Human resource management is the collection of the human talent which an organisation, company, industry, or society develops. A smaller idea is human capital, the human skills which the humans embody. Similar terms are human talent, manpower, workers, associates or just humans. These resources, when developed and cultivated could provide employment for everyone and raise living standards for a large population.
The HRM focuses on the development of the workforce, to make the working environment more comfortable for the employees and the organisation as a whole. It also deals with benefits and compensations to all employees in the organisation including the permanent employees, contractual employees and hired or on-term employees. In the United States, human resources is governed by the laws and regulations of each state. Although all the states have some variation to the federal law, most of them recognise that the compensation for employees should be fair and equal to the others.
There are two main goals within HRM. One is to increase the productivity of the workforce, and the other is to decrease the absence of qualified and experienced workers within the organization. HRM is therefore involved in every step of the recruitment process right from interviewing, to placement to training and eventually to the promotion and termination. All the steps are aimed at producing quality employees who will contribute to the growth and development of the organisation. This ensures that the human resource department of the organization has achieved its goals.
HRM is divided into two main but very subtle categories namely, human resource management and general labor relations. The former deals with salaries, benefits and recognition while the latter focuses mainly on the implementation of policies such as those concerning pay scales, training programs, labor relations, collective bargaining, performance reviews, layoffs, induction and retirement. HRM is therefore not only about recruitment but also about employee relations, development and overall organization performance. This is why it is also included within the overall strategic planning of any company. The implementation of these core functions is what can bring about the success or failure in an organisation.
Every employer wishes to maximize their return on investment by investing in the development of their workforce. In order to achieve this, employers need to attract the best quality people with the highest degree of skill and talent within their organization. This is where human resource management comes into play. The HRM department is charged with providing the employer with the ideal persons – the ones who would contribute the most to the growth and success of the business.
There are many benefits that are associated with the employment of human resources. First, the efficiency of the organization increases. When you have a well-trained, talented and motivated workforce you save a lot of time and money because you don’t have to train them as well as you need to hire and train new employees. When your employees have been properly trained, they are able to do their job better because they already know their job better than any new employee.