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Human resources is the set of people who make up the workforce of an
organization An organization, or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is an legal entity, entity—such a ...

organization
,
business sector In economics, the business sector or corporate sector - sometimes popularly called simply "business" - is "the part of the economy made up by company, companies". It is a subset of the Sovereign state, domestic economy, excluding the economic acti ...
, industry, or
economy An economy (; ) is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services by different a ...
. A narrower concept is
human capital Human capital is a concept used by human resource professionals to designate personal attributes considered useful in the production process. It encompasses employee knowledge, skill, skills, know-how, good health, and education, to name a few. ...

human capital
, the knowledge and skills which the individuals command. Similar terms include manpower, labor, personnel, associates or simply: people. The human-resources department (HR department) of an organization performs
human resource management#REDIRECT Human resource management {{Redirect category shell, 1= {{R from other capitalisation ...
, overseeing various aspects of
employment Employment is the relationship between two parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLab Clearview; cropped away black border edge.jpg, 300px, ''Hip, Hip, Hurrah!'' ( ...

employment
, such as compliance with
labor law Labour law (also known as labor law or employment law) mediates the relationship between workers, employing entities, trade union A trade union (or a labor union in American English American English (AmE, AE, AmEng, USEng, en-US), somet ...
and employment standards,
interview Some interviews are recorded for television broadcast An interview is essentially a structured conversation Conversation is interactive communication Communication (from Latin ''communicare'', meaning "to share") is the act of devel ...

interview
ing, administration of
employee benefit Employment is a relationship between two parties, usually based on contract A contract is a legally binding document between at least two parties that defines and governs the rights and duties of the parties to an agreement. A contract is le ...
s, organizing of employee files with the required documents for future reference, and some aspects of
recruitment Recruitment refers to the overall process of identifying, sourcing, screening, shortlisting, and interviewing candidates for job A job, employment, work or occupation, is a person A person (plural people or persons) is a being that has cert ...
(also known as talent acquisition) and employee offboarding. They serve as the link between an organization's management and its employees. The duties include planning, recruitment and selection process, posting job ads, evaluating the performance of employees, organizing
resumes
resumes
and job applications, scheduling interviews and assisting in the process and ensuring
background check A background check is a process a person or company uses to verify that an individual is who they claim to be, and this provides an opportunity to check and confirm the validity of someone's criminal record A criminal record, police record, or c ...
s. Another job is
payroll In treasury management, a payroll is the list of employees of some company that is entitled to receive payments as well as other work benefits and the amounts that each should receive. Along with the amounts that each employee should receive for ...
and benefits administration which deals with ensuring vacation and sick time are accounted for, reviewing payroll, and participating in benefits tasks, like claim resolutions, reconciling benefits statements, and approving
invoice :''See also Voucher: an invoice is within the European union primarily legally defined by the EU VAT directive as an accounting voucher (to verify tax and VAT reporting) and secondly as a Civil law (common law) document. An invoice, bill or tab is ...

invoice
s for payment. HR also coordinates employee relations activities and programs including but not limited to employee counseling. The last job is regular maintenance, this job makes sure that the current HR files and
database In computing Computing is any goal-oriented activity requiring, benefiting from, or creating computing machinery. It includes the study and experimentation of algorithmic processes and development of both computer hardware , hardware and softw ...
s are up to date, maintaining
employee benefits Employee benefits and (especially in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England ...
and employment status and performing payroll/benefit-related reconciliations.


Activities

A human resources manager has various functions in a
company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal personality, legal or a mixture of both, with a specific objective. Company members share a common ...
* Determine the needs of the staff/personnel. * Determine whether to use temporary staff or hire employees to fill these needs. * Determine do's & don'ts. * Recruit the best employees * Train employees and upgrade their learning knowledge. * Supervise the work. * Evaluate the work. * Establish 'Discipline work culture' in the organization. * Avoid politics in the office. * Apply 'HR Software' for the ease of work in the organization. * Manage employee relations. If there are unions, perform collective bargaining. * Prepare employee records and personal policies. * Manage employee payroll, benefits, and compensation. * Ensure equal opportunities. * Deal with
discrimination Discrimination is the act of making unjustified distinctions between people based on the groups, classes, or other categories to which they belong or are perceived to belong. People may be discriminated on the basis of Racial discrimination, ra ...
. * Deal with performance issues. * Ensure that human resources practices conform to various regulations. *
Motivate Motivation is a driving factor for actions, willingness, and goal A goal is an idea of the future or desired result that a person or a group of people envision, Planning, plan and commit to achieve. People endeavour to reach goals within ...
employees. * Mediate disputes. * Disseminate information in the organization so as to benefit its growth. Managers need to develop their
interpersonal skills A social skill is any competence facilitating interaction and communication Communication (from Latin ''communicare'', meaning "to share") is the act of developing Semantics, meaning among Subject (philosophy), entities or Organization, groups ...
to be effective. Organizational behavior focuses on how to improve factors that make organizations more effective.


History

Human resource management used to be referred to as " personnel administration." In the 1920s, personnel administration focused mostly on the aspects of hiring, evaluating, and compensating employees. However, they did not focus on any employment relationships at an organizational performance level or on the systematic relationships in any parties. This led to a lacked unifying paradigm in the field during this period. According to an
HR Magazine The Society for Human Resource Management (SHRM) is a professional human resources membership association headquartered in Alexandria, Virginia. SHRM promotes the role of HR as a profession and provides education, certification, and networking to i ...
article, the first personnel management department started at the
National Cash Register Co. NCR Corporation, previously known as National Cash Register, is an American software, managed and professional services, consulting and technology company that also makes Self-checkout, self-service kiosks, point of sale, point-of-sale terminals, ...
in 1900. The owner, John Henry Patterson, organized a personnel department to deal with grievances, discharges and safety, and information for supervisors on new laws and practices after several strikes and employee lockouts. This action was followed by other companies; for example, Ford had high turnover ratios of 380 percent in 1913, but just one year later, the line workers of the company had doubled their daily salaries from $2.50 to $5, even though $2.50 was a fair wage at that time. This example clearly shows the importance of effective management which leads to a greater outcome of employee satisfaction as well as encouraging employees to work together in order to achieve better business objectives. During the 1970s, American businesses began experiencing challenges due to the substantial increase in competitive pressures. Companies experienced globalization, deregulation, and rapid technological change which caused the major companies to enhance their strategic planning - a process of predicting future changes in a particular environment and focus on ways to promote
organizational effectiveness Organizational effectiveness is the concept of how effectiveness, effective an organization is in achieving the outcome (probability), outcomes the organization intends to produce. Organizational Effectiveness groups in organizations directly conce ...
. This resulted in developing more jobs and opportunities for people to show their skills which were directed to effectively applying employees toward the fulfillment of individual, group, and organizational goals. Many years later the major/minor of human resource management was created at universities and colleges also known as
business administration Business administration (also known as business management) is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising business operations. From the point of view of management Management (or man ...
. It consists of all the activities that companies used to ensure the more effective use of employees. Now, human resources focus on the people side of management. There are two real definitions of HRM (Human Resource Management); one is that it is the process of managing people in organizations in a structured and thorough manner. This means that it covers the hiring, firing, pay and perks, and performance management. This first definition is the modern and traditional version more like what a personnel manager would have done back in the 1920s. The second definition is that HRM circles the ideas of management of people in organizations from a
macromanagement {{one source, date=November 2017 Macromanagement is a management theory with two different approaches to the definition that both share a common idea; management from afar. Contrary to micromanagement In business Business is the activity o ...
perspective like customers and competitors in a marketplace. This involves the focus on making the "employment relationship" fulfilling for both management and employees. Some research showed that employees can perform at a much higher rate of productivity when their supervisors and managers paid more attention to them. The Father of Human relations, Elton Mayo, was the first person to reinforce the importance of employee communications, cooperation, and involvement. His studies concluded that sometimes the human factors are more important than physical factors, such as quality of lighting and physical workplace conditions. As a result, individuals often place value more on how they feel. For example, a rewarding system in Human resource management, applied effectively, can further encourage employees to achieve their best performance.


Origins of the terminology

Pioneering economist John R. Commons mentioned "human resource" in his 1893 book ''The Distribution of Wealth'' but did not elaborate. The expression was used during the 1910s to 1930s to promote the idea that human beings are of worth (as in human dignity); by the early 1950s, it meant people as a means to an end (for employers). Among scholars the first use of the phrase in that sense was in a 1958 report by economist E. Wight Bakke. In regard to how individuals respond to the changes in a
labor market Labour economics seeks to understand the functioning and dynamics of the markets Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland ...
, the following must be understood: * Skills and qualifications: as industries move from manual to more managerial professions so does the need for more highly skilled staff. If the market is "tight" (i.e. not enough staff for the jobs), employers must compete for employees by offering financial rewards, community investment, etc. * Geographical spread: how far is the job from the individual? The distance to travel to work should be in line with remuneration, and the transportation and infrastructure of the area also influence who applies for a position. * Occupational structure: the norms and values of the different careers within an organization. Mahoney 1989 developed 3 different types of occupational structure, namely, craft (loyalty to the profession), organization career path (promotion through the firm), and unstructured (lower/unskilled workers who work when needed). * Generational difference: different age categories of employees have certain characteristics, for example, their behavior and their expectations of the organization.


Concerns about the terminology

One major concern about considering people as assets or resources is that they will be commoditized, objectified, and abused. Human beings are not "
commodities In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
" or "resources", but are creative and social beings in a productive enterprise. The 2000 revision of
ISO 9001 The ISO 9000 family of quality management systems (QMS) is a set of standards that helps organizations ensure they meet customer and other stakeholder needs within statutory and regulatory requirements related to a product or service. ISO 9000 d ...

ISO 9001
, in contrast, requires identifying the processes, their sequence, and interaction, and to define and communicate responsibilities and authorities. In general, heavily unionized nations such as
France France (), officially the French Republic (french: link=no, République française), is a country primarily located in Western Europe, consisting of metropolitan France and Overseas France, several overseas regions and territories. The metro ...

France
and
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Germany
have adopted and encouraged such approaches. Also, in 2001, the
International Labour Organization The International Labour Organization (ILO) is a United Nations The United Nations (UN) is an intergovernmental organization that aims to maintain international peace and international security, security, develop friendly relations am ...
decided to revisit and revise its 1975 Recommendation 150 on Human Resources Development, resulting in its "
Labour is not a commodity"Labour is not a commodity" is the principle expressed in the preamble to the International Labour Organization's founding documents. It expresses the view that people should not be treated like inanimate commodities, Human capital, capital, another ...
" principle. One view of these trends is that a strong social consensus on political economy and a good
social welfare system Welfare is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to ''social insurance'' pro ...
facilitate
labor mobilityLabor or worker mobility is the geographical and occupational movement of workers. Worker mobility is best gauged by the lack of impediments to such mobility. Impediments to mobility are easily divided into two distinct classes with one being persona ...
and tend to make the entire economy more productive, as labor can develop skills and experience in various ways, and move from one enterprise to another with little controversy or difficulty in adapting. Another important controversy regards labor mobility and the broader philosophical issue with the usage of the phrase "human resources". Governments of developing nations often regard developed nations that encourage immigration or "guest workers" as appropriating human capital that is more rightfully part of the developing nation and required to further its economic growth. Over time, the United Nations have come to more generally support the developing nations' point of view, and have requested significant offsetting "foreign aid" contributions so that a developing nation losing human capital does not lose the capacity to continue to train new people in trades, professions, and the arts.


Development

Human resource companies play an important part in developing and making a company or organization at the beginning or making a success at the end, due to the labor provided by employees. Human resources are intended to show how to have better employment relations in the workforce. Also, to bring out the best work ethic of the employees and therefore making a move to a better working environment.


Planning

Administration and operations used to be the two role areas of HR. The strategic planning component came into play as a result of companies recognizing the need to consider HR needs in goals and strategies. HR directors commonly sit on company executive teams because of the HR planning function. Numbers and types of employees and the evolution of compensation systems are among elements in the planning role. Various factors affecting Human Resource planning Organizational Structure, Growth, Business Location, Demographic changes, environmental uncertainties, expansion etc. Additionally, this area encompasses the realm of
talent management Talent management (TM) refers to the anticipation of required human capital Human capital is a concept used by human resource professionals to designate personal attributes considered useful in the production process. It encompasses employe ...

talent management
.


See also

* Activity-based working *
Chief human resources officerA chief human resources officer (CHRO) or chief people officer (CPO) is a corporate officer who oversees all aspects of human resource management and industrial relations policies, practices and operations for an organization. Similar job titles incl ...
* Employee offboarding * Human resource accounting * Human Resources Development Convention, 1975 *
Human resource management Human resource management (HRM or HR) is the strategic approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee per ...
*
Industrial and organizational psychology Industrial and organizational psychology (I-O psychology), an applied discipline within psychology, is the science of human behavior as it pertains to work. I-O psychology has also been known as occupational psychology, organizational psychology, ...


Notes


External links

* {{DEFAULTSORT:Human Resources Resources *