industry hr
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INDUSTRY PROFILE
Human resource" and "Manpower" redirect here. For other uses, see Human resource
(disambiguation) and Manpower (disambiguation).Human resources is the set of individuals who
make up the workforce of an organization, business sector or an economy. "Human capital" is
sometimes used synonymously with human resources, although human capital typically refers to
a more narrow view; i.e., the knowledge the individuals embody and can contribute to an
organization. Likewise, other terms sometimes used include "manpower", "talent", "labor", and
simply "people. The professional discipline and business function that oversees an
organization's human resources is called human resource management (HRM, or simply HR).
Human resource consulting is an $18.4 billion industry (as of 2006)[1]that has emerged
from management consulting and addresses human resource management tasks and decisions.
The following are core fields around which most HR consultancies are based:
Human Capital, including remuneration (also called total rewards), employee rewards and
incentive programs, and talent acquisition and management
Health & Benefits; i.e., orchestrating optimal employee health plans with the carriers
themselves
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Mergers & Acquisitions, examining fit across culture, job-type, transaction costs, etc.
Communication, including surveying employee attitudes, satisfaction, engagement, and
other employee behaviors
Retirement
Recruitment process outsourcing
Services may also include legal counseling, global initiatives, investments consulting, and the
implementation of HR technologies to facilitate human capital management. The HR consulting
industry also employs more actuaries than any other in order to assist in their services.
HR consultancies vary in their ranges of services and sizes, with many consultants and
academicians breaking off to form their own practices. 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, Towers Watson, Aon (now merged with Hewitt),
and PwC consulting (a wholly owned subsidiary ofIBM).[2]Other major players include Towers
Watson, Associates, Hay,[1]
Ma Foi Randstad (part of the Dutch Randstad Holding), and Buck
Consultant
In the corporate vision, employees are viewed as assets to the enterprise, whose value is
enhanced by development.[1]Hence, companies will engage in a barrage ofhuman resource
management practices to capitalize on those assets.
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In governing human resources, three major trends are typically considered:
1. Demographics: the characteristics of a population/workforce, for example, age, gender orsocial class. This type of trend may have an effect in relation to pension offerings,
insurance packages etc.
2. Diversity: the variation within the population/workplace. Changes in society now meanthat a larger proportion of organizations are made up of "baby-boomers" or older
employees in comparison to thirty years ago. Advocates of "workplace diversity"
advocate an employee base that is a mirror reflection of the make-up of society insofar as
race, gender, sexual orientation etc.
3. Skills and qualifications: as industries move from manual to more managerial professionsso does the need for more highly skilled graduates. If the market is "tight" (i.e. not
enough staff for the jobs), employers must compete for employees by offering financial
rewards, community investment, etc.
In regard to how individuals respond to the changes in a labor market, the following must be
understood:
Geographical spread: how far is the job from the individual? The distance to travel to work
should be in line with the pay offered, and the transportation and infrastructure of the area
also influence who applies for a post.
Occupational structure: the norms and values of the different careers within an organization.
Mahoney 1989 developed 3 different types of occupational structure, namely, craft (loyalty
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to the profession), organization career (promotion through the firm) and unstructured
(lower/unskilled workers who work when needed).
Generational difference: different age categories of employees have certain characteristics,for example, their behavior and their expectations of the organization.
Concerns about the terminology
One major concern about considering people as assets or resources is that they will be
commoditized and abused. Modern analysis emphasizes that human beings are not
"commodities" or "resources", but are creative and social beings in a productive enterprise. The
2000 revision ofISO 9001, in contrast, requires identifying the processes, their sequence and
interaction, and to define and communicate responsibilities and authorities. In general, heavily
unionised nations such as France and Germany have adopted and encouraged such approaches.
Also, in 2001, the International Labour Organization decided to revisit and revise its 1975
Recommendation 150 on Human Resources Development.[2]
One view of these trends is that a
strong social consensus on political economy and a good social welfare system facilitates labor
mobility and tends 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 the broader
philosophical issue with usage of the phrase "human resources". Governments of developing
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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 a developing nation losing human capital does not lose the capacity to
continue to train new people in trades, professions, and the arts.[
ANTECEDENT THEORETICAL DEVELOPMENTS
HR spawned from the human relations movement, which began in the early 20th century due to
work by Frederick Taylor in lean manufacturing. 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 ofElton 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
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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 (a l 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 associations
the 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 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
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representation, and many companies began referring to the profession as "personnel
administration". In 1948, what would later become the largest professional HR association
the Society for Human Resource Management (SHRM)was founded as the American Society
for Personnel Administration (ASPA).
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 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 portrayed in several instances of popular media. On the U.S. television series
ofThe 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
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American comic strip Dilbert also frequently portrays sadistic HR policies through
character Catbert, the "evil director of human resources".[7]An HR manager is also the title
character in the 2010 Israeli film The.
Business function
HR's overarching mission has been compartmentalized by industry expert Dave Ulrich as four-
fold: (1) aligning HR and business strategy (strategic partner), (2) re-engineering organization
processes (administration expert), (3) listening and responding to employees (employee
champion), and (4) managing transformation and change (change agent).[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. 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 ofperformance 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.
At the macro-level, HRs 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 employees' representatives (usually a labor union).
Consequently, HR, usually through industry representatives, engages in lobbying efforts with
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governmental agencies (e.g., in the United States, the United States Department of Labor and the
National) 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
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consultancies globally, constituting a USD $18.4 billion market. The top five revenue generating
firms were Mercer, Ernst & Young, Deloitte, Watson Wyatt (now part ofTowers
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]
(ASPA), the organization operated on a volunteer basis until 1964, at which time it established
an official headquarters in Berea, Ohio, and began hiring staff members. In 1984, the
headquarters was moved to Alexandria, Va., and in 1989, the organization officially changed its
name to the Society for Human Resource Management. Today, SHRM has over 340 staff
members and over 250,000 members in 140 countries.
SHRM is involved in lobbying governmental bodies regarding workplace law and industry
practice. For example, in April 2008, SHRM announced in a press release that its representatives
had appeared before the US Senate to petition for changes in the administration of the Family
and Medical Leave Act.
Additionally, the organization announced in the November 2003 issue of its HR Magazine that it
had submitted a position paper to the Equal Employment Opportunity Commission suggesting
factors the agency should consider when determining how to amend the definition of the term
"job applicant" for the purposes of record keeping required by companies in order to comply
with affirmative action and anti-discrimination laws.[4]In 2003, SHRM conducted an e-mail
survey of its members intended to gauge the effectives of the Equal Employment Opportunity
http://en.wikipedia.org/wiki/Mercer_(consulting_firm)http://en.wikipedia.org/wiki/Ernst_%26_Younghttp://en.wikipedia.org/wiki/Deloittehttp://en.wikipedia.org/wiki/Towers_Watsonhttp://en.wikipedia.org/wiki/Towers_Watsonhttp://en.wikipedia.org/wiki/Aon_Corporationhttp://en.wikipedia.org/wiki/Hewitt_Associateshttp://en.wikipedia.org/wiki/PricewaterhouseCoopershttp://en.wikipedia.org/wiki/Human_resource_management#cite_note-15http://en.wikipedia.org/wiki/Human_resource_management#cite_note-15http://en.wikipedia.org/wiki/Human_resource_management#cite_note-15http://en.wikipedia.org/wiki/Human_resource_management#cite_note-16http://en.wikipedia.org/wiki/Human_resource_management#cite_note-16http://en.wikipedia.org/wiki/Human_resource_management#cite_note-16http://en.wikipedia.org/wiki/US_Senatehttp://en.wikipedia.org/wiki/Family_and_Medical_Leave_Acthttp://en.wikipedia.org/wiki/Family_and_Medical_Leave_Acthttp://en.wikipedia.org/wiki/Equal_Employment_Opportunity_Commissionhttp://en.wikipedia.org/wiki/HR_Magazine#cite_note-3http://en.wikipedia.org/wiki/HR_Magazine#cite_note-3http://en.wikipedia.org/wiki/HR_Magazine#cite_note-3http://en.wikipedia.org/wiki/Equal_Employment_Opportunity_Commissionhttp://en.wikipedia.org/wiki/Equal_Employment_Opportunity_Commissionhttp://en.wikipedia.org/wiki/HR_Magazine#cite_note-3http://en.wikipedia.org/wiki/Equal_Employment_Opportunity_Commissionhttp://en.wikipedia.org/wiki/Family_and_Medical_Leave_Acthttp://en.wikipedia.org/wiki/Family_and_Medical_Leave_Acthttp://en.wikipedia.org/wiki/US_Senatehttp://en.wikipedia.org/wiki/Human_resource_management#cite_note-16http://en.wikipedia.org/wiki/Human_resource_management#cite_note-15http://en.wikipedia.org/wiki/PricewaterhouseCoopershttp://en.wikipedia.org/wiki/Hewitt_Associateshttp://en.wikipedia.org/wiki/Aon_Corporationhttp://en.wikipedia.org/wiki/Towers_Watsonhttp://en.wikipedia.org/wiki/Towers_Watsonhttp://en.wikipedia.org/wiki/Deloittehttp://en.wikipedia.org/wiki/Ernst_%26_Younghttp://en.wikipedia.org/wiki/Mercer_(consulting_firm) -
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Commission (EEOC), and provide feedback on how the commission could improve its
operations. It presented the results of this survey to the EEOC at a meeting on September 8,
2003. In November 2006, the Office of Disability Employment Policy (ODEP) of the U.S.
Department of Labor established an alliance with SHRM to encourage and promote the
employment of people with disabilities.[6]Michael Aitkin serves as SHRM's Director of
Governmental Affairs. Lisa Horn is SHRM's Manager of Health Care. Michael Layman is
Manager of Labor and Employment Policy for SHRM. These three lead several employer
association coalitions on policy issues including immigration, workplace flexibility, and pay
equity.
http://en.wikipedia.org/wiki/Equal_Employment_Opportunity_Commissionhttp://en.wikipedia.org/wiki/U.S._Department_of_Laborhttp://en.wikipedia.org/wiki/U.S._Department_of_Laborhttp://en.wikipedia.org/wiki/HR_Magazine#cite_note-5http://en.wikipedia.org/wiki/HR_Magazine#cite_note-5http://en.wikipedia.org/wiki/HR_Magazine#cite_note-5http://en.wikipedia.org/wiki/U.S._Department_of_Laborhttp://en.wikipedia.org/wiki/U.S._Department_of_Laborhttp://en.wikipedia.org/wiki/Equal_Employment_Opportunity_Commission