Question: 

What Is Human Resource Management?

Answer:

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and
providing direction for the people who work in the organization. Human Resource Management can also be performed by line
managers.

Human Resource Management is the organizational function that deals with issues related to people such as compensation,
hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication,
administration, and training.

Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and
environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and
the accomplishment of the organization's goals and objectives.
Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are
increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs
impact the business in measurable ways. The new role of HRMinvolves strategic direction and HRM metrics and
measurements to demonstrate value.

Human Resource Management (HRM)

We often hear the term Human Resource Management, Employee Relations andPersonnel Management used in the popular press as w
Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices
article, we look at the question “what is HRM ?” by giving a broad overview of the topic and introducing the readers to the practice of HR
contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is
more to the field of HRM and despite popular depictions of the same, the “art and science” of HRM is indeed complex. We have chosen
“art and science” as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well b
the precision and rigorous application of theory that is required. 

As outlined above, the process of defining HRM leads us to two different definitions.The first definition of HRM is that it is the proces
managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention
pay and perks setting and
management, performance management, change management and taking care of exits from the company to round off the activities. Thi
traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was
earlier.
The second definition of HRM encompasses the management of people in organizations from a macro
perspective i.e. managing people in the form of a collective relationship between management and employees. This
approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in
contemporary organizations is concerned with the notions of people enabling, people development and a focus on
making the “employment relationship” fulfilling for both the management and employees.

These definitions emphasize the difference between Personnel Management as defined in the second paragraph and
human resource management as described in the third paragraph. To put it in one sentence, personnel
management is essentially “workforce” centered whereas human resource management is “resource”
centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and
deploying people and a greater emphasis on planning, monitoring and control.

Whatever the definition we use the answer to the question as to “what is HRM?” is that it is all about people in
organizations. No wonder that some MNC’s (Multinationals) call the HR managers as People Managers, People
Enablers and the practice as people management. In the 21st century organizations, the HR manager or the people
manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most
organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager
is responsible for managing employee expectations vis-à-vis the management objectives and reconciling both to
ensure employee fulfillment and realization of management objectives.
In conclusion, this article has briefly touched upon the topic of HRM and served as an introduction to HRM. We shall
touch upon the other topics that this field covers in other articles.

Functions
The Human Resources Management (HRM) function includes a variety of activities, and key among them
is deciding the staffing needs of an organization and whether to use independent contractors or hire
employees to fill these needs, recruiting and training the best employees, ensuring they are high
performers, dealing with performance issues, and ensuring your personnel and management practices
conform to various regulations. Activities also include managing your approach to employee benefits and
compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit)
have to carry out these activities themselves because they can't yet afford part- or full-time help.
However, they should always ensure that employees have—and are aware of—personnel policies which
conform to current regulations. These policies are often in the form of employee manuals, which all
employees have.

Note that some people distinguish a difference between HRM (a major management activity) and HRD
(Human Resource Development, a profession). Those people might include HRM in HRD, explaining that
HRD includes the broader range of activities to develop personnel inside of organizations, including, e.g.,
career development, training, organization development, etc.

There is a long-standing argument about where HR-related functions should be organized into large
organizations, e.g., "should HR be in the Organization Development department or the other way
around?"

The HRM function and HRD profession have undergone major changes over the past 20–30 years. Many
years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork
around hiring and paying people. More recently, organizations consider the "HR Department" as playing
an important role in staffing, training and helping to manage people so that people and the organization
are performing at maximum capability in a highly fulfilling manner.

See also

HUMAN RESOURCE EDUCATION

The ERI Distance Learning Center provides continuing education

and certifications for Human Resource professionals through its
online Human Resource courses in compensation and benefits.
Our online HR courses may be used for career
development, continuing education credit, or to earn online
certifications in Compensation, Job and Compensation Analysis,
andBenefits.
Distance Learning Center foundation courses are ideal for Human Resource Management training and
development in compensation and benefits administration. These HR online learning courses teach
compensation and benefits administration from the ground up. Advanced courses provide Human
Resource Management professionals sophisticated training and career development. Most Distance
Learning Center online education courses last 1-2 hours.

HR Training Courses

To view an up-to-date listing of our currently available online learning courses, click here.

Human Resources Training Tools

 To enhance your learning experience, we recommend that you take the online education
courses using ERI's DLC Wizard software. This free HR software simplifies each online
education course by automatically downloading all the HR training materials you need. 

 Business Glossary: With over 2,000 business definitions, this free online business glossary is a
useful resource for HR management training. It focuses on human resources definitions, as
well as compensation and benefits terms.  

 Human Resource Management Textbook: This free online textbook teaches salary and benefit
administration from the ground up. It serves as the source text for many DLC courses. This is
an excellent Human Resources Management  training and development resource that is free to
everyone.

 Directory of Human Resources Management Websites : This is a directory of free online

education and business websites that specialize in Human Resource Management training and
development, compensation and benefits, relocation, payroll, and other business activities. 

 Crosswalk to ERI Software and DLC Online Education Courses:  Find out which Distance
Learning Center online education courses teach about the ERI software to which you might
subscribe. Our online education interactive exercises provide tutorials on entry-level to
advanced HR software research techniques.

Professional Continuing Education Credit

DLC online education courses are approved for HR continuing professional education:

 PHR, SPHR, GPHR Certification: Have you earned your PHR, SPHR, or GPHR certification
from HRCI? Take ERI Distance Learning Center online education courses for your PHR, SPHR,
and GPHR recertification credits. All Distance Learning Center online education courses are
approved for from 1 to 4 credit hours of PHR, SPHR, and GPHR recertification credit. To view a
listing of HRCI approved courses, click here. To find out how to obtain your PHR, SPHR, or
GPHR certification, click here.

 CCP, CBP, GRP Certification: DLC online education courses offer WorldatWork Society of
Certified Professionals recertification credits for the following credentials: CCP certifications,
CBP certifications, and GRP certifications. 

 CPA CPE credits: Most DLC online education courses provide accountant CPE credits. Click
here to view a list of accounting courses that provide interactive self-study CPE credits.
Also see our CE credit chart and CRCC credit chart for listings of accredited online courses in your
state that provide continuing education CE credits for insurance agents and CRCC credit for
rehabilitation counselors.  

HR Certification in Compensation and Job Analysis

ERI Distance Learning Center online education courses allow you to earn your professional Job and
Compensation Analyst (JCA) credential. This professional certification provides Human Resource
Management training and development in the fields of compensation administration and job analysis.
To earn this professional certification, you must complete 50 Distance Learning Center online
education courses in 1 year. For more information on earning this HR Management professional
certification, click here.

RT software comparisons contain the latest, hard to find functional criteria. Can be used to clearly compare
all leading Human Resources (HR) and Human Resource Information Systems (HRIS) packages. Used in
thousands of human resources software selections, our data is the most trusted and accurate
available. Revised March 2008.
 

Resources for:
 

 Human Resource Information Systems (HRIS)

 Human Capital Management
 Talent Management
 Performance and Compensation Management
 
About Human Resource Management Systems
 
Human resource management systems (HRMS) encompass applications for handling personnel-related tasks
for corporate managers and for individual employees. An HRMS generally supports personnel management,
benefit management, payroll management, training management, workforce management, and health and
safety administration. Many systems support employee self-service functionality as well. These systems
support human resources (HR) personnel by automating much of the work.

 
HR Software Selection: It Ain't Rocket Science
 
So … you're either in the market for your company's first human resources management system (HRMS), or
you're ready to move up to a more sophisticated system, and you're struggling with whether to bring in the
consultants or tackle the evaluation process by yourself. Can you do it yourself? The answer is yes, and
maybe. It all depends on whether or not you can commit the time and resources to doing it right.

Be prepared for a fairly time-consuming process, ranging from at least three to nine months or more. You'll
also need to recognize that it will require a considerable outlay of capital and staff resources to bring the
project to fruition. Your company will have to live with your decision for the next eight to ten years or more,
so you want to make sure that you do it right—the first time.

For starters, it will be extremely helpful to begin with a clean slate and an open mind. The less biased you
are regarding a specific software vendor or application (either “for” or “against”), the easier it will be to
make an objective evaluation and decision. In the last five years or so, vendors, software applications, and
hosting options have undergone significant changes. Making a decision based solely on past experiences
(good or bad) may be a disservice to your organization. Try to remain unbiased throughout the evaluation
process. Whether you use a consulting firm to help you in your quest, or decide to strike out on your own,
following a rock-solid methodology is the key to success.

Read more about HR software selection

 
 
Human Resources for Small to Medium Businesses 
 
One of the many features that distinguish a small to medium business (SMB) from a large enterprise is its
number of employees. A business that is considered small employs less than 100 people; a medium size
business is one having between 100 and 999 employees. A large enterprise, including all of its subsidiaries,
has over 1,000 employees using numerous application systems.

Naturally then, SMBs have vastly different human resources (HR) needs compared to large multinational
corporations. HR, in a nutshell, encompasses such areas as payroll, benefits, performance evaluation,
candidate screening and recruiting, employee termination, and retirement packages. It’s important for SMBs
to purchase HR solutions that are scalable to their functionality needs. In addition, to remain competitive
with large enterprises, SMBs must rely on vendors to price their software according to a smaller IT budget
and to cater to SMB requirements.

An SMB has the same options to choose from that a large enterprise has when it comes to the type of HR
system to implement. For example, one SMB may select an all-in-one (or integrated) solution to use in
conjunction with its other processes and systems. Another SMB might decide to go with a modular model,
one with which it can pick and choose the software features and functions it most often uses, and outsource
the rest of its HR operations to a third party vendor.

In today’s market, SMBs are looking for HR systems that offer a lot flexibility and a variety of options to fit
their needs. Among their choices are hosted and non-hosted solutions, as well as outsourcing options. This
article will briefly discuss the pros and the cons of each of these options.