The term 'human resources' as used in organizations describes the workforce capacity

available to devote to achievement of their objectives. Human resources has at least two
related interpretations depending on context. The original usage derives from political
economy and economics, where it was traditionally called labor, one of four factors of
production. This perspective has shifted as a consequence of further ongoing research
into more applied approaches such as 'welfare management' practices and also in those
that adopted the principles of 'scientific management'. From these terms emerged a
largely administrative management activity, coordinating a range of worker related
processes and becoming known, in time as the 'personnel function'. Human resources
progressively became the more usual name for this function, in the first instance in the
United States as well as multinational or international corporations, reflecting the
adoption of a more quantitative as well as strategic approach to workforce management,
demanded by corporate management to gain a competitive advantage, utilizing limited
skilled and highly skilled workers. The subject has expanded to 'human resources
development', also called 'investment in human capital'. Such development may apply to
individuals within an organization or applied beyond the level of the organization to that
of industry sectors and nations.

So, with the increased awareness of the frugal utilization of HR the following
emergence of HR occurred in the global world.

Labor Welfare management Scientific management

HR Capital HR Management Administrative (Personnel) management

Finance, Finance, Finance and Time & Marketing plans are considered the major parts of
the strategic policies of every organization in the past .Now organizations has sensed
that the success of business development and its strategic policies depends on
aligning and knitting the strategic policy of the organization with human resource
management policy and strategy which must maximize return on investment in the
organization's human capital and minimize financial risk. Human Resources seeks to
achieve this by aligning the supply of skilled and qualified individuals and the
capabilities of the current workforce, with the organization's ongoing and future business
plans and requirements to maximize return on investment and secure future survival and
success. In ensuring such objectives of strategic policies are achieved, the human
resource policy’s purpose in this context must be implemented effectively in the
organization but also pragmatically, taking account of legal, ethical and as far as is
practical in a manner that retains the support and respect of the workforce.

So HR is no more a back wheel rather it is a forerunner because it addressed the a

wide range of business and environmental issues (The organizational culture,
Approach to ethical and corporate social responsibilities, Management style,
Workforce diversity, Globalization, Attracting, maintaining and retaining the
employees, Balanced family-work life etc) which were and are big hurdles in achieving
strategic objectives. So by implementing and knitting the following functions of HR
policy in the strategic policies of every organization have overcome the above discussed
issues and boast their business to a great extent.

• Recruitment, selection, and on boarding (resourcing)

• Organizational design and development
• Business transformation and change management
• Performance, conduct and behavior management
• Industrial and employee relations
• Human resources (workforce) analysis and workforce personnel data management
• Compensation, rewards, and benefits management
• Training and development (learning management)

Implementation of such policies, processes or standards may be directly managed by the

HR function itself, or the function may indirectly supervise the implementation of such
activities by managers, other business functions or via third-party external partner
organizations which help the every business organization to achieve its strategic goals
and objectives which have been set up in strategic policy.

Prepared By

Hafiz Ali Azhar

EX- Student of Superior University