What is Human Resource Management?

Human resource management (HRM) is based in the efficient utilization of employees to achieve two main goals within a company or other organization. The first is to effectively make use of the talents and abilities of each employee to meet the operational objectives that are the ultimate aim of the organization. Along with this, the practice also seeks to ensure that individual employees are satisfied with both their working environment and the compensation and benefits that they receive.

At times, the two main HRM functions seem to be at odds with one another. There are certainly instances where it is impossible to arrive at solutions that are in line with both the aims of the company and the desires of the employee. When this happens, effective managers are faced with the task of finding a resolution that protects the interests of the company, but at the same time provides and acceptable level of satisfaction to the employee. This process can sometimes take a great deal of expertise on the part of the human resource personnel, but ultimately can help establish the best solution for all concerned parties.

Among the human resources issues that are generally handled by HR management personnel are the drafting of position descriptions for all levels of employment within the company, setting the standards and procedures that are used for hiring new employees, and determining benefits that are extended to existing employees. Disciplinary procedures, as well as procedures for recognizing employees for exemplary work, also fall under the province of human resource management. The HR department often seeks to provide the highest quality benefit packages possible, given the current financial position of the company. To this end, personnel will typically seek the best in group health insurance, retirement programs, profit sharing, and vacation and personal days.

Preparing and maintaining a company employee handbook is often the province of human resource management. As part of that process, the management team will ensure that all guidelines and regulations contained within the text comply with local, regional, and national laws that affect the status of employees. Managers will also provide all employees the opportunity to understand the provisions within the handbook, both as part of new employee orientation and as an ongoing employee education process.

Often, human resource management and personnel are called on to mediate disagreements between employees and immediate supervisors. In these situations, the mediator will seek to represent the best interests of the company, ensure that the dialogue and process is in compliance with laws governing employment within the country of residence, and seek to effect resolution and reconciliation of all parties.