Essay on Human Resource Management in Business

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Human Resource Management in Business
Sylvan R. Wilcox
Warner Southern College

Human Resource Management (HRM) is no longer a personnel office that is simply a record-keeping and maintenance function. Huselid (1995) points out that there is a positive correlation that has developed between HRM as a strategic ally and company performance. HRM research has grown from an atheoretical origin to view organizational activities from an interdisciplinary perspective (Jennings, 1994) that is concerned with a movement toward methodological and theoretical development (Ferris & Judge, 1991). This review will look at the different ways HRM plays into the overall scheme of providing
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Without HRM practices in place, organizations are likely to suffer in the three areas described above. The importance of HRM as a business function is exemplified in Huselid's (1995) view that HRM practices influence employees' skills and competencies through the acquisition and development of a business's "human capital."
Because HRM is such a fast-changing study it seems appropriate here to explain the alternative terminology that is starting to make the scene. "Human capital" was introduced in a statement by David Walker (2000), the Comptroller General:
We at GAO use the term "human capital" because "in contrast with traditional terms such as personnel and human resource management" it focuses on two principles that are critical in a performance management environment. First, people are assets whose value can be enhanced through investment, as the value of people increases, so does the performance capacity of the organization, and therefore, its value to clients and other stake-holders. Second, an organization's human capital approaches must be aligned to support the mission, vision for the future, core values, goals, and strategies by which the organization has defined its direction and its expectations for itself and its people... The term "human capital" originated in the field of economics. But both words human and capital are equally important to the concept as we apply it. Enhancing the value of employee is a win-win goal for employer and employees
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