What is Human Resource Management ?
‘Human Resource Management’ refers to the policies and steps taken to manage the employees in a company. It includes all aspects of the HR department right from the moment a new employee joins the organization to the time the employee exits the company.
The concept was developed by English economist Sir William Petty in the 17th century when he was asked to find a way to place an economic value on the labourers and get an estimated value to showcase the power of the working class of England.
Although the terms ‘Human Resource Management’ and ‘Human Capital Management’ are used interchangeably, they are fundamentally different. Human resource management is more focussed on core administrative functions of the HR related to the employees. However, human capital management is more concerned with the broader HR functions such as performance analysis and training.