What is Human Resource Management
Human Resource Management is an important concept and process for all businesses. Human resource management, HRM, as it is commonly termed, is the management strategy for the efficient management of individuals in a particular organization or business so that they contribute to the overall success of the business. It is basically designed to optimize individual employee performance within the strategic goals of an employer. The term “human resource” is a broad term that can cover a wide range of jobs such as generalist positions, specialized positions like managers and executive positions. The management techniques applied include training and development, evaluation and compensation, as well as other relevant areas.
In addition to human resources, human resource management also covers the domain of employee relations, which deals with the processes and principles by which employees interact with each other and with the larger organization. A good HR professional should be able to help employees identify their own unique selling proposition (USP), manage interpersonal relationships, build and uphold relationships within organizations, enhance productivity, and develop employee satisfaction. While employee relations are often considered a part of a broader field of HR, such as talent acquisition, training and development, and recruitment and orientation, the field of employee relations has many components and a comprehensive approach. The most significant of these is divided into four main areas – the practices, recruitment, training and development, and compensation and benefits administration.
The fourth area of Human Resource management is job titles in this specialty area, and the very first job titles in this specialty area that a prospective Human Resources professional will encounter are in the field of recruiting and orientation. Recruitment and orientation activities are vital for the professional career of a Human Resources specialist. The activities involve screening, interviewing, evaluating, and hiring individuals for the different positions in Human Resources, especially entry-level positions.
5 Benefits of Human Resource Management
In the current business environment, five benefits of human resource management are more important than ever. Human capital represents the future of companies-and therefore their leaders-because they are the ones who create new employees and perform the recruitment process. Human capital includes supervisors, managers, sales professionals, and people in general, as well as retirees. Manpower is the foundation of the company’s success, because the number of workers who are productive, motivated, and able to contribute to company growth means the company’s productivity will increase. Having a high-productive workforce is key to competitive advantage.
Recruitment and Training
Companies that do not have a human resource management plan or system in place are at risk of not being able to stay ahead of the curve and remain successful. In order for a company to compete with others, it must be able to attract, hire, and retain the very best workers. That means a good recruitment process, communication between executives and the workforce, and rewarding workers for their efforts. It also means providing a good benefits package and keeping workers happy. All of these things are crucial for the success of any business, but human resource management is arguably even more important.
This strategy has been around since the beginning of the twentieth century, and it remains one of the most powerful tools available to companies of all sizes. With an effective human resource management system, a company can attract and hire the very best people without spending a fortune on the interviewing process. They can develop a strong strategy for performance management, and employee incentives and rewards can keep workers motivated. They can foster relationships with potential candidates so that when that person becomes a permanent employee, they know the company is a good place to work.
Performance Management Strategy
The benefits of this management strategy extend beyond top employees. Good hiring and recruitment practices help to ensure that only the most qualified and talented candidates will apply for positions in a company. This helps to ensure that employees perform to their maximum capacity, which leads to higher levels of productivity and profit overall. Companies that have a well-developed performance management process also tend to have lower turnover rates than companies that don’t use them.
One of the benefits of human resource management is that it encourages a workplace culture where people feel a sense of belonging and ownership. This can have a huge impact on employees overall and can have a tremendous effect on performance. In large corporations it has often been noted that those who participate in a management program that values their skills often outperform others who do not. The benefits of human resource management in this case go beyond the top performer, however.
One of the biggest benefits of human resource management, in addition to all the positives listed above, is that it can actually prevent employee turnover. When people leave the workplace for various reasons, it can be very difficult for them to find new employment. A good manager should know how to recognize the warning signs of trouble before it becomes serious enough to be resolved. Once a person has left the organization for a variety of reasons, the benefits of human resource management become even more apparent. An experienced manager can help to prevent people from leaving the company through untimely termination or a change of job.
Performance management systems are also advantageous because they help to keep employees motivated. Many people may lack a natural ability to be productive when they are under significant stress. In large organizations, however, there is usually an immediate connection established between a person’s performance and their pay grade. In other words, if an individual is productive all the time, there will always be a way for them to see improvements in their pay grade. On the other hand, if a person is not productive, they may never feel as though their worth is being evaluated in the work place.
Improving Employee Turnover
Another important benefit of human resource management is that it can prevent large turnover rates within a company. This often occurs because certain individuals feel that they are not good enough people for the job. The fear of losing one’s job is often enough to keep people from asking for raises or promotions. By placing limits on what individuals are able to ask for and what they must do to prove themselves, human resource management can greatly reduce turnover in the company. Without the limitation placed on an individual by human resource management, it may be impossible to ever increase the number of people with the skills needed for the company.