Human Resource Management

Human resource management (HRM) is defined as the process of managing people in organisations. HRM includes hiring people, retention of people, pay and perks setting, as well as management and performance management.This is the reason why HR managers in some multinational companies are called People Managers or People Enablers and the process is called people management. The HR expert manages the relationship between fulfilling employee expectations and achieving the management purposes.

The major goal of HRM is the development and management of knowledge, skills, creativity, aptitude and talent and their most effective use. Thus, the HR department is an important part of the organization, ensuring the optimal use of employees and the organisation's success. Strategic management is aimed at creating a sense of direction and a feeling of purpose at the organisation.

HRM has several fields. Personnel management in HRM is manpower management and is focused on manpower planning, hiring, training and development, introduction and orientation, transfer, promotion, layoff and job cuts, compensation and employee productivity. HRM in this case is aimed at ensuring individual growth, development and effectiveness, which have a positive impact on the successful development of the organisation. The development of new skills, payment of wages, incentives, allowances, traveling policies and procedures are also part of HRM in personnel management.

Employee welfare in HRM is focused on ensuring good labor conditions at workplace including services such as safety services, health services, social security and medical services.

HRM in industrial relations is aimed at the effective relationship between organisation and trade unions, finding a solution to problems, understanding employee behavior, settling conflicts and collective bargaining.

Since people are the lifeblood of the organisation, hiring policies are a key element of HRM. Staff can be hired at different levels and in different ways. Campus recruitment procedures are a hiring strategy representing the recruitment of the best talent at campuses for entry level positions. Another recruitment strategy is when placement consultants choose potential employees from databases. The main steps of the hiring process include selecting from a number of candidates, deciding on the pay and perks, making an offer and signing a contract.

Employee benefits, also called perks, are compensations beside the salary provided to employees to improve employees' economic situation. Such benefits may be providing of a house, group insurance, retirement benefits, sick leave, vacation, social security, profit sharing, funding of education, and other specialised benefits.

Another key component of HRM is retention strategies. This means ensuring that the employee has the right to take their issue about payment and work to the HR department and be treated in a fair way. The HR manager has to have a plan for finding a solution and should help resolve the problem.

HRM includes skills management which means the development and effective use of employee skills. Employees need to record and update their skills regularly so that the skills management is effective. The results of the assessing process are held in a database where they can be analysed. If employees have any lack of skills required to perform the job, the HR manager can devise a personal development plan to fill the gaps of skills and knowledge and train employees.

Training and development is also part of HRM. Making training and development plans at an organisation is aimed at improving the performance of individuals and groups in organisations.

Time management is essential for the improvement of efficiency and productivity in organisations. Time management is usually a key component of HRM, especially in cases of any project development as it determines when the project will be completed.

HR managers also deal with performance appraisal, which is a method of evaluation of an employee work in organiszations. Appraising performance helps employees guide and manage their career development. To evaluate an employee work, HR managers have first to collect, analyse and record information about an employee performance and its value to the organisation. Performance appraisal reflects the achievements and failures, the strong and weak characteristics of an employee. Productivity is not the only consideration taken into account when appraising an employee's performance.

The HR manager has to be able to manage the team successfully and effectively. The manager is not allowed to have any prejudice when managing employees in an organisation. Discrimination against employees by HR managers can result in attrition, worse employee morale and sometimes in lawsuits against the organization.

Employees also should abstain from having a negative attitude or shirking work. Employees should know that if any negative attitude is registered, they will have difficulty breaking that perception and working successfully.

Selected full-text books and articles on this topic

Achieving Excellence in Human Resources Management: An Assessment of Human Resource Functions
Edward E. Lawler Iii; John W. Boudreau.
Stanford Business Books, 2009
Effective Human Resource Management: A Global Analysis
Edward E. Lawler III; John W. Boudreau.
Stanford Business Books, 2012
Reinventing Human Resources Management: Challenges and New Directions
Ronald J. Burke; Cary L. Cooper.
Routledge, 2005
Understanding Human Resource Management
Ken N. Kamoche.
Open University Press, 2001
Organizational Success through Effective Human Resources Management
Ronald R. Sims.
Quorum Books, 2002
How to Develop Essential HR Policies and Procedures
John H. McConnell.
AMACOM, 2005
Strategic Human Resource Management: A Three-Stage Process Model and Its Influencing Factors
Krishnan, Sandeep K.; Singh, Manjari.
South Asian Journal of Management, Vol. 18, No. 1, January-March 2011
A Balanced Approach to Understanding the Shaping of Human Resource Management in Organisations**
Boselie, Paul.
Management Revue, Vol. 20, No. 1, January 1, 2009
Strategic Human Resource Management in Small and Growing Firms: Aligning Valuable Resources
Hargis, Michael B.; Bradley, Don B.,, III.
Academy of Strategic Management Journal, Vol. 10, No. 2, July 2011
Implementing Human Resource Management Successfully: A First-Line Management Challenge**
Nehles, Anna C.; van Riemsdijk, Maarten; Kok, Irene; Looise, Jan Kees.
Management Revue, Vol. 17, No. 3, July 1, 2006
Globalizing Human Resource Management
Paul Sparrow; Chris Brewster; Hilary Harris.
Routledge, 2004
International Human Resource Management: Policy and Practice for the Global Enterprise
Dennis R. Briscoe; Randall S. Schuler.
Routledge, 2004 (2nd edition)
International Human Resource Management: A Multinational Company Perspective
Monir H. Tayeb.
Oxford University Press, 2005
The Manager's Guide to HR: Hiring, Firing, Performance Evaluations, Documentation, Benefits, and Everything Else You Need to Know
Max Muller.
AMACOM, 2009
Human Resources for the Non-HR Manager
Carol T. Kulik.
Lawrence Erlbaum Associates, 2004
Search for more books and articles on human resource management