What Is Human Resource Management?

What is Human Resource Management?

Human Resource Management has a significant role in today's organization. HRM is the term used to describe established sytems arranged for manging people within a company. They oversee a variety of business functions that have a great impact on the company while also supporting the organization's business strategy (Business Dictionary, 2012). According to DeCenzo (2007), "This means working with line management in analyzing organizational designs, the culture, and performance systems, and recommending and implementing changes where necessary" (p.34). HRM is no longer limited to the traditional transactional and compliance functions, but are now expected to add value to the strategic utlization of employees and that employee programs impact the business in measurable ways.

Functions of HRM

The primary functions of human resource management include staffing, training and development, motivation, and maintenance (DeCenzo, 2007). HRM focuses on the organization's most valuable assets - its employees. Without good employees, it is difficult to achieve organizational goals and objectives. Employees can only achieve what they are capable of achieving; therefore, HRM is there to help employees be more capable so they, as well as the company, can achieve more.

Staffing. The staffing function ensures that the organization selects the most competent and skillful person from a number of applicant at a time. It involves evaluating the ability and competency of potential employees in relation to what the organization needs. If this function is performed well, the organization will increase value and consequently is on the right path in achieving organizational success.

Training and Development. The opportunity to grow employee skills not only has a major influence on the employee itself, but the company as well. For example, the business environment is constantly changing, which is why training and developing employees to stay ahead of the competition is necessary. The benefits of training and developing employee skills far exceed the cost associated with having untrained and underdeveloped employees. Having skilled workers allow employees to effectively perform their job as well as increase the organization's performance.

Motivation. The motivation function is essential for an organization because of the benefits it provide. Abilities and qualifications are not the only determining factor in the level of an employee, but the gap between ability and willingness must be filled to improve the level of performance. Helping employees work at high energy levels improve efficiency in employees, which can result to job satisfaction, increased productivity, stability of workforce, and reduced operational costs.

Maintenance. This function includes providing the best working conditions for employees. Additionally, HRM aims at protecting and preserving the physical and