Business encyclopedia

Learn everything there is to know about running a business

Human Resource Management

What is Human Resource Management?

Human resource management, HRM, is the department of a business organization that looks after the hiring, management and firing of staff. HRM focuses on the function of people within the business, ensuring best work practices are in place at all times.

Key Responsibilities

Any large or mid-size business will have a human resource management department. When there is the need for employing more staff the HRM will source suitable applicants. If the business needs to downsize, the HRM will also oversee the redundancy process for the unwanted staff. The HRM also manages vacation time, illness problems, bereavement leave and other day to day staff problems without cause for the involvement of senior management.

In the matter of a legal dispute with a member of staff, the HRM will take over the case. They will deal with all aspects of the dispute and find in favor of one of the parties involved. Where staff are in breach of their employment contract the HRM will intervene and handle a termination if necessary.

The HRM department ensures the smooth running of the staff within a business. This allows the management to focus on the running of the business and not get distracted by internal rows involving employees.

In a smaller business the HRM may be the responsibility of the line manager. The work may take focus from their daily job and in time a business may need to employ a HRM officer or train an existing member of staff to take on the role.

Vital in the Growth of a Business

The job of the HRM involves the training of staff in best working practices but also in preparing staff for advancing within the organization. This is a key role. By not retaining and continually training existing staff a business may not grow according to plans. Experience is not easy to come by and having staff with the necessary skills already on board avoids many problems in the future. It is cheaper to train existing staff than to source and train new members.

Human resource management also keep the business a pleasant place in which to work. Making staff and management aware of employment law and good behaviour at work is part of every HRM department’s remit. They resolve disputes before they arise, remove staff that may not add to the overall ethos and mediate between staff and management when problems do occur.

You may also be interested in: