Human Resource Management (HRM)
Human resource management refers to the systems a company puts in place to manage the people in its ranks. It is the department in the company’s management system that is tasked with managing the human resources the company has. A human resource manager is usually tasked with leading this department which basically optimizes the efficiency of a company’s workers.
Functions of the Human Resource Management
The HRM has quite the workload on its back. Its basic duties include acquiring and developing employees as well as retaining them– that is, staffing the company. This means that the HR department gets to handle employee welfare and benefits as well as employee compensation.
The HRM is also tasked with aligning the workers to the organization’s goals by defining and designing work. This involves determining the skills and requirements needed for a certain job position and anticipation of future hiring levels. It is also required to keep up with industry trends on jobs. This is called job analysis and it is vital for the company as the information acquired is used for promotional purposes, establishing wage structures and other vital decisions.
Performance appraisal requires the HR department to assess employees after a certain time period and communicate to the employees the positive as well as negative facets of their performance. This is important as it is the basis for promotion, dismissal and salary increments.
HRM has always ranked low in the corporate hierarchy in the past, but the realization of the importance of this department has propelled it to the upper echelons of management. As such, the HR department is now tasked with being a valued contributor to the goals of an organization as the type of talent acquired may as well be the difference between crushing losses and raging profits. As executive decisions are made, the HR department is expected to recommend approaches, processes and solutions.
Principles of HRM
The modern-day HRM is steered by various superseding principles. For starters, companies have now identified and accepted human resources as the most vital asset of any company. If the most valued asset is not well managed, then achieving the set goals can only be but a dream. Many companies now understand that the realization of corporate objectives is impossible without alignment with personnel policies, bringing up a second guiding principle.
Thirdly, the HR’s responsibility of finding and acquiring; as well as guiding and retaining top talents whose values are in line with those of the company is well documented