Hrm: the management of people in organizations to drive successful organizational performance and the achievement of organization"s strategic goals. Human capital: the knowledge, education, training, skills, and expertise of an organization"s workforce. Scientifically analyzing manufacturing processes to reduce costs and compensating employees based on performance. Concern for people and productivity: evolutionary phases of human resources movement. Phase 1: early 1900"s: personnel administration, hiring, firing, payroll/benefits processing. Phase 2: 1930-1950"s: union liaison, compliance with new laws, orientation, performance appraisal, employee relations. Phase 3: 1960-1980"s: human resources management, outsourcing of many administrative functions, emphasis on contribution and proactive management of people. Phase 4: 1990"s-present: every line manager must possess basic hr skills, help achieve strategic objectives, new roles: activist, change steward, talent manager/organizational designer, operational executor, business ally. Traditional measures: focused on activity and cost. Ex: # of candidates interviewed vs. cost per hire. Today"s measures: focus of productivity, quality, sales, market share, profits, balanced scorecard .