At present days, one of the main tasks of modern enterprises is the rational use of manpower and the most valuable resource is a human. The modern enterprises with the use of new technologies attach great importance to the scarce professions, in which the human resource is the key.
‘People are our most valued asset’ has become a very common but rather overused and trite-sounding phrase. Indeed, historically competitive strategies have not been based on the capabilities of employees but rather labour has been seen as a cost to be minimised, particularly in hard times when downsizing and retrenchment predominates (Cascio 2015; Mellahi and Wilkinson 2010a). But more recently it has been noted that traditional sources of advantage, such as access to capital, protected markets or proprietary technologies, are declining and organisations need to have the ability to innovate and learn, which puts greater emphasis on human resources (Wilkinson et al 2009b).
Therefore, modern enterprises pay special attention and are surrounded by the care of their staff. A person by nature is emotional and sensitive and needs to be understood from a psychological point of view, also each person is individual. The professional leader understands and takes into account all aspects of his staff: professional skills, psychology, individual qualities and tries to build professional relationships at a high level.
The main goal and challenge of HR professional is to be effective and efficient in successful organization.
The Human Resources sphere built on a simple idea by Robert Owen (1771-1858) and Charles Babbage (1791-1871) during the industrial revolution in 18th century Europe. These men came into conclusion that people were crucial to success of an organization. They expressed the idea that the welfare of employees led to a perfect job. 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” (others later referred to “Taylorism”), striving to improve economic efficiency in manufacturing jobs. He eventually keyed in on one of the principal inputs into the manufacturing process—labor—sparking inquiry into workforce productivity.
C S Myers built the idea how stimuli, unrelated to financial compensation and working conditions, could yield more productive workers based on the research of Elton Mayo(1880-1949) and others to document through the Hawthorne studies (1924–1932) and others.
Work by Abraham Maslow (1908–1970), Kurt Lewin (1890–1947), Max Weber (1864–1920), Frederick Herzberg (1923–2000), and David McClelland(1917–1998), forming 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 enough theoretical evidence existed to make a business case for strategic workforce management, changes in the business landscape (à la Andrew Carnegie, John Rockefeller) and in public policy (à la Sidney and Beatrice Webb, Franklin D. Roosevelt and the New Deal) had transformed the employer-employee relationship, and the discipline became formalized as “industrial and labor relations”.
The Human Resources Management (HRM) has been started recognized in the textbook literature specifically in relation to the specialist function which was interchangeably termed ‘personnel’ or ‘human resources’ since mid – 1960’s in USA and became fashionable term as a HRM from the mid – 1980’s in UK and began to replace other terms such as ‘personnel management’. In 1970’s Jay R. Galbraith and Daniel A. Nathanson were presented the Star model of Organizational design or a model for the human resources management function that divided the human resources management function into four basic sub functions. Subsequent review of the human resources management function divided the function into seven parts. The need to deal with the trade unions and the human relation movement has increased the need for competent human resources professionals.
Human Resource Management is a management function concerned with hiring, motivating, and maintaining workforce in an organisation. Human resource management deals with issues related to employees such as hiring, training, development, compensation, motivation, communication, and administration. HRM functions includes human resources forecasts for the organization, screening of the prospective employees, recruitment process, evaluate training needs for employees, develop a proper compensation ; benefits system and define polices ; procedures in accordance with the local law and organizational needs.
According to Armstrong (1997), Human Resource Management can be defined as “a strategic approach to acquiring, developing, managing, motivating and gaining the commitment of the organisation’s key resource – the people who work in and for it.”
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 the next decade to Institute of Labour Management before settling upon its current name in 2000.
For nowadays, the Chartered Institute of Personal Development along with HR practitioners created the professional CIPD map. This map based on HRM development, knowledge and behaviours that sets out the standards HR professionals should follow.
The map consists of eight behaviours which HR professional needs to know, recognize and carry out their activities. Ten professional areas describes what you need to know and what you need to do to be successful as HR professional. Four band of professional competence includes the transitional challenges on each level of band movement and the Core of the Professional map includes the Insights, Strategy & Solutions and Leading HR.