What is Human Resource Management?

Human Resource Management is the discipline of recruiting, hiring, deploying and managing people for and within an organisation. It also covers training and development, performance appraisal , compensation, motivation and wellbeing. Human Resource Management is often shortened to 'HRM', 'HR' or 'Human Resources'. The HR department covers a range of functions such as payroll, personnel administration, recruitment & selection, onboarding, learning and development, appraisal and reward. The HR department is usually responsible for designing, running and managing employment policy and the organisation's relationship with its people.

Why does the HR department matter to an organisation?

Behind the production of every product and every service lies human effort. To date, no product or service can be developed or improved without people, which makes people an organisation's most important capital. HR is essential to making sure people join, feel good, can work on their growth and development, can perform at their best, and that everything around employment is properly arranged. Human Resource Management departments are also often responsible for the culture and the development of the organisation. They have to make sure the organisation's mission, vision and values are lived and carried forward by its people. Get that right and it creates more engagement and, ultimately, less turnover.

The changing role of Human Resource Management

In recent years, the HR department has taken on a more important role in many organisations. Its tasks used to be determined by the people on the shop floor. Because of the tight labour market, employees increasingly want a tailored approach and want to work on their personal development. As a result, HR departments today are becoming less operational and administrative. Human Resource Management has to add more and more value, which is why HR is increasingly at the boardroom table, contributing to processes and business solutions that improve the organisation. It is the job of Human Resources to recognise the talent already present , put it in the right place and develop it in the direction of the organisation's goals. To achieve that, HR policy has to be inseparably tied to the organisation's strategy. This new role also calls for statistics and figures. As technology within HR advances, the human side becomes more important, because it is people who sit at the heart of business success. Using performance management software combines the best of both worlds. It gives you insight into the growth, development, talent and potential of your people and helps you spot what needs attention, so you can respond to innovation and change far more quickly.