Human Resource Management (HRM or HR) is the management of human resources. It is designed to maximize employee performance in serving an employer's strategic objectives. HR is primarily concerned with managing people within organizations, focusing on policies and systems. Human resources departments are responsible for overseeing the design of employee benefits, hiring employees, training and development, performance appraisal and reward (eg, administration of compensation and benefits systems) . HR also deals with organizational change and labor relations, that is, the balance of organizational practices with demands derived from collective bargaining and governmental laws.
HR is a product of the early 20th century human relations movement, when researchers began documenting ways to create business value through strategic management of the workforce. Human resources management, starting in 2015, focuses on strategic initiatives such as mergers and acquisitions, talent management, succession planning, industrial activities and labor relations, and diversity and inclusion.
Human resources focus on maximizing employee productivity. Human resource professionals manage the human capital of an organization and focus on implementing policies and processes. They can specialize in recruitment, training, employee relations or benefits. Recruitment specialists find and hire the best talent. Training and development professionals ensure that employees are trained and have continuous development. This is done through training programs, performance appraisals and reward programs. Employee relationships address employee concerns when policies are broken, such as harassment or discrimination. Someone in benefits develops compensation structures, family leave programs, discounts and other benefits that employees can get. On the other side of the field are the Human Resources Generalists or business partners. These HR professionals could work in all areas or be representatives of labor relations working with union employees.
In start-up companies, trained professionals can perform human resources functions. In larger companies, a full functional group is usually dedicated to discipline, with staff specialized in various HR tasks and functional leadership involved in strategic decision making throughout the business. To train professionals in the profession, higher education institutions, professional associations and companies have established study programs explicitly dedicated to the duties of the function. Academic and professional organizations can produce specific publications on the ground. HR is also a field of research study that is popular within the fields of management and industrial / organizational psychology, with research articles appearing in a number of academic journals, including those mentioned later in this article.
Some businesses globalise and form more diverse teams. Human resources departments have the role of ensuring that these teams can function and that people can communicate across cultures and borders. Due to changes in trade, current issues in human resources include diversity and inclusion, as well as the use of technology to promote employee participation. In today's global work environment, most companies focus on reducing employee turnover and retaining the talent and knowledge their employees have. New hiring not only involves a high cost but also increases the risk of a newcomer not being able to replace the person who worked in a position before. Human resources departments strive to deliver benefits that will attract workers, reducing the risk of losing corporate knowledge.