Human resource management (HRM) is the strategic and coherent approach to the management of a company's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in companies. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and business requirement.
Human resources management comprises several processes. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.
Human resources strategies provides to a business:
- Workforce planning
- Induction and Orientation
- Skills management
- Training and development
And produces effectiveness in:
- Personnel administration
- Compensation in wage or salary
- Time management
- Employee benefits administration
- Personnel cost planning
- Performance appraisal