Human Resource Management (HRM)

Human Resource Management is the process of acquiring (getting), training, appraising

(assessing), and compensating (paying) employees and attending to their labor relations, health
and safety and fairness concerns.
A company or organization’s HR department is usually responsible for creating, putting into
effect and overseeing policies governing workers and the relationship of the organization with
its employees. The term human resources was first used in the early 1900s, and then more
widely in the 1960s, to describe the people who work for the organization, in aggregate.
The modern HR technology term human capital management (HCM) has been used more
frequently compared to the term HRM. The term HCM has had widespread adoption by large
and midsize companies and other organizations of software to manage many HR functions.

Importance:
The role of HRM practices are to manage the people within a workplace to achieve the
organization’s missions or goals.
A company is only as good as its employees, making HRM a crucial part of maintaining or
improving the health of the business. Additionally, HR managers can monitor the state of the
job market to help the organization stay competitive. This could include making sure
compensation and benefits are fair, events are planned to keep employees from burning out
and job roles are adapted based on the market.

Working:
Human resources management works through dedicated HR professionals, who are responsible
for the day-to-day execution of HR-related functions. Typically, human resources will comprise
an entire department within each organization.
HR departments across different organizations can vary in size, structure and nature of their
individual positions.
Amazon is an example of a large company with multiple types of specialized HR positions.
Amazon’s career website lists 15 different HR job titles:
• HR assistant
• HR business partner
• HR manager
• Recruiter
• Recruiting coordinator
• Sourcer
 • Recruiting manager
• Immigration specialist
• LoA and accommodation specialist
• Compensation specialist/manager
• Benefits specialist/manager
• Talent manager specialist/manager
• Learning and development specialist/manager
• HR technology/process project program manager
• HR analytics specialist/manager

Objectives:
The objectives of HRM can be broken down into four broad categories:
 Societal objectives: Measures put into place that responds to the ethical and social
needs or challenges of the company and its employees. This includes legal issues such as
equal opportunity and equal pay for equal work.
 Organizational objectives: Actions taken that help to ensure the efficiency of the
organization. This includes providing training, hiring the right number of employees for a
given task or maintaining high employee retention rates.
 Functional objectives: Guidelines used to keep HR functioning properly within the
organization as a whole. This includes making sure that all of HR’s resources are being
allocated to their full potential.
 Personal objectives: Resources used to support the personal goals of each employee.
This includes offering the opportunity for education or career development as well as
maintaining employee satisfaction.

Function:
Human resources departments are often considered an essential part of many organizations.
HR managers help maintain the structural and organizational integrity of the workplace. While
HR may sometimes be regarded as the disciplinary arm of a company, in reality, HR holds many
supportive responsibilities
 Recruitment and Hiring
For many organizations, attracting and retaining the best talent in the industry is a
priority. HR managers play an important role in this, helping to build the future of the
company by overseeing the recruitment and hiring process. To begin, HR may work with
a department manager or supervisor to learn about an open position, including its
requirements and ideal candidate qualities. The HR department may then set forth a
recruiting strategy. This might include creating internal and external job postings,
screening incoming applicants’ resumes and other application materials, and conducting
initial interviews. HR may also be responsible for professional reference checks and
background checks to verify that candidates are eligible to work for the company.

 Training and Development

Hiring qualified employees is just one aspect of an HR department’s job. In order to
retain talent and remain competitive, HR managers may also be responsible for
launching employee development initiatives. This could entail additional on-the-job
training, professional development programs, or educational opportunities that allow
employees to grow and develop in their current roles—or prepare them for career
advancement within the organization.
 Employer-Employee Relations
Another aspect of the workplace that HR departments manage is employer-employee
relationships. With this function, HR departments strive to help employers and
employees see each other as mutual contributors to the company, fostering a positive
dynamic between the two. HR managers may also help craft and determine company
policies that ensure fairness and equity in the workplace.
When an employee has a workplace grievance—whether regarding compensation,
benefits, workloads, work hours, or anything else—HR may step in to act as a liaison
between the employee and employer, helping to settle any disagreements. Overall,
when HR departments succeed in creating positive employee relations, employers may
trust their employees and value their input more, and on the flip side, employees may
respect and appreciate their employers more.
 Maintain Company Culture
Elements of company culture may include sound hiring practices, ongoing development,
and strong employee relations. However, it’s not necessarily something you can achieve
and move on from. HR departments engage in ongoing work to ensure that their
company culture remains solid over time.
In the employee onboarding process, HR managers may share the company’s values,
norms, and vision with employees—familiarizing them with the overall ethos of the
organization. Team outings, community building, and any reward systems or recognition
programs are additional ways HR departments might keep employee motivation and
 morale high. Maintaining company culture also means being equipped to identify any
shortcomings within the organization and having the ability to address them effectively.
 Manage Employee Benefits

On the administrative side, HR departments oversee both mandated and voluntary

company benefits. While employers are required to provide some benefits like Social
Security, unemployment, and worker’s compensation, other benefits like paid time off,
disability income, and gym reimbursements are provided on a voluntary basis—and
serve as additional incentive for potential and current employees to work at the
company.
Of course, employee benefit programs vary by organization. Some may offer employer
matching programs (in which employers match an employee’s contribution to their
retirement fund), while others may offer enticing comprehensive health insurance plans.
Regardless of the specific benefits an employer may offer, managing all of these
components is a complex job. It requires HR managers to be well-versed in their
understanding of company benefit and have the ability to clearly explain and answer any
questions employees may have regarding their policies.
 Create a Safe Work Environment

In addition to managing benefits, HR is responsible for protecting employees’ safety at

work— both physical and emotional. In the physical sense, HR must ensure the
workplace is free of danger. HR may also establish safety programs through risk
management training and provide information on procedures and protocol for any
potential emergency scenarios.
Workplace safety also entails ensuring that the organization acts in accordance with
federal and state employment rules and regulations. HR departments have a
responsibility to maintain work environments that promote respect and dignity for all
employees. They must also ensure that employees are protected from behaviors like
harassment, discrimination, intimidation, and exploitation. They may provide training
sessions for employees, managers, and supervisors to learn to identify harmful practices
and know how to report them when needed.
 Handle Disciplinary Actions
Disciplinary procedures and terminations are delicate and sometimes complicated
matters. HR managers must know how to handle them fairly and consistently to keep
situations running smoothly and prevent any additional conflict or escalation. This may
involve having a clear disciplinary process, whether that includes starting with a written
warning and increasing in severity with suspensions or demotions—or following another
proven system. Regardless of the specifics, HR managers must have a set system in place
to hold employees accountable.
 Additionally, HR may consult with legal counsel to ensure the company acts in
accordance with the law, avoiding any mishandled situations and subsequent lawsuits.
 At the end of the day, HR departments have a responsibility to enforce an organization’s
policies and the requirements of the law, while still maintaining the dignity and
humanity of its employees.

Common HR problems in companies and their solutions:

HR problems in companies come in many shapes and forms. They also vary in seriousness and
complexity, depending on the challenge and where the company is located and operates.

1.Compliance with laws and regulations

The first common HR problem in companies is a big one: making sure you're adhering to all
relevant laws in your operation area. This can be a huge challenge for small HR organizations,
especially if no one on the team has experience dealing with local labor laws and regulations.

Challenges

Key challenges that arise include:

• The tediousness of keeping tracking of all employment laws in all areas in which the
company operates
• Ensuring that all operations, recruiting, and employment processes adhere to local laws
• A lack of time and expertise to understand the issues and nuances of the laws

Failure to fully comply with laws and regulations can lead to serious consequences for a small
company, including audits, lawsuits, and even bankruptcy

Solutions
Potential solutions to this challenge include:

• Ensuring that at least one person on your management team is in charge of

understanding local employment laws and regulations
• Giving that person the time and resources needed to study and understand those laws
and regulations
• Consulting a legal expert with questions about the laws and regulations
• Auditing your existing processes to ensure that everything is above board

While these solutions will require more time and money, it’s critically important to get them
right to ensure your company’s health and future success.
2. Health and safety
Like with laws and regulations, HR organizations are often in charge of ensuring all health and
safety requirements are being met at the company.

Challenges
Key challenges that arise include:

• Creating and enforcing health and safety processes at the company

• Providing employee training and documentation of course completion to prove
compliance with health and safety measures
• Monitoring and adapting to local health and safety laws
• Tracking instances of workplace injuries or safety violations to protect against potential
workplace compensation lawsuits

Like with employment laws and regulations, failure to execute a thorough health and safety
program can expose the company to costly lawsuits and injury claims.

Solutions
Potential solutions to this challenge include:

• Designating a health and safety person or committee at your organization

• Giving them the tools and training needed to study and understand local health and
safety laws
• Empowering them with absolute control over health and safety at the organization,
including the power to make changes, upgrades, or even shut down operations
temporarily if needed

Health and safety should be a top priority for any company. As such, this challenge should be on
your shortlist to tackle as soon as possible.

3. Change management
Managing change can be a big headache for both HR departments and the employees they
serve. This is especially true for fast-growing organizations experiencing rapid evolution in their
processes or onboarding new employees at a high clip. Unfortunately, HR often bears the brunt
of this frustration.

Challenges
Key challenges that arise include:

• Adapting HR processes and policies to match the company's growth and ambitions
 • Balancing the needs and wants of legacy employees with those of new employees and
management
• Ensuring open communication before, during, and after changes are made

• Dealing with negative feedback or frustrations from employees

When done poorly, change management can have an adverse effect on performance, staff
engagement, and morale. It often falls on the HR department to find ways to ensure
peoplecentric change doesn't affect productivity and output.

Solutions
Potential solutions to this challenge include:

• Clearly communicating the benefits of change to all employees

• Implementing a change management process that outlines how, when, and where
employees are informed of process changes
• Encouraging open and honest feedback from employees when a change is made
• Making it crystal clear why you are making a change and what the benefits are to the
company and employees

It's not possible to please everyone all the time. But a few simple change management best
practices can make your life a lot easier when scaling or altering your processes.

4. Compensation management
Compensation and benefits are one issue that no HR organization is able to get around. This is
the core concern for all employees and has an immense impact on everything from
performance to engagement to productivity.

Challenges
Key challenges that arise include:

• Knowing how to structure compensation packages to stay competitive in your industry

• Monitoring the recruitment landscape to see what others are offering
• Matching compensation demand in the market, especially if you're trying to compete
against larger competitors
• Providing competitive perks, employee benefits, and bonuses that align with what your
ideal candidates want

It takes a lot of time and money to ensure that your total compensation packages are appealing
and competitive. In reality, small companies will struggle to compete against large corporations
and their limitless budgets.
Solutions
Potential solutions to this challenge include:

• Looking for free tools like Payscale and Glassdoor to create benchmark salaries that are
based on aggregated real data
• Shortlisting competitors to watch and analyze what they promote on their careers sites
in terms of perks, benefits, and compensation
• Focusing on employer branding and culture messaging to create intangible benefits for
candidates
• Being creative with compensation to make up for less-than-competitive salaries

The bottom line is that larger companies can and likely will outspend smaller ones to land the
best talent. To combat that reality, smaller companies should look to pitch what's unique and
appealing about their company.

5. Landing top talent

Like with compensation, smaller HR organizations often get muscled out in the fight for top
talent. This is another major HR problem in companies that don't have the resources to go after
the best candidates aggressively.

Challenges
Key challenges that arise include:

• Being overtaken by a large amount of competition for top talent in skilled roles
• Having to spend lots of time, money, and effort to find top talent, all of which are in
short supply
• Devoting the time that's needed to hire top talent while also juggling all of the other
requirements of an HR manager
• Spending lots of resources to court a top candidate, only to have them leave early in
their term with you, or get scooped up by a competitor during the hiring process

Solutions
Potential solutions to this challenge include:

• Getting creative with how and who you hire

• Beefing up your employer brand to stand out from other companies
• Recruiting directly from colleges and universities to give new and hungry employees a
chance to shine
• Leveraging networks and social channels to directly pitch candidates at no cost
• Hiring the best recruiter possible and letting them do their jobs
Smaller organizations will need to pick and choose their battles when competing for top talent.
If budget and resources are limited, then it might make sense to only go after the best
candidates for strategically critical roles or ones that are going to drive long term success.

6. Retention
Landing top talent is one thing, but retaining them long term comes with a new set of HR
challenges for companies.

Challenges
Key challenges that arise include:

• Focussing the bulk of your time and energy on employee retention

• Balancing the cost of hiring top talent, with the risk of them leaving prematurely •
Accounting for the variety of factors that might cause retention issues, including:
• External poaching
• Lack of engagement
• Lack of career development
• Lack of growth opportunities
• Non-competitive salaries or benefits

• Monitoring and adapting to issues that are leading to increased employee departures
• Maintaining productivity levels while balancing all of the above

Solutions
Potential solutions to this challenge include:

• Finding a fine balance between culture, compensation, and incentives that boosts
loyalty and retention: this will require some experimentation and lots of honest
feedback
• Continuously monitoring employee sentiment via pulse surveys, 1:1 meetings,
anonymous surveys, town halls, etc.
• Keeping an eye on the market to ensure that your compensation packages are
competitive
• Monitoring employee churn rates and retention rates and adapting to what the data is
telling you
• Addressing red flags before they become major issues

If you break down a month-to-month workload for most HR managers, employee retention is
likely one of if not their most important priority.
Keeping employees happy and performing at a high level is incredibly important for a
company's success and comes with many challenges for HR professionals.

7. Monitoring productivity and performance

Productivity and performance is a shared responsibility between managers and the HR
department. Managers are ultimately responsible for their team's performance, but it will fall
on the HR department to make tough decisions if certain departments or teams aren't
performing at the level they need to be.

Challenges
Key challenges that arise include:

• Monitoring performance and productivity levels to ensure that the business is operating
efficiently and hitting output goals
• Identifying problems areas and taking necessary actions to turn things around
• Working cross-functionally to find root causes for low performance and identifying
potential solutions
• Reporting human resource issues back to the executive team who will then make
strategic decisions

Keeping an eye on productivity and performance involves monitoring key indicators, engaging
in candid conversations with managers and employees, and generally acting like a detective to
find problems. While part of the job, it's a time-consuming responsibility and a common HR
problem in companies.

Solutions
Potential solutions to this challenge include:

• Using HR platforms that integrate performance management, goal management, and

engagement tracking
• Looking for teams who are hitting their goals, studying what they do right, and
presenting those processes as potential changes to the executive team
• Keeping clear lines of communication open with all managers to ensure that issues are
addressed before they snowball

The HR department is often one of the busiest in most companies. That becomes even more
apparent in smaller companies that have fewer employees dedicated to these mission-critical
tasks. This is a very multifaceted role that brings with it many unique problems and challenges.

Like with most business challenges, focussing on strong communication, technology, processes,
and goal tracking can help you overcome these common HR problems in companies.