Human resource management (HRM) is the area of administrative focus dealing with an organization’s employees. This is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human resource management (HRM) is the governance of an organization’s employees. Sometimes it’s referred to simply as human resources (HR).
Human Resource Management includes conducting job analysis, planning personnel needs, recruiting the right people for the job, orienting and training managing wages and salaries, providing benefits and incentives, evaluation performance, resolving disputes, and communicating with all employees at all levels. Examples of core qualities of HR management are extensive knowledge of the industry, leadership, and effective negotiations skills. HRM can also be performed by line managers.
Human resources are the people who work for the organization; human resource management is really employee management with an emphasis on those employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment.
HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives.
HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.
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