Human Resource Management

Definition: Human Resource Management (HRM or HR) is the strategic and coherent approach
to the effective and efficient management of people in a company or organization such that they
help their business gain a competitive advantage. It is designed to maximize employee
performance in service of an employer's strategic objectives. Human resource management is
primarily concerned with the management of people within organizations, focusing on policies
and systems. HR departments are responsible for overseeing employee-benefits design,
employee recruitment, training and development, performance appraisal, and reward
management, such as managing pay and employee-benefits systems. The overall purpose
of human resources (HR) is to ensure that the organization is able to achieve success through
people. HR professionals manage the human capital of an organization and focus on
implementing policies and processes. They can specialize in finding, recruiting, selecting,
training, and developing employees, as well as maintaining employee relations or benefits. 
HRM process: Each organization works towards the realization of one vision. The same is
achieved by formulation of certain strategies and execution of the same, which is done by the HR
department. The following are the various HR processes:
1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation,
Evaluation, Promotion and Layoff).
2. Employee remuneration and Benefits Administration.
3. Performance Management.
4. Employee Relations.
The efficient designing of these processes apart from other things depends upon the degree of
correspondence of each of these. This means that each process is subservient to other.

1. Human Resource Planning: Human Resource Planning (HRP) is the process of

forecasting the future human resource requirements of the organization and determining
as to how the existing human resource capacity of the organization can be utilized to
fulfill these requirements. This also ensures that the business has the right people with the
appropriate skills and ability to build a strong workforce. It also involves the processes of
Evaluation, Promotion and Layoff.
0. Recruitment: It aims at attracting applicants that match a certain Job criteria.
1. Selection: The next level of filtration. Aims at short listing candidates who are the
nearest match in terms qualifications, expertise and potential for a certain job.
2. Hiring: Deciding upon the final candidate who gets the job.
3. Training and Development: Those processes that work on an employee onboard for
his skills and abilities upgradation.
2. Employee Remuneration and Benefits Administration: The process involves deciding
upon salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime
motivator in any job and therefore the importance of this process. Performing employees
seek raises, better salaries and bonuses.
3. Performance Management: It is meant to help the organization train, motivate and reward
workers. It is also meant to ensure that the organizational goals are met with efficiency. The
process not only includes the employees but can also be for a department, product and
service or customer process; all towards enhancing or adding value to them.
 Nowadays there is an automated performance management system (PMS) that carries all the
information to help managers evaluate the performance of the employees and assess them
accordingly on their training and development needs.
4. Employee Relations: Employee relations refers to an organization’s efforts to create and
maintain a positive relationship with its employees. By maintaining positive, constructive
employee relations, organizations hope to keep employees loyal and more engaged in their
work. Typically, an organization’s human resources department manages employee relations
efforts. Employee relation focuses on Labor Law and Relations, Working Environment,
Employee heath and safety, Employee- Employee conflict management, Employee-
Employee Conflict Management, Quality of Work Life, Workers Compensation, Employee
Wellness and assistance programs, Counseling for occupational stress. All these are critical
to employee retention apart from the money which is only a hygiene factor.
All processes are integral to the survival and success of HR strategies and no single process can
work in isolation; there has to be a high level of conformity and cohesiveness between the same.