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What is Human Resource Management (HRM)?

The people that work for an organization are its human resources. For your organization to achieve its goals and objectives and for the human resource to fully benefit from working at the organization they have to be well managed. That’s why human resource management is a must for any business.

Human resource management is the process of hiring and developing competent staff who make the business achieve its targets in an efficient and effective way. 


Human Resource Management Process

This process is carried out by the Human Resource Manager whose functions include;

    • Recruitment
    • Selection
    • Induction of Staff
    • Training and Development

The human resource manager and his team know what kind of people the business needs to excel and post better profits. They are therefore best placed to determine the right people compatible with company goals to hire. The HR team will come up with a job description to attract suitable candidates and do interviews for those shortlisted. Once the right person is found and hired HR helps them settle into their new job. They tell him/her about the company culture, introduce them to colleagues, set up a workplace for them, and may offer training if it’s required.

  • Ensuring Employee Satisfaction
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This is a straightforward function. If employees are unhappy they leave or worse stay and do a dismal job that will cost you in the long run. HR Management develops a good working environment that is safe, respectful, and pays according to market standards. Training and aligning employee goals with company objectives is also done to make staff happy, satisfied, and motivated because it creates a win-win situation.

Employee welfare such as canteens, transport, recreation areas, medical assistance is also handled by the Human resource manager to make employees comfortable.

  • Training and Development

Further skills development opportunities must be given to company staff. Whether its short courses or even an MBA, HR should make it easy for their employees to better themselves. Also, as the industrial laws in your sector change staff should be taken through these changes to make them meet the shifting standards. Training can also be used to communicate company HR policies so everybody understands them and follows them.

  • Performance Review

The HR department negotiates and determines what benefits and compensation an employee gets. It is also, therefore, their role to see that staff are evaluated regularly to determine who deserves an increase and promotion or even warning. They also do reward management which is recognizing and reward staff who have performed exceptionally well.

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  • Fostering Good Relations

Workplace disputes must occur in any organization. HR is tasked with conflict resolution. A good Human Resource Manager must be a good mediator, counselor and deals with conflict fast and in a manner that all sides are happy with the decision made.

  • Succession and Career Planning

If employees don’t know how their career will grow in an organization they may not prepared to stay with a company for long. So, the Human resource department clear outlines the path to the top for all its employees. It also set out a clear company structure from top to bottom and what is expected in each role. If the CEO or someone in senior management is leaving it is the human resource department role to come up with a successions plan, you don’t want a crisis where a replacement is being sought at the last minute

  • Labour Relations

Trade unions representatives usually interact with the human resource department if they want any issues regarding staff addressed. Issues they may approach the HR department on may be better pay, implementation of collective bargain agreements, safety, etc. HR should ensure they maintain cordial working relations with the unions and ensure they comply with labor laws.

  • HR Planning

This is a very important function in Human resource management. This aims to ensure the business has the required manpower they needed at any given time. When planning the HR department assess, the current and future workforce needs and makes plans on how they will meet these demands. In planning they also look at training staff may need to improve their performance and organize time and money for it.

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Importance of Human Reason Management

At Business Level

Good human resource management helps a business attract and retain the best people. If your company is known for offering staff good packages more people will want to work with you. As a business you also want to avert being taken to court for discrimination, sexual harassment, gender inequality a good HR manager should be able to help you come up with good policies that will ensure you don’t get into such, problems which can be costly to your business.

At Individual Level

If HR is good at their job staff will most likely be loyal and hardworking because the process offers them a chance to grow when opportunities are matched with skills and train is offered for career progression.


Human resource management can be done internally or outsourced. Whichever way you choose to do it HR management is important for keeping employees satisfied and productive. Remember you don’t have a responsibility only to consumers but to your employees also, they could decide the fate of your business!

About Sonia Kukreja

I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. I hold a degree in MBA from well known management college in India. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people.