Human Resource Management

Capital includes cash, valuables, or goods used to generate income for a business. For example,
a retail store uses registers and inventory, while a consulting firm may have software or buildings.

No matter what the industry is, all companies have one thing in common: they must have people to
make their capital work for them.

Human Resource Management (HRM) is the process of acquiring people for employment,
training, compensation, developing policies to create a harmonious working environment, and
developing strategies for retention and continuous workforce productivity.

In the past, HRM meant processing payroll, sending birthday gifts to employees, arranging
company outings, and making sure forms were filled out correctly—in other words, more of an
administrative role rather than a strategic role crucial to the success of the organization. Jack Welch,
former CEO of General Electric and management guru, sums up the new role of HRM:

“Get out of the parties and birthdays and enrollment forms....

Remember, HR is important in good times, HR is defined in hard times.”

HRM involves various management functions that are very essential in the business operation. Keep in
mind that the human resource is part of the business capitalization, thus, HRM is a must.
 Most experts agree on seven main functional areas that HRM plays in organizations, to wit:

1. HR Planning

2. HR Research and Information System

3. Organizational and Job Design

4. Workforce Acquisition

5. Compensation and Benefits

6. Performance Management

7. Industrial Relations

HR Planning

Planning is the top of all the functions which basically means that this process is vital
and essential to a good outcome. It determines the organization’s major HR needs, strategies, and
philosophies.

HR Research and Information System

HR Research and Information System or commonly known as HRRIS ensures a workforce

information base that is used for critical decision-making. HRRIS maintains and manages records and
information of all employees in the company, including their benefits, payroll, disciplinary, and staff
records.

Organization and Job Design

It defines how tasks, authority systems and individual jobs will be organized and
integrated across units.

Workforce Acquisition

Gets the right people for the right job.

Compensation & Benefits

Ensures fairness and consistency in giving rewards and recognition.

Administer payroll system including time keeping and computation.

Performance Management

Ensures consistent showing of excellent performance.

Industrial Relations

Creates and maintains industrial peace in the company.

 Staffing the organization, designing jobs and teams, developing skilful, employees, identifying
approaches for improving their performance, and rewarding employee successes – all typically labelled
HRM issues – are as relevant to line managers as they are to managers in the HR department.

To work with people effectively, we have to understand human behavior, and we have to be
knowledgeable about the various systems and practices available to help us build a skilled and
motivated workforce. At the same time, we have to be aware of economic, technological, social, legal,
and global issues that either facilitate or constrain our efforts to achieve organizational goals.

Competitive Challenges and HRM

Various professional organizations conduct ongoing studies on the most pressing competitive
issues facing firms. By seeking the input of chief executive and HR managers, these
organizations keep a finger on the pulse of major trends. For the past decade or so, there has
been a constant theme around the following issues:
• Competing, recruiting, and staffing globally
• Embracing new technology
• Managing change
• Managing talent, or human capital
• Responding to the market
• Containing costs