“Human Resources Management (HRM)” is a relatively new concept (dating from the 1980s), but it is unquestionably a major part of every workplace today, no matter the industry, size, seniority, or age of the team. Modern society recognizes such working conditions which can gratify and fulfill the expectations of both employees and employers. Where does Human Resources Management (HRM) fit into this picture?

Human Resources Management – table of contents:

  1. Human resources management – what does it consist of?
  2. HRM vs. HR – how do they differ?
  3. What is the role of HRM in a company?
  4. Objectives of human resources management
  5. Human resources management – summary
  6. Check out our software for HR activities

Human resources management – what does it consist of?

A company’s Human Resources Management governs, establishes, and assesses all processes relating to employees’ personnel policies (hiring and firing people), personal and professional development as well as tending to formal issues following current legal regulations (granting vacations, issuing certificates, etc.). A company’s top executive board determines how to handle these issues. HRM postulates the belief that the company’s employees and their resources – knowledge, experience, soft skills – are the source of competitive advantage, which requires support through investment in development.

HRM vs. HR – how do they differ?

Although there is a big difference between the two, it is quite common to confuse HRM and HR (or to think they are the same). Indeed, HR means one hand all workforce of an organization (the human resources of the company) that are subject to certain processes (recruitment, motivation, evaluation, etc.). The same acronym may also refer to the department responsible for managing employees at all levels. Human Resources Management, then, concerns the way of organizing processes related to people in the company, and ensuring that the activities that take place lead to meeting the goals of a company.

What is the role of HRM in a company?

Properly organized Human Resources Management processes serve to make optimal use of the organization’s resources, which should encompass the already mentioned knowledge, competence, soft skills, and experience of employees. Thus, HRM plays a major role in the development of the entire company, providing the space for this and taking care to encourage a particular person to work for the success of the company. It bears the responsibility of ensuring that HR policies and tasks carried out by employees go hand in hand with the goals set by the organization.

To achieve the expected goals, in turn, it is necessary to apply HRM tools and methods (such as benefit policies, competency mapping processes, and talent management processes, for example) tailored to the organizational culture and the company’s situation.

human resources management

Objectives of human resources management

Among the objectives of human resources management, we will first mention maximizing (unleashing) the potential of each person employed by the company following the operational or strategic goals set. It also includes meeting the needs of employees (from developmental needs to adequate mental well-being). In addition, attention must be paid to:

  • Ensuring adequate resources to carry out assigned tasks (as part of recruitment processes),
  • Guiding proper communication between employees and managers/management,
  • Providing employees with appropriate working conditions (e.g., in terms of equipment, conducting onboarding, etc.),
  • Creating a workplace where each person feels comfortable,
  • Involving employees in supporting the organization’s mission and vision.
  • Challenges of the organization’s HRM

High competition in the labor market, changing expectations of employees, the formation of multi-generational teams together with the need to implement modern technologies to streamline daily operations are just some challenges currently facing departments implementing Human Resources Management policies. Moreover, the pandemic has brought about the need to focus more on employee well-being (taking care of their mental state and ensuring the achievement of work-life balance). It has also permanently introduced the remote work mode, forcing HR departments to look for ways to take care of employees performing their duties away from the company’s headquarters.

In the context of HRM, we should also mention numerous influential factors, both internal (mission, vision, goals, strategy, organizational performance, employee expectations) and external (globalization, competition, dynamics of technology development, and legal and tax changes). The challenge in this regard is to effectively balance all these elements and achieve the expected results of activities with the available resources.

Human resources management – summary

Human resources management is a process that constantly needs to evolve – under the changing silhouettes of employees currently entering, saturating, or leaving the labor market (according to the concept of generations X, Y, Z, and Alpha). While the main tasks performed within the framework of Human Resources Management will remain stable, we should expect shifts in the approach to their implementation, and thus to the employee. Without a proper understanding of the new needs and adapting to them within the processes carried out by the HR department, the organization will not be competitive in the eyes of potential candidates – as a result, it will lose much more than it might seem.

Check out our software for HR activities:

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Author: Nicole Mankin

HR manager with an excellent ability to build a positive atmosphere and create a valuable environment for employees. She loves to see the potential of talented people and mobilize them to develop.