Human Resources Management deals with aspects of how human resources are managed or dealt with in an organization. The capital is a necessary asset used for production of future assets and maximization of profit owned by the management. However, human capital/resource is not owned by the organization. Organization/employer and people/employee execute contractual agreement for certain period of time whereby employees agree to give his effort, knowledge and skills in return of certain benefits and entitlements. In other words, HRM includes various subjects like ‘human capital management, corporate social responsibility, knowledge management, organization development, resourcing (human resource planning, recruitment and selection, and talent management), performance management, learning and development, reward management, employee relations, employee well-being and health and safety and the provision of employee services(Armstrong 2009).
Human resources management is an important aspect of organization functioning as it involves management of the complex capital which needs training, motivation and constant nurturing. Every organization, be it private or public needs HR management though nature and scope of management is slightly different. In the private organization, HR is directly managed by organization under which employees worked while in public sector, it is managed principally by Central Personnel Agency which in Bhutan’s case is Royal Civil Service Commission. HRM in public sector is considered an utmost importance as it is major influence in functions and changes of the public sector. The public sector like private sectors needs to ‘hire, develop and train employees, and establish payment systems, set conditions of employment and develop a coherent set of employment policies (Brown 2004).’ While private sector has flexibility regarding hire and fire of human resources based on board and employers’ discretion, the hiring and firing in public sector is not under direct control of organization. The organization concerned discussed with central agency and central agency has a final say on it. But as the public administration was pressurized to be replaced by arts of private sector management aka public management, the need for human resource management became even more visible. Some organizations are given free hands on development and transfer of public servants by central agency to improve effectiveness and efficiency.
However, the human resource management in public sector is complex one as public sector is not for profit maximization but the services. Besides, the result of efforts in public sector is not as quantifiable as in private sector. While managing HR in public sector, it deals with bureaucratized employees or career civil servants where the promotion is basically based on seniority not the performance. The Human Resources Management should balance the human resources strategy in such way that the result-orientation is emphasized without compromising with uniform process. The central personnel agency frame rules and regulations, looks after human resources development aspects like training and other opportunities and oversee the incentives like promotion. The central agency also ensures uniformity of roles of employees of same post or responsibilities based on merits, experience and seniority.
One of the challenging issues that public sector faced is motivating people to work efficiently and productively to achieve organizational goals. There is need to bestow incentives based on performance and result instead of promoting on the basis of seniority. HRM has to come up with methods of performance based incentivization not on tenure.
Although, basic principles of human resources management in private sectors and public sectors is same as it involves recruiting, planning, monitoring, incentives, training and firing, the human resources management in public sector complex as it should have characteristics of both public administration and public management so that service and works of human resources should be both process and result orientated. The human resources managers in private sector are employer while it is central agency in public sector.