Human resources are without a doubt the most important asset of any organisation and a resource which needs to be managed, but as Mullins (p.749) states, it is important to remember that unlike physical resources, people are not owned by the organisation. Human resource management is known to be one of the key management areas and is an essential part of every organisation. Certo defines management as the process of reaching organisational goals by working with and through people and other organisational resources. Human resource management is usually defined in broad but very common terms. A definition by Fisher et al. states ‘Human resource management (HRM) involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organisation.’ A professional body for all those concerned with the management and development of people, The Chartered Institute of Personnel and Development (MIPD), defines human resource management as ‘The design, implementation and maintenance of strategies to manage people for optimum business performance including the development of policies and processes to support these strategies.’ A more in depth explanation by Torrington et al. in 1995 says ‘Personnel management is a series of activities which; first enables working people and the organisation which uses their skills to agree about the objectives and nature of their working relationship, and secondly, ensures that the agreement is fulfilled.’
There are different functions and activities that managers are in charge of. Certo (p.8) explains that there are four basic management functions; planning; organising; influencing; and controlling. He defines planning to be the tasks that must be performed to achieve organisational targets, outlining how the tasks must be carried out, and signifying when they should be performed. Organising is