HUMAN RESOURCE MANAGEMENT
People are essential to the success of any organization HR professionals play a pivotal role in how successful an organization is, and good human resources management is essential for business of all sizes.
In this article you will learn what human resources management or HRM is, how is originated during the two world wars, is key activities how successful HR professionals make an impact on their business, and some trends that we are seeing right now. However before we start smash that like button and make sure to follow us so you don’t miss out on any valuable HR insights.
Before we get into HRM activities, lets start with a definition human resources management is the management of people to help them perform to the best if their abilities and as a result achieve better performance for the organization. This is summarized in a great quote by stephen covey an empowered organization in one in which individuals have knowledge skills desires and opportunities to personally succeed in a way that leads to collective organizational success, A human resources is an individual employee and human resources is what we call the set of people who make up the workforce in an organization.
Another common term you might hear is human capital. this refers to the economic value of an employees experience and skills. Human capital was introduced into the mainstream in 1928 when the english economist arthur cecil pigou wrote that “organizations can invest in material capital, which are buildings, tools and machines, as well as in human capital”. we now know that investing in human capital pays off. organizations with employees who have relevant knowledge, skills, and experience are more successful than organizations that don’t.
Organization are also more successful if they are able to hire that right people, successfully onboard them, fairly reward them, and continually optimize their performance. The realization that human capital increases the success of organizations led to the creation of the modern HR departments which in turn is in charge of human resources management. However before did HRM get to where it is now? let’s take a look at a brief history so you can get a better idea of why we do what we do in HRM today. HRM started as personal management which became relevant during the two world wars.
The wars had a tremendous impact on the way we worked, since most young men were drafted into the army women started to participate in work serving in the armed forces or working in factory jobs. because some men were afraid that this would cause women to lose their femininity some factories gave female employees lessons in how to apply makeup. i bet you didn’t think that was ever part of an HR job description. During the world wars organizations also introduced assessments like Iq testing to prefict performance and implemented an increasing number of social policies. personnal managment during and after the war was focused on compliance and creating work efficiency.
In the decades that followed personal management became increasingly important and became involved in everything related to staffing from hiring and firing to a administrating benefits collective bargaining and determinatiminig salaries. In the mid 80s the term human resources management was introduced as a way for the organization to implement policies that would make the organization more successful, while personal management focused on creating efficiencies HRM promised to go beyond that and actually make an impact on the business.
This move was reinforced by a growing amount of research that found that investments in HRM practices like proper training and competitive compensation for employees would increase the organization financial performance, the consequences of this was HRM became less administrative and instead worked alongside line managers. Day to day people management became part of the managers role while HR started to integrate with the business and focused on strategic people issues like talent acquisition compensation and retention.that is what human resources management are.
