LAW

Managing Human Capital

SECTION A

Abstract

The Human Resource Management is a set of functions and practices that aim to mobilize resources and develop staff for greater efficiency in support of the strategy desired by the organization. The Human Resources Management covers many areas, thus intervening at all stages of the life of the worker in the organization: evaluation of performance, recruitment, career management, training, conflict management, social dialogue, motivation and employee involvement, communication, job satisfaction or working conditions. Human resource is one of the main functions of management which is based on planning, recruiting, selecting, conducting performance appraisal and inducting. The paper talks about different definitions and approaches of human resource management and the most modern definition that is based on its implication and reality in different organizations.

Managing Human Capital

Introduction

Human Resource management is the function of management emphasizing on human capital. Human resources management (HRM) is a term that summarizes the approach and process of managing people who work for an organization. This work can be either paid or undertaken in a voluntary capacity. HRM frames all people-related matters within an organization, including planning for new appointments, recruitment and selection, induction, performance management, reward and incentive structures, training and development, and when and how to let people go.

It has been suggested that recruitment and selection are the most critical components of HRM. In essence, effective management of these two phases of HRM will ensure that you get the right people in the right jobs. Recruitment includes activities and processes that define employee or volunteer needs and generate a suitably qualified pool of candidates for various positions. Selection encompasses the techniques and methods of choosing the best candidate from the pool that has been generated by recruitment. The induction and orientation of new employees and volunteers is an increasingly formalized process. It can be viewed either as the final step of recruitment or the initial process of training and development.

The field of human resource existed for centuries, but was never called as such. Since there is a hierarchy within the same workgroup, the highest placed monitors the work of his team in order to achieve better performance and therefore a better profit. This function was then taken up by Taylor, which main objective was to increase profitability (Taylor, 2004, pp. 130-140). It was the precursor to the evaluation of performance in advancing the idea of evaluating the qualification of an employee to a position determined. However, the assessment is actually recognized after the Second World War, when one realizes the importance of human capital in organizations (Paauwe, 2004, pp. 220-40).

Discussion

The human resource management has been defined as "the science and practice dealing with the nature of relationships employment and the set of decisions, actions and issues linked to such relations” (Ferris, Rosen and Barnum, 1995, pp. 20-45). Addresses policies and practices consider the use enterprise management and workers as a source of activity in the context of overall business strategy aimed at improving productivity and ...