What Is Human Resource Management (HRM)? Definition and Guide

what is human resource management

Human resource management (HRM) is the department of a business organization that looks after the hiring, management, and firing of staff.

HRM focuses on the function of people within the business, ensuring best work practices are in place at all times.

Key responsibilities of HRM

Any large or mid-size business will have a human resource management department. When there is a need for employing more staff, HRM will source suitable applicants.

If the business needs to downsize, HRM will also oversee the redundancy process for the existing staff. HRM also manages vacation time, illness problems, bereavement leave, and other day-to-day staff issues.

In the matter of a legal dispute with a staff member, HRM will take over the case. They will deal with all aspects of the dispute and find in favor of one of the parties involved. Where staff are in breach of their employment contract, HRM will intervene and handle a termination, if necessary.

HRM ensures smooth operations for the staffing of a business. This allows  management to focus on the running of the business and avoids the distraction of, for example, internal rows involving employees.

In a smaller business, HRM may be the responsibility of the line manager. The work may take away focus from their daily job, and, in time, a business may need to employ an HRM officer or train an existing member of staff to take on the role.

Human resource management is vital to business growth

HRM trains staff in best working practices but also prepares staff for advancing within the organization. This is a key role. By not retaining and continually training new staff, a business may not grow according to plans.

Experience is not easy to come by and having staff with the necessary skills already on board avoids many problems in the future. It is cheaper to train existing staff than to source and train new members.

Human resource management also keeps the business a pleasant place in which to work. Making staff and management aware of employment law and good behavior at work is part of every HRM department’s remit. They resolve disputes before they arise, remove staff that may not add to the overall ethos, and mediate between staff and management when problems do occur.

What Is Human Resource Management FAQ

What is the meaning of human resource management?

Human resource management (HRM) is the strategic and comprehensive approach to the management of an organization's most valued assets - its people. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. HRM is also concerned with organizational development and performance management.

What is human resources in simple words?

Human resources (HR) is the department within a company responsible for recruiting, training, and managing employees, as well as maintaining employee relations and compliance with relevant laws and regulations.

What are the 7 roles of human resource management?

  • Recruiting and Hiring: Human resource managers are responsible for sourcing, screening, interviewing, and selecting applicants for open positions.
  • Talent Management: Human resource managers play an important role in developing and maintaining a talented workforce.
  • Compensation and Benefits: Human resource managers design and manage all employee compensation and benefits programs.
  • Training and Development: Human resource managers are responsible for ensuring that employees have the skills and knowledge they need to be successful in their roles.
  • Employee Relations: Human resource managers are responsible for fostering positive relationships between employees and management.
  • Performance Management: Human resource managers play an important role in tracking and managing employee performance.
  • Compliance: Human resource managers ensure that the organization is compliant with all relevant federal, state, and local laws and regulations.

What are the 4 types of HR?

  • Recruiting and Hiring
  • Employee Training and Development
  • Performance Management
  • Employee Relations and Benefits Administration