What is Human Resource Management (HRM)

Human Resource Management is a broad term that can be explained as the formal system of management in a work organization. The main function of HRM is to maximize productivity by staying within the means and effectively benefit the organization.

HRM is further divided into categories like employee compensation, staffing, and work plan. All the capacity of growth and development of an organization is dependent on HRM. Good HR management can provide the best strategies for the success of the organization.

Human Resource Management works as a bridge between an organization and its employees. The management system carefully designs a plan keeping the capabilities of the team under consideration and makes their skills profitable for the company.


The needs of employees are also not ignored; it also focuses on individual development and satisfaction. HRM also aligns with the goals of employees and the company.

If the goals of both are the same then the company is likely to achieve its goals faster. Human Resource Management covers everything from hiring the employees to the development of work plans.

 Importance of Human Resource Management

The importance of HRM is well known and considered as a backbone of an organization. Different companies have different goals for their HR team but one main role is to keep a balance between work by managing it carefully.

  • Human Resource Management is likely to engage employees and keep them motivated.
  • A good HR keeps the ownership to them but creates a good working environment. The HR team works on performance management, talent management, development, hiring, and developing productive strategies to make the plans successful.
  • The HR team is responsible for the recruitment which is an extensive process and goes through different steps.
  • The HR team plans training sessions and workshops keeping in view the new strategies and the capabilities of the team.
  • The HR team is the one who puts in salary ranges and makes them market competitive to attract new talent.
  • Human Resource Management also works on new ideas that work in the best favor of employees to keep them satisfied and updated.
  • The HR department works on conflict management and coaching to bring out the best potential of the team.
  • It also works on team building by making the work environment pleasant.
  • Forms rules and laws in an organization

Objectives of Human Resource

Every organization sets its objectives according to the need but some common objectives remain the same which are as follows.

  • Societal Objectives: HRM is also responsible for the needs and demands of society. Working within the limits of rules and laws of the society should be strictly followed. See how you can benefit society. Keeping good relations with the union and management is also a part of societal objectives.
  • Organizational Objective: Its main focus is to bring out the best possible results by managing the planning processes, recruitment, placement, induction, training, performance analysis, and appraisal. The objective is to keep the organization profitable.
  • Functional objective: To see all the functions which are planned are happening as per the schedule. It also caters the organizational needs.
  • Personal Objectives: A good HR helps to improve the individual along with the organization. It deals with better working conditions, provides performance-based incentives, promotion, motivation, and other personal facilities. All this makes an employee secure which directly impacts the performance.

Other than this some basic objectives are;

  • To develop a good relationship with the employees and the management system
  • Arrange training and personal development programs
  • Retain its workforce by enhancing job satisfaction
  • Creating equal opportunities for its employee
  • Fair hiring or recruitment process
  • Utilizing the resources to their maximum
  • Integrate personal and organizational goals
  • Create opportunities for the growth of employees
  • Keep the morale of team-high by constant motivation

Download Human Resource Planning Template

Template 1: Human Resource Planning Template

Human Resource Planning Template
Human Resource Planning Template

Template 2: Human Resource Management


Roles and Responsibility of HR Manager

Not all the HR managers have the same roles assigned but they are working on the management end and dealing with different stuff. Some roles and responsibilities are precisely explained;

  • One common role which HR managers have is planning. They are the ones responsible for defining the organizational objectives. HR managers are always working at the back end to lead the company towards sustainability The HR manager plans the use of resources and sets the timeline of the tasks. They are involved in the planning for the work map of the organization.
  • The HR manager carefully designs job statements as per the requirement of the company. After setting up a catchy job description they are the ones responsible to hire the right talent. They set market competitive salaries, work plans, and the position of the employee in the company.
  • The hiring process is extensive. It is not just about putting a job ad and then having an employee on board. It goes through different filtering steps. The screening process is on the basis of job descriptions. The best suitable ones are shortlisted for the interview. And go through the rounds of interviews or training before getting on board.
  • A team requires training programs to stay in the business and keep their skills polished as per the evolving tools and strategies. Training is required for both the fresh and existing employees. The HR team plans such activities keeping the schedule of each employee under consideration.
  • The HR team has an eye on the performance of each employee to keep up with the progress of the company.
  • HR managers set the culture of the workplace.
  • HR managers go through productive arguments to resolve conflicts among the team or between management and an employee.

Challenges of HRM

The HR team faces some major challenges that can impact the company greatly. They face trouble in finding and attracting talented individuals. There is a major trouble in getting the team in one place.

Maintaining a healthy positive work environment is a tough challenge. To maintain the standards and enhance productivity to its maximum by staying in means is also a hard job to manage.