What is Human Resource Management?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 11 October 2019
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Human resource management (HRM) is based in the efficient utilization of employees to achieve two main goals within a company or other organization. The first is to effectively make use of the talents and abilities of each employee to meet the operational objectives that are the ultimate aim of the organization. Along with this, the practice also seeks to ensure that individual employees are satisfied with both their working environment and the compensation and benefits that they receive.

At times, the two main HRM functions seem to be at odds with one another. There are certainly instances where it is impossible to arrive at solutions that are in line with both the aims of the company and the desires of the employee. When this happens, effective managers are faced with the task of finding a resolution that protects the interests of the company, but at the same time provides and acceptable level of satisfaction to the employee. This process can sometimes take a great deal of expertise on the part of the human resource personnel, but ultimately can help establish the best solution for all concerned parties.


Among the human resources issues that are generally handled by HR management personnel are the drafting of position descriptions for all levels of employment within the company, setting the standards and procedures that are used for hiring new employees, and determining benefits that are extended to existing employees. Disciplinary procedures, as well as procedures for recognizing employees for exemplary work, also fall under the province of human resource management. The HR department often seeks to provide the highest quality benefit packages possible, given the current financial position of the company. To this end, personnel will typically seek the best in group health insurance, retirement programs, profit sharing, and vacation and personal days.

Preparing and maintaining a company employee handbook is often the province of human resource management. As part of that process, the management team will ensure that all guidelines and regulations contained within the text comply with local, regional, and national laws that affect the status of employees. Managers will also provide all employees the opportunity to understand the provisions within the handbook, both as part of new employee orientation and as an ongoing employee education process.

Often, human resource management and personnel are called on to mediate disagreements between employees and immediate supervisors. In these situations, the mediator will seek to represent the best interests of the company, ensure that the dialogue and process is in compliance with laws governing employment within the country of residence, and seek to effect resolution and reconciliation of all parties.


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Post 4

@firstviolin -- It looks overwhelming at first, but it is definitely doable.

First, you need to sit down and do a needs assessment of your business. This should include how many and what kinds of employees you need, and what jobs they would be doing.

You should also consider potential needs for additional employees, and trouble spots that could come up.

After that, you should write up job descriptions and employee agreements, or an employee handbook.

This not only lets your new employees know what's going on, it also gives you space to put in all the state and federally required information.

After that you should be good to start hiring. If this is your first time making a human resources management plan, I suggest you sit down with someone who's done it before, or read over some existing human resource management plans before starting.

Good luck!

Post 3

What are some good tips for developing a good human resource management plan for a smaller business?

It seems like it would be just a ridiculously overwhelming task for someone not trained in HRM, for instance, a small business owner trying to do it on his own.

Post 2

@anon23281 -- Some people say that the role of human resource management is different from the role of those in human resource development.

For instance, whereas HRM is considered to be more of an activity, whereas HRD is more of a profession.

However, the two terms are generally used interchangeably.

Post 1

whats the relation between HRM and HRD?

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