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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

    http://en.wikipedia.org/wiki/United_States_Department_of_Laborhttp://en.wikipedia.org/wiki/Expatriatehttp://en.wikipedia.org/wiki/Merger_and_acquisitionhttp://en.wikipedia.org/wiki/Human_resource_management#cite_note-8http://en.wikipedia.org/wiki/Human_resource_management#cite_note-8http://en.wikipedia.org/wiki/Human_resource_management#cite_note-8http://en.wikipedia.org/wiki/Human_resource_management#cite_note-Assoc-9http://en.wikipedia.org/wiki/Human_resource_management#cite_note-Assoc-9http://en.wikipedia.org/wiki/Human_resource_management#cite_note-Assoc-9http://en.wikipedia.org/wiki/Chief_human_resources_officerhttp://en.wikipedia.org/wiki/Chief_Executive_Officerhttp://en.wikipedia.org/wiki/Board_of_Directorshttp://en.wikipedia.org/wiki/Board_of_Directorshttp://en.wikipedia.org/wiki/CEO_successionhttp://en.wikipedia.org/wiki/Human_resource_management#cite_note-10http://en.wikipedia.org/wiki/Human_resource_management#cite_note-10http://en.wikipedia.org/wiki/Human_resource_management#cite_note-10http://en.wikipedia.org/wiki/Human_resource_management#cite_note-12http://en.wikipedia.org/wiki/Human_resource_management#cite_note-12http://en.wikipedia.org/wiki/Human_resource_management#cite_note-12http://en.wikipedia.org/wiki/CNN_Moneyhttp://en.wikipedia.org/wiki/Human_resource_management#cite_note-13http://en.wikipedia.org/wiki/Human_resource_management#cite_note-13http://en.wikipedia.org/wiki/Human_resource_management#cite_note-13http://en.wikipedia.org/wiki/Human_resource_consultinghttp://en.wikipedia.org/wiki/Human_resource_consultinghttp://en.wikipedia.org/wiki/Human_resource_management#cite_note-13http://en.wikipedia.org/wiki/Human_resource_management#cite_note-13http://en.wikipedia.org/wiki/CNN_Moneyhttp://en.wikipedia.org/wiki/Human_resource_management#cite_note-12http://en.wikipedia.org/wiki/Human_resource_management#cite_note-10http://en.wikipedia.org/wiki/Human_resource_management#cite_note-10http://en.wikipedia.org/wiki/CEO_successionhttp://en.wikipedia.org/wiki/Board_of_Directorshttp://en.wikipedia.org/wiki/Board_of_Directorshttp://en.wikipedia.org/wiki/Chief_Executive_Officerhttp://en.wikipedia.org/wiki/Chief_human_resources_officerhttp://en.wikipedia.org/wiki/Human_resource_management#cite_note-Assoc-9http://en.wikipedia.org/wiki/Human_resource_management#cite_note-8http://en.wikipedia.org/wiki/Merger_and_acquisitionhttp://en.wikipedia.org/wiki/Expatriatehttp://en.wikipedia.org/wiki/United_States_Department_of_Labor
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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