You are on page 1of 12

Human resource management (HRM, or simply HR) is the management of an organization's workforce, or human resources.

It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company's primary liaison with the employees' representatives (usually a labor union). HR is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work, such as payroll and benefits administration, but due to globalization, company consolidation, technological advancement, and further research, HR now focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor relations, and diversity and inclusion. In startup companies, HR's duties may be performed by trained professionals. In larger companies, an entire functional group is typically dedicated to the discipline, with staff specializing in various HR tasks and functional leadership engaging in strategic decision making across the business. To train practitioners for the profession, institutions of higher education, professional associations, and companies themselves have created programs of study dedicated explicitly to the duties of the function. Academic and practitioner organizations likewise seek to engage and further the field of HR, as evidenced by several field-specific publications. Contents 1 History 1.1 Antecedent theoretical developments 1.2 Birth and evolution of the discipline 1.3 In popular media 2 Practice 2.1 Business function 2.2 Careers 3 Education 3.1 Higher education 3.2 Professional associations 4 Publications 5 See also 6 References History Antecedent theoretical developments

HR spawned from the human relations movement, which began in the early 20th century due to work by Frederick Taylor. Taylor explored what he termed "scientific management" (later referred to by others as "Taylorism"), striving to improve economic efficiency in manufacturing jobs. He eventually keyed in on one of the principal inputs into the manufacturing processlaborsparking inquiry into workforce productivity.[1] The movement was formalized following the research of Elton Mayo, whose Hawthorne studies serendipitously documented how stimuli unrelated to financial compensation and working conditionsattention and engagementyielded more productive workers.[2] Contemporaneous work by Abraham Maslow, Kurt Lewin, Max Weber, Frederick Herzberg, and David McClelland formed the basis for studies in organizational behavior and organizational theory, giving room for an applied discipline. Birth and evolution of the discipline By the time enough theoretical evidence existed to make a business case for strategic workforce management, changes in the business landscape ( la Andrew Carnegie, John Rockefeller) and in public policy (a l Sidney and Beatrice Webb, Franklin D. Roosevelt and the New Deal) had transformed the employer-employee relationship, and the discipline was formalized as "industrial and labor relations". In 1913, one of the oldest known professional HR associationsthe Chartered Institute of Personnel and Developmentwas founded in England as the Welfare Workers' Association, then changed its name a decade later to the Institute of Industrial Welfare Workers, and again the next decade to Institute of Labour Management before settling upon its current name.[3] Likewise in the United States, the world's first institution of higher education dedicated to workplace studiesthe School of Industrial and Labor Relationswas formed at Cornell University in 1945.[4] During the latter half of the 20th century, union membership declined significantly, while workforce management continued to expand its influence within organizations. "Industrial and labor relations" began being used to refer specifically to issues concerning collective representation, and many companies began referring to the profession as "personnel administration". In 1948, what would later become the largest professional HR associationthe Society for Human Resource Management (SHRM)was founded as the American Society for Personnel Administration (ASPA).[5] Nearing the 21st century, advances in transportation and communications greatly facilitated workforce mobility and collaboration. Corporations began viewing employees as assets rather than as cogs in a machine. "Human resources management", consequently, became the dominant term for the functionthe ASPA even changing its name to SHRM in 1998.[5] "Human capital management" is sometimes used synonymously with HR, although human capital typically refers to a more narrow view of human resources; i.e., the knowledge the individuals

embody and can contribute to an organization. Likewise, other terms sometimes used to describe the field include "organizational management", "manpower management", "talent management", "personnel management", and simply "people management". In popular media HR has been depicted in several popular media. On the U.S. television series of The Office, HR representative Toby Flenderson is sometimes seen as a nag because he constantly reminds coworkers of company policies and government regulations.[6] Long-running American comic strip Dilbert also frequently portrays sadistic HR policies through character Catbert, the "evil director of human resources".[7] Additionally, an HR manager is the title character in the 2010 Israeli film The Human Resources Manager, while an HR intern is the protagonist in 1999 French film Ressources humaines. Additionally, the BBC sitcom dinnerladies main character Philippa is an HR manager Practice Business function Dave Ulrich lists the functions of HR as: aligning HR and business strategy, reengineering organization processes, listening and responding to employees, and managing transformation and change.[8] In practice, HR is responsible for employee experience during the entire employment lifecycle. It is first charged with attracting the right employees through employer branding. It then must select the right employees through the recruitment process. HR then onboards new hires and oversees their training and development during their tenure with the organization. HR assesses talent through use of performance appraisals and then rewards them accordingly. In fulfillment of the latter, HR may sometimes administer payroll and employee benefits, although such activities are more and more being outsourced, with HR playing a more strategic role. Finally, HR is involved in employee terminations - including resignations, performance-related dismissals, and redundancies. At the macro-level, HR is in charge of overseeing organizational leadership and culture. HR also ensures compliance with employment and labor laws, which differ by geography, and often oversees health, safety, and security. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will typically also serve as the company's primary liaison with the employee's representatives (usually a labor union). Consequently, HR, usually through industry representatives, engages in lobbying efforts with governmental agencies (e.g., in the United States, the United States Department of Labor and the National Labor Relations Board) to further its priorities. The discipline may also engage in mobility management, especially pertaining to expatriates; and it is frequently involved in the merger and acquisition process. HR

is generally viewed as a support function to the business, helping to minimize costs and reduce risk.[9] Careers There are almost half a million HR practitioners in the United States and thousands more worldwide.[10] The Chief HR Officer is the highest ranking HR executive in most companies and typically reports directly to the Chief Executive Officer and works with the Board of Directors on CEO succession.[11][12] Within companies, HR positions generally fall into one of two categories: generalist and specialist. Generalists support employees directly with their questions, grievances, and projects. They "may handle all aspects of human resources work, and thus require an extensive range of knowledge. The responsibilities of human resources generalists can vary widely, depending on their employer's needs."[13] Specialists, conversely, work in a specific HR function. Some practitioners will spend an entire career as either a generalist or a specialist while others will obtain experiences from each and choose a path later. Being an HR manager consistently ranks as one of the best jobs, with a #4 ranking by CNN Money in 2006 and a #20 ranking by the same organization in 2009, due to its pay, personal satisfaction, job security, future growth, and benefit to society.[14][15] Human resource consulting is a related career path where individuals may work as advisers to companies and complete tasks outsourced from companies. In 2007, there were 950 HR consultancies globally, constituting a USD $18.4 billion market. The top five revenue generating firms were Mercer, Ernst & Young, Deloitte, Watson Wyatt (now part of Towers Watson), Aon (now merged with Hewitt), and PwC consulting.[16] For 2010, HR consulting was ranked the #43 best job in America by CNN Money.[17] Education Higher education Further information: List of human resource management graduate degree programs The School of Industrial and Labor Relations at Cornell University was the world's first school for college-level study in HR. Several universities offer programs of study pertaining to HR and related fields. The School of Industrial and Labor Relations at Cornell University was the world's first school for college-level study in HR.[18] It continues to offer education at the undergraduate, graduate, and professional levels; and it operates a joint degree program with the Samuel Curtis Johnson Graduate School of Management, which HR Patriot termed the "crown jewel for aspiring HR professionals".[19] Other universities with entire colleges dedicated to the study of HR include Michigan State University, University of Illinois at Urbana-Champaign, and Renmin University of China. Dozens of other universities house departments and institutes related to the field, either within a business school or in another college.

Professional associations Main article: List of human resource management associations HR education also comes by way of professional associations, which offer training and certification. The Society for Human Resource Management, which is based in the United States, is the largest professional association dedicated to HR,[10] with over 250,000 members in 140 countries.[20] It offers a suite of Professional in Human Resources (PHR) certifications through its HR Certification Institute. The Chartered Institute of Personnel and Development, based in England, is the oldest professional HR association,with its predecessor institution being founded in 1918. Several associations also serve niches within HR. The Institute of Recruiters (IOR) is a recruitment professional association, offering members education, support and training.[21] WorldatWork focuses on "total rewards" (i.e., compensation, benefits, work life, performance, recognition, and career development), offering several certifications and training programs dealing with remuneration and work-life balance. Other niche associations include the American Society for Training & Development and Recognition Professionals International. Publications Academic and practitioner publications dealing exclusively with HR: Cornell HR Review HR Magazine (SHRM) Human Resource Management (John Wiley & Sons) Human Resource Management Review (Elsevier) International Journal of Human Resource Management (Taylor & Francis) Perspectives on Work (LERA) Related publications: Academy of Management Journal Academy of Management Review Administrative Science Quarterly (Samuel Curtis Johnson Graduate School of Management) Organization Science (INFORMS) See also Wikimedia Commons has media related to: Human resources management Aspiration Management Organizational behavior Organizational theory References Library resources

About Human resource management Resources in your library Resources in other libraries ^ Merkle, Judith A. Management and Ideology. University of California Press. ISBN 0-520-03737-5. ^ Mayo, Elton (1945). "Hawthorne and the Western Electric Company". Harvard Business School. Retrieved 28 December 2011. ^ "About CIPD". Chartered Institute of Personnel and Development. Retrieved 22 December 2011. ^ "About Cornell ILR". Cornell University School of Industrial and Labor Relations. Retrieved 2010-01-29. ^ a b "About SHRM". Society for Human Resource Management. Retrieved 22 December 2011. ^ O'Brien, Michael (October 8, 2009). "HR's Take on The Office". Human Resource Executive Online. Archived from the original on 18 December 2011. Retrieved 28 December 2011. ^ "Catbert shows tougher side to human resources". Personnel Today. August 30, 2007. Retrieved 28 December 2011. ^ Ulrich, Dave (1996). Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press. ISBN 087584-719-6. OCLC 34704904. ^ Towers, David. "Human Resource Management essays". Retrieved 2007-10-17. ^ a b Jonathan E. DeGraff (21 February 2010). "The Changing Environment of Professional HR Associations". Cornell HR Review. Retrieved 21 December 2011. ^ Wright, Patrick. "The 2011 CHRO Challenge: Building Organizational, Functional, and Personal Talent". Cornell Center for Advanced Human Resource Studies (CAHRS). Retrieved 3 September 2011. ^ Conaty, Bill, and Ram Charan (2011). The Talent Masters: Why Smart Leaders Put People Before Numbers. Crown Publishing Group. ISBN 978-0-307-46026-4. ^ "Human Resources, Training, and Labor Relations Managers and Specialists". U.S. Bureau of Labor Statistics. 2011. Retrieved 23 December 2011. ^ "Human Resources Manager". CNN Money. 2006. Retrieved 23 December 2011. ^ "Human Resources Manager". CNN Money. 2009. Retrieved 23 December 2011. ^ "Towers Watson Executives See Growth Ahead For Merged Firms". Workforce Management. 2007. Retrieved January 13, 2010. ^ "HR consultant". CNN Money. Retrieved 23 December 2011. ^ "About Cornell ILR". Cornell University School of Industrial and Labor Relations. Retrieved 23 August 2009. ^ "HR Graduate Program Rankings". HR Patriot. 2009-04-26. Retrieved 201007-05. ^ SHRM Website: About SHRM ^ "About IOR". Institute of Recruiters (IOR). Retrieved 22 December 2011.

[hide] v t e Management Outline of business management Index of management articles Manager Management branches Finance Human resources Information technology Marketing Operations/production Strategy Other Management areas Accounting Association Capability Change Communication Conflict Construction Cost Crisis Critical Customer relationship Distributed Earned value Educational Engineering Environmental Facility Hospital Information Innovation Interim Inventory

Knowledge Land Logistics Lifecycle Materials Office Perception Practice Program Project Process Performance Product Public administration Quality Records Resource Restaurant Risk Skills Strategic Stress Supply chain Systems Talent Time Technology Management-related topics Association of Technology, Management, and Applied Engineering Applied engineering Business school Chartered Management Institute Decision making styles Organization development Organizational studies Social entrepreneurship Forecasting Leadership Articles Adhocracy Administration

Certified Business Manager Collaboration Collaborative method Corporate governance Decision Making Engineering management Evidence-based management Executive Pay Forecasting Futures studies Growth Knowledge visualization Leadership Management consulting Management control Management cybernetics Management development Management fad Managerial Psychology Management science Management styles Management system Managerialism Micromanagement Macromanagement Middle management Music management Organizational behavior management Organizational studies Physical Internet Predictive analytics Team building Scientific management Senior management Social entrepreneurship Virtual management Williamson's Model of Managerial Discretion Peter Drucker's management by objectives Eliyahu M. Goldratt's Theory of constraints Pointy Haired Boss Portal Systems science portal Categories:

Human resource management Southwest Airlines 2002: An Industry Under Siege Harvard Business School: 9-803-133 Executive Summary Southwest Airlines in 2002 faced a serious of important management decisions after the 9/11 tragedy in order to continue the record breaking company growth that Southwest had experienced since the 1970s. Southwest Airlines revolutionized the airline industry with what is known as the Southwest Effect: low cost fares, point-to-point service, 10 minute turnaround and an enjoyable friendly atmosphere. After the Airline Deregulation Act of 1978, Southwest adopted a polity that irregardless of the profitability of expansion opportunities, the company wanted to commit to a manageable annual growth rate of about 10-15%. The following questions and discussion will address the historical challenges of Southwest airlines, the direction the company contemplated in 2002, and a brief look at the challenges of today. 1). What is the competitive business environment The airline industry has always been competitive. In an analysis of the most profitably investments as per our class discussion, surprisingly, airlines come in at the lowest return on each dollar invested at around 2.5%. Southwest Airlines experienced 30 consecutive years of profit a mere two years after its founding in 1971. Many airports began requesting Southwest service for their passengers, but throughout Southwests expansion, the company aimed to maintain a manageable growth rate and focus on their core competencies of low price fares that would compete with the cost of driving to the destination. In the mid 1990s, the major carriers entered into price wars to undercut competition. Although, these dealings did affect Southwests bottom line, Southwest still manage to continue to turn a profit and expand due to their expansion into a reservation system and their commitment to a culture and experience that passengers were drawn to. 2). What is the competitive advantage that the company obtained as discussed in the case? Southwest Airlines competitive advantages are their point-to-point services which are generally targeting the frequent business traveler. With several regular flights per day, if a passenger happens to miss their flight, they will be automatically booked onto another flight. Secondly, Southwest strategically secured routes through secondary airports which generally had lower fixed costs for the airlines and less congestions for passengers ease. Finally, Southwest focused on quick, reliable turnaround time using only one version of aircraft, allowing for familiarity among staff and greater efficiency in turnaround. Passengers were not assigned seats, simply boarding sections, which allowed for passenger loading to be conducted more efficiently. The traditional airline model is the Hub and Spoke model, which in essence takes most passengers from the origination, through the hub, and then transfers them to their

10

destination. Southwests point to point system was more reliable because it did not depend on the on time arrival of an earlier flight for departure. Southwest also implemented the first and most simplistic frequent-flier program: purchase eight flights and get one free. Southwests initially connected with four computer reservation and ticketing systems and also the powerful SABRE system. This allowed travel agents to view flight information and even print tickets. In 1994, Southwest was only connected through the SABRE systems which pushed Southwest to develop the ticketless travel program as well as Southwest.com. 3). What strategy and/or model was used or implemented in this case? Bargaining power of buyers Porters 5 Competitive Forces Model Threa ts Southwest vs. All other Airlines Threat of substitute

Bargaining power of suppliers

Threat of new entrants Bargaining Power

The Southwest airlines case can be analyzed with Porters five competitive forces model. Southwest airlines benefited after the airline deregulation in 1971, and were able to lay the groundwork for a successful airline. Throughout their growth, Southwest differentiated from the competition by taking a friendly, warm and welcoming approach to flying. Their low cost flights undercut the competition, which would fit under the threat of substitutes. Also, their reliability was the best in the industry until September 11th, which helped to prevent the threat of substitutes. Southwest did face the threat of new entrants when People Express launched in 1980. It competed on low fares as well and grew rapidly. Ultimately, the company was not able to sustain its growth and dissolved blaming larger competitors. Ryan Air replicated Southwest Airlines in Europe and another low cost competitor now is Jet Blue in the United States. Southwest airlines does struggle against the threat of substitutes much like any other airline and in this case the threat of substitutes is the decision to use an alternate form of travel, such as driving or taking a train. The airline industry is sensitive to

11

tragedy such as when there is a plane crash or an event like 9/11; consumers tend to switch to a substitute or chose not to travel in the first place. Southwests best defense is a strong PR campaign, which we saw after 9/11 when the company launched ads saying that when America is ready to fly again, Southwest will be there.

Looking at the bargaining power of suppliers, Southwest relies heavily on its employees, pilots and other team members. Employees were very loyal, and turnover was significantly less than other airlines. Also, any union negotiations were taken very seriously by management and generally handled by the CEO himself. Finally, Southwest is vulnerable to variable changes in pricing at different airports for security, etc, but Southwest always sought the lowest cost alternation or the least congested airport for their passengers convenience. Southwest also negotiated fuel prices years ahead, allowing them to maintain this fixed cost on an annual basis. Finally, Southwest helped to counteract the threat of bargaining power of buyers by giving passengers what they want . . . lower fares, reliable service and rapid rewards! Southwest noted that one of passengers most frequent complaints was the fact that they are not able to choose their own seat. According to Southwests website press release, the company in currently looking into making changes to accommodate their clients. Again, this is Southwest strategically counteracting a threat of bargaining power of buyers by consistently monitoring and adjusting to consumer concerns.

12