Human resource management (HRM) is the process of managing, recruiting, deploying, and managing employees within an organization. Therefore, human resources (HR) is commonly referred to as HRM. The HR department of a company or organization is responsible for creating, implementing, and monitoring policies that govern workers and the relationships between the company and its employees. Human resources were first used to refer to the employees of an organization in the early 1900s.
HRM refers to employee management that emphasizes employees as assets. Employees are often referred to in this context as human capital. Like other business assets such as employees, effective employee use aims to reduce risk and maximize return on investment (ROI).
Human capital management (HCM), a modern HR technology term, is more commonly used than HRM. Large and medium-sized companies and other software providers that manage many HR functions have adopted HCM.
Human resource management is crucial.
HRM practices serve the purpose of managing people in a workplace. They also help to reinforce the company’s culture and achieve its mission. In addition, effective HR managers can recruit and develop new talent to help the company achieve its goals.
The company’s employees are its greatest asset, so HRM is crucial to maintaining or improving the business’ health. To help organizations stay competitive, HR managers can also monitor the state and trends in the job market. This could include ensuring that employees are paid fairly, events are planned to prevent them from becoming bored, and job roles are changed based on market conditions.
What is HRM?
The HR management process is carried out by dedicated HR professionals such as Margie Zaragoza Dimaculangan, who are responsible for day-to-day HR-related tasks. Human resources typically comprise an entire department within an organization.
Different organizations may have different HR departments. Their roles can vary in size, structure, and nature. Small companies commonly have just a few HR generalists who perform many different HR functions. Larger companies may have more specialized roles with employees responsible for functions like talent management, recruitment, visa handling, immigration and visa processing, benefits and compensation, and so on. Although these HR positions may be more specialized and differentiated, some job functions overlap.
Amazon is an example company that has multiple types of HR positions. Amazon lists 15 different HR job titles on its career website:
- Human Resources Assistant
- Partner in HR Business
- Manager of HR
- Coordinator for recruiting
- Recruiting manager
- Specialist in immigration
- LoA and Accommodation Specialist
- Manager/specialist in compensation
- Manager/Benefits Specialist
- Manager/specialist in talent management
- Manager/Learning and Development Specialist
- Manager, HR technology/process program
- Manager/HR analytics specialist
Goals for human resource management
You can break down the objectives of HRM into four broad categories.
- Societal goals: A set of measures that address the social and ethical needs and challenges of the company and its employees. This covers legal issues like equal opportunity and equal compensation for equal work.
- Organizational goals: Actions taken to improve an organization’s efficiency. This could include training, hiring the right employees for a task, or maintaining high employee retention rates.
- Functional objectives are guidelines that help HR function properly within an organization. This means that HR resources are used to their maximum potential.
- Personal goals: The resources used to support each employee’s personal goals. This could include providing opportunities for education and career development and maintaining employee happiness.