Human resource definition of the earlier times
Human resource capital has had a large and variety of definition with the changing times, and to start with a useful definition by Adam Smith can be considered, who mentioned that human resource capital is the identification of the acquired and useful abilities of individuals as a source of revenue or profit (Ployhart and Moliterno, 2011). This definition indicates the methodical usage of employees and workers in an organisation in a way where there potential is being used enough to create revenue and profit for the organisation. This was the fundamental belief of the HRM function where recruitment was primarily targeted towards hiring talented workers who would help generate revenues for the organisation. Considering this statement, it indicates that the function is more focussed on the organisational goals and achievement, rather than the individual’s personal goals which are supposedly aligned with that of the organisation which makes the job much easier. The HRM function has continuously faced an issue in justifying itself in and its positions in different kinds of organisations (Stewart, 1996). This is legitimate because every organisation type is different and it has to adjust with the external trends and the organisational constraints. For example, when an organisation is not accustomed to the idea of assessing their employees’ performance, the gaps in the performance cannot be identified to be rectified, and when the assessment is difficult due to severe industrial working conditions, the performance management exercises cannot be carried out. Thus, the type of human resource function is different for a corporate level and an industrial organisation, and they carry and develop their own understanding of the approach and blend it within their organisation’s culture.