The Soul of a Company: Human Resource

Human Resource Management (HRM) is the process of handling everything related to a company's employees, from hiring to managing their tasks and wellbeing. It's often shortened to Human Resources (HR). The HR department in a company is responsible for creating, implementing, and overseeing policies that govern the relationship between the organization and its employees. The term "human resources" was first used in the early 1900s, and it became more widely used in the 1960s to describe the workforce of an organization.


HRM treats employees as valuable assets to the business, often referred to as human capital. Just like any other asset, the goal is to make the most effective use of employees, minimizing risks, and maximizing returns on investment (ROI).

Modern companies sometimes use the term Human Capital Management (HCM) when talking about HR technology.

Why is Human Resource Management Important?

The main goal of HRM practices is to manage people within a workplace in a way that helps the organization achieve its mission and maintain its culture. Effective people management allows HR managers to recruit new employees with the right skills, provide training for professional development, and ensure that everyone's efforts align with the organization's goals.

The success of a company depends largely on its employees, making HRM essential for maintaining or improving business health. HR managers also keep an eye on the job market to help the organization stay competitive, ensuring that compensation and benefits are attractive, preventing employee burnout, and adjusting job roles as needed.

How Does Human Resource Management Work?

HR professionals handle the day-to-day tasks related to HR functions. Usually, HR is a separate department within an organization, and its size, structure, and roles can vary. In smaller organizations, one HR generalist might handle multiple tasks, while larger organizations have specialized HR professionals for functions like recruiting, talent management, and benefits administration.

For example, Amazon, a large company, has various specialized HR positions listed on its career website, including HR assistant, recruiter, immigration specialist, compensation manager, and HR analytics specialist.

Objectives of Human Resource Management

HRM focuses on four main objectives:

  • Societal objectives: Ensuring ethical and social needs are met, such as equal opportunity and fair pay.
  • Organizational objectives: Improving organizational efficiency by providing training and maintaining high employee retention rates.
  • Functional objectives: Ensuring HR resources are utilized effectively.
  • Personal objectives: Supporting employees' personal goals through education, career development, and satisfaction.

Specific Objectives of HRM

  1. Maintain a productive workforce.
  2. Utilize employees' skills effectively.
  3. Provide proper training.
  4. Foster a positive employee experience.
  5. Communicate company policies.
  6. Ensure ethical and legal behavior.
  7. Manage internal and external changes.
  8. Support employee development and recognition.

Skills and Responsibilities of an HR Manager

HR managers oversee various HR functions, including recruitment, onboarding, talent management, compensation, performance management, training, and succession planning. They need skills in communication, recruitment, employee relations, legal compliance, conflict resolution, strategic thinking, data analysis, adaptability, ethics, and confidentiality.

HRM Software

HRM tasks are often automated using software that streamlines processes and provides analytics. Many areas of HR have specialized software tools, such as recruiting, performance management, and payroll. Vendors in the HRM market include ADP, BambooHR, Paycom, SAP, and Workday.

HRM Career Opportunities and Requirements

A bachelor's degree is usually required for HR management positions, though related fields like business administration can also lead to HR careers. Experience in operations-heavy roles can be valuable for transitioning to HR. Master's degree programs in HRM are available for those seeking advanced qualifications.

HRM History

HRM has its roots in the 18th century during the British Industrial Revolution when worker satisfaction programs were introduced to maximize productivity. Personnel departments, later known as HR, emerged in the 20th century. Technology began to play a significant role in HR in the 1970s, improving communication and access to employee information.

HRM Trends

HRM job opportunities are growing as companies recognize the strategic importance of HR departments. According to the U.S. Bureau of Labor Statistics, HRM job titles are expected to grow 5% in the U.S. between 2022 and 2023, with strong median salaries for HR managers and specialists.

Can Small Businesses Use HRM?

HRM principles and capabilities can benefit small businesses by aiding in effective hiring, compliance with employment laws, employee development, conflict resolution, retention, engagement, strategic planning, and scalability.

Types of HR: Recruitment, Compensation, Business performance management, Employee relations, Training and development, Occupational safety and health, Human Resources Coordinator, Learning and development, Succession planning.


In conclusion, Human Resource Management (HRM) serves as the backbone of any organization, responsible for nurturing its most valuable asset - its employees. By strategically managing people, HRM ensures the alignment of individual efforts with the organization's mission and culture, fostering productivity and growth.

Through effective recruitment, training, and development initiatives, HRM cultivates a skilled and motivated workforce, driving organizational success. Moreover, by upholding ethical and legal standards, HRM maintains a fair and inclusive work environment, where every employee's contributions are valued.

As businesses evolve, HRM adapts, leveraging technology and staying attuned to industry trends to meet the changing needs of the workforce. Whether in large corporations or small businesses, the principles of HRM remain essential for fostering employee engagement, driving innovation, and sustaining long-term success.

In essence, HRM is not merely a department but a strategic partner in the journey towards organizational excellence, ensuring that the human element remains at the forefront of every decision and initiative.

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