What is Human Resource Management?
Human resource management (HRM) is the practice of managing an organisation’s human capital—otherwise known as employees. It involves the
recruitment, selection, training, and development of existing employees and new staff to ensure that the organisation has the right people in the right roles to achieve its objectives.
HRM also includes activities such as performance management, compensation and benefits administration, employee relations, and workforce and strategic planning. HR professionals are responsible for
creating and enforcing policies and procedures that comply with employment laws and regulations, as well as
promoting a positive company culture that values diversity, equity, and inclusion, and employee well-being.
Since HRM directly impacts employee engagement, productivity, and retention, and therefore a company’s success, effective HRM is critical. HR managers must have strong communication skills, leadership skills, sound decision-making competencies, and work experience in several administrative functions to enable them to balance the needs of employees with business objectives.
With the
rise in remote working practices
and
hybrid working models
, effective HRM has become even more important in the rapidly changing business landscape. Plus, as companies face the challenge of talent shortages, major digital transformations, and an aging workforce, talented HR professionals are increasingly sought after to lead human resources departments and help businesses thrive.