Human resource management ( HRM ) is the strategic and coherent approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage . It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems . HR departments are responsible for overseeing employee-benefits design, employee recruitment , training and development , performance appraisal , and reward management , such as managing pay and employee benefits systems. HR also concerns itself with organizational change and industrial relations , or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws .
116-486: The overall purpose of human resources (HR) is to ensure that the organization can achieve success through people. HR professionals manage the human capital of an organization and focus on implementing policies and processes. They can specialize in finding, recruiting, selecting, training, and developing employees, as well as maintaining employee relations or benefits. Training and development professionals ensure that employees are trained and have continuous development. This
232-788: A labor union ). Consequently, the HR industry lobbies governmental agencies (e.g., in the United States, the United States Department of Labor and the National Labor Relations Board ) to advance its priorities. Other Activities : In startup companies , trained professionals may perform HR duties. 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
348-663: A climate for safety is emphasized throughout the organization or in subunits of the organization (e.g., production), then training needs will likely reflect an emphasis on safety. A task analysis uses the results of a job analysis to determine what is needed for successful job performance, contributing to training content. With organizations increasingly trying to identify "core competencies" that are required for all jobs, task analysis can also include an assessment of competencies. A person analysis identifies which individuals within an organization should receive training and what kind of instruction they need. Employee needs can be assessed using
464-494: A common goal and a common set of operating procedures. In the 1970s in the UK, references to occupational psychology became more common than references to I-O psychology. According to Bryan and Vinchur, "while organizational psychology increased in popularity through [the 1960s and 1970s], research and practice in the traditional areas of industrial psychology continued, primarily driven by employment legislation and case law". There
580-919: A conference on personnel research in Washington detailing the need for personnel research. This preceded and led to the organization of the Personnel Research Federation. In 1922 the first volume of The Journal of Personnel Research was published, a joint initiative between the National Research Council and the Engineering Foundation. Likewise in the United States, the world's first institution of higher education dedicated to workplace studies—the School of Industrial and Labor Relations —formed at Cornell University in 1945. In 1948 what would later become
696-421: A department or organization (organizational climate). Climates are usually focused on specific employee outcomes, or what is called “climate for something”. There are more than a dozen types of climates that have been assessed and studied. Some of the more popular include: Climate concerns organizational policies and practices that encourage or discourage specific behaviors by employees. Shared perceptions of what
812-415: A developing nation losing human capital does not lose the capacity to continue to train new people in trades, professions, and the arts. Some businesses and companies are choosing to rename this department using other terms, such as "people operations" or "culture department," in order to erase this stigma. Human resource companies play an important part in developing and making a company or organization at
928-416: A major influence on the emergence of I-O psychology. World War I was an impetus for the development of the field simultaneously in the UK and US. Munsterberg, one of the founders of I-O psychology, wrote, "Our aim is to sketch the outlines of a new science which is intermediate between the modern laboratory psychology and the problems of economics: the psychological experiment is systematically to be placed at
1044-472: A marketplace. This involves the focus on making the "employment relationship" fulfilling for both management and employees. Some research showed that employees can perform at a much higher rate of productivity when their supervisors and managers paid more attention to them. The Father of Human relations, Elton Mayo , was the first person to reinforce the importance of employee communications, cooperation , and involvement. His studies concluded that sometimes
1160-530: A more efficient manner. This gives employees the ability to access onboarding and training programs from virtually anywhere. This eliminates the need of organizing costly face-to-face training and onboarding sessions. It allows management's to provide necessary training for job success and monitor progress of their employees through virtual classrooms and computerized testing, predict the risk of employee turnover through data analysis, help HR to formulate relevant talent retention and incentive strategies, improve
1276-510: A multi-level approach, attempting to understand behavioral phenomena from both the level of the organization and the level of the individual worker. There was also an increased interest in the needs and expectations of employees as individuals. For example, an emphasis on organizational justice and the psychological contract took root, as well as the more traditional concerns of selection and training. Methodological innovations (e.g., meta-analyses , structural equation modeling ) were adopted. With
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#17327878072551392-439: A nation utilises the skills of its population or promotes effective aging). I-O psychologists review job tasks, relationships, and an individual's way of thinking about their work to ensure that their roles are meaningful and motivating, thus creating greater productivity and job satisfaction. Deliberate interventions aimed at altering work design are sometimes referred to as work redesign. Such interventions can be initiated by
1508-498: A number of job stressors (environmental conditions at work) that contribute to strains (adverse behavioral, emotional, physical, and psychological reactions). Occupational stress can have implications for organizational performance because of the emotions job stress evokes. For example, a job stressor such as conflict with a supervisor can precipitate anger that in turn motivates counterproductive workplace behaviors. A number of prominent models of job stress have been developed to explain
1624-411: A personnel department to deal with grievances, discharges and safety, and information for supervisors on new laws and practices after several strikes and employee lockouts. This action was followed by other companies; for example, Ford had high turnover ratios of 380 percent in 1913, but just one year later, the line workers of the company had doubled their daily salaries from $ 2.50 to $ 5, even though $ 2.50
1740-417: A special tool) or technical skills (e.g., understanding the workings of software program). Affective training concerns teaching individuals to develop specific attitudes or beliefs that predispose trainees to behave a certain way (e.g., show commitment to the organization, appreciate diversity). A needs assessment , an analysis of corporate and individual goals, is often undertaken prior to the development of
1856-727: 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. Human resource consulting is a related career path where individuals may work as advisers to companies and complete tasks outsourced from companies. Some individuals with PhDs in HR and related fields, such as industrial and organizational psychology and management , are professors who teach HR principles at colleges and universities. They are most often found in Colleges of Business in departments of HR or Management. Many professors conduct research on topics that fall within
1972-419: A structured and thorough manner. This means that it covers the hiring, firing, pay and perks, and performance management. This first definition is the modern and traditional version more like what a personnel manager would have done back in the 1920s. The second definition is that HRM circles the ideas of management of people in organizations from a macromanagement perspective like customers and competitors in
2088-451: A training program. In addition, a careful training needs analysis is required in order to develop a systematic understanding of where training is needed, what should be taught, and who will be trained. A training needs analysis typically involves a three-step process that includes organizational analysis , task analysis , and person analysis . An organizational analysis is an examination of organizational goals and resources as well as
2204-418: A variety of methods that identify weaknesses that training can address. Work motivation reflects the energy an individual applies "to initiate work-related behavior, and to determine its form, direction, intensity, and duration" Understanding what motivates an organization's employees is central to I-O psychology. Motivation is generally thought of as a theoretical construct that fuels behavior. An incentive
2320-495: A way that is faster and easier than before. E-recruiting also helps eliminate limitations of geographic location. HR professionals generally handle large amounts of paperwork on a daily basis, ranging from department transfer requests to confidential employee tax forms . Forms must be on file for a considerable period of time. The use of human resources information systems (HRIS) has made it possible for companies to store and retrieve files in an electronic format for people within
2436-720: Is Academy to Innovate HR (AIHR). 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 specific niches within HR. The Institute of Recruiters (IOR) is a recruitment professional association, offering members education, support and training. 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
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#17327878072552552-430: Is Flanagan's critical incident technique . I-O psychologists have also coordinated the use of quantitative and qualitative methods in the same study, I-O psychologists deal with a wide range of topics concerning people in the workplace. Job analysis encompasses a number of different methods including, but not limited to, interviews, questionnaires, task analysis, and observation. A job analysis primarily involves
2668-586: 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. It was initially dominated by transactional work, such as payroll and benefits administration, but due to globalization , company consolidation, technological advances, and further research, HR as of 2015 focuses on strategic initiatives like mergers and acquisitions , talent management , succession planning , industrial and labor relations , and diversity and inclusion . In
2784-503: Is a registration category for the profession of psychologist as regulated by the Health Professions Council of South Africa (HPCSA). In 2009 The Alliance for Organizational psychology was formed and is a federation of Work, Industrial, & Organizational Psychology societies and "network partners" from around the world. In 2021 The British Psychological Society (BPS) Division of Occupational Psychology (DOP) and
2900-533: Is an anticipated reward that is thought to incline a person to behave a certain way. Motivation varies among individuals. Studying its influence on behavior, it must be examined together with ability and environmental influences. Because of motivation's role in influencing workplace behavior and performance, many organizations structure the work environment to encourage productive behaviors and discourage unproductive behaviors. Motivation involves three psychological processes: arousal, direction, and intensity. Arousal
3016-641: Is associated with a positive safety climate and safe worker practices. I-O psychologists are concerned with the related topics of workplace bullying, aggression, and violence. For example, I-O research found that exposure to workplace violence elicited ruminative thinking. Ruminative thinking is associated with poor well-being. Research has found that interpersonal aggressive behaviour is associated with worse team performance. A new discipline, occupational health psychology (OHP), emerged from both health psychology and I-O psychology as well as occupational medicine . OHP concerns itself with such topic areas as
3132-722: Is built on a simple idea by Robert Owen (1771–1858) and Charles Babbage (1791–1871) during the Industrial Revolution . These men concluded that people were crucial to the success of an organization . They expressed the thought that well-being of employees led to perfect work; without healthy workers, the organization would not survive. HR emerged as a specific field in the early 20th century, influenced by Frederick Winslow Taylor (1856–1915). Taylor explored what he termed " scientific management " (sometimes referred to as "Taylorism"), striving to improve economic efficiency in manufacturing jobs. He eventually focused on one of
3248-552: Is done through training programs, performance evaluations, and reward programs. Employee relations deals with the concerns of employees when policies are broken, such as in cases involving harassment or discrimination. Managing employee benefits includes developing compensation structures, parental leave programs, discounts, and other benefits. On the other side of the field are HR generalists or business partners . These HR professionals could work in all areas or be labour relations representatives working with unionized employees. HR
3364-536: Is likely to include a summative evaluation at its conclusion in order to ensure that trainees have met the training objectives and can perform the target work tasks at an acceptable level. Kirkpatrick describes four levels of criteria by which to evaluate training: Training programs often include formative evaluations to assess the effect of the training as the training proceeds. Formative evaluations can be used to locate problems in training procedures and help I-O psychologists make corrective adjustments while training
3480-548: Is often part of the personnel selection process. These assessments can include written tests, aptitude tests, physical tests, psycho-motor tests, personality tests , integrity and reliability tests, work samples, simulations , and assessment centres . A more recent focus of I-O field is the health, safety, and well-being of employees. Topics include occupational safety , occupational stress , and workplace bullying, aggression and violence. There are many features of work that can be stressful to employees. Research has identified
3596-443: Is ongoing. The foundation for training programs is learning . Learning outcomes can be organized into three broad categories: cognitive, skill-based, and affective outcomes. Cognitive training is aimed at instilling declarative knowledge or the knowledge of rules, facts, and principles (e.g., police officer training covers laws and court procedures). Skill-based training aims to impart procedural knowledge (e.g., skills needed to use
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3712-446: Is regular maintenance, this job makes sure that the current HR files and databases are up to date, maintaining employee benefits and employment status and performing payroll/benefit-related reconciliations . A human resources manager can have various functions in a company , including to: Human resource management used to be referred to as " personnel administration ". In the 1920s, personnel administration focused mostly on
3828-443: Is safety climate, which refers to employees' perceptions of the extent to which their work organization prioritizes safety. By contrast, psychosocial safety climate refers to management's "policies, practices, and procedures" aimed at protecting workers' psychological health. Research on safety leadership is also relevant to understanding employee safety performance. Research suggests that safety-oriented transformational leadership
3944-481: Is sometimes portrayed as a nag because he constantly reminds coworkers of company policies and government regulations. Long-running American comic strip Dilbert frequently portrays sadistic HR policies through the character Catbert , the "evil director of human resources". 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 . The main character in
4060-537: Is that they will be commoditized, objectified, and abused. Critics of the term human resources would argue that human beings are not " commodities " or "resources", but are creative and social beings in a productive enterprise. The 2000 revision of ISO 9001 , in contrast, requires identifying the processes, their sequence, and interaction, and to define and communicate responsibilities and authorities. In general, heavily unionized nations such as France and Germany have adopted and encouraged such approaches. Also, in 2001,
4176-400: Is the broader, more global term for the science and profession. I-O psychologists are trained in the scientist–practitioner model . As an applied psychology field, the discipline involves both research and practice and I-O psychologists apply psychological theories and principles to organizations and the individuals within them. They contribute to an organization's success by improving
4292-649: Is the process of providing performance feedback relative to expectations and information relevant to helping a worker improve his or her performance (e.g., coaching, mentoring). Performance management may also include documenting and tracking performance information for organizational evaluation purposes. Individual assessment involves the measurement of individual differences . I-O psychologists perform individual assessments in order to evaluate differences among candidates for employment as well as differences among employees. The constructs measured pertain to job performance. With candidates for employment, individual assessment
4408-669: Is the set of people who make up the workforce of an organization , business sector , industry, or economy . A narrower concept is human capital , the knowledge and skills which the individuals command. Similar terms include manpower , labor , labor-power , or personnel . The Human Resources department (HR department, sometimes just called "Human Resource") of an organization performs human resource management , overseeing various aspects of employment , such as compliance with labor law and employment standards, interviewing and selection , performance management, administration of employee benefits , organizing of employee files with
4524-447: Is the systematic process of hiring and promoting personnel. Personnel selection systems employing I-O methods use quantitative data to determine the most qualified candidates. This can involve the use of psychological tests, Biographical Information Blanks , interviews , work samples, and assessment centers . Personnel selection procedures are usually validated, i.e., shown to be job relevant to personnel selection, using one or more of
4640-451: Is to guide HR professionals and departments in upholding the rights, safety, and interests of all stakeholders. They are generally categorized into the following: Technology has a significant impact on HR practices. Utilizing technology makes information more accessible within organizations, eliminates time doing administrative tasks, allows businesses to function globally, and cuts costs. Information technology has improved HR practices in
4756-406: Is what initiates action. It is often fueled by a person's need or desire for something that is missing from his or her life, either totally or partially. Direction refers to the path employees take in accomplishing the goals they set for themselves. Intensity is the amount of energy employees put into goal-directed work performance. The level of intensity often reflects the importance and difficulty of
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4872-756: The American Society for Training & Development and Recognition Professionals International . A largely academic organization that is relevant to HR is the Academy of Management that has an HR division. This division is concerned with finding ways to improve the effectiveness of HR. The academy publishes several journals devoted in part to research on HR, including Academy of Management Journal and Academy of Management Review , and it hosts an annual meeting. Some universities offer programs of study for human resources and related fields. The School of Industrial and Labor Relations at Cornell University
4988-681: The International Labour Organization decided to revisit and revise its 1975 Recommendation 150 on Human Resources Development, resulting in its " Labour is not a commodity " principle. One view of these trends is that a strong social consensus on political economy and a good social welfare system facilitate labor mobility and tend to make the entire economy more productive, as labor can develop skills and experience in various ways, and move from one enterprise to another with little controversy or difficulty in adapting. Another important controversy regards labor mobility and
5104-786: The New Deal of 1933 to 1939—had transformed employer-employee relationships, and the HRM discipline became formalized as " industrial and labor relations ". In 1913 one of the oldest known professional HR associations —the Chartered Institute of Personnel and Development (CIPD)—started in England as the Welfare Workers' Association; it changed its name a decade later to the Institute of Industrial Welfare Workers, and again
5220-513: The Society for Industrial and Organizational Psychology (SIOP). Similar I-O psychology societies can be found in many countries. In 2009 the Alliance for Organizational Psychology was formed and is a federation of Work, Industrial, & Organizational Psychology societies and "network partners" from around the world. I-O psychology is an international science and profession and depending on
5336-440: The business . To train practitioners for the profession , institutions of higher education, professional associations , and companies have established programs of study dedicated explicitly to the duties of the function. Academic and practitioner organizations may produce field-specific publications. HR is also a field of research study that is popular within the fields of management and industrial/organizational psychology .One of
5452-618: The chief executive officer and works with the Board of Directors on CEO succession . Within companies, HR positions generally fall into one of two categories: generalist and specialist. Generalists support employees directly with their questions, grievances, and work on a range of projects within the organization. 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." Specialists, conversely, work in
5568-504: The job performance , wellbeing , motivation , job satisfaction and the health and safety of employees. An I-O psychologist conducts research on employee attitudes , behaviors , emotions , motivation , and stress . The field is concerned with how these things can be improved through recruitment processes, training and development programs, 360-degree feedback, change management, and other management systems and other interventions. I-O psychology research and practice also includes
5684-537: The Atlantic, built on the research of Elton Mayo (1880–1949) and others to document through the Hawthorne studies (1924–1932) and other studies how stimuli, unrelated to financial compensation and working conditions, could yield more productive workers. Work by Abraham Maslow (1908–1970), Kurt Lewin (1890–1947), Max Weber (1864–1920), Frederick Herzberg (1923–2000), and David McClelland (1917–1998), forming
5800-524: The Australian Psychological Society's (APS) College of Organizational Psychology joined the Alliance. The Alliance currently has member organizations representing Industrial, Work and Organisational psychology and IWO psychologists from Australia, Britain, Brazil, Canada, Chile, Europe, Germany, Hong Kong, Japan, Netherlands, New Zealand, Singapore, South Africa and the United States. The historical development of I-O psychology
5916-612: The BBC sitcom dinnerladies , Philippa, is an HR manager. The protagonist of the Mexican telenovela Mañana es para siempre is a director of human resources. Up In the Air is centered on corporate "downsizer" Ryan Bingham (George Clooney) and his travels. As the film progresses, HR is portrayed as a data-driven function that deals with people as human resource metrics , which can lead to absurd outcomes for real people. Dave Ulrich lists
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#17327878072556032-662: The HR domain, such as financial compensation , recruitment , and training . There are a number of professional associations, some of 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, with over 285,000 members in 165 countries. It offers a suite of Professional in Human Resources (PHR) certifications through its HR Certification Institute. An international provider of specialized certifications
6148-701: The Register of European Psychologists. I-O psychology is one of the three main psychology specializations in Europe. In Australia, the title "organisational psychologist" is protected by law and regulated by the Australian Health Practitioner Regulation Agency (AHPRA). Organizational psychology is one of nine areas of specialist endorsement for psychology practice in Australia. In South Africa, industrial psychology
6264-591: The UK, graduate programs in psychology, including occupational psychology, are accredited by the British Psychological Society . In Europe, someone with a specialist EuroPsy Certificate in Work and Organisational Psychology is a fully qualified psychologist and a specialist in the work psychology field. Industrial and organizational psychologists reaching the EuroPsy standard are recorded in
6380-450: The United States of America, important federal laws and regulations include: An important responsibility of HR is to ensure that a company complies with all laws and regulations, thus protecting the company from legal liability. In circumstances where employees exercise their legal authorization to negotiate a collective bargaining agreement , HR will typically also serve as the company's primary liaison with employee representatives (usually
6496-464: The War, increasing employment in the U.S. created opportunities for I-O psychology practitioners who called themselves "industrial psychologists" The "organizational" side of the field was focused on employee behavior, feelings, and well-being. During World War I, with the U.K. government's interest in worker productivity in munitions factories, Charles Myers studied worker fatigue and well-being. Following
6612-550: The aspects of hiring, evaluating, and compensating employees. However, they did not focus on any employment relationships at an organizational performance level or on the systematic relationships in any parties. This led to a lacked unifying paradigm in the field during this period. According to an HR Magazine article, the first personnel management department started at the National Cash Register Co. in 1900. The owner, John Henry Patterson , organized
6728-543: The basis for studies in industrial and organizational psychology , organizational behavior and organizational theory , was interpreted in such a way as to further claims of legitimacy for an applied discipline. By the time there was enough theoretical evidence to make a business case for strategic workforce management, changes in the business landscape —à la Andrew Carnegie (1835–1919) and John Rockefeller (1839–1937)—and in public policy—à la Sidney (1859–1947) and Beatrice Webb (1858–1943), Franklin D. Roosevelt and
6844-524: The beginning or making a success at the end, due to the labor provided by employees. Human resources are intended to show how to have better employment relations in the workforce. Also, to bring out the best work ethic of the employees and therefore making a move to a better working environment. Moreover, green human resource development is suggested as a paradigm shift from traditional approaches of human resource companies to bring awareness of ways that expertise can be applied to green practices. By integrating
6960-570: The broader philosophical issue with the usage of the phrase "human resources". Governments of developing nations often regard developed nations that encourage immigration or "guest workers" as appropriating human capital that is more rightfully part of the developing nation and required to further its economic growth. Over time, the United Nations have come to more generally support the developing nations' point of view, and have requested significant offsetting "foreign aid" contributions so that
7076-594: The client company retains day-to-day management of the workers. This arrangement eliminates the need for an organization to directly engage in HRM matters, allowing it to focus on other priorities. HRM consultancies are private organizations that offer tailored solutions through specialized expertise for a fee. They design customized human resource strategies and processes to address each company's unique needs. Their services include developing recruitment plans, compensation frameworks, training programs, and performance management systems, all aligned with specific HR practices and
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#17327878072557192-643: The creation job-relevant selection procedures, the development of criteria for performance appraisals , the conducting of performance appraisals, and the development and implementation of training programs. I-O psychologists design (a) recruitment processes and (b) personnel selection systems. Personnel recruitment is the process of identifying qualified candidates in the workforce and getting them to apply for jobs within an organization. Personnel recruitment processes include developing job announcements, placing ads, defining key qualifications for applicants, and screening out unqualified applicants. Personnel selection
7308-543: The current global work environment, most companies focus on lowering employee turnover and on retaining the talent and knowledge held by their workforce. New hiring not only entails a high cost but also increases the risk of a new employee not being able to replace the position of the previous employee adequately. HR departments strive to offer benefits that appeal to workers, thus reducing the risk of losing employee commitment and psychological ownership . The human resources field began to take shape in 19th century Europe. It
7424-415: The expertise, knowledge, and competencies of human resource development practitioners with industry practitioners, most industries have the potential to be transformed into a sector with ecofriendly and pro-environmental culture. Human resources also deals with essential motivators in the workplace such as payroll , benefits, team morale and workplace harassment. Administration and operations used to be
7540-552: The field, either within a business school or in another college. Most business schools offer courses in HR, often in their departments of management. In general, schools of human resources management offer education and research in the HRM field from diplomas to doctorate-level opportunities. The master's-level courses include MBA (HR) , MM (HR) , MHRM, MIR, etc. (See Master of Science in Human Resource Development for curriculum.) Various universities all over
7656-706: The following areas: Recruiting has mostly been influenced by information technology. In past, recruiters relied on printing in publications and word of mouth to fill open positions. HR professionals were not able to post a job in more than one location and did not have access to millions of people, causing the lead time of new hires to be drawn out and tiresome. With the use of e-recruiting tools, HR professionals can post jobs and track applicants for thousands of jobs in various locations all in one place. Interview feedback, background checks and drug tests , and onboarding can all be viewed online. This helps HR professionals keep track of all of their open jobs and applicants in
7772-792: The following types of validity: content validity , construct validity , and/or criterion-related validity . I-O psychologists must adhere to professional standards in personnel selection efforts. SIOP (e.g., Principles for validation and use of personnel selection procedures ) and APA together with the National Council on Measurement in Education (e.g., Standards for educational and psychological testing are sources of those standards. The Equal Employment Opportunity Commission 's Uniform guidelines are also influential in guiding personnel selection decisions. A meta-analysis of selection methods found that general mental ability (g factor)
7888-492: The function of human resources as: At the macro level, HR is in charge of overseeing organizational leadership and culture . HR also ensures compliance with employment and labor laws and often oversees employee health, safety, and security. Labor laws may vary from one jurisdiction to the next. In a workplace administered by the federal government, HR managers may need to be familiar with certain crucial federal laws, in order to protect both their company and its employees. In
8004-836: The function—the ASPA even changing its name to the Society for Human Resource Management (SHRM) in 1998. " Human capital management" (HCM) is sometimes used synonymously with "HR", although "human capital" typically refers to a narrower view of human resources; i.e. the knowledge the individuals embody and can contribute to an organization. Other terms sometimes used to describe the HRM field include "organizational management", "manpower management", "talent management", " personnel management ", "workforce management", and simply "people management". Several popular media productions have depicted human resource management in operation. The U.S. television series The Office , HR representative Toby Flenderson
8120-599: The goal. These psychological processes involve four factors. First, motivation serves to direct attention, focusing on particular issues, people, tasks, etc. Second, it serves to stimulate effort. Third, motivation influences persistence. Finally, motivation influences the choice and application of task-related strategies. Organizational climate is the perceptions of employees about what is important in an organization, that is, what behaviors are encouraged versus discouraged. It can be assessed in individual employees (climate perceptions) or averaged across groups of employees within
8236-662: The health of working people was resistance within the field to publishing papers on worker health. In the 21 century, OHP topics have become popular at the Society for Industrial and Organizational Psychology conference. Work design concerns the "content and organisation of one's work tasks, activities, relationships, and responsibilities." Research has demonstrated that work design has important implications for individual employees (e.g., level of engagement, job strain, chance of injury), teams (e.g., how effectively teams co-ordinate their activities), organisations (e.g., productivity, safety, efficiency targets), and society (e.g., whether
8352-544: The human factors are more important than physical factors, such as quality of lighting and physical workplace conditions. As a result, individuals often place value more on how they feel. For example, a rewarding system in Human resource management, applied effectively, can further encourage employees to achieve their best performance. Pioneering economist John R. Commons mentioned "human resource" in his 1893 book The Distribution of Wealth but did not elaborate. The expression
8468-416: The impact of occupational stressors on mental and physical health, the health impact of involuntary unemployment , violence and bullying in the workplace, psychosocial factors that influence accident risk and safety, work–family balance, and interventions designed to improve/protect worker health. Spector observed that one of the problems facing I-O psychologists in the late 20 century who were interested in
8584-546: The importance of the human resource, exemplified in his mass deployment of it, as in the five-year plans and in the Gulag system. During the latter half of the 20th century, union membership declined significantly, while workforce-management specialists continued to expand their influence within organizations. In US, the phrase "industrial and labor relations" came into use to refer specifically to issues concerning collective representation , and many companies began referring to
8700-433: The important goal of HRM is establishing with the notion of unitarism (seeing a company as a cohesive whole, in which both employers and employees should work together for a common good) and securing a long-term partnership of employees and employers with common interests. Code of ethics provides a framework for ethical behavior and professional conduct in HRM. It ensures integrity, fairness, and responsibility. Its function
8816-421: The individual perform the job effectively. Evidence indicates that training is often effective, and that it succeeds in terms of higher net sales and gross profitability per employee. Similar to performance management (see above), an I-O psychologist would employ a job analysis in concert with the application of the principles of instructional design to create an effective training program. A training program
8932-414: The job stress process, including the person-environment (P-E) fit model, which was developed by University of Michigan social psychologists, and the demand-control(-support) and effort-reward imbalance models, which were developed by sociologists. Research has also examined occupational stress in specific occupations, including police, general practitioners, and dentists. Another concern has been
9048-611: The largest professional HR association—the Society for Human Resource Management (SHRM)—formed as the American Society for Personnel Administration (ASPA). In the Soviet Union, Stalin 's use of patronage exercised through the "HR Department" equivalent in the Bolshevik Party , its Orgburo , demonstrated the effectiveness and influence of human-resource policies and practices, and Stalin himself acknowledged
9164-727: The lens of psychological science on a key aspect of human life, namely, their work lives. In general, the goals of I-O psychology are to better understand and optimize the effectiveness, health, and well-being of both individuals and organizations." It is an applied discipline within psychology and is an international profession. I-O psychology is also known as occupational psychology in the United Kingdom , organisational psychology in Australia and New Zealand , and work and organizational (WO) psychology throughout Europe and Brazil . Industrial, work, and organizational (IWO) psychology
9280-415: The major companies to enhance their strategic planning – a process of predicting future changes in a particular environment and focus on ways to promote organizational effectiveness . This resulted in developing more jobs and opportunities for people to show their skills which were directed to effectively applying employees toward the fulfillment of individual, group, and organizational goals. Many years later
9396-430: The major/minor of human resource management was created at universities and colleges also known as business administration . It consists of all the activities that companies used to ensure the more effective use of employees. Now, human resources focus on the people side of management. There are two real definitions of HRM ( Human Resource Management ); one is that it is the process of managing people in organizations in
9512-447: The management of an organization (e.g., job rotation , job enlargement , job enrichment ) or by individual workers (e.g., job crafting , role innovation, idiosyncratic ideals). Training involves the systematic teaching of skills, concepts, or attitudes that results in improved performance in another environment. Because many people hired for a job are not already versed in all the tasks the job requires, training may be needed to help
9628-433: The most prominent I-O psychologist of his time. Scott, along with Walter Van Dyke Bingham , worked at what was then Carnegie Institute of Technology , developing methods for selecting and training sales personnel. The "industrial" side of I-O psychology originated in research on individual differences, assessment, and the prediction of work performance. Industrial psychology crystallized during World War I , in response to
9744-577: The name was changed to the Industrial Psychology Division. In 1973, it was renamed again, this time to the Division of Industrial and Organizational Psychology. In 1982, the unit become more independent of APA, and its name was changed again, this time to the Society for Industrial and Organizational Psychology . The name change of the division from "industrial psychology" to "industrial and organizational psychology" reflected
9860-537: The need to rapidly assign new troops to duty. Scott and Bingham volunteered to help with the testing and placement of more than a million U.S. Army recruits. In 1917, together with other prominent psychologists, they adapted a well-known intelligence test the Stanford–Binet , which was designed for testing one individual at a time, to make it suitable for group testing. The new test was called the Army Alpha . After
9976-527: The next decade to Institute of Labour Management before settling upon its current name in 2000. From 1918 the early Soviet state institutions began to implement a distinct ideological HRM focus alongside technical management—first in the Red Army (through political commissars alongside military officers), later (from 1933) in work sites more generally (through partorg posts alongside conventional managers). In 1920, James R. Angell delivered an address to
10092-1038: The organization emphasizes (organizational climate) is part of organizational culture, but culture concerns far more than shared perceptions, as discussed in the next section. While there is no universal definition for organizational culture, a collective understanding shares the following assumptions: ... that they are related to history and tradition, have some depth, are difficult to grasp and account for, and must be interpreted; that they are collective and shared by members of groups and primarily ideational in character, having to do with values, understandings, beliefs, knowledge, and other intangibles; and that they are holistic and subjective rather than strictly rational and analytical. Organizational culture has been shown to affect important organizational outcomes such as performance, attraction, recruitment, retention, employee satisfaction, and employee well-being. There are three levels of organizational culture: artifacts, shared values, and basic beliefs and assumptions. Artifacts comprise
10208-549: The organization to access when needed, thereby eliminating the need for physical files and freeing up space within the office. HRIS also allows for information to be accessed in a timelier manner; files can be accessible within seconds. Having all of the information in one place also allows for professionals to analyze data quickly and across multiple locations because the information is in a centralized location. Human resource analytics can improve human resource management. Technology allows HR professionals to train new staff members in
10324-449: The organization's goals and culture. By acting as consultants, they provide targeted solutions that help businesses optimize their workforce and achieve organizational objectives in complex and evolving market conditions. There are half a million HR practitioners in the United States and millions more worldwide. The Chief HR Officer or HR Director is the highest ranking HR executive in most companies. He or she typically reports directly to
10440-418: The organizational culture, and can participate in training at a time and place of their choosing, helping them manage their work–life balance and reducing layoffs and turnover . An Employer of Record (EOR) is an arrangement in which a third-party organization serves as the official employer for a company's workforce, handling various HR functions such as payroll, tax compliance, and employee benefits, while
10556-424: The organizational environment. The results of an organizational analysis help to determine where training should be directed. The analysis identifies the training needs of different departments or subunits. It systematically assesses manager, peer, and technological support for transfer of training . An organizational analysis also takes into account the climate of the organization and its subunits. For example, if
10672-1373: The passage of the American with Disabilities Act in 1990 and parallel legislation elsewhere in the world, I-O psychology saw an increased emphasis on "fairness in personnel decisions." Training research relied increasingly on advances in educational psychology and cognitive science . I-O researchers employ both qualitative and quantitative methods, although quantitative methods are far more common. Basic Quantitative methods used in I-O psychology include correlation , multiple regression , and analysis of variance . More advanced statistical methods include logistic regression , structural equation modeling , and hierarchical linear modeling (HLM; also known as multilevel modeling ). I-O researchers have also employed meta-analysis . I-O psychologists also employ psychometric methods including methods associated with classical test theory , generalizability theory , and item response theory (IRT). I-O psychologists have also employed qualitative methods , which largely involve focus groups , interviews , and case studies . I-O psychologists conducting research on organizational culture have employed ethnographic techniques and participant observation . A qualitative technique associated with I-O psychology
10788-438: The personal development of the company, and maintain metrics that aid in performance management. Virtual management also allows HR departments to quickly complete necessary paperwork for large numbers of new employees and maintain contact with them throughout their entire professional cycle within the organization. Through virtual management, employees gain greater control over their learning and development, feel more engaged with
10904-533: The principal inputs into the manufacturing process—labor—sparking inquiry into workforce productivity. Meanwhile, in London C S Myers inspired by unexpected problems among soldiers who alarmed generals and politicians. During First World War 1914–1918, co-founded the National Institute of Industrial Psychology (NIIP) in 1921. He set seeds for the human relations movement , this movement, on both sides of
11020-461: The process and ensuring background checks . Another job is payroll and benefits administration which deals with ensuring vacation and sick time are accounted for, reviewing payroll, and participating in benefits tasks, like claim resolutions, reconciling benefits statements, and approving invoices for payment. Human Resources also coordinates employee relations activities and programs including, but not limited to, employee counseling. The last job
11136-418: The proto-HR profession as "personnel administration". Many current HR practices originated with the needs of companies in the 1950s to develop and retain talent. In the late 20th century, advances in transportation and communications greatly facilitated workforce mobility and collaboration . Corporations began viewing employees as assets. "Human resources management" consequently, became the dominant term for
11252-525: The region of the world, it is referred to by different names. In North America, Canada and South Africa the title "I-O" psychology is used; in the United Kingdom, the field is known as occupational psychology. Occupational psychology in the UK is one of nine "protected titles" within the "practitioner psychologist" professions. The profession is regulated by the Health and Care Professions Council . In
11368-403: The relation of occupational stress to family life. Other I-O researchers have examined gender differences in leadership style and job stress and strain in the context of male- and female-dominated industries, and unemployment-related distress. Occupational stress has also been linked to lack of fit between people and their jobs. Accidents and safety in the workplace are important because of
11484-546: The relationship between human research management and performance and includes organization studies , industrial and organizational psychology , organizational theory and management science . Human resource management research can improve human resource management and HR initiatives. The effect size of human resource management decreases when correcting for past performance of employees. Academic and practitioner publications dealing exclusively with HR: Related publications: Human resources Human resources ( HR )
11600-468: The required documents for future reference, and some aspects of recruitment (also known as talent acquisition ), talent management , staff wellbeing, and employee offboarding . They serve as the link between an organization's management and its employees. The duties include planning, recruitment and selection process, posting job ads, evaluating the performance of employees, organizing resumes and job applications, scheduling interviews and assisting in
11716-438: The serious injuries and fatalities that are all too common. Research has linked accidents to psychosocial factors in the workplace including overwork that leads to fatigue , workplace violence , and working night shifts. "Stress audits" can help organizations remain compliant with various occupational safety regulations. Psychosocial hazards can affect musculoskeletal disorders . A psychosocial factor related to accident risk
11832-496: The service of commerce and industry" (p. 3). Instead of viewing performance differences as human "errors," Cattell was one of the first to recognize the importance of differences among individuals as a way of better understanding work behavior. Walter Dill Scott , who was a contemporary of Cattell and was elected President of the American Psychological Association (APA) in 1919, was arguably
11948-458: The shift in the work of industrial psychologists who had originally addressed work behavior from the individual perspective, examining performance and attitudes of individual workers. Their work became broader. Group behavior in the workplace became a worthy subject of study. The emphasis on the "organizational" underlined the fact that when an individual joins an organization (e.g., the organization that hired him or her), he or she will be exposed to
12064-422: The systematic collection of information about a job. A task-oriented job analysis involves an assessment of the duties, tasks, and/or competencies a job requires. By contrast, a worker-oriented job analysis involves an examination of the knowledge, skills, abilities, and other characteristics (KSAOs) required to successfully perform the work. Information obtained from job analyses are used for many purposes, including
12180-669: The two role areas of HR. The strategic planning component came into play as a result of companies recognizing the need to consider HR needs in goals and strategies. HR directors commonly sit on company executive teams because of the HR planning function. Numbers and types of employees and the evolution of compensation systems are among elements in the planning role. Various factors affecting Human Resource planning include organizational structure, growth, business location, demographic changes, environmental uncertainties, expansion. Industrial and organizational psychology Industrial and organizational psychology ( I-O psychology ) "focuses
12296-503: The war, Elton Mayo found that rest periods improved morale and reduced turnover in a Philadelphia textile factory. He later joined the ongoing Hawthorne studies , where he became interested in how workers' emotions and informal relationships affected productivity. The results of these studies ushered in the human relations movement . World War II brought renewed interest in ability testing. The U.S. military needed to accurately place recruits in new technologically advanced jobs. There
12412-452: The work–nonwork interface such as selecting and transitioning into a new career , occupational burnout , unemployment , retirement , and work–family conflict and balance. I-O psychology is one of the 17 recognized professional specialties by the American Psychological Association (APA). In the United States the profession is represented by Division 14 of the APA and is formally known as
12528-523: The world have taken up the responsibility of training human-resource managers and equipping them with interpersonal and intrapersonal skills so as to relate better at their places of work. As Human resource management field is continuously evolving due to technology advances of the Fourth Industrial Revolution , it is essential for universities and colleges to offer courses which are future oriented. Ongoing research investigates
12644-475: Was a fair wage at that time. This example clearly shows the importance of effective management which leads to a greater outcome of employee satisfaction as well as encouraging employees to work together in order to achieve better business objectives. During the 1970s, American businesses began experiencing challenges due to the substantial increase in competitive pressures. Companies experienced globalization, deregulation, and rapid technological change which caused
12760-451: Was a focus on fairness and validity in selection efforts as well as in the job analyses that undergirded selection instruments. For example, I-O psychology showed increased interest in behaviorally anchored rating scales . What critics there were of I-O psychology accused the discipline of being responsive only to the concerns of management. From the 1980s to 2010s, other changes in I-O psychology took place. Researchers increasingly adopted
12876-450: Was also concern with morale and fatigue in war-industry workers. In the 1960s Arthur Kornhauser examined the impact on productivity of hiring mentally unstable workers. Kornhauser also examined the link between industrial working conditions and worker mental health as well as the spillover into a worker's personal life of having an unsatisfying job. Zickar noted that most of Kornhauser's I-O contemporaries favored management and Kornhauser
12992-484: Was largely alone in his interest in protecting workers. Vinchur and Koppes (2010) observed that I-O psychologists' interest in job stress is a relatively recent development (p. 22). The industrial psychology division of the former American Association of Applied Psychology became a division within APA, becoming Division 14 of APA. It was initially called the Industrial and Business Psychology Division. In 1962,
13108-601: Was paralleled in the US, the UK, Australia, Germany, the Netherlands, and Eastern European countries such as Romania. The roots of I-O psychology trace back to almost the beginning of psychology as a science, when Wilhelm Wundt founded one of the first psychological laboratories in 1879 in Leipzig, Germany. In the mid–1880s, Wundt trained two psychologists, Hugo Münsterberg and James McKeen Cattell , who went on to have
13224-539: Was the best overall predictor of job performance and attainment in training. Performance appraisal or performance evaluation is the process in which an individual's or a group's work behaviors and outcomes are assessed against managers' and others' expectations for the job. Performance appraisal is used for a variety of purposes including alignment with organizational objectives, the basis for employment decisions (promotion, raises and termination), feedback to employees, and training needs assessment. Performance management
13340-599: Was the world's first school for college-level study in HR. It currently offers education at the undergraduate , graduate , and professional levels, and it operates a joint degree program with the Samuel Curtis Johnson Graduate School of Management . In the United States of America , the Human Resources University trains federal employees. Many colleges and universities house departments and institutes related to
13456-470: Was used during the 1910s to 1930s to promote the idea that human beings are of worth (as in human dignity); by the early 1950s, it meant people as a means to an end (for employers). Among scholars the first use of the phrase in that sense was in a 1958 report by economist E. Wight Bakke . In regard to how individuals respond to the changes in a labor market , the following must be understood: One major concern about considering people as assets or resources
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