Human resource management and its evolution.
human resource management (hrm) is the term used to describe formal systems devised for the management of people within an organization. the responsibilities of a human resource manager fall into three major areas: staffing, employee compensation, and benefits, and defining/designing work.
behind the production of every product or service, there is human mind, effort and man hours (working hours). no product or service can be produced without the help of human being. human being is the fundamental resource for making or constructing anything. today many experts claim that machines and technology are replacing human resource and minimising their role or effort. but even machines and technology have been built by the human aid and besides companies have been continuously in search for talented, skilled and qualified professionals to further develop latest machines and technology, which again have to be controlled or used by humans to bring out products.
human resource management is the process of recruitment, selection of employee, providing proper orientation and induction, providing proper training and the developing skills, assessment of employee (performance of appraisal), providing proper compensation and benefits, motivating, maintaining proper relations with labour and with trade unions, maintaining employees safety, welfare and health by complying with labour laws of concern state or country.
why name human resource management?
human: refer to the skilled workforce in the organisation.
resource: refer to limited availability or scarce.
management: refer to maximise or proper utilisation and make the best use of limited and a scarce resource.
altogether, human resource management is the process of proper and maximise utilisation of available limited skilled workforce. the core purpose of the human resource management is to make efficient use of existing human resource in the organisation. the best example at present situation is, construction industry has been facing serious shortage of skilled workforce. it is expected to triple in the next decade from the present 30 per cent, will negatively impact the overall productivity of the sector, warn industry experts.
every organisations' desire is to have skilled and competent people to make their organisation more effective than their competitors. humans are very important assets for the organisation rather than land and buildings, without employees ( humans ) no activity in the organisation can be done. machines are meant to to produce more goods with good quality but they should get operated by the human only.
the historical background of human resource management
human resource management has changed in name various times throughout history. the name change was mainly due to the change in social and economic activities throughout history.
industrial welfare was the first form of human resource management (hrm).. during this time trade unions started to be formed. in 1868 the 1st trade union conference was held..
recruitment and selection
during the 1st world war personnel development increased due to government initiatives to encourage the best use of people. selection tests, interviewing techniques and training methods were developed.
acquisition of other personnel activities
during the 2nd world war the focus was on recruitment and selection and later on training; improving morale and motivation; discipline; health and safety; joint consultation and wage policies. this meant that a personnel department had to be established with trained staff.
consultation between management and the workforce spread during the war.. the need for specialists to deal with industrial relations was recognized so that the personnel manager became as spokesman for the organization when discussions where held with trade unions/shop stewards.
in the 1970's employment legislation increased and the personnel function took the role of the specialist advisor ensuring that managers do not violate the law and that cases did not end up in industrial tribunals.
flexibility and diversity
in the 1990's a major trend emerged where employers were seeking increasing flexible arrangements in the hours worked by employees due to an increase in number of part-time and temporary contracts and the invention of distance working. the workforce and patterns of work are becoming diverse in which traditional recruitment practices are useless
it helps hrm are: systems for e-recruitment; on-line short-listing of applicants; developing training strategies on-line; psychometric training; payroll systems; employment data; recruitment administration; references; pre-employment checks. it helps hr managers offload routine tasks which will give them more time in solving complex tasks. it also ensures that a greater amount of information is available to make decisions.