IntroductionThe people working in an organisation are deemed as the most precious asset of the organisation. Individually and collectively they contribute to the achievement of the objectives of the business. Thus the management of the people has become one of the most important aspects of the management. Traditionally, this mien was believed to be just a part of the workplace management and consequently was called "personnel management". Gradually, the processes evolved out of this restricted sense and are now called "human resource management" and "human resources" (HR). Human Resource management is evolving rapidly.
Primarily, it is the ‘performance’ and ‘productivity’ of the working people which affected the business, but soon, it matured into several new dimensions. It has become essential that staffs is motivated, developed and managed in a way that they can give of their best to support departments missions. It too is stressed that the Human Resource systems and organisational structures should be managed in a way that was congruent with the organisational strategy (Fombrun). Human Resource Management (HRM ) is also seen by many to have a key role in risk reduction within organisations.
The managers of an enterprise are required to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. This is part of the Human Resource Management. What is Human Resource Management? William R. Tracey, defines Human Resources as: "The people that staff and operate an organisation"; as contrasted with the financial and material resources of an organisation. Human Resources is also the organisational function that deals with the people and issues related to people such as compensation, hiring, performance management, and training.
A Human Resource is a single person or employee within your organisation. ’’ From here, the definition of the human resource Management flows as “ the function within an organisation that focuses on recruitment of, management of, and providing direction for the people who work in the organisation. ” Human Resource Management can also be performed by line managers. Further, it is defined as the organisational function that deals with issues related to people such as compensation, hiring, performance management, organisation development, health and safety, wellness, benefits, employee motivation, communication, administration, and training. One of the more recent evolution of the Human Resource Management is the in the field of ‘value’ formation for the enterprise.
The creation of "value" has long been at the heart of corporate mission statements. The successful maximisation of the stockholder value, is often found involving attempts to maximise satisfaction among stakeholders i. e. employees, customers, and the public. Thus the ‘employee’ becomes important even to the shareholder and to the stakeholders. Stakeholders can be listed and categorised in various ways.
One starting point is to divide a list into primary and secondary stakeholders. Besides the ‘owners’, the customers, employees, communities, and the environment are deemed as the primary stakeholders. The firms operate on a routine basis with and through their primary stakeholders to effect their strategies.