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Human Resource Management

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization.

HRM Functions
1. Human resource planning, recruitment, and selection.
Conducting job analyses to establish the specific requirements of individual jobs within the organization.
Forecasting the human resource requirements the organization needs to achieve its objectives.
Developing and implementing a plan to meet these requirements.
Recruiting the human resources the organization requires to achieve its objectives.
Selecting and hiring human resources to fill specific jobs within the organization.
2. Human resource development. (Training & Resource Development)
Orienting and training employees
Designing and implementing management and organizational development programs
Building effective teams within the organization structure
Designing systems for appraising the performance of individual employees
Assisting employees in developing career plans
3. Compensation and benefits.
Designing and implementing compensation and benefit systems for all employees.
Ensuring that compensation and benefits are fair and consistent.
4. Employee and labor relations. (Personnel Administration)
Serving as an intermediary between the organization and its union(s)
Designing discipline and grievance handling systems
5. Safety and Health
Designing and implementing programs to ensure employee health and safety
Providing assistance to employees with personal problems that influence their work performance
6. Human resource research.
Providing a human resource information base
Designing and implementing employee communication systems.

Human Resources ares
Quality of work life
HR Satisfaction
HR development
Readiness for change

Training & Development
Union/Labor relations
Employee assistance
Compensation benefits
Personnel research & information systems
Organization development
Organizations /job design
Human resource planning
Selection & staffing

Human Resources
Human Resources are resources similar to financial resources, equipment resources, etc.

Types of Resources
Money (Financial)

Human Resources is part of the company
People are Human Resources

Human Capital is a set of skills, knowledge, abilities, attitudes and experiences.
Skills - 
Knowledge - Education
Abilities - Physical, Mental, Attentiveness, (Qualities) TALENTS
Attitudes - 
Experiences - Gained through living life

Human capital theory originated approximately half a century ago (after WWII) under the leadership of Jacob Mincer, Theodore Schultz, and Gary Becker. Generally, the term human capital (HC) refers to productive skills and knowledge embodied in labor stock, which have the economic property of future services of some value. Specifically, HC is a measure of economic value of people's skill sets, consisting of their knowledge, skills, abilities, attitudes and experiences.

Later Schultz (1981) defined HC as, attributes of acquired population quality, which are valuable and can be augmented by appropriate investments.
In other words, any acquired qualities and abilities that help individuals and groups be economically productive can be considered as individual/group human capital.

World Bank in 2010 gave the following definition of Human Capital
HC is peoples innate abilities and talents plus their knowledge, skills, and experiences that make them economically productive.

Education is crucially important

Most common thing is potential not realized
    Doesn't know about talent
    Knows about talent but does nothing to develop that talent

Human Capital may be developed by application of different resources
Financial (Resources)
Time (Resources)