HRM is a branch of management which focuses on developing strategies, rules and processes related to management of employees within an organization. It is not a special management model describing how employees should be managed, neither it is an administrative section which contributes to better employee record keeping (administration is part of HRM, but it is not the HRM).
The Goals of HRM
The main objective of any organization is to make profit. Therefore, the main goals of HRM are to contribute to achieving this objective through development, implementation and constant revision of all activities related to employee management. The success of any business is highly dependent on commitment of people who perform it, and on the careful planning of human resources needed for successful operations.
How HRM Can Contribute to Profit Making?
Through achieving these three main goals:
- labour productivity
- organizational flexibility
- social legitimacy
It is important to highlight that these three goals are not shared equally by all organizations. The balance between them generally differs from organization to organization and may also alter over time within the same organization.
Organizations will never introduce any new HR practice unless they judge it is cost-effective and will help them achieve profit related objectives.
Problems in HRM
However, reaching the three main HRM goals is not simple. The common problems which organizations face are labour scarcity, employee motivation and change tensions. The strategies used for overcoming these problems should be in line with the organizational context. What is a good HR policy in one organizational context, can be a completely ineffective in another. Many internal and external factors must be considered before introducing any new activity related to employee management. Also, not all strategies require financial investments.
Do Only Big Companies Have HR Management?
No. Because of the amount of work related to employee management, big companies usually have separate functional units called HR Management departments. However, in case of smaller companies, the responsibilities related to HRM function can be spread between operational managers. Some companies might have separate units dealing with recruitment only or with administration only. And in case of entrepreneurs, the owners usually deal with all aspects of employee management.
However, no matter how HR function is organized, every manager should be aware of the importance of human resources and should possess skills needed for planning, leading, motivating employees and managing their performance.
The aim of blog posts related to HR Management is to identify and discuss different practices used for achieving the three main goals of HRM.