The term human resources is variously defined in political economy and economics , where it wastraditionally called labor , one of three factors of production . Its use within corporations continues to define common conceptions of the term.
Modern analysis emphasizes that human beings are not predictable commodity "resources" with definitions totally controlled bycontract, but are creative and social beings that make contributions beyond "labor" to a society and to civilization . The broad term human capital has evolved to contain the complexity of this term, and in macro-economics the term "firm-specific human capital" has evolved to represent the original meaningof term "human resources".
Advocating the central role of "human resources" or human capital inenterprises and societies has been a traditional role of socialistparties , who claim that value is primarily created by their activity, and accordingly justify a larger claim of profits orrelief from these enterprises or societies. Critics say this is just a bargaining tactic which grew out of various practices of medievalEuropean guilds into the modern trade union and collectivebargaining unit .
A contrary view, common to capitalist parties , is that it is the infrastructural capital and (what they call) intellectual capital owned and fused by "management" that provides most value in financial capital terms. This likewise justifies a bargaining positionand a general view that "human resources" are interchangeable.
A significant sign of consensus on this latter point is the ISO 9000 series of standards which requires a "job description" of every participant in aproductive enterprise. In general, heavily unionized nations such as France and Germany have adopted and encouraged such descriptions especially within trade unions . One view of this trend 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 move from one enterprise to another with little controversy ordifficult in adapting.
An important controversy regarding labor mobility illustrates the broader philosophical issue with usage of the phrase "human resources":governments of developing nations often regard developed nations that encourage immigration or "guest workers" as appropriating human capital that is rightfully part of the developing nation andrequired to further its growth as a civilization . They argue that thisappropriation is similar to colonial commodity fiat wherein a colonizing European power would define an arbitrary price for natural resources , extracting which diminished national natural capital .
The debate regarding "human resources" versus human capital thus inmany ways echoes the debate regarding natural resources versus natural capital . Over time the United Nations have come to more generally support the developing nations' point of view, and have requestedsignificant 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 thearts.
An extreme version of this view is that historical inequities such as African slavery must be compensatedby current developed nations, which benefitted from stolen "human resources" as they were developing. This is an extremelycontroversial view, but it echoes the general theme of converting humancapital to "human resources" and thus greatly diminishing its value to the host society, i.e. "Africa", as it is put tonarrow imitative use as "labor" in the using society.
In the very narrow context of corporate "human resources", there is a contrasting pull to reflect and require workplace diversity thatechoes the diversity of a global customer base. Foreign language and culture skills, ingenuity, humor, and careful listening, areexamples of traits that such programs typically require. It would appear that these evidence a general shift to the human capital point of view, and an acknowledgement that human beings docontribute much more to a productive enterprise than "work": they bring their character, their ethics, their creativity, theirsocial connections, and in some cases even their pets and children, and alter the character of a workplace. The term corporate culture is used to characterize such processes.
The traditional but extremely narrow context of hiring, firing, and job description is considered a 20th century anachronism.Most corporate organizations that compete in the modern global economy have adopted a view of human capital that mirrors the modern consensus as above. Some of these, in turn, deprecate the term"human resources" as useless.
As the term refers to predictable exploitations of human capital inone context or another, it can still be said to apply to manual labor , mass agriculture , low skill "McJobs" in service industries, military and otherwork that has clear job descriptions, and which generally do not encourage creative or social contributions.
In general the abstractions of macro-economics treat it this way -as it characterizes no mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific human capital " as defined in macro-economics is the modern and correct definitionof "human resources" - and that this is inadequate to represent the contributions of "human resources" in any modern theory of political economy .
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