Human Resource Management or HRM is the process of managing people in a company as well as managing the existing inter-personal relationships. These two processes are key in the success and growth of a business.
When viewing HRM from the point of ensuring that structures and processes are identified and instituted to manage an organization’s personnel, the following elements are included:
Staffing is the core component of HRM. Staffing is about setting guidelines and procedures to guide recruiting and placement. The presence of these staffing procedures will aid in the effective advertising and reaching out to potential employees. On top of this, the person interviewing and selecting new staff should be able to identify candidates who are suitable for the various roles. The interview should be structured to ensure the success of the interview process as well as the candidate selection.
Apart from hiring new employees, staffing also involves the management of existing employees. It touches on issues like disciplinary matters, monitoring of leave, absences and health and safety. Letting employees go is also covered under staffing. Therefore, an organization needs a robust system needs to make sure that all these elements are covered.
Another key element of HRM is retention. The training of employees to enable them to improve their career paths is very important. In some situations where an employee is undergoing through a difficult time in his or her life, an effective Human Resource Department (HRD) should offer suggestions for support and counseling where appropriate.
Remuneration packages and perks that are associated with the package an employee has been offered also fall under the remit of the HRD. Good HRM policies ensure that there are structures in place which show the pay levels for the different positions in an organization. It is important for the staff to know the career and pay that is available to them. This is important for both during the time of employment as well as for their career progresses over time.
Another key component of HRM is performance management. The reason for this is that many employers use it to assess career progression and to determine pay increases. When a good performance management policy is in place, effective targets can be set and monitored regularly. These records are crucial when staffing levels need to be reduced or disciplinary proceedings are instituted.
A secondary role of HRM is in the management of inter-personal relationships. This covers staff within departments as well as at an organizational level. The relationship between staff and management is an important factor in the success of an organization. It sets pace for how the organization will move forward in achieving their vision.
As far as this secondary function is concerned, the objectives and outcomes, are designed to help employees and the management grow employees and ensure that the interactions within the organization are fulfilling for every member of staff from the bottom up.
The ultimate focus of HRM is the people within an organization. Regular planning, monitoring and evaluation are important for the success of HRM. Successful implementation ensures that all employees know their role, career path and also feel part of an organization which is able to manage and reconcile their expectations as well as those of the organization and its objectives.