02/12/2021
HR - The Rangoli guys.
Consider a period when employees were deemed disposable. Working conditions were tough and dangerous prior to the development of HR to today's standards (imagine the Middle Ages), and the tension among the need for physical protection and increased output was developing.
Perhaps current working circumstances were never as bad as they were in the mediaeval period, when everyone was out for himself and there wasn't a human resources department to cast aside the bullies and told them to put down their swords. However, there was a time when labour conditions were unsustainable and dangerous for humans.
Between 1890 and 1920, the concept of a link between worker well-being and production arose. American corporate executives embraced industrial improvement and launched on efforts to stabilise the labour force and cultivate employee loyalty, assisted by researchers and politicians. Departments dubbed industrial welfare and scientific management were established to carry out the time's sometimes shady tactics.
Human capital management and human resource management are phrases that are frequently used interchangeably. They are not, however, as similar as they appear. Though some would claim that the distinction is just between 'resource' and 'capital,' the differences are profound. Human resources must now be viewed as human capital, while the former must become more people-centric. However, before we go any further, it is necessary to understand what HRM and HCM are, as well as how similar or unlike they are.
The term ‘resource' refers to a stock or supply of money, materials, or personnel needed by a person or organisation to function properly. So, roughly speaking, human resource refers to workers within a corporation who are responsible for the welfare of its employees. Aside from that, it handles payroll, tax optimization, working-hour rules, compensation, recruitments, and a variety of other issues. On the other hand, 'capital' is described as the money required for investments or for running a business and ensuring a high production. Human capital management is the process of aligning people with a company's goals. It also refers to managing employees in such a way that it improves an employee's life both within and outside of the organisation.
Organisation in India are yet to wake up to the fact that this transition is already taking place. Whilst large organisations/ multinationals are taking this seriously and investing in HC (Human Capital), the majority of the organisations that operate on a smaller scale but still employ a sizeable amount of workforce either deem HR as someone who still makes rangoli at office or is there to process payroll or issue warning letters. In our country HR is still someone who does not do any “real “work, cut to the fact that the HR personnel are either from commerce or basic management background who understands your business and your segment and makes the hiring is no mean feat in itself. Imagine you put a lawyer to find a data scientist! Where will that land you? Although it may seem a Lawyer or a Data Scientist does “more work” than an HR.
This scenario needs to change. The onus is on HR professionals as well as other stakeholders in any organisation to sit up and take note. The HC as a department can take your business to the next level of productivity and prosperity, when you start treating your employees as your capital and have dedicated people to take care of that capital, imagine what gains that may bring, finally the colours of the Rangoli would translate to meaningful numbers in the balance-sheet.
