• Understand what human resource management is
• Understand why human resource management is important

 

Human Resource Management (HRM)

human resource management

Human resource management (HRM or HR) is essentially the management of human resources — people! It is a function in organizations designed to maximize employee productivity to achieve an employer’s strategic objectives.

HR is primarily concerned with the management of people within organizations with a focus on policies and systems. HR departments in organizations typically undertake a number of activities, including employee benefits design, employee recruitment, training and development, performance appraisal, and rewarding (e.g., managing pay and benefit systems). HR also concerns itself with organizational change and industrial relations, that is, the balancing of organizational practices with requirements arising from collective bargaining and from governmental laws.

Development of HR

HR is a product of the human relations movement of the early twentieth century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work, such as payroll and benefits administration, but due to globalization, company consolidation, technological advances, and further research, HR today includes strategic initiatives like talent management, industrial and labor relations, and diversity and inclusion.

Retaining Talent

Most companies focus on lowering employee turnover and on retaining the talent and knowledge held by their workforce. Hiring a new employee is a costly process and there’s always a risk that the incoming employee won’t match the performance of the person who previously worked in that position. HR departments strive to offer benefits that will appeal to workers, thus reducing the risk of losing corporate knowledge.

Team Diversity

Businesses are moving globally and forming more diverse teams. It is the role of human resources to make sure that these teams can function and people are able to communicate cross-culturally and across borders. Due to changes in the business environment, current topics in human resources that are receiving attention are diversity and inclusion as well as using technology to advance employee engagement. In short, HR involves maximizing employee productivity for the business.

HR Specialists

Sometimes people who work in HR may focus on a particular aspect of HRM, such as recruiting, training, employee relations, or benefits. It’s common in very large organizations to see HR specialists. Recruiting specialists are in charge of finding and hiring top talent. Training and development professionals ensure that employees are trained and receive ongoing professional development. This takes place through training programs, performance evaluations, and reward programs. Employee relations deals with employee concerns and incidents such as policy violations, sexual harassment, and discrimination. Benefit managers develop compensation structures, family-leave programs, discounts, and other benefits available to employees. At the other end of the spectrum are HR generalists who work in all areas or as labor relations representatives for unionized employees.