The terms ‘Human Resource (HR)’ and ‘Human Resource Management (HRM)’ have replaced the term ‘Personnel Management’. As human resources have become viewed as more critical to organizational success, many organizations have realized that it is the people in an organization that can provide a competitive advantage.
Human Resource (HR) management deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. In an organization, the management of human resources means that they must be recruited, compensated, trained, and developed.
The concept of HRM underpins all the below activities under one umbrella:
– Compensation and Benefits
– Career Growth and Succession Planning
– Performance Appraisal
– Performance Management
– Labor Laws
– Work Culture
– Learning Management
– Knowledge Management
– Organization Management
Human resource management is defined as a strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives.
Storey (1989) believes that HRM can be regarded as a ‘set of interrelated policies with an ideological and philosophical underpinning’. He suggests four aspects that constitute the meaningful version of HRM:
– A particular constellation of beliefs and assumptions;
– Strategic thrust informing decisions about people management;
– The central involvement of line managers; and
– Reliance upon a set of ‘levers’ to shape the employment relationship.
HRM is a strategic approach to the acquisition, motivation, development and management of the organizations human resource. It is developed to shaping an appropriate corporate culture and introducing programs which reflect and support the core values of the enterprise and ensure its success.
With globalization and the spread of business and operations in different countries, HRM has becomes very much essential to retain the talented workforce and to provide them effective and efficient platform for all employees worldwide. Now a global company employees workforce from different countries with different culture and languages. It is the duty of the human resource management to bring all employees under one roof to meet the organizational specific goals.