Journal of Research in International Business and Management

Process of managing people in organizations: Human resource management (HRM)

Received: 13-Aug-2021 Published: 02-Sep-2021, DOI: 10.14303/jribm.2021.08.003

Introduction

Human Resource Management (HRM) is the systematic and detailed management of people in enterprises. To round out the operations, this includes staffing (hiring people), retention, and compensation and perks setting and management, performance management, change management, and handling leavers from the firm. This is the classic definition of HRM, which some experts see as a modernised version of the previous Personnel Management role (Acquavita et al., 2009).

HRM's importance in organizational success

HRM should be seen through the lens of the organization's broader strategic goals, rather than as a stand-alone activity with a micro or unit-based approach. The goal is to take a holistic approach to HRM, ensuring that there are no fragmented methods and that HRM policy is completely integrated with the organization's objectives. For example, if employees' training needs are merely addressed with haphazard trainings on a variety of topics, the company risks losing not just the time spent in training but also the employees' sense of direction. As a result, a company that takes its HR rules seriously will guarantee that training is targeted and current (Brimhall et al., 2017).

Human resources are without a doubt the most important resources in any business, as well as the easiest and hardest to manage! HRM's goals include anything from determining personnel requirements to managing and retaining that workforce. Human resource management is in charge of the successful creation and execution of different policies, processes, and programmes in this regard. It's all about maximising the use of information, skills, creativity, aptitude, and ability that have been developed and managed (Cottrill et al., 2014).

Human resource management processes

The different HR processes are: Human resource management (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff); Remuneration and Benefits for Employees Administration; Management of performance; Employee Relations. Human Resource Planning: Human Resource Planning is defined as the practise of predicting people. Correct, but insufficient! It also includes the evaluation, promotion, and layoff procedures. Recruitment is the process of recruiting candidates who meet a set of job requirements. Selection is the next step in the filtration process. Shortlists applicants who are the closest fit for a certain position in terms of credentials, competence, and potential. Hiring: Selecting the ultimate candidate for the position. Training and Development: Those methods that focus on bringing a new employee on board in order to improve his or her skills and talents (Ferdman and Deane, 2014).

Human Resource Planning (HRP) is the process of predicting an organization's future human resource requirements and identifying how the organization's existing human resource capacity may be used to meet those requirements. As a result, it focuses on the fundamental economic idea of demand and supply in relation to the organization's human resource capability.

Demands for HR training and HR professionals

Indeed, aside from recruiting, training, and payroll, which are still vital to the HRM function, the addition of the aforementioned activities has given the normally staid and uninteresting profession a sprinkling of glitter. It's no surprise that schools like XLRI have witnessed an increase in demand for their HR programmes (Huselid, 1995). Furthermore, there is a growth in the number of graduates selecting HR as their speciality at other management schools. All of these trends contribute to the conclusion that the HR profession is in high demand and is no longer consigned to the periphery.

Conclusion

To summarise, HRM must be incorporated into the entire strategy in order to ensure effective use of people and offer greater ROI (Return on Investment) to companies for every rupee or dollar spent on them. Unless HRM is built in this way, businesses risk losing money by not fully uses their employees. And this is not a good sign for the organization's future success.

References

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2. Brimhall ME, Barak M, Hurlburt M, McArdle JJ, Palinkas L(2017). Increasing Workplace Inclusion: The Promise of Leader-Member Exchange. Hum Serv Organ, 41: 222-239.
3. Cottrill K, Lopez PD, Hoffman CC(2014). How Authentic Leadership and Inclusion Benefit Organizations. Equal Divers Incl, 33: 275-292.
4. Ferdman BM, Deane BR(2014). Diversity at Work: The Practice of Inclusion. John Wiley & Sons.
5. Huselid M(1995). The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance. Acad Manage J, 38: 635-672.

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