Clarifying Some Terms -- Human Resource Management, Human Resources, HRD, Talent Management
The Human Resource Management (HRM) function includes
a variety of activities, and key among them is responsibility
for human resources -- for deciding what staffing needs
you have and whether to use independent contractors or hire employees
to fill these needs, recruiting and training the best employees,
ensuring they are high performers, dealing with performance issues,
and ensuring your personnel and management practices conform to
various regulations. Activities also include managing your approach
to employee benefits and compensation, employee records and personnel
policies. Usually small businesses (for-profit or nonprofit) have
to carry out these activities themselves because they can't yet
afford part- or full-time help. However, they should always ensure
that employees have -- and are aware of -- personnel policies
which conform to current regulations. These policies are often
in the form of employee manuals, which all employees have.
Some people distinguish a difference between HRM and Human
Resource Development (HRD), a profession. Those people might
include HRM in HRD, explaining that HRD includes the broader range
of activities to develop personnel inside of organizations, e.g.,
career development, training, organization development, etc.
The HRM function and HRD profession have undergone tremendous
change over the past 20-30 years. Many years ago, large organizations
looked to the "Personnel Department," mostly
to manage the paperwork around hiring and paying people. More
recently, organizations consider the "HR Department"
as playing a major role in staffing, training and helping to manage
people so that people and the organization are performing at maximum
capability in a highly fulfilling manner. There is a long-standing
argument about where HR-related functions should be organized
into large organizations, eg, "should HR be in the Organization
Development department or the other way around?".
Recently, the phrase "talent management" is
being used to refer the activities to attract, develop and retain
employees. Some people and organizations use the phrase to refer
especially to talented and/or high-potential employees. The phrase
often is used interchangeably with HR -- although as the field
of talent management matures, it's very likely there will be an
increasing number of people who will strongly disagree about the
interchange of these fields.
Many people use the phrase "Human Resource Management,"
"Human Resource Development" and "Human Resources"
interchangeably, and abbreviate Human Resources as HR --
HR has become a conventional term to refer to all of these phrases.
Thus, this Library uses the phrase "Human Resources"
and the term "HR," not just for simplicity, but to help
the reader to see the important, broader perspective on human
resources in organizations -- what's required to maximize the
capabilities and performance of people in organizations, regardless
of the correct phrase or term to be applied when doing that.