| Human Resource Management (HRM) is both an | | | | The debate regarding "human resources" versus |
| academic theory and a business practice. It | | | | human capital thus in many ways echoes the |
| is based on the notion that employees are | | | | debate regarding natural resources versus |
| firstly human, and secondly should NOT be | | | | natural capital. Over time the United Nations |
| treated as a basic business resource. HRM is | | | | have come to more generally support the |
| also seen as an understanding of the human | | | | developing nations' point of view, and have |
| aspect of a company and its strategic | | | | requested significant offsetting "foreign |
| importance. HRM is seen as moving on from a | | | | aid" contributions so that a developing |
| simple "personnel" approach (or was supposed | | | | nation losing human capital does not lose the |
| to) because it is preventative of potential | | | | capacity to continue to train new people in |
| problems, and secondly it should be a major | | | | trades, professions, and the arts. |
| aspect of the company philosophy, in which | | | | |
| all managers and employees are champions of | | | | An extreme version of this view is that |
| HRM-based policies and philosophy. | | | | historical inequities such as African slavery |
| | | | must be compensated by current developed |
| Human resources has at least two meanings | | | | nations, which benefitted from stolen "human |
| depending on context. The original usage | | | | resources" as they were developing. This is |
| derives from political economy and economics, | | | | an extremely controversial view, but it |
| where it was traditionally called labor, one | | | | echoes the general theme of converting human |
| of three factors of production. The more | | | | capital to "human resources" and thus greatly |
| common usage within corporations and | | | | diminishing its value to the host society, |
| businesses refers to the individuals within | | | | i.e. "Africa", as it is put to narrow |
| the firm, and to the portion of the firm's | | | | imitative use as "labor" in the using |
| organization that deals with hiring, firing, | | | | society. |
| training, and other personnel issues. This | | | | |
| article will address both definitions. | | | | In the very narrow context of corporate |
| | | | "human resources", there is a contrasting |
| Modern analysis emphasizes that human beings | | | | pull to reflect and require workplace |
| are not predictable commodity "resources" | | | | diversity that echoes the diversity of a |
| with definitions totally controlled by | | | | global customer base. Foreign language and |
| contract, but are creative and social beings | | | | culture skills, ingenuity, humor, and careful |
| that make contributions beyond "labor" to a | | | | listening, are examples of traits that such |
| society and to civilization. The broad term | | | | programs typically require. It would appear |
| human capital has evolved to contain the | | | | that these evidence a general shift to the |
| complexity of this term, and in | | | | human capital point of view, and an |
| macro-economics the term "firm-specific human | | | | acknowledgement that human beings do |
| capital" has evolved to represent the | | | | contribute much more to a productive |
| original meaning of term "human resources". | | | | enterprise than "work": they bring their |
| | | | character, their ethics, their creativity, |
| Advocating the central role of "human | | | | their social connections, and in some cases |
| resources" or human capital in enterprises | | | | even their pets and children, and alter the |
| and societies has been a traditional role of | | | | character of a workplace. The term corporate |
| socialist parties, who claim that value is | | | | culture is used to characterize such |
| primarily created by their activity, and | | | | processes. |
| accordingly justify a larger claim of profits | | | | |
| or relief from these enterprises or | | | | The traditional but extremely narrow context |
| societies. Critics say this is just a | | | | of hiring, firing, and job description is |
| bargaining tactic which grew out of various | | | | considered a 20th century anachronism. Most |
| practices of medieval European guilds into | | | | corporate organizations that compete in the |
| the modern trade union and collective | | | | modern global economy have adopted a view of |
| bargaining unit. | | | | human capital that mirrors the modern |
| | | | consensus as above. Some of these, in turn, |
| A contrary view, common to capitalist | | | | deprecate the term "human resources" as |
| parties, is that it is the infrastructural | | | | useless. |
| capital and (what they call) intellectual | | | | |
| capital owned and fused by "management" that | | | | As the term refers to predictable |
| provides most value in financial capital | | | | exploitations of human capital in one context |
| terms. This likewise justifies a bargaining | | | | or another, it can still be said to apply to |
| position and a general view that "human | | | | manual labor, mass agriculture, low skill |
| resources" are interchangeable. The unicist | | | | "McJobs" in service industries, military and |
| approach defines the integration of humans | | | | other work that has clear job descriptions, |
| and business as a sole unified field. | | | | and which generally do not encourage creative |
| | | | or social contributions. |
| A significant sign of consensus on this | | | | |
| latter point is the ISO 9000 series of | | | | In general the abstractions of |
| standards which requires a "job description" | | | | macro-economics treat it this way - as it |
| of every participant in a productive | | | | characterizes no mechanisms to represent |
| enterprise. In general, heavily unionized | | | | choice or ingenuity. So one interpretation is |
| nations such as France and Germany have | | | | that "firm-specific human capital" as defined |
| adopted and encouraged such descriptions | | | | in macro-economics is the modern and correct |
| especially within trade unions. One view of | | | | definition of "human resources" - and that |
| this trend is that a strong social consensus | | | | this is inadequate to represent the |
| on political economy and a good social | | | | contributions of "human resources" in any |
| welfare system facilitates labor mobility and | | | | modern theory of political economy. |
| tends to make the entire economy more | | | | |
| productive, as labor can move from one | | | | Though human resources have been part of |
| enterprise to another with little controversy | | | | business and organizations since the first |
| or difficulty in adapting. | | | | days of agriculture, the modern concept of |
| | | | human resources began in reaction to the |
| An important controversy regarding labor | | | | efficiency focus of Taylorism in the early |
| mobility illustrates the broader | | | | 1900s. By 1920, psychologists and employment |
| philosophical issue with usage of the phrase | | | | experts in the United States started the |
| "human resources": governments of developing | | | | human relations movement, which viewed |
| nations often regard developed nations that | | | | workers in terms of their psychology and fit |
| encourage immigration or "guest workers" as | | | | with companies, rather than as |
| appropriating human capital that is | | | | interchangeable parts. This movement grew |
| rightfully part of the developing nation and | | | | throughout the middle of the 20th century, |
| required to further its growth as a | | | | placing emphasis on how leadership, cohesion, |
| civilization. They argue that this | | | | and loyalty played important roles in |
| appropriation is similar to colonial | | | | organizational success. Although this view |
| commodity fiat wherein a colonizing European | | | | was increasingly challenged by more |
| power would define an arbitrary price for | | | | quantitatively rigorous and less "soft" |
| natural resources, extracting which | | | | management techniques in the 1960s and |
| diminished national natural capital. | | | | beyond, human resources had gained a |
| | | | permanent role within the firm. |