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Human Resource Management
Purpose of Human Resource Management
Management Textbooks Boundless Management Human Resource Management Purpose of Human Resource Management
Management Textbooks Boundless Management Human Resource Management
Management Textbooks Boundless Management
Management Textbooks
Management
Concept Version 11
Created by Boundless

The Mission of Human Resource Management

Human resource management's mission is to coordinate people within an organization to achieve the organization's goals.

Learning Objective

  • Demonstrate the mission of human resource management, in both the broader organizational perspective and the narrower individual one


Key Points

    • Human resource management (HRM) views people as organizational assets and internal customers and works to create job satisfaction and employee efficiency and effectiveness.
    • HRM concentrates on internal sources of competitive advantage. It regards people as an organization's most important asset.
    • The department of human resources (HR) communicates with employees and adapts the organization's culture and structure to their needs—for example, in negotiating with unions or re-engineering processes.
    • HR leads the employment life cycle, from attracting and hiring the right employees to facilitating performance reviews and eventually processing terminations.

Terms

  • human capital

    The stock of competencies, knowledge, and social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

  • asset

    Any component, model, process, or framework of value that can be leveraged or reused.


Full Text

Human resource management (HRM) is the coordination of an organization's people to achieve specific business objectives, fulfill staffing needs, and maintain employee satisfaction. HRM accomplishes this through the use of people, processes, and technology that focus on the internal parts of the organization rather than on the external environment. HRM draws from many diverse fields—such as psychology, business management, process management, information technology, statistical analysis, sociology, and anthropology—to achieve these objectives.

Human resources

People are assets for an organization.

People as a Resource

HRM concentrates on internal sources of competitive advantage. It regards people as the most important single asset of the organization. HRM is proactive in its relationship with people and seeks to enhance organizational performance in its relationship with them. HR professionals emphasize the quantitative, calculative, and strategic aspects of managing the human resource in a systematic way. It also manages communication, motivation, and leadership between people in the organization.

General HRM Functions

  • Aligning human resources and business goals
  • Re-engineering organization processes
  • Listening and responding to employees to maintain high job-satisfaction levels
  • Managing transformation and change
  • Staffing (i.e., hiring and firing) and training
  • Understanding and integrating labor laws and ethics

Organizational Level

At the macro level, HR is in charge of overseeing organizational leadership and culture. It also ensures compliance with employment and labor laws, which differ by geography, and often oversees health, safety, and security.

In circumstances where employees desire, and/or are legally authorized to hold, a collective bargaining agreement, the human resources department will typically also serve as the company's primary liaison with the employees' representatives (usually a labor union).

HR professionals engage in lobbying efforts, usually through industry representatives, with governmental agencies such as the United States Department of Labor and the National Labor Relations Board to further their priorities.

Employee Level

On an individual level, HR's mission is to manage the employee experience during the employment life cycle. It is first charged with attracting the right employees. It then must select the best employees through the recruitment process. HR then onboards new hires and oversees their training and development during their tenure with the organization.

HR assesses talent through the use of performance appraisals and then rewards them accordingly. HR may sometimes administer payroll and employee benefits, although such activities are now often outsourced, with HR playing a more strategic role.

Finally, HR is involved in employee terminations—including resignations, performance-related dismissals, and layoffs.

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