What Is Human Resource Management (HRM)?

Dec 29

The practice of recruiting, hiring, deploying, and managing an organization's personnel is known as human resource management (HRM). Human resource management (HRM) is a term that is frequently used interchangeably with the term "human resources" (HR). The HR department of a corporation or organization is normally in charge of developing, implementing, and managing rules that regulate workers and the firm's interaction with its employees. The word "human resources" was initially used to describe the individuals who work for an organization in the early 1900s, and then became more extensively used in the 1960s.

HRM stands for human resource management, with a focus on personnel as company assets. Employees are sometimes referred to as human capital in this sense. The objective, like with other corporate assets, is to make the most use of personnel while minimizing risk and maximizing return on investment (ROI).

In comparison to HRM, the term human capital management (HCM) has been used more frequently in current HR technologies. Large and medium businesses, as well as other organizations, have used the term HCM to describe software that manages various HR responsibilities.

Human resource management is crucial

HRM methods are responsible for managing people in the workplace in order to fulfill the organization's purpose and reinforce the culture. HR managers may help recruit new professionals with the capabilities needed to advance the company's goals, as well as assist with the training and development of present workers to accomplish objectives, if done correctly.

HRM is an important aspect of sustaining or increasing the health of a business because a company is only as good as its employees. HR managers can also keep an eye on the employment market in order to keep the company competitive. This might entail ensuring that salary and benefits are equitable, that events are organized to avoid employees from becoming burnt out, and that job duties are tailored to market conditions.

What is HRM and how does it work?

HR management is carried out by dedicated HR experts who are in charge of the day-to-day execution of HR-related tasks. Human resources, in most cases, will be a separate department inside a company.

HR departments vary in size, structure, and the nature of their individual jobs across various corporations. It's not unusual for smaller firms to have a few of HR generalists who each execute a wide range of HR duties. Individual personnel devoted to activities such as recruiting, immigration and visa handling, talent management, benefits, remuneration, and more may exist in larger firms. Despite the fact that various HR professions are distinct and specialized, job tasks may overlap.

Amazon is an example of a major corporation having a variety of HR jobs. Amazon has 15 distinct HR job titles listed on its career website:

Assistant in Human Resources
HR as a strategic partner
Manager of Human Resources
Recruiter
Coordinator of Recruiting
Sourcer
Manager of Recruiting
Expert in immigration
Specialist in LoA and lodging
Manager/specialist in compensation
Manager/specialist in benefits
Manager/specialist in talent management
Manager/specialist in learning and development
Manager of HR technology and process project management
Manager/specialist in HR analytics
Human resource management objectives

Human resource management goals may be divided into four categories:

Measures put in place to react to the company's and its workers' ethical and social demands or issues are referred to as societal objectives. Equal opportunity and equal compensation for equal labor are examples of legal concerns.
Organizational objectives are actions made to ensure the organization's efficiency. This involves things like staff training, recruiting the correct amount of people for the job, and keeping high employee retention rates.
Functional goals are guidelines that are utilized to keep HR running smoothly throughout the business. This involves ensuring that all of HR's resources are utilized to their maximum extent.
Personal objectives: Resources utilized to assist each employee's personal ambitions. Offering opportunities for education or professional advancement, as well as preserving employee happiness, are all part of this.

HRM aims to achieve the following goals within each organization's unit:

By supplying and sustaining productive staff, you may assist the firm in achieving its objectives.
Make effective use of each employee's talents and abilities.
Ascertain that personnel have or will obtain the necessary training.
Build and sustain a pleasant employee experience that includes high happiness and a high quality of life so that people can give their all to their jobs.
Employees should be informed on corporate policies, processes, rules, and regulations.
Maintaining ethical, legal, and socially responsible workplace rules and behaviors.
Manage external influences that may have an impact on people within the firm effectively.

An HR manager's skills and responsibilities

HRM is divided into subsections, which are usually organized by pre-employment and employment phases, and each has its own HR manager. The following are some examples of HRM supervision areas:

Recruiting, onboarding, and retaining employees
Workforce management and talent management
The assignment of job roles and the advancement of one's career
Benefits and compensation
Observance of labor laws
Management of performance
Development and training
Planning for the future
Employee recognition and engagement
Creating a team

HR managers can benefit from the following skills:

Employee relations are important.
Relationships with job candidates
Recruiting and sourcing
Interpersonal conflict resolution
Onboarding new employees
Experience with HR software and information systems
Management of performance
Customer service is important.
Management of a project
Software for human resource management

Almost every aspect of HRM has sophisticated software that automates some or all of the HR operations, as well as additional capabilities like analytics. For example, the number of software platforms and systems that allow both employers and job searchers electronically link companies and applicants with each other and then handle the interviewing, hiring, and employment processes has increased dramatically.

While certain HRM software systems were first installed on-premises, practically every aspect of HR technology, particularly HCM systems, is shifting to cloud-based software as a service (SaaS) platforms.

Career options and prerequisites in HRM

A bachelor's degree is often necessary to begin a career in human resource management. Some institutions offer human resource management degrees, which can help you get a job in HR as an entry-level employee. Completing an undergraduate degree in a similar discipline, such as business administration, is another method to get a position in HR. Additionally, several years of expertise in operations-heavy roles may be beneficial when transitioning into HR positions. There are also HR-specific master's degree programs to assist create the requisite knowledge, skill sets, and certifications for people without a relevant undergraduate degree or transferable job experience.

HRM in the modern era

Human resource management as we know it now dates back to the 18th century. The British Industrial Revolution, which gave birth to a slew of enormous companies, resulted in a surge in labor demand that had never been seen before.

Given that many of these people worked long days (sometimes clocking in around 16 hours), it became clear that employee contentment had a high positive association with productivity. Worker satisfaction initiatives began to be used in order to optimize return on investments. In addition, manufacturing working conditions moved worker safety and rights to the center of legal consideration.

Personnel management departments were common names for early HR departments in corporations in the twentieth century. Legal compliance and employee-related concerns were handled with by the personnel management departments, which also conducted worker satisfaction and safety initiatives in the workplace. Following WWII, personnel management departments in the United States turned to the Army's training programs and began to prioritize staff training.

In the 1970s, HR departments began to be referred to as "human resources." The technical enabling of greater communications and access to individual employee information is the fundamental aspect that distinguishes HR from personnel management.

Human resource management trends

Human resource management jobs continue to be in high demand. Based on median pay in 2018 and predicted job opportunities in 2028, The Wall Street Journal placed the "HR manager" job title as the 35th (out of 800) most promising potential in an analysis of data published by the Bureau of Labor Statistics (BLS).

In general, the field of human resources is on the rise. Companies are increasingly realizing the strategic value of a strong human resources department and spending appropriately. As a result, HR positions are in high demand. From 2018 to 2028, there is predicted to be a 7% increase in HR manager job titles alone in the United States. Pay prospects are also bright, with the median HR manager salary hovering at $113,000 right now. The typical salary for HR specialist roles is roughly $60,000.