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Human Resource Management

The term Human Resource Management owes much to the view that employees are an asset to be managed in the same way as other, non-human, assets.

When the emphasis is on Resource Management, then in the formal accounts of any enterprise, people appear only as costs. However, they can also be thought of as assets in the sense that they are a productive resource, requiring proper maintenance and renewal.

People Management

The management of people within any enterprise involves a complex and dynamic inter-relationship of management and personal skills. This complexity results in a unique set of structures and policies within each enterprise.

This unique identity is often referred to as the culture of the enterprise, and as the enterprise develops so does its unique culture.

Company Culture

The organizational structures of an enterprise, the ways in which its employees work, and its compensation policies all reflect its unique culture. This culture is also evident in more subtle ways, including enterprise policies on information sharing and decision making.

The cultural diversity of enterprises is reflected in their implementation and use of information systems. It is generally true that all companies need a human resource information system. However, the information they require, its structure, and the means by which they obtain it, produce a different system in every case.

Packaged systems solutions like Oracle HRMS provide a core system, which each enterprise customizes to meet its own needs. Customization involves the definition of special information requirements, structures, and processes. It also involves analysis of the working practices associated with day-to-day maintenance and use of the system.

Changing Role of Human Resource Management

Human resource management was originally an administrative and welfare role within an enterprise. This often included recruitment and record-keeping functions.

This role was primarily reactive in nature. Human Resources responded to the needs of both managers and employees, but did not anticipate them.

In the last few decades, human resource management has evolved and assumed a more proactive role. This reflects the recognition of the importance of managing people in the successful achievement of enterprise objectives.

The result now is that this function within many enterprises encompasses responsibilities that include a wide ranging spectrum of activities.

Payroll Management

In contrast, payroll management has traditionally been a function of the Finance Group in most enterprises. It has been responsible for the correct payment of employees in line with local and national legislation as well as company policy.

Often this has been a reactive and operational role in which payroll staff responded to the needs of both line managers and employees.

See Also

Separate v. Integrated HRMS Systems

Human Resources and Payroll Activity Cycles

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