Human resource management

Human resource management, often called HRM, is a strategic approach to managing people. It focuses on using people effectively to help a company gain a competitive advantage. This means the business uses its workforce to reach specific goals. HRM focuses on policies and systems to maximize employee performance. Professionals in this field manage human capital. This term refers to the knowledge and skills that people bring to an organization.

HR departments handle many different tasks to keep a company running. One major task is recruitment, which is finding and hiring new employees. Once hired, employees need training and development to improve their skills. HR also handles performance appraisals to see how well people are doing. Reward management is another key part of the job. This includes managing pay and employee benefits like parental leave or discounts. Some HR workers are specialists who focus on one area, like training. Others are generalists or business partners who work across many areas.

Managing people also involves handling organizational change and industrial relations. This means balancing company practices with laws and collective bargaining. Collective bargaining happens when employees negotiate through representatives, often called unions. HR must also manage employee relations. This includes addressing concerns like harassment or discrimination. By managing these issues, HR helps maintain a professional culture. They also ensure the company follows legal requirements to avoid liability. This protects both the organization and its workers.

The history of HRM began during the Industrial Revolution in the 19th century. Robert Owen and Charles Babbage were two men who changed how people saw work. They believed that the well-being of employees led to perfect work. They argued that an organization could not survive without healthy workers. In 1893, the labor economist John R. Commons first used the term "human resource." Later, Frederick Winslow Taylor introduced "scientific management," or Taylorism. He studied how to improve efficiency in manufacturing by focusing on labor productivity.

In the early 20th century, the field became more scientific. C.S. Myers co-founded the National Institute of Industrial Psychology in 1921. He was inspired by problems observed among soldiers during the First World War. Later, Elton Mayo conducted the Hawthorne studies between 1924 and 1932. These studies showed that things other than money could make workers more productive. Other researchers like Abraham Maslow and Kurt Lewin also contributed. Their work helped build the study of organizational behavior and industrial psychology.

Many professional organizations helped formalize the discipline over time. In 1913, the Welfare Workers' Association started in England. It eventually became the Chartered Institute of Personnel and Development. In the United States, the School of Industrial and Labor Relations formed at Cornell University in 1945.

Another major group, the Society for Human Resource Management, formed in 1948. Originally, HR was mostly about transactional work like payroll. However, globalization and technology changed its focus. Today, HR handles strategic tasks like talent management and succession planning. This means planning for future leaders within the company.

HR also ensures companies follow important labor laws. In the United States, the Fair Labor Standards Act of 1938 sets a minimum wage. The Equal Employment Opportunity Act of 1972 helps prevent discrimination based on race, religion, or sex. The Family and Medical Leave Act of 1993 allows for unpaid leave for medical reasons. Finally, the Immigration Reform and Control Act requires employers to verify employee eligibility. These laws are vital for maintaining a fair and legal workplace. By following these rules, HR helps manage the complex relationship between employers and employees.