The Modern Concept Of Human Resources

Human resources are a word with which a lot ofcapital does not lose the capacity to continue to train
organization explains the mixture of conventionallynew people in trades, professions, and the arts.
directorial employee’s functions with performance,An extreme version of this view is that historical
employee relations, and resource planning. The fieldinequities such as African slavery must be
draws upon concepts developed in Industrial orcompensated by current developed nations, which
Organizational Psychology. Human resources have atbenefited from stolen "human resources" as they
least two related interpretations depending on context.were developing. This is an extremely controversial
The original usage derives from political economy andview, but it echoes the general theme of converting
economics, where it was traditionally called labor, onehuman capital to "human resources" and thus greatly
of four factors of production. The more commondiminishing its value to the host society, i.e. "Africa", as it
usage within corporations and businesses refers to theis put to narrow imitative use as "labor" in the using
individuals within the firm, and to the portion of thesociety.
firm's organization that deals with hiring, firing, training,In a series of reports of the UN Secretary-General to
and other personnel issues.the General Assembly over the last decade [e.g. A/56
This article addresses both definitions.162 (2001)], a broad inter sectoral approach to
The objective of Human Resource training anddeveloping human resourcefulness through hr training
development is to maximize the return on investmenthas been outlined as a priority for socio-economic
from the organization's human capital and minimizedevelopment and particularly anti-poverty strategies.
financial risk. It is the responsibility of human resourceThis calls for strategic and integrated public policies, for
managers to conduct these activities in an effective,example in education, health, and employment sectors
legal, fair, and consistent manner.that promote occupational skills, knowledge and
Human resource management serves these keyperformance enhancement.
functions:In the very narrow context of corporate "human
1. Selectionresources", there is a contrasting pull to reflect and
2. Training and Developmentrequire workplace diversity that echoes the diversity of
3. Performance Evaluation and Managementa global customer base. Foreign language and culture
4. Promotionsskills, ingenuity, humor, and careful listening, are
5. Redundancyexamples of traits that such programs typically require.
6. Industrial and Employee RelationsIt would appear that these evidence a general shift to
7. Record keeping of all personal data.the human capital point of view, and an
8. Compensation, pensions, bonuses etc in liaison withacknowledgment that human beings do contribute
Payrollmuch more to a productive enterprise than "work":
9. Confidential advice to internal 'customers' in relationthey bring their character, their ethics, their creativity;
to problems at worktheir social connections, in some cases even their pets
10. Career developmentand children, and alter the character of a workplace.
Human resourcesThe term corporate, culture is used to characterize
Modern analysis emphasizes that human beings aresuch processes.
not "commodities" or "resources", but are creative andThe traditional but extremely narrow context of hiring,
social beings in a productive enterprise. The 2000firing, and job description is considered a 20th century
revision of ISO 9001 in contrast requires identifying theanachronism. Most corporate organizations that
processes, their sequence and interaction, and tocompete in the modern global economy have adopted
define and communicate responsibilities and authorities.a view of human capital that mirrors the modern
In general, heavily unionized nations such as Franceconsensus as above. Some of these, in turn,
and Germany have adopted and encouraged such jobdeprecate the term "human resources" as useless.
descriptions especially within trade unions. One view ofIn general, the abstractions of macroeconomics treat it
this trend is that a strong social consensus on politicalthis way - as it characterizes no mechanisms to
economy and a good social welfare system facilitatesrepresent choice or ingenuity. So one interpretation is
labor mobility and tends to make the entire economythat "firm-specific human capital" as defined in
more productive, as labor can move from onemacroeconomics is the modern and correct definition
enterprise to another with little controversy or difficultyof "human resources" - and that this is inadequate to
in adapting.represent the contributions of "human resources" in
An important controversy regarding labor mobilityany modern theory of political economy.
illustrates the broader philosophical issue with usage ofModern concept of human resources
the phrase "human resources": governments ofThough human resources have been part of business
developing nations often regard developed nations thatand organizations since the first days of agriculture, the
encourage immigration or "guest workers" asmodern concept of human resources began in
appropriating human capital that is rightfully part of thereaction to the efficiency focus of Taylorism in the
developing nation and required to further its growth asearly 1900s. By 1920, psychologists and employment
a civilization. They argue that this appropriation is similarexperts in the United States started the human
to colonial commodity fiat wherein a colonizingrelations movement, which viewed workers in terms of
European power would define an arbitrary price fortheir psychology and fit with companies, rather than as
natural resources, extracting which diminished nationalinterchangeable parts. This movement grew
natural capital.throughout the middle of the 20th century, placing
The debate regarding "human resources" versusemphasis on how leadership, cohesion, and loyalty
human capital thus in many ways echoes the debateplayed important roles in organizational success.
regarding natural resources versus natural capital.Although more increasingly challenged this view
Over time the United Nations have come to morequantitatively, rigorous and less "soft" management
generally support the developing nations' point of view,techniques in the 1960s and beyond, human resources
and have requested significant offsetting "foreign aid"had gained a permanent role within an organization.
contributions so that a developing nation losing human