Resource can be defined as supply of material, money or people in order to perform the task effectively. There are 4 basic resources: Land, Labour Capital, and Entrepreneurship. The rewards of these resources are as follows:
- Land- Rent,
- Labour- Wages,
- Capital- Interest,
- Entrepreneurship- Profit.
Also, there is some more important resources present that includes minerals, energy, oils, etc. Human is also considered as an important resource that provides its return in the form of Wages/ Salary. The ability of the human to be used as a resource is called the study of Human resources. Among the population of 7.5304 billion, 65% of the population is considered as working human resources. Hence, this becomes important to guide these resources by regulating a body on them. To regulate them, there has been the introduction of human resource departments that takes care of all the working humans, to provide a healthy and hygienic working environment, to ensure that there is no harm caused to the working staff, to ensure the working of all the human resources efficiently and effectively.
Human Resource Management- Definition & Emergence
Human Resource Management can be considered as an art or a strategic move to ensure effective management with the main aim to gain a competitive advantage over the existing customers. The aim is to provide safety in order to enhance productivity for the organization. This is the silent and an accepted process of decreasing the employee turnover ratio as an effective HRM result in winning the confidence of the employee that the organization to think about the welfare of the employees and they feel no urge to change.
This concept was introduced in the 18th century when the importance of working staff was realized that the employees, labor are the main assets of the company and it was ascertained that the labors are the only ones responsible for the growth and success of the company. Robert Owen and the most famous Charles Babbage were the builders of the HRM after the industrial revolution took place. The concept of HRM revolves around Development, Procurement, integration, Compensation, maintenance, and separation with the motive of accomplishing all the goals of the company.
Human Resource Concept
The concept of Human Resource management is no different, this aims at providing efficiency in the work by delivering the satisfaction to the employees, the satisfaction here can be both monetary as well as non-monetary. The employees are provided with the salary/ wages along with this they are also provided with various incentives for their performance in accomplishing the goals of the company, ensuring that the work delivered meets the commitment level of the organization to the clients and most importantly the SLAs or the Service level agreements are fulfilled. The concept is related to transform all the undeliverable, un potential products into the deliverable and potential ones, to transform the human resource threat into an opportunity by using the strengths of the organization. this is also related to the judicious usage of resources ensuring more outputs from lesser inputs.
Earlier, the concept of the HRM was narrow which was more of personnel development rather than human resource development. The main functions were to recruit and select the correct person for the required seat, they aimed at delivering the reward, appraisal, salary, fringe benefits, position and were aimed to solve the grievances of the staff appointed. But in this Era of development and advancement, the concept of Human Resource Management has grown farther than ever, now the concept of the HR department revolves around the 4 main functions, namely, Acquisition, motivation, development and human resource maintenance. These are considered as the soul of human resource management, where the Acquisition is related to acquiring all the best possible opportunities as well as the most suitable workforce for the effective and timely deliveries of the promises of the clients.
Motivation is apprehensive with energizing the personnel of the group towards the accomplishment of demanded work, this not only benefits the company in completing the work timely but also results in getting the work in the most efficient way, if the employees will be motivated the quality of work done by them will also enhance, thus resulting beneficial to the company in many aspects. This can too lead to increased Goodwill and trust among the stakeholders of the concerned organization.
Development is related to this concept in a few ways. This involves the development of work performance, development of processes, development in the overall behavior of the company to see threats and opportunities and development in the human resources of the organization. ensuring development in the business processes, work performance can advance the product and service quality that is provided to the public, the development in seeking the threats and opportunities can enhance the decision making power of the organization and most importantly the development in the human resources of the organization can result in the overall development in the company. This will also empower the stakeholders to invest more in a well-organized and developed company. The last and the foremost Human Resource Maintenance is related with the proper management of staff of the company, this is related to ensure safety in the work environment, related to delivering the industry acceptable pay-scales and the best working conditions in the organization. this also revolves around making the workplace the best in all sense for the employee to deliver 100% to the organization. The key activity of HRM concerning this is, to mobile the appropriate person to the most appropriate position.
In nutshell, The Human resource management is an art, if created with all the focus and intelligence can result in a beautiful masterpiece and if not handled carefully can result in the worst conditions like a wind-up, legal proceedings, etc.
The Human resource is the study of human when employed as a resource, human resource management is considered as the soul of all the management ensuring all the human requirements for performing the tasks are fulfilled and thus results in the efficient working of the organization. The HRM is very useful in all the aspects of business whether considered on a micro level or the macro level. This is concerned with the internal environment as well as the external environment. Hence, it is very crucial to design the policies and regulations with the utmost focus and attention to fetch the maximum benefits out of the various opportunities.