Human Resource Management (HRM) - Definition and Concept

We hear about Human Resource Management (HRM) often in the business world. HRM is a function of organizational structure that focuses on the processes related to managing its employees. The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company to round off the activities.

The second definition of HRM highlights the management of people in the form of a collective relationship between organizational management and employees. This approach focuses on the outcome of the HRM function such as enabling people, development of people and focusing on the “employment relationship” fulfilling for both the management and the employees.

As a summary, personnel management is essential “workforce” centered whereas human resource management is “resource” centered. Despite the definitions, HRM is all related to taking care of the people in organizations. The modern practice among multinational organizations is to call the human resource managers as people managers and their focus is not only to fulfill HR duties in the traditional way but to engage more with the employees and manage their expectations in alignment with management objectives. Reconciliation of the needs of both the employees and the management ensures employee fulfillment and realization of management objectives is the key to successful HRM.

References

Prachi Juneja. (n.d) Human Resource Management (HRM) - Definition and Concept. Human Resource Management. [Online] 1. Available from: https://www.managementstudyguide.com/human-resource-management.htm [Accessed 28th December 2019].