CHAPTER 2 LITERATURE REVIEW
2.1 SOME BASIC DEFINITIONS IN HUMAN RESOURCE MANAGEMENT . 5
2.1.1 Human resource (HR)
Nowadays, there are many terms define about HR all over the world:
according to United Nations Organizations, “HR is all knowledge, skills, experience, ability and creativity of human being related to the individual and national development.”, however, based on the International Labor Organization,
“HR in each country is its total people who are in employment ages”.
HR is understood in two ways: In general, HR is the resource of work force for manufacturing and the development. In narrow meaning, HR is the social working ability, including employment age population group who can join in working, social producing, that means all specific individuals attending to working progress are a total factors of physical and mental strength used in working period.
In some recent years, Vietnamese scientists also are trying to define a single general for HR term: As Mr. Ngoc Hai – National Science “HR is the human resource of organizations (with different scales, types and functions) having the ability to participate in developing process of organizations as well as national, regional and world’s economic - social growth”. According to Human resource textbook, by Dr. Nguyen Ngoc Quan and Mr. Nguyen Van Diem at National Economic (2004), this term is known as: “Human resource in an organization
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includes all labors working in that organization, and resources of each individual can be physical and mental.” (p.8).
2.1.2 Human Resource management definition
Human resource management relates to two concerns about “management”
and “human resource”. Management is the process of finishing activities with higher effectiveness through other people. Management has a combination of science and leadership art. On the science aspect, a successful manager is the one who have strong managerial knowledge and skills. On the art aspect, a successful manager is a person who has an instinct capacity such as intelligence; negotiate talent, attracting other people to follow their guides. Also, they have a quickly concern catching ability and decision. They are friendly with others, confident, flexible in solving practical situations… Human resource of an organization is built up on individual’s bases that are in charge of different roles and linked together by specific objectives. Human resource is different to other resource at an enterprise is due to human nature. Human being has various abilities, particular traits, potential development, group and union building ability to protect their rights. Therefore, human resource is more difficult and complicated compared to other effects in business.
Human resource management studies about how to manage people in micro-scale organizations, and it has two basic objectives:
First, using effectively human resource in order to increase productivity and enhance efficiency of that organization.
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Second, meeting daily demand of staff, providing conditions for them to display their abilities in their best. They will have feelings of motivation and encouragement at their work place, and then be loyal, willing to contribute at their company. (Tran Kim Dung, 2011)
So, HRM focuses on recruiting processes, training, development, leading and awarding employees on the purpose of organization’s goals achievement.
From many years ago, people are just considered an input factor of business, therefore organizations have not give a careful attention of human resource management yet. On that way, in a long time, organizations lost their competitive power from work force in their operation.
In short, HRM is “a science about people management based on believes that human play an important role in long-term success of an organization or enterprise. An organization or enterprise can increase their competitive advantage by using effectively labors, utilizing experience and skills in order to get planned objectives. The purpose of HRM is to recruiter talent, quick learning and enthusiastic people in works, manage activities and award operating results as well as develop their ability.” (Price, 2004, p.25).
Generally, in the recent world, there are three different perspectives about relationship between human resource and human resource management.
In the first perspective, HRM is just a different term used to alternate for the
definition about previous human resource. This perspective goes deeply into researching scales and objects of human management in organizations. By contrast, it does not really reflect objectives of HRM in the modern world because
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people have not been considered a crucial factor distributing in organizations’
success.
In the second perspective, HR management is fully different with old human
resource. HRM has new perspective, theories and methods. It is a new touching way for management. This perspective highlights the importance of human resource in organizations. It puts high values on the new management method through combining human management functions with organization’s strategies and using resources completely and as best as the organization can.
In the third perspective, human resource management is not considered an
evolution, but a next developing process, and a extension and completion of HRM. It is considered a middle perspective among the others. It focuses on the human roles in enterprises. The focus also is highlighted that it needs to improve human management, but not be in too strict conditions in high professional...in order to be suitable with developing countries.
Table 1: Human resource management and personal management
Human resourse management Personal management
Perspective
Human resourcec is a valuable property which is needed to develop
Employment is an input expexses
Training objective Invest in human resource development
Help employees adopt to their position
Prospect Long-term Short-term
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Competitive
Advantage Human resourcee quality Martket and technology
Productivity and Quality basic
Technology + organization +
Human resource quality Machine + Organization
Encouragement
Factors Job details + Promoting + Salary Salary + Promoting
Behavior with changes Adaptable human resource with challenges
Employees often contrast to changes
Source: Nguyen Thanh Hoi, 2007, Human Resource, Page 5.