Human Resource Management

Introduction

The business’s nature has shifted from a concentration on scare financial capital to a concentration upon scare human capital as cited by Bartlett and Ghoshal (2002). There is no doubt that financial capital is most important tools for an organization to grow and expand but capital by itself does not create wealth. The strategic capital of the current society is the human resource.

Knowledge has become the key factor of every modern organization. A knowledge employee is able to create an idea without capital, knowledge is brain power. As cited by Drucker (1993) the most important, and indeed the truly unique, contribution of the 20th century was the fifty-fold increase in the productivity of the manual worker in manufacturing. The most important management needs to make in the 21st century is similarly to increase the productivity of knowledge work and knowledge worker. As such, human resource is the most essential asset a modern organization should have.

Definition of Human Resource

Human Resource involves establishing policies, practices, system and administrative management that focus on employees’ behavior, attitudes and performance. In short, human resource targets an organization most valuable resource which is its employees. These are the employees whose day to day operations are to generate revenue for the organization and work towards the common goal of the organization. With poor Human Resource Management, an organization is unable to sustain in the competitive market.

Strategic Management

In today’s competitive market, organization must engage in strategic planning in order to survive and prosper. Harrison (1993) explain that Human Resource Department (HRD) as part of the organization’s overall human resource strategy means the skillful provision and organization of learning experience in workplace in order that performance can be improve, that work goals can be achieve and that enhancing the skills, knowledge, learning...