Human resource management (
HRM, or simply
HR) is a function in organizations designed to maximize employee performance in service of their employer’s strategic objectives. HR is primarily concerned with how people are managed within organizations, focusing on policies and systems. 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).HR is also concerned with
industrial relations, that is, the balancing of organizational practices with regulations arising from collective bargaining and governmental laws.
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
start up 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 and
industrial/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, all global companies are focused on retaining the talent and knowledge held by the workforce. All companies are focused on lowering the employee turnover and preserving knowledge. 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.
History
Antecedent theoretical developments
Birth and evolution of the discipline[edit]
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).
[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 function—the 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
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 character
Catbert, the "evil director of human resources".
[11] 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.
Practice
Business function
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.
At the macro-level, HR is in charge of overseeing organizational
leadership and
culture. HR also ensures compliance with
employment 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.
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
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." 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.
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. For 2010, HR consulting was ranked the #43 best job in America by
CNN Money.
[21]
Education
Professional associations