What Is Human Resource Management?
Human resource management (HRM) is the term used to designate the formal systems that have been developed for the management of people within an organization. The tasks of an HR manager are divided into three main areas: staffing, compensation and employee benefits as well as the definition/organization of work. The goal of Human Resource Management is essential to maximize the productivity of a company by optimizing the efficiency of its employees. This mandate is unlikely to change fundamentally, despite the ever-changing business world.
As Edward L. Gubman noted in the Journal of Business Strategy, “The fundamental role of the human resources department is always to acquire, develop and retain talent, align the workforce with the business and d ” make an excellent contribution to the company. These three challenges will never change. “
Until recently, a company’s human resources department was often relocated to subordinate areas of the corporate hierarchy, although the mandate was to complement and nurture what is often – rightly – cited as the greatest resource of a company, its workforce.
In recent years, the recognition of the importance of human resource management for the overall health of a business has grown considerably. This understanding of the importance of human resource management also applies to small businesses, which generally do not have the same staffing needs as larger businesses, but also face personnel management issues that may have a decisive impact on the health of companies.
As Irving Burstiner notes in the Small Business Handbook, “hiring the right people – and training them – can often be the difference between getting rid of barest livelihoods and growing businesses regularly. Personal issues don’t make the difference between small and large companies; you can find them in all companies, regardless of size. “
Principles of Human Resource Management
Management consultants note that modern personnel management is based on several overarching principles. The overriding principle is perhaps a simple realization that human resources are the most important asset of an organization.
A business cannot succeed without effective management of this resource.
Another important principle that Michael Armstrong formulates in his book A Handbook of Human Resource Management is that business success can be best achieved if the company’s human resources policy and procedures are closely linked and make a significant contribution to the achievements of corporate objectives and strategic plans. Other Human Resource Management Factors That Shape Corporate Culture – Whether it’s Fostering Integration and Collaboration across the Company, Introducing Quantitative Performance Measures or other measures – are often cited as key to the success of the business.
Human Resource Management sums up as “Human Resource Management is a strategic approach to acquiring, motivating, developing and managing the organization’s human resources”.
Also Read: Top 50 HR Interview Questions Ans Answers.
Structure of Human Resource Management
The responsibilities of the HR department can be divided into three areas:
- Organizational and
- Individual Management means helping employees identify their strengths and weaknesses, correct their shortcomings; and make their best contribution to the business. These tasks are carried out through a variety of activities such as performance appraisals, training, and testing.
- Organizational Development focuses on promoting an effective system that maximizes human (and other) resources as part of broader business strategies. This important task also includes the creation and maintenance of a change program with which the organization can react to changes in external and internal influences.
- After all, it is the responsibility to control professional development. This includes assigning people to the most appropriate jobs and career paths within the company.
- The personnel management functions are ideally positioned near the theoretical center of the organization and offer access to all areas of activity.
- Since the HR department or manager is responsible for managing productivity and worker development at all levels, staff must have access to and support key decision-makers.
- In addition, the HR department must be set up in order to be able to communicate effectively with all sectors of the company.
- Human Resource Management structures are very different from one company to another and depend on the type, size, and management philosophy of the organization they serve.
- But most organizations organize Human Resource Management functions around groups of people to help – they do recruit, administration, and other tasks in one place.
- Different employee development groups are required for each department in order to train and develop employees in specific areas such as sales, engineering, marketing or continuing education for managers.
- On the other hand, certain departments of Human Resource Management are completely independent and organized only according to functions. For example, the same training department serves all departments of the organization.
- In recent years, however, observers have led a decisive trend towards a fundamental reassessment of staff structures and positions. Companies are now trying to decentralize and integrate their processes and develop cross-functional teams.
- Today, the management staff is expected to be above their traditional, split “Bunker” approach to a more integrated and decentralized support function.
- Given this change in expectations, -an increasingly common trend within the HR department is to decentralize the HR function and make it accountable to a specific department. This increases the likelihood that human resources are taken into account and integrated as part of the operational process, but the human resources department will maintain a centralized functional relationship in areas where truly specialized expertise is required.
Key Function of Human Resource Management
- Human resources management is concerned with the development of individuals and the organization in which they operate. Human Resource Management is therefore concerned not only with securing and developing the talents of individual collaborators but also with implementing programs that improve communication and collaboration between these collaborators in order to promote organizational development.
- The main tasks related to personnel management include job analysis and staffing, manpower organization and use, manpower measurement and evaluation, implementation of employee reward systems, professional workforce development and workforce retention.
Also Read: Top 59 HR Interview Questions
Frequently Asked Questions
Ans: Human resource management is a management function that deals with the recruitment, motivation and retention of employees in an organization. Human Resource management deals with questions related to employees such as recruitment, training, development, compensation, motivation, communication and administration.
Ans: Human resource management has four basic functions: personnel, training and development, motivation and maintenance. Recruitment is the recruitment and selection of potential employees, which is done through surveys, applications, networking, etc.
Ans: Identify seven main human resources functions
Strategic management. …
Workforce planning and employment (recruitment and selection) …
Human resources development (training and development) …
Total rewards (compensation and benefits) …
Policy formulation. …
Employee and work relations. …