Human Resources Management
Human Resources Management, or HRM, is a term defining all organisational activities related to the development, work efficiency, recruitment, and retention of employees. The department responsible for this process is commonly known as HR – from the English Human Resources; its employees are often simply called “HR specialists” or “HR professionals”. To fully understand the essence of HRM, it's worth taking a closer look at the phrase itself: human resources. What are they?
Definition
What does “human resources” mean?
The term “human resources” (also known as human capital) at first glance might simply mean a team or employed individuals. In this context, employees would be the company's resources. In reality, however, it refers to the resources that employees possess: their skills, competencies, motivation, knowledge, and abilities. Therefore, the HR department manages what each person brings to the company – most generally speaking, their potential. The main task of human resources management is to fully uncover and maximise the potential of employees, including influencing its effective development.
However, understanding “human resources” as resources in the form of people is not entirely incorrect – from a management perspective. HR is not only concerned with investing in employees' potential but also with scheduling, issuing documentation, and arranging medical examinations. Human resources management can therefore be divided into 'soft' and 'hard'. The former refers to managing the competencies of employees, while the latter refers to managing the people themselves.
The role of human resources management in an organisation
Proper human resources management has a huge impact on the proper functioning of the entire company. The effective work of HR professionals determines whether an organisation will be rich in valuable employees – “valuable” referring, of course, to the relevance of their competencies to a given industry or company goals. The HR department ensures the recruitment of the best possible people for the job, involving thorough selection of candidates based on their skills, aptitudes, salary expectations, and development opportunities. It also aims to retain good employees, minimising turnover and thus the costs associated with staffing changes. It also ensures that individuals are matched to appropriate positions and that employees' skills are developed and their knowledge deepened.
As a result, proper human resources management clearly impacts improving the company's work efficiency and thus its market position. A satisfied employee who is developing, performs well, and receives prompt feedback regarding mistakes made or tasks excellently performed, is much more willing to engage in striving to achieve the organisation's strategic goals.