The Development Of Human Resources Management Business Essay Example

(p.A 49).

According to Miller (1987), HRM involves making determinations and taking actions that pertain to the guidance of employees at all levels within a company, and that are related to implementing strategies aimed at creating and sustaining competitive advantage (p.A 352). Academic theory suggests that the objective of human resource management is to assist an organization in achieving strategic goals by attracting and retaining employees, as well as effectively managing them. The crucial aspect here is perhaps the notion of "fit," that is, aligning employees with the organization's objectives.

The purpose of an HRM attack is to ensure that employee management in an organization aligns with the overall strategic direction of the company (Miller, 1989). The academic theory behind HRM recognizes that humans are not machines and thus requires an interdisciplinary approach to studying people in the workplace. This encompasses various fields such as psychology, industrial engineering, legal/paralegal studies, organizational psychology, industrial relations, sociology, and critical theories like postmodernism and post-structuralism. Many colleges and universities offer bachelor's and master's degrees in Human Resources Management. Dave Ulrich has developed a widely accepted approach to describe the role of HRM which involves being a strategic business partner, overseeing change processes, advocating for employees' rights, and managing administrative tasks. However, currently many HR functions face challenges in going beyond administrative duties and advocating for employees. They are often seen as reactive rather than proactive strategic partners for top management.

In addition, HR organizations also face the challenge of demonstrating how their activities and processes contribute value to the company. Recently, HR scholars and professionals have started developing models to measure the value added by HR.

Business Pattern

Human

resources management consists of various processes that are meant to achieve the aforementioned goal. These processes can be carried out within an HR department, or they can be outsourced or delegated to line managers or other departments.

When effectively integrated, workforce planning provides important economic benefit to the company. Workforce planning includes recruitment (sometimes separated into attraction and choice), initiation, orientation and onboarding, skills management, training and development, workforce management, compensation in pay or wage, time management, travel management (sometimes assigned to accounting instead of HRM), payroll (sometimes assigned to accounting instead of HRM), employee benefits management, workforce cost planning, performance assessment, and careers and education.

Cornell University's School of Industrial and Labor Relations was the world's first school for college-level study in HRM. The types of careers available in HRM are varied. There are generalist HRM jobs such as human resource assistant. There are careers involved with employment, recruitment and placement, and these are usually conducted by interviewers, EEO (Equal Employment Opportunity) specialists, or college recruiters. Training and development specialization is often conducted by trainers and orientation specialists. Compensation and benefits tasks are handled by compensation analysts, salary decision makers, and benefits decision makers.

There are several universities that offer programs for studying HRM and related fields. Cornell University, through its ILR School, was one of the first to establish a college-level HRM program. The University of Illinois at Urbana-Champaign also has a dedicated school for HRM studies. Additionally, various business schools like the University of Minnesota, Michigan State University, Ohio State University, and Purdue University have centers or departments focused on these types of studies.

Professional Organisations

In the field of Human Resource Management (HRM), there are professional

organizations such as the Society for Human Resource Management, Australian Human Resources Institute (AHRI), Chartered Institute of Personnel and Development (CIPD), International Public Management Association for HR (IPMA-HR), Management Association of Nepal (MAN), International Personnel Management Association of Canada (IPMA-Canada), and Human Capital Institute (HCI).

Functions

The functions encompassed by HRM involve various activities including determining staffing needs, making decisions between independent contractors or employees, recruiting and developing top-performing employees, handling performance issues, ensuring compliance with regulations, and establishing personnel and management practices. It also involves managing employee benefits, compensation records, and personnel policies.

Small businesses, whether they are for-profit or non-profit organizations, usually handle these tasks on their own due to limited financial resources. Hiring assistance either part-time or full-time is often not possible. However, it is essential for these businesses to guarantee that their employees are knowledgeable about and follow personnel policies that meet current regulations. Employee manuals are commonly given to all employees as a way of communicating these policies. It should be pointed out that some people distinguish between HRM (a significant management activity) and HRD (a profession concentrated on Human Resource Development).

There is an ongoing debate on whether Human Resource Management (HRM) should be considered a part of Human Resource Development (HRD). Some argue that HRD encompasses a broader range of activities within organizations, such as career development, training, and organizational development. The question of how HR-related functions should be organized within large organizations has long been discussed - should HR be in the Organization Development section or vice versa? Over the past few decades, both the HRM function and the HRD profession have undergone significant changes. Previously, large organizations heavily relied on

their "Personnel Department" for handling paperwork related to hiring and compensation. However, in recent times, organizations view their "HR Department" as playing a crucial role in staffing, training, and managing people to ensure optimal performance for both individuals and the organization.

Management

On the other hand,;Human Resource Management (HRM) aims to maximize an organization's return on investment from its human capital while minimizing financial risk.

Human resource directors in a corporate setting have the responsibility to carry out their tasks effectively, legally, fairly, and consistently. Management is the process of efficiently and effectively achieving the organization's goals through other people. Human Resource Management serves several key functions: Recruitment and Selection, Training and Development (People or Organization), Performance Evaluation and Management, Promotions/Transfer, Redundancy, Industrial and Employee Relations, Record keeping of all personal information, Total Wages: Employee Benefits and Compensation, Confidential advice to internal 'customers' regarding work-related issues, Career development.

Competence Mapping is also a part of Human Resource Management. It involves identifying critical competencies for success in a specific work situation or role. The Time Gesture survey is related to HR Function.

Performance Appraisal
Modern Analysis: Modern analysis emphasizes that humans are not merely commodities or resources but rather creative and social beings engaged in productive endeavors.The amendment made to ISO 9001 in 2000 mandates organizations to document procedures, their sequence, and interaction while also clearly defining responsibilities and authorities. Regarding job descriptions, countries like France and Germany have generally embraced and promoted them particularly within trade unions.

The International Labour Organization made the decision in 2001 to revisit and revise its 1975 Recommendation 150 on Human Resources Development. One perspective on this matter is that a strong societal consensus on the political

economic system and a robust societal public assistance system can enhance labor mobility and ultimately lead to a more productive economy. This is because workers can acquire skills and experience in various ways and easily transition between jobs with minimal contention. Another perspective is that governments should recognize their role in facilitating human resources development across all sectors.

Labour Mobility

An important argument about labor mobility highlights the broader philosophical issue with the use of the term "human resources." Developing countries often perceive developed countries that encourage immigration or "guest workers" as exploiting human capital that belongs to the developing country and is essential for its growth as a society. They argue that this appropriation is similar to how a colonizing European power would set an arbitrary price for natural resources, depleting the nation's natural capital. The debate about "human resources" versus human capital thus mirrors the discussion about natural resources versus natural capital in many ways.

Over time, the United Nations has increasingly supported the perspective of developing countries. They have called for significant foreign assistance contributions to prevent developing countries from losing human capital and the capacity to develop new individuals in various fields. There is a controversial view that developed countries, which benefited from the exploitation of human resources like African slavery during their own development, should compensate for historical injustices. This perspective greatly diminishes the value of human capital as it is converted into mere labor in the utilizing society, such as Africa. The UN Secretary-General's reports to the General Assembly, including A/56/162 (2001), advocate for a comprehensive approach to developing human resources through a wide range of sectors, as discussed in the United

Nations Expert Meeting on Human Resources Development.

`Changing Positions on Human Resources Development. ST/TCD/SER.E/25. June 1994' has been identified as a priority for socio-economic development, especially in relation to anti-poverty initiatives. To achieve this, it is necessary to implement strategic and comprehensive public policies in areas such as education, health, and employment, which aim at promoting occupational skills, knowledge, and performance enhancement (Lawrence, J.E.S.)

Perceptions

Terms such as "human resources" and "human capital" may be viewed as disrespectful towards individuals. These terms imply that people are merely commodities, like office machines or vehicles, despite claims to the contrary.

Corporate Direction

In the context of corporate "human resources" direction, there is a dual emphasis on workplace diversity that reflects the diversity of the global customer base. Traits such as foreign language and cultural skills, creativity, wit, and attentive listening are typically required in such programs. It appears that there is a shift in the human capital perspective towards recognizing that individuals contribute much more to a productive endeavor than just their work. They bring their character, ethics, creativity, social connections, and in some cases even their pets and children, thereby altering the workplace dynamic. The term corporate culture is used to describe these processes at the organizational level.

The conventional viewpoint of hiring, firing, and job descriptions is seen as out of touch with the times. Many companies in today's global economy see human capital as a valuable asset, contradicting those who dismiss the term "human resources." Despite criticism, the term persists and remains relevant to public policy when linked to resourcefulness. Macro-economics generally overlooks the concepts of choice and creativity, lacking mechanisms to represent them.

One interpretation is that "firm-specific human capital"

in macro-economics is now the accepted definition of "human resources," which is not accurately represented in any modern theory of political economic system.

Trends and influences in human resources management.

In organizations, it is important to assess the current and future needs of both core employees and contingent workers in terms of their skills, technical abilities, competencies, flexibility, etc. This analysis requires considering internal and external factors that can impact the sourcing, development, motivation, and retention of employees and other workers. External factors are those beyond the control of the organization and include issues like the economic climate and current and future labor market trends.

Accomplishments, instruction degree, authorities investing into industries etc. are external influences that are not within the control of the organization. On the other hand, internal influences, such as organizational culture, management behavior, environmental climate, and approach to ethical and corporate social responsibilities, are factors that the organization can predict, determine, and monitor.

Major Tendencies

In order to understand the business environment of any organization, three major tendencies should be taken into consideration:

Demographics

This refers to the characteristics of a population or workforce, such as age, gender, or social class. These demographic trends can have an impact on pension offerings, insurance packages, etc.

Diversity

Diversity refers to the variations within the population or workplace.

Changes in society now mean that a larger proportion of organizations are made up of "baby-boomers" or older employees compared to thirty years ago. Advocates of "workplace diversity" simply recommend an employee base that reflects the makeup of society in terms of race, gender, sexual orientation, etc.

Skills and qualifications

As industries transition from manual to more managerial professions, the demand for highly skilled graduates increases. If the

job market is competitive (i.e. not enough staff for the jobs), employers will need to compete for employees by offering financial rewards, community investment, etc.

Individual responses

In terms of how individuals respond to changes in the labor market, the following should be understood:

Geographic spread

What is the distance between the job and the individual? The commute should align with the salary offered by the organization, and the transportation and infrastructure of the area will also influence who applies for a position.

Occupational construction

There are three different types of occupational construction within an organisation: trade (loyalty to the profession), organisation calling (promotion through the company), and unstructured (lower/unskilled workers who work when needed). Mahoney (1989) developed these norms and values for the various callings.

Generational difference

Employees from different age groups have distinct characteristics, such as their behavior and expectations of the organization.

Model

Human Resources Development is a model for enhancing human capital within an organization or ( in new attacks ) a municipality, part, or state. This model combines preparation and instruction, within a broad context of equal wellness and employment policies. Its goal is to continuously improve and expand both the individual, the administration, and the national human resourcefulnes. According to Adam Smith, "The capacities of individuals depended on their access to education". Human Resources Development serves as the medium that facilitates the process between training and learning within a supportive environment.

Human Resources Development can be defined as a series of organized procedures with a specific learning objective (Nadler, 1984). Within a national context, it takes on a strategic approach to linking health, education, and

employment sectors.

Structure

Human Resources Development is the framework that enables individual development, benefitting both the individual and the organization or country's goals. The development of individuals contributes to the overall success of the organization or country and its citizens. In the corporate vision, the Human Resources Development model views employees as valuable assets that can be enhanced through development. The primary focus is on the growth and development of individual potential and skills (Elwood, Bolton and Trott, 1996). This can be achieved through in-room group training, third or vocational courses, or mentoring and coaching by senior employees with the goal of improving individual performance.

At the national level, there is a broad approach to promoting creativity in order to enhance national productivity.

Training

At the organizational level, a successful Human Resources Development plan prepares individuals to perform higher levels of work through organized learning over a period of time. This plan aims to meet the long-term needs of the organization and the career goals of employees. Human Resources Development focuses on improving the skills and attitudes of employees at all levels to maximize the effectiveness of the business. It views the people within an organization as its most important resource. While individual growth and development are important, they occur to enhance the organization's value, rather than solely for personal improvement. Individual education and development serve as tools and means to an end, rather than the ultimate goal.

Elwood F. Holton II, James W. Trott Jr. emphasized the importance of national and strategic focus on human resources development, especially for newly independent states facing competition for skilled professionals and the resulting brain-drain.

Recruitment

Recruitment is a significant component of an organization's resourcing strategies,

aiming to identify and secure the necessary individuals for the organization's survival and success in the short to medium-term. In today's highly competitive market, recruitment activities must be responsive in order to attract appropriately qualified recruits at all levels.

To be effective, these enterprises need to include strategies for recruiting the best candidates internally or externally. Key elements for success include well-defined organizational structures, effective job design, comprehensive job and person specifications, diverse selection processes, competitive rewards, positive employment relationships, and human resource policies. These should be supported by a commitment to strong employer branding and employee engagement initiatives. Internal recruitment can be a cost-effective way to find candidates, especially if the existing pool of employees has been enhanced through training, development, and performance assessment activities such as succession planning and development centers. However, for most organizations, securing the highest-quality candidates will largely depend on external recruitment methods.

Rapidly changing business models require skills and experiences that cannot be sourced or developed quickly enough from the current employee base. It is now uncommon for organizations to handle all aspects of the recruitment process without help from dedicated third-party recruitment agencies. These agencies provide various support services, such as providing resumes or CVs, identifying suitable recruitment platforms, designing and arranging job advertisements, managing candidate responses, shortlisting candidates, conducting aptitude tests, conducting preliminary interviews or references, and conducting background checks. Small organizations may lack in-house resources or may not have the specific skill-set needed for a particular recruitment assignment, just like larger organizations. In such cases, they may refer their needs to government job centers or privately-run employment agencies on an ad hoc basis.

Except in sectors where high-volume enlisting

is the norm, an organisation faced with an unexpected demand for a remarkably big figure of new recruits at short notice will frequently hand over the undertaking to a specialist external recruiter to manage the end-to-end resourcing programme. Sourcing executive-level and senior management as well as acquiring scarce or 'high-potential' recruits has been a long-established market serviced by a wide range of 'search and selection' or 'headhunting' consultancies which typically form long-standing relationships with their client organisations. Finally, certain organisations with sophisticated HR practices have identified there is a strategic advantage in outsourcing complete duty for all workforce procurement to one or more third-party enlisting bureaus or consultancies. In the most sophisticated of these agreements, the external enlisting services supplier may not only physically locate, or 'embed', their resourcing team(s) within the client organisation's offices but will work in tandem with the senior human resource management team in developing the longer-term HR resourcing strategy and plan.

Modern concept of human resources

Though human resources have been part of business and organisations since the first days of agriculture, the modern concept of human resources began in reaction to the efficiency focus of Taylorism in the early 1900s.

By 1920, psychologists and employment experts in the United States began the human relations movement, which viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts. This movement grew throughout the mid-20th century, emphasizing the importance of leadership, coherence, and loyalty in organizational success. Although this perspective was increasingly challenged by more quantitatively strict and less "soft" management techniques in the 1960s and beyond, human resources development had gained a permanent role within organizations, agencies, and

countries, increasingly as not only an academic discipline, but as a key subject in development policy.

Strategic Human Resources

The goal of Strategic Human Resources is to align human resource strategy to business strategy. This can be achieved by understanding how employees and customers serve business objectives, understanding the challenges faced by the company's core customers, and evaluating the company's competition, in order to provide value to all stakeholders.

Strategic Human Resources focuses on balancing the needs of employees and the organization by proactively developing policies and processes to address these specific needs, rather than standardizing them.

HR can ensure alignment with the business strategy through the following actions:

• Determining the appropriate organizational structure and job designs.
• Emphasizing key attributes of successful candidates during recruitment and selection.
• Identifying key competencies in all performance management programs.
• Ensuring that all training and development programs enhance the company's talent pool.
• Designing compensation and rewards systems that encourage desired behaviors.
• Implementing employment branding initiatives that communicate desired customer experiences.

Strategic HR also involves vertical job expansion, which increases employee empowerment, motivation, satisfaction, and productivity. This reduces the need for middle management and improves corporate citizenship. Employees work towards measurable organizational goals to ultimately increase the organization's profitability. - Nanogram Strategic Human Resources starts by understanding the business goals so that people decisions are aligned with them.

According to Dave Ulrich, a professor of concern at the Ross School of Business, University

of Michigan, the value of HR work is determined by the receiving systems more than the ones giving it. HR has the ability to provide value and implement strategic human resources by using methods that attract, retain, compensate, and develop high-quality talent. The caliber of talent within a company can set it apart from others. Additionally, HR can add value by studying organizational effectiveness and creating engagement strategies. While a head count report may not be of great importance to executives, presenting engagement strategies that reduce turnover and decrease replacement costs can be quantified and reported with a specific dollar value. By monitoring these strategies and the changes in turnover rate, HR can demonstrate the cost of these programs and highlight the money saved due to reduced turnover, which will attract the attention of the executive team.

HR is more favorably perceived at "the tabular array" when the HR metrics and HR spreadsheets are as effective as those of the CFO. KJV Many HR professionals view the HR function as distinct and are not engaged in finding business solutions. For example, HR planning often occurs separately from the overall strategic planning process and only at specific intervals. (e.g.

, annual) Additionally, HR planning is undertaken as a means of allocating adequate resources for HR, rather than to enhance the performance of the organization. However, Human Resources Strategy aligns all individuals within the business domain toward business success. HR professionals should integrate their management of administrative tasks as the means by which they gain insight into developing business tactics that enhance their competitive advantage. The process of Strategic human resource management is a complex one that is

constantly evolving and being studied and discussed by academics and observers. Its definition and relationships with other aspects of business planning and strategy are not absolute, and opinions vary among authors. The following definitions are from the CIPD book Strategic HRM: the key to improved business performance1, which provides comprehensive coverage of the various definitions and approaches to HRM, strategy, and strategic HRM.

Strategic HRM can be described as an overall approach to aligning human resources with the future direction and goals of the organization. It focuses on long-term people issues, such as organizational structure, quality, culture, values, commitment, and aligning resources with future needs. Strategic HRM involves all activities that impact individuals as they strive to understand and implement the business's strategic requirements. It encompasses planned human resource deployments and actions aimed at helping the organization achieve its objectives.