What is Human Resource Management (HRM)?

What is Human Resource Management (HRM)? 18-Dec-2024

Human Resource Management (HRM) drives organisational success by managing personnel to boost productivity and growth. But what is Human Resource Management? It is the process of empowering the workforce while aligning their goals with organisational objectives. The demand for HR professionals is on the rise. According to Glassdoor, demand for HR professionals is growing, with 67% of global job seekers valuing diversity when assessing job offers, highlighting the importance of inclusive HR policies. 

In this blog, we will talk about What is Human Resource Management, its core principles, functions, and the latest trends in HRM. We will also discuss their career opportunities and steps to start a career in the ever-evolving domain.     

Table of Contents 

1. What is Human Resource Management? 

2. Importance of Human Resource Management 

3. Principles of Human Resource Management 

4. Functions of Human Resource Management 

5. How HRM Works? 

6. Trends in Human Resource Management 

7. Career Opportunities in HRM 

8. Steps to Start a Career in HRM 

9. Conclusion 
    

What is Human Resource Management? 

Human Resource Management is the strategic and proactive approach to managing people effectively within an organisation to maximise their performance and achieve business goals. It involves recruiting, training, and developing employees, ensuring their well-being, and aligning their efforts with organisational objectives. 

HRM encompasses key functions such as employee relations, compensation, health and safety, and compliance with labour laws. By fostering a productive work environment, HRM plays a key role in developing organisational success and employee satisfaction. 

 

CIPD Level 5 Associate Diploma in People Management 

 
Importance of Human Resource Management 

Human Resource Management plays an indispensable role in organisational success and sustainability. Here are some essential points describing its importance: 

1. Aligning with Organisational Goals: HRM ensures employees’ efforts align with the organisation’s mission and culture. 

2. Recruiting Skilled Talent: Attracts and hires qualified professionals to advance company objectives. 

3. Training and Development: Provide employees with the necessary skills and knowledge to achieve organisational goals. 

4. Maintaining Business Health: Supports employee well-being and productivity to sustain overall performance. 

5. Monitoring Job Market Trends: Ensures competitive benefits, prevents burnout, and adapts roles to market demands. 

Principles of Human Resource Management 

Human Resource Management has evolved from a task-oriented administrative function to a critical strategic component of every organisation. Here are some key HRM guiding principles given below:  

1) Commitment 

HR departments focus on job security by ensuring staffing levels meet the company's needs. This commitment is demonstrated through regular training, performance evaluations, and goal-setting activities, which assure employees of their long-term positions within the organisation. 

2) Competence 

Competence is crucial for a company's growth and development. HRM sustains workforce competency by providing training opportunities and orientation programs. These initiatives improve employees' skills, knowledge, and competency, leading to the production of reliable products and services. Without a high level of competence, a company risks legal issues with its products and services. 
 

Functions of Human Resource Management 

Human Resource Management encompasses several key and highly critical functions for smoother organisational operation and success. Here are the main HRM’s functions listed below: 
 

 Visual representing HRM functions 

1) Employee Recruitment 

Recruitment identifies talent gaps and finds suitable candidates for roles. It includes job analysis, sourcing candidates, screening, evaluating applicants, and onboarding selected individuals to integrate them effectively into the organisation. 

2) Employee Orientation 

Employee orientation, or onboarding, introduces new recruits to essential skills, knowledge, and behaviours. Methods include lectures, meetings, videos, mentoring, and team-building, providing insight into company goals, policies, and activities. 

3) Employee Development 

Employee development enhances individual, team, and organisational effectiveness. Through training and development, HRM aligns employee skills with company needs, reducing recruitment costs and fostering a competent, career-focused workforce. 

4) Employee Health and Safety 

Employee safety is a key HRM focus, addressing harassment, discrimination, and bullying. Measures include workplace safety protocols, fire code compliance, labour law adherence, and safeguarding employee data with cybersecurity measures. 

5) Compensation and Benefits 

Compensation covers salary, perks, benefits, and time off. HRM ensures fairness by aligning with industry standards and adjusting pay through performance reviews, promoting consistency and equity within the organisation. 

How HRM Works? 

Human Resource Management ensures the efficient handling of employee-related processes and aligns them with organisational goals. Here’s how it works:  

1. Dedicated Department 

HRM typically operates as an independent department within the organisation, responsible for managing all employee-related tasks. It handles everything from recruitment and training to benefits administration and compliance with employment laws. 

2. Strategic Role 

HRM works closely with senior leadership to align workforce management with the organisation's strategic goals. This includes planning for future staffing needs, developing policies that support business objectives, and fostering a strong organisational culture. 

3. Day-to-Day Operations 

On a daily basis, HR professionals manage essential tasks such as processing payroll, managing performance reviews, and addressing workplace issues like disputes or grievances. These activities ensure smooth organisational operations and employee satisfaction. 

4. Adaptability 

The structure of the HR team varies depending on the size and type of organisation. In smaller companies, one HR professional or a small team may handle a wide range of responsibilities. In contrast, larger organisations often have specialised roles such as recruitment specialists, training managers, and compliance officers, allowing for more focused expertise. 

5. Employee Support 

HRM acts as a critical support system for employees, addressing their concerns and providing resources to enhance their work experience. This includes resolving conflicts, offering career development opportunities, and ensuring a positive work environment that fosters motivation and engagement. 

6. Technology Integration 

Modern HRM integrates technology to improve efficiency and accuracy. HR software systems automate tasks like payroll, performance tracking, and recruitment, enabling HR teams to focus on strategic initiatives and employee engagement.  

7. Legal Compliance 

HRM ensures the organisation adheres to labour laws and regulations, safeguarding both the company and its employees. This includes health and safety standards compliance, anti-discrimination laws, and data protection policies. 

Trends in Human Resource Management 

The Human Resource Management field is experiencing robust job growth and promising salary prospects. Here are some key trends highlighting these opportunities: 

1) Growing HR Jobs Demands: Companies are increasingly recognising the strategic value of a robust HR department. This leads to a rise in HR professionals' demands. 

2) Average Salary: According to Glassdoor, the average salary for an HR Manager in the UK is £46,501 per year. This promising salary reflects the growing opportunities in Human Resource Management 

Lead transformative learning programs with professional certification- Sign up for our CIPD Level 5 Associate Diploma in Organisational Learning and Development today! 

Career Opportunities in HRM 

Human Resource Management offers a variety of career paths, each with its own array of responsibilities and requirements. Many roles in HRM typically require a Bachelor's degree in Human Resources or in an associated field. Here are some key careers in the HRM industry:  

 Visual representing HRM career opportunities 

1) Payroll Specialist 

Payroll specialists manage employee payment processes, ensuring accuracy and compliance. They handle timesheets, payroll documentation, and direct deposits. According to Glassdoor, the average salary is £29,913 per year. 

2) Training and Development Manager  

Training and development managers design and implement programs to enhance employee skills and knowledge. They play a crucial role in organisational growth. According to Glassdoor, the average salary is £36,693 per year. 

3) Human Resources Manager  

Human Resources Managers oversee recruitment, employee relations, and compliance with labor laws. They ensure effective HR practices within organisations. According to Glassdoor, the average salary is £46,095 per year. 

4) Benefits Manager 

Benefits Managers develop and manage employee benefits programs, including health insurance and retirement plans. They ensure competitive and compliant benefits offerings. According to Glassdoor, the average salary is £58,430 per year. 

Steps to Start a Career in HRM 

Starting a Human Resources Management career involves several steps. These include education, gaining experience, earning certifications, and networking. Here are some key ways to prepare for HRM jobs:  

1) Gain HR Experience 

HR field experience alone can make you a standout candidate. The reason behind this is the abundance of opportunities to gain experience at all levels. Whether you're a new graduate or a seasoned professional, internships, apprenticeships, and entry-level positions like human resources assistant or associate are great starting points. 

In these roles, you'll assist with primary HR duties and build experience to advance. Joining professional organisations and attending networking events like conferences and conventions can also help you gain knowledge and connections in HRM. 

2) Earn CIPD Qualifications  

The CIPD sets professional standards for HR professionals in the UK. Completing a CIPD-accredited course is essential for some HR roles and beneficial for others. CIPD offers three levels of qualifications: foundation, intermediate, and advanced, with options for full-time and part-time study.  

The foundation level is for those new to the field, the intermediate level builds on existing knowledge, and the advanced level is for experienced professionals aiming to become chartered CIPD members. Qualifications come in different sizes: awards focus on specific HR areas, certificates cover HR essentials, and diplomas offer in-depth coursework. 

3) Apply for HRM Positions 

Once you have acquired the necessary skills and qualifications, it's time to refine your CV and apply for HRM positions. You must continually update your CV, including personal and professional references. Additionally, join professional organisations, take online courses, and attend conferences to demonstrate your dedication. 

When preparing your CV, include your credentials, relevant professional experience, internships, education, memberships in professional organisations, and any achievements, qualifications, and skills pertinent to HRM.  

Build a strong HR foundation with People Practice expertise- Join our CIPD Level 3 Certificate in People Practice today! 

Conclusion 

We hope you understand What is Human Resource Management. As a pillar of organisational success, HRM aligns workforce goals with business strategies while ensuring employee well-being. By mastering HR principles and trends, you can shape a thriving career, boost efficiency, and make a meaningful impact on both organisations and people. 

Gain hands-on HR experience with CIPD Level 7 Advanced Diploma in Strategic People Management- Register today!