Human resource management (HRM) is the practice of managing an organization’s human capital otherwise known as employees. It involves the recruitment, selection, training, and development of existing employees and new staff to ensure that the organization has the right people in the right roles to achieve its objectives.
HRM also includes activities such as performance management, compensation and benefits administration, employee relations, and workforce and strategic planning. HR professionals are responsible for creating and enforcing policies and procedures that comply with employment laws and regulations, as well as promoting a positive company culture that values diversity, equity, and inclusion, and employee well-being.
Since HRM directly impacts employee engagement, productivity, and retention and therefore a company’s success effective HRM is critical. HR managers must have strong communication skills, leadership skills, sound decision-making competencies, and work experience in several administrative functions to enable them to balance the needs of employees with business objectives.