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Human resource operations form an integral part of any organization. The HR function is not just limited to a particular industry but it is relevant for every business today.
From employee retention and salary disbursal to conflict management and regulatory compliance, HR managers perform multiple duties to ensure smooth business operations. HR management has evolved to become a new career field offering many exciting opportunities across the globe.
In this article, you will learn more about human resource management, its importance, and its career scope.
Let us first learn what is HR Management and how it is defined.
What is human resource management?
Human resource management (HRM) is the practice of efficiently managing people in an organization helping them maximize their performance and meet the organization’s objectives.
HRM encompasses everything from recruitment and training to remuneration and other HR-related activities. It oversees all day-to-day HR operations and ensures that it is performed as per the existing regulatory policies.
The main purpose of human resources (HR) is to aid employees in their professional development while ensuring their service helps to achieve the company’s long-term goals.
Importance of HRM for organizational success
Regardless of which industry you are in or the size of your company, you are sure to come across a Human Resource manager. HR is the first person you interact with while getting into a new job.
Human Resource managers play a key role in every organization’s success as they handle one of the most critical aspects of the organization – the employees. Employees are the biggest assets of any organization.
Right from hiring the right people to training them and ensuring that they are comfortable and satisfied in their roles, HR managers offer great support to the employees. This results in lower attrition rates and higher productivity in teams. They also resolve conflicts and prevent unethical behaviors within the organization.
Since HR is one of the most important functions in a business unit, strategic management of this department is highly essential. Human Resource Management helps companies find the right talents and also ensures legal compliance. As the number of job roles in the HR domain increases, the need for HRM is also rising across all industries.
How does human resource management work?
The Human Resouce Management process typically starts with job policy formulation and encompasses a variety of activities that deal with human resources in a company.
Human Resource Management processes can differ according to the size and type of the organization. Most of the larger companies will have a dedicated HR department. Various HR activities like recruitment & selection, leave policies, payroll, administration, etc will be allotted to different people in the team.
Some HR functions such as training and development also operate independently. Smaller firms and start-ups will mostly have only one HR manager or executive who is managing all people-centric activities.
Human Resource Management System (HRMS) or Human Resources Information System (HRIS) software helps companies manage employee records, payslips, and other important employee documents. The HR management software helps to save time and effort for HR managers.
Many companies are also leveraging newer technologies such as Artificial Intelligence (AI) and predictive analytics to manage HR-related activities and make process improvements. Analytics helps organizations to gain significant insights from large volumes of data and take data-driven decisions.
Basic functions of human resource management
The basic function of HR management is to bridge the gap between employees and employers. The Human Resource Management process ensures the smooth functioning of an organization.
Some of the key functions of HRM are as follows:
- Job design and job analysis
- Recruitment and selection
- Employee training & development
- Employee compensation and benefits
- Employee performance management
- Managerial & labor laws
- Employee engagement & communication
- Health and safety regulations
- Future forecast & planning
Human capital management (HCM) and human resource management (HRM)
Human Capital Management and Human Resource Management are used interchangeably but both are different in many aspects. HRM has a main focus on core HR functions such as administration, employee onboarding, payroll, etc. HRM manages the processes and systems that enable employees to perform their tasks. HCM focuses on ways to maximize the economic value of an employee in an organization. HCM is a broader term that encompasses HRM functions also.
Key responsibilities of a human resource manager
Human resources managers are employed in nearly every industry. They plan, coordinate, and manage the administrative activities in an organization. People management or Personnel management, Talent management, etc are key areas of focus for HR staff.
Let us now look at the key responsibilities of a human resource manager.
1. Employee recruitment
Employee recruitment is one of the major responsibilities of an HR manager. A company is only as good as its employees and it is the duty of HR managers to find the right people with the right skill set.
2. Training & skill development
Learning is a continuous process in a career as it helps to enhance the skills and abilities of employees. HR managers plan and implement learning and development programs for employees. New employees will be given orientation and training in their work functions whereas existing employees will be given opportunities to learn new skills.
3. Employee relations
HR managers play a key role in improving employee productivity and job satisfaction levels. HR professionals support employees morally and professionally and also manage conflicts that may arise within the teams. The HR manager ensures the overall well-being of employees and sees that they contribute to the success of the organization.
4. Salary and benefits
An HR manager is responsible for arranging compensation and benefits for employees. They devise salary structures, analyze market trends, oversee employee performance, and interact with potential employees to discuss job roles.
5. Workplace policies
The HR manager develops workplace policies to protect the interests of employees and employers alike. Creating SOPs, codes of conduct, defining policies for anti-harassment, dress codes, leave policies, working hours, etc will fall under this function. HR managers should also make sure that they comply with state laws and all relevant legal regulations.
HR manager jobs
Businesses are now focusing more on HRM functions as it helps them to find the right talents more efficiently and to retain their valuable resources. HRM is a booming career field across the globe and the demand for HR professionals is only increasing steadily. From entry-level positions to mid-level and senior managerial positions, HRM offers a wide variety of job roles for those who are looking to join this field.
Some of the most popular HR management roles are given below:
- HR Assistant
- Hiring Manager
- Payroll Manager
- HR business partner
- HR Manager
- Recruitment Coordinator
- Recruiting manager
- Talent Acquisition Manager/Specialist
- HR Analytics Manager/Specialist
Qualifications for a human resource manager
Employers typically look for a combination of good academics and relevant work experience for HR roles. The level of work experience varies according to the company and role you are applying for, but however, most HR management employee roles demand some years of experience.
HR managers should also have various soft skills like strong communication, interpersonal skills, decision-making skills, and organizational & leadership skills.
If you are planning to start your career in HR management, you need a minimum of a Bachelor’s degree in business administration or in a similar field. If you don’t have a Bachelor’s degree in the relevant field, you can enroll in a Master’s program in HR to meet the eligibility requirements and gain the necessary knowledge.
For HR managerial positions most employers will prefer candidates with MBA in Human Resource Management. If you are currently working full-time and wish to get into HR management, you can opt to do a 1-year Executive MBA in HR management.