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Human resource management (HRM, or simply HR) is the management of an organization's
workforce, or human resources. It is responsible for the attraction, selection, training,
assessment, and rewarding of employees, while also overseeing organizational leadership and
culture, and ensuring compliance with employment and labor laws. In circumstances where
employees desire and are legally authorized to hold a collective bargaining agreement, HR will
also serve as the company's primary liaison with the employees' representatives (usually a labor
union).
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
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 (a là Andrew Carnegie, John Rockefeller) and in
public policy (a là 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 associations—the
Chartered Institute of Personnel and Development—was 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.[3]
Likewise in the United States, the world's first institution of higher education
dedicated to workplace studies—the School of Industrial and Labor Relations—was formed at
Cornell University in 1945.[4]
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 association—the
Society for Human Resource Management (SHRM)—was founded as the American Society for
Personnel Administration (ASPA).[5]
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 function—the ASPA even changing its name to SHRM in 1998.[5]
"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.[6]
Long-running American comic
strip Dilbert also frequently portrays sadistic HR policies through character Catbert, the "evil
director of human resources".[7]
Additionally, an HR manager is the title character in the 2010
Israeli film The 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 an HR manager
Human Resources is a business function, which manages, leads,
facilitates and provides tools for the human capital
management in the organization. HR sets strategic processes
and procedures, runs difficult and complex communication
campaigns as the organization attracts the best talents from the
job market, retains them with the attractive compensation
packages or it develops them in talent development programs.
HR runs many processes, which are crucial for the modern
organization. We cannot believe that the successful business
could exist without the Recruitment and Staffing,
Compensation and Benefits, Training and Development or the
Leadership Development. However, in the past the companies
did not use any of the HR value added processes. The story of
Human Resources started as evidence of all employees. It dealt
with issues and requests. Nothing more was expected to be
delivered. The HR Management history is fascinating. The
wars usually change the path of Human Resources in
organizations and society.
The history of
Human Resources starts to be interesting with the evolution of the large
factories. It was in the 18th century. The rapid development of new industrial
approach to work changed the world dramatically. The quick and cheap
production became a priority for many industries. The factories hired
thousands of workers, who worked up to 16 hours a day. Soon, many
entrepreneurs discovered that satisfied employees are more effective and can
produce more than depressed employees. Many factories started to introduce
voluntary programs for employees to increase their comfort and satisfaction.
On the other hand, the government started to intervene to introduce some
basic human rights and the work safety legislation.
The second rapid development of Human Resources started in the beginning
of 20th century. Most organizations introduced the Personnel Management.
The personnel department had large responsibilities. It was dealing with
issues, introducing the new law requirements. It had the responsibility for the
implementation of different social and work place safety programs. Everything
was focused on the productivity of employees. The regular productivity
increments were the key measure for the management of employees. The
significant change was introduced after the 2nd World War because the
military developed many training programs for new soldiers. After the war, the
training became a respected process in personnel department.
During this period, the trade unions evolved. The trade unions changed the
rules of the game. The employer got a strong partner to discuss with. Trade
unions introduced many improvements at no significant costs for the
employer. Today, trade unions are not as strong as they were used to be, but
many organizations still benefit or suffer from a strong presence of trade
unions in their factories.
The real HR Revolution began in 60’s of the 20th century. The technology
and the globalization have changed the rules of the game. Most HR Functions
are running complex HRIS solutions, which make information about
employees available anywhere and anytime to managers and HR
Professionals.
The economy of the wealthy western countries shifted towards the services
economy. The quality of services became the crucial competitive advantage.
HR became necessary because the structure of the workforce changed. The
leadership development was the right answer.
Managers and leaders have to think global today; they have to understand to
different cultural backgrounds. The corporate culture cannot be country
specific; it has to reflect many nations working for the organization. This is a
fantastic opportunity for Human Resources. Human Resources Management
is global today. The global HR policies drive processes in different countries,
but the processes produce comparable results. The employees relocate from
country to country.
The future of Human Resources is bright. The globalization cannot be
stopped because nations collaborate. The organizations become less country
specific, and they cannot identify themselves with one country.
New technologies will bring other revolutions to offices. The commute working
is standard today, but it will become a norm. The technology will connect
employees as they would sit in the next cubicle.
iPads will allow quick and instant access to information about employees and
managers will be able to make all decisions and approvals online.
However, the future of Human Resources will be about new networking
methods and how to make employees know each other.

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Human resource management

  • 1. Human resource management (HRM, or simply HR) is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company's primary liaison with the employees' representatives (usually a labor union). 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 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 (a là Andrew Carnegie, John Rockefeller) and in public policy (a là 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 associations—the Chartered Institute of Personnel and Development—was 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.[3] Likewise in the United States, the world's first institution of higher education dedicated to workplace studies—the School of Industrial and Labor Relations—was formed at Cornell University in 1945.[4] 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 association—the Society for Human Resource Management (SHRM)—was founded as the American Society for Personnel Administration (ASPA).[5] 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 function—the ASPA even changing its name to SHRM in 1998.[5] "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
  • 2. "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.[6] Long-running American comic strip Dilbert also frequently portrays sadistic HR policies through character Catbert, the "evil director of human resources".[7] Additionally, an HR manager is the title character in the 2010 Israeli film The 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 an HR manager Human Resources is a business function, which manages, leads, facilitates and provides tools for the human capital management in the organization. HR sets strategic processes and procedures, runs difficult and complex communication campaigns as the organization attracts the best talents from the job market, retains them with the attractive compensation packages or it develops them in talent development programs. HR runs many processes, which are crucial for the modern organization. We cannot believe that the successful business could exist without the Recruitment and Staffing, Compensation and Benefits, Training and Development or the
  • 3. Leadership Development. However, in the past the companies did not use any of the HR value added processes. The story of Human Resources started as evidence of all employees. It dealt with issues and requests. Nothing more was expected to be delivered. The HR Management history is fascinating. The wars usually change the path of Human Resources in organizations and society. The history of Human Resources starts to be interesting with the evolution of the large factories. It was in the 18th century. The rapid development of new industrial approach to work changed the world dramatically. The quick and cheap production became a priority for many industries. The factories hired thousands of workers, who worked up to 16 hours a day. Soon, many entrepreneurs discovered that satisfied employees are more effective and can produce more than depressed employees. Many factories started to introduce voluntary programs for employees to increase their comfort and satisfaction. On the other hand, the government started to intervene to introduce some basic human rights and the work safety legislation.
  • 4. The second rapid development of Human Resources started in the beginning of 20th century. Most organizations introduced the Personnel Management. The personnel department had large responsibilities. It was dealing with issues, introducing the new law requirements. It had the responsibility for the implementation of different social and work place safety programs. Everything was focused on the productivity of employees. The regular productivity increments were the key measure for the management of employees. The significant change was introduced after the 2nd World War because the military developed many training programs for new soldiers. After the war, the training became a respected process in personnel department. During this period, the trade unions evolved. The trade unions changed the rules of the game. The employer got a strong partner to discuss with. Trade unions introduced many improvements at no significant costs for the employer. Today, trade unions are not as strong as they were used to be, but many organizations still benefit or suffer from a strong presence of trade unions in their factories. The real HR Revolution began in 60’s of the 20th century. The technology and the globalization have changed the rules of the game. Most HR Functions are running complex HRIS solutions, which make information about employees available anywhere and anytime to managers and HR Professionals. The economy of the wealthy western countries shifted towards the services economy. The quality of services became the crucial competitive advantage. HR became necessary because the structure of the workforce changed. The leadership development was the right answer. Managers and leaders have to think global today; they have to understand to different cultural backgrounds. The corporate culture cannot be country specific; it has to reflect many nations working for the organization. This is a fantastic opportunity for Human Resources. Human Resources Management is global today. The global HR policies drive processes in different countries,
  • 5. but the processes produce comparable results. The employees relocate from country to country. The future of Human Resources is bright. The globalization cannot be stopped because nations collaborate. The organizations become less country specific, and they cannot identify themselves with one country. New technologies will bring other revolutions to offices. The commute working is standard today, but it will become a norm. The technology will connect employees as they would sit in the next cubicle. iPads will allow quick and instant access to information about employees and managers will be able to make all decisions and approvals online. However, the future of Human Resources will be about new networking methods and how to make employees know each other.