What is Human Resource Management

If an organization is to achieve its goals, it must not only have the required resources, it must also use them effectively. The resources available to a manager are human, financial, physical, and informational. While human resources (HR) have always been critical to the success of any organization, they have assumed an increasingly greater importance that is being recognized inside and outside work organizations.

Human resources departments typically include individuals with a wide variety and range of knowledge, skills, and abilities who are expected to perform job activities in a manner that contributes to the attainment of organizational goals. How effectively employees contribute to the organization depends in large part upon the quality of the HR program (including staffing, training, and compensation) as well as the ability and willingness of management--from the CEO to first-line supervisors--to create an environment that fosters the effective use of human resources.

The Importance of HRM

For many decades such responsibilities as selection, training, and compensation were considered basic functions of the area historically referred to as personnel management. These functions were performed without much regard for how they related to each other. From this narrow view we have seen the emergence of what is now known as human resources management.

“Personnel management basic functions of selection, training, compensation, etc., in the management of an organization’s personnel.”

Human resources management (HRM), as it is currently perceived, represents the extension rather than the rejection of the traditional requirements for managing personnel effectively. An understanding of human behavior and skill in applying that understanding are still required. Also required are knowledge and understanding of the various personnel functions performed in managing human resources, as well as the ability to perform those functions in accordance with organizational objectives. An awareness of existing economic, social, and legal constraints upon the performance of these functions is also essential.

Human resources management (HRM) extension of the traditional requirements of

personnel management, which recognizes the dynamic interaction of personnel functions

with each other and with the strategic and planning objectives of the organization.

HRM, as it is practiced today, recognizes the dynamic interaction of personnel functions with each other and with the objectives of the organization. Most important, it recognizes that HR planning must be coordinated closely with the organization’s strategic and related planning functions. As a result, efforts in HRM are being directed toward providing more support for the achievement of the organization’s goals, whether it be a profit, not for profit, or governmental organization.