What is Human Resource Management (HRM)?

Human resource management (HRM) activity is the process of allocating and using human resources within an enterprise or organization so they can be effectively and appropriately utilized for organizational progress.

Concept of Human resources management

Human Resource includes all human potentials in an organization or society (including members of the business leadership) i.e. all members of the company using their knowledge, ability, behaviour and ethical values to establish, maintain and develop an organisation.

Every business needs a lot of resources for its business and production activities, including: capital, materials, equipment and people to create products, goods and services. Most have procedures and processes in place for the supply of materials and equipment to ensure their availability when needed. Similarly, businesses need to pay attention to the process of managing people – an important resource.

The word “management” refers to aspects related to basic functions such as:

– Structure: Includes the process of building leadership style, giving employees systems to control the process.
– Administration: is to direct human resources, control the behavior of employees through the process of leading employees and controlling the human resources system.
– Development: is a leadership way to encourage members to have the ability to learn and improve continuously, creating organizational structure and operating the organization.

What is Human Resource Management?

Human Resource Management is a concept that refers to the totality of all management decisions and activities that help find, develop and retain staff and manage quality. It is also the implementation of the organizational function of basic management that has a great influence on the relationship between an organisation and its employees, including the following basic contents:

1. Job analysis
2. Employee recruitment
3. Training and improving professional capacity for employees.
4. Improve labour efficiency through the use of physical and mental stimulation systems for employees.

The main goal of human resource management is to effectively and reasonably allocate and utilize human resources within an organization, so as to achieve the company’s goals.

The focus of the HRM human resource management system is to meet the needs of the human resources department in terms of employee quality management, salary management, and performance appraisal. By improving the satisfaction and loyalty of internal employees, thereby improving employee contribution (i.e performance), it helps managers to reduce costs and accelerate growth through effective organizational management, creating value chain profits.

The main functions of human resource management

1. Organizational management

It can provide management of company organizational structure and change, position information and working relationship between positions, staffing according to position status; manpower planning according to organizational structure, calculation and management of personnel cost, support for generating organization table and organizational structure etc.

2. Personnel information management

It can provide management of all kinds of information and personnel information changes in the whole process from employee probation to regularization to dismissal or retirement; provide a variety of query and statistical analysis methods.

3. Recruitment management

Realize the whole process control, from planning recruitment positions, publishing recruitment information, collecting candidates’ resumes, screening personnel by positions, managing job interview results and notifying probation.

4. Labor contract

It can provide management of the signing, modification, cancellation, renewal, labor disputes, and economic compensation of labor contracts, and set the probation period and automatic reminder of contract expiration as needed.

5. Training management

Can provide training objectives, course content, instructors, time, location, equipment, budget, etc.; manage training personnel, training results, and training costs; determine training needs and plan employee training according to job settings and performance appraisal results data.

6. Attendance management

It mainly provides management of employees’ attendance and helps companies to improve the operation system. It mainly includes the setting of various holidays and the management of shift, overtime, business trip, leave request, statistics of late arrival and early departure, statistics of attendance, etc. Provide interfaces with various attendance machine systems, and provide relevant data for payroll management systems.

7. Performance Management

According to the different requirements of the position in terms of knowledge, skills, ability, performance, etc., the system provides a variety of assessment methods and standards, can freely set assessment items, and conduct qualitative and quantitative assessments on employees’ characteristics, behaviors, work results, etc. .

8. Welfare management

The welfare management system provides the functions of extracting and managing various welfare funds of employees. It mainly includes defining the fund type, setting the conditions for fund withdrawal, carrying out the daily management of the fund, and providing corresponding statistical analysis. The daily management of the fund includes the regular withdrawal of the fund, the supplementary payment of the fund, and the transfer in and out. In addition, it provides the function of submitting relevant reports to relevant management agencies.

9. Salary Management

The salary management system is suitable for all kinds of firms, administrations, institutions and scientific research units, directly integrating data such as attendance, performance appraisal, etc., and mainly provides functions such as salary accounting, salary payment, fund accrual, and statistical analysis.

Eight Characteristics of Human Resource Management

1. Integrate the human resource plan with the company’s strategic goals and action plans;

2. The design of jobs and positions should help to promote company innovation;

3. The compensation and reward system should be adapted to high-performance work;

4. Attach importance to and promote teamwork;

5. Delegating decisions related to quality and user satisfaction to employees and teams;

6. Make huge investments in training and development

7. Create a working environment that is safe, civilized and beneficial to the development of employees;

8. Monitor the effectiveness of human resource management and measure employee satisfaction.

Automation can reduce the risk of human error in human resource management, allowing professionals to focus on the most challenging aspects of their jobs. Internet-based HRM applications offer a variety of important benefits, with easy access to HRM tools from anywhere, personal customization, elimination of paper clutter and waste, higher levels of information security (especially sensitive corporate data), efficient integration with the company’s other solutions and software programs, addressing the need for costly maintenance or upgrades, and reducing installation costs or the expense of purchasing hardware.

Common HR titles

Staffing coordinator

Staffing specialist

HR assistant

HR associate

HR representative

HR administrator

HR specialist

HR generalist

HR supervisor

HR analyst

HR manager

HR director

Chief human resources officer

Vice president of human resources

Benefits administrator

Staffing manager

Recruiter

Employee relations manager

Development manager

Safety manager

FAQs :

What is HRS?

HRS: (Human Resource Specialist) abbreviation, refers to human resources experts.

What is HR?

HR: (Human Resource) abbreviation, refers to the personnel specialist. Responsible for finding the right talent and interviewing job candidates.

What is HRA?

HRA (Human Resource assistant) abbreviation, refers to the personnel assistant. Accept the instructions of the personnel commissioner, and be responsible for the basic personnel information sorting and contacting job seekers.

What is HRM?

HRM: (Human Resource Manager) abbreviation, refers to human resources manager. Responsible for planning and realizing the needs of the human resources department in terms of employee quality management, salary management, performance appraisal, etc.

What is HRD?

HRD: (Human Resource Director) abbreviation, refers to the human resources director. It is the highest position in the human resources department of a general company and is responsible for coordinating the company system and the overall human resources system.

What is HRBP?

HRBP: Abbreviation of (Human Resource Business Partner), referring to human resources business partner. It is the human resources manager assigned by the company to each business or division, mainly assisting the senior management and managers of each business unit in employee development, talent discovery, ability training and other aspects of work. It is responsible for the implementation of the company’s human resources management policy system and system specifications in each business unit, to assist business units to improve human resource management, and to help train and develop the human resource capabilities of cadres at all levels of business units.

What is CHRO?

CHRO: Abbreviation of (Chief Human Resources Officer), referring to the Chief Human Resources Officer. It is the highest position in the human resources department that can only be set up by a group company. It is responsible for formulating and supervising the implementation of the human resources strategic plan of the group-operated company. It is responsible for establishing smooth communication channels and an effective incentive mechanism, and is fully responsible for the work of the human resources department.