Also known as human capital, human resources, is the pool of talent and skills that propel a company towards growth and new targets. Human resource management is a valuable skill that needs to be generated if you want to get the most out of your human capital. This article addresses the commonly asked question “what is human resource management” and attempts to define some of the functions and actions required of it within an organisation.
There are usually three major trends that are incorporated into an organisation’s HR strategy:
Demographics: This includes factors like social class, gender and age. A recruitment structure based on demographics may have an effect on company expenses and benefits such as retirement annuities, medical aid contributions or entertainment allowances. The demographics play an important role in inter-personal relationships in the organisation, between workers, between workers and management and between staff and customers.
Diversity: These days increasing attention is paid to the importance of having a workforce that reflects social diversity in order for companies to meet the changing demands of their client base.
Qualifications and skills: Today more companies are searching for staff members with management potential and thus need people who are more highly skilled and qualified than they would have been looking to employ a few years ago.
What Is Human Resource Management?
HRM, or human resource management, is an area of focus, or a department, in an organisation that is dedicated to the recruitment, management and professional direction of employees working in a business. In short, HRM is an organisational policy with a direct focus on the issues that pertain to the people working in a company. Such issues could include matters like hiring, monetary compensation, organisational development, performance management, safety and wellness, administration, communication and training.
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Methods and Approaches To Human Resource Management
In order for a human resource strategy to be effective a methodical approach needs to be adopted. The underlying purpose is to manage the culture and environment in which people are expected to work and be productive and the company has to devise a strategy to find the most effective way of doing this. Human resource management needs to create a safe platform through which to enhance employee productivity, in order to enable staff to contribute to the overall productivity of the company.
As part of the economising and restructuring processes that many companies have gone through since the global financial crisis, human resource management has become one of those skills that organisations are opting to outsource. While companies need to ensure they attract the best talent they still need to keep costs and running costs at a minimum.
For companies where the staff contingent has been downsized due to retrenchments and job losses a fulltime human resources department may not be necessary. Outsourcing human resource management also brings with it the advantage of being able to shop on the global market and recruitment specialists from consulting companies often bring a fresh perspective to the process, which can enhance profitability. Companies that are opening new divisions and departments can also make use of professional skills to ensure that key positions are filled by people who are suitably skilled and qualified.
HRNetwork brings more than 20 years of human resource management to the field. Contact us if you want to enhance your company’s HR management potential.