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