Human Resources very often refers to Human Resource Management (HRM) or the organizational function concerning with employees and issues related to the workforce such as compensation, hiring, performance management, and training.
Michael Amstrong, in 'Handbook of Personnel Management Practice’ provides a definition of Human Resource Management (HRM) as “a strategic and coherent approach to the management of an organization’s most valued assets: the people working here who individually and collectively contribute to the achievement of its objectives." HRM strives to achieve the organizational goals through employee performance.
Human Resource Management traditionally concerned with welfare and people related administrative functions of an organization, such as hiring and firing, performance management, compensation, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. In recent years, with human resources becoming a major source of competitive advantage, the scope of Human Resource Management has extended to the strategic management of people, to achieve a fit or integration between the business and HR strategy by providing mutually supporting employment policies and practices.
Strategic Human Resource Management that overlap traditional Human Resource Management aims at using human resource systems as the root of organizational capabilities to capitalize on new opportunities. It aims at integration of people and process in an organization through the manipulation of intangible assets such as culture, skills and competence, motivation, and social interactions.
With the importance of human resources felt more than ever before, organizations that have a correct understanding of human resources definition place itself in good step to leverage their human assets for growth.