relations
Managers and Specialists". U.S. Bureau of Labor Statistics. 2011.
Retrieved 23 December 2011.
18.
Jump up^ "Human Resources Manager". CNN Money. 2006.
Retrieved 23 December 2011.
19.
Jump up^ "Human Resources Manager". CNN Money. 2009.
Retrieved 23 December 2011.
20.
Jump up^ "Towers Watson Executives See Growth Ahead For
Merged Firms". Workforce Management. 2007. Retrieved January
13, 2010.

21.

Jump up^ "HR consultant". CNN Money. Retrieved 23

December2011.
22.
Jump up^ "About Cornell ILR". Cornell University School of
Industrial and Labor Relations. Retrieved 23 August 2009.
23.
Jump up^ SHRM Website: About SHRM
24.
Jump up^ "About IOR". Institute of Recruiters (IOR).
Retrieved22 December 2011.
25.
Jump up^ http://aom.org/Divisions-and-Interest-Groups/HumanResources/Human-Resources-Division.aspx
26.
^ Jump up to:a b http://amj.aom.org/
27.
^ Jump up to:a b http://amr.aom.org/
28.
Jump up^ http://www.cornellhrreview.org/
29.
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up^http://www.shrm.org/Publications/hrmagazine/Pages/default.aspx
30.
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up^http://onlinelibrary.wiley.com/journal/10.1002/%28ISSN%291099050X
31.
Jump up^ http://www.journals.elsevier.com/human-resourcemanagement-review/
32.
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up^http://www.tandfonline.com/toc/rijh20/current#.Uxhl2YXCyDs
33.
Jump up^ http://leraweb.org/publications/perspectives-work
34.
Jump up^ http://www.johnson.cornell.edu/AdministrativeScience-Quarterly.aspx
35.
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%291468-2389
36.
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37.
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38.
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(ISSN)2044-8325
39.
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40.
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41.
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%291744-6570

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