Human resource management (HRM) is the process of managing an organizations employees. It is a strategic and coherent approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. HRM involves coordinating, managing, and allocating human capital, or employees, in ways that move an organization’s goals forward. The overall purpose of HR is to ensure that the organization has the right people with the right skills, knowledge, and experience to achieve its objectives.
The functions of HRM can vary depending on the industry, business size, and the types of workers employed. However, some of the primary objectives are to acquire and cultivate talent, improve communication, and ensure a positive workplace environment. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and employee benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws.
HRM is employee management with an emphasis on those employees as assets of the business. As with other business assets, the goal is to make effective use of employees, reducing risk, and maximizing return on investment. HRM careers may specialize in compensation, training, or managing employees. Most HRM professionals hold a bachelor’s degree, and some go on to pursue a masters degree. HRM professionals at all levels can also earn professional certifications to help build knowledge and increase earning potential.
