What is HRM

Last updated: 2023-10-12
See our solution:
Employee Relationship ManagementEmployee Relationship Management
Was this article helpful?
27 of total 27 found this helpful.

Human resources management (HRM) includes the overall HR agenda in an organization. It is a systematic process of caring for employees throughout their life cycle. That is, from selection, through onboarding, throughout their tenure in the organization, i.e., taking care of their personal development, health and safety, performance, engagement, and communication, up to their departure. Formal and informal communication with employees is important. HR work and communication with employees is not limited to HR staff, but largely occurs between the employee and their line manager. This mainly concerns communication, personal development and the overall involvement of the employee throughout their employment.

Last but not least, HR must ensure conformance and compliance with regulations in all these areas. The employer must comply with all regulations and legislative requirements relating to employment contracts, as well as health and safety at work and the required qualifications of employees. Good and quality HR work leads to good employee care and means higher employee satisfaction. It is systematic work with people, aimed at their long-term satisfaction.
What HRM includes

So what does HR work typically involve?

  • Personnel administration, maintaining information about the employee - maintaining information required by legislation and that which is necessary for the development and active relationship with the employee
  • Defining the job and the requirements of the employee
  • Searching, selecting and recruiting new staff or
  • Searching for talent within the organization
  • Payroll, remuneration and processing
  • Employee engagement and communication
  • Dealing with employee life situations
  • Employee development and training
  • Ensuring employee health and safety
  • Employee performance appraisal
  • Ensuring employee exit
  • Ensuring compliance with regulations

Information required for people management, personnel administration

Managing people cannot be done without good information on which to base decision-making and management. Well-managed information also improves the work of managers, who "do not have to constantly search through papers and files". Good quality and accessible information is therefore an essential foundation for managing people smoothly, correctly, and well.

All processes in companies revolve around people and so there is a lot of information around people and all of it has its own meaning. The HR manager needs his information, the supervisor needs something different and the payroll accountant needs something else entirely. It is good to know what the employee does, what the job requirements are, what areas they should improve in, what they should add to their training or qualifications. Information about the worker's remuneration - whether regular pay or irregular bonuses - is important for HR work. All this should be known by both the HR manager and the supervisor. Information about people can be divided into the following headings:

Records and documents

  • Management of the personnel agenda, personnel records and documentation around employees
  • Handles the complete life cycle of the employee and his/her employment matters (creation, progress and termination of the employment relationship)
  • Creating job descriptions

When did the person get hired, under what circumstances and why

  • When was the employee selected for the position and when did he/she start
  • Documents (e.g. employment contract, handover report for work equipment, etc.)
  • Information about the selection procedure, adaptation period, validity of the contract
  • What position did the employee apply for and what were his/her strengths in the selection process

What is the job classification of the employee

  • What job or position is the person assigned to
  • Does the job match the person's skills?
  • What qualifications are missing
  • Who is their superior
  • Who has them assigned
  • Who is responsible for them

What is the required level of qualification of the employee

  • What is the current status of their qualifications in relation to their job title
  • What the job title or legislation or other regulation requires
  • Does the employee have all the necessary certifications for his/her job classification
  • Does the employee meet the necessary qualifications and all requirements?
  • What qualifications an employee must complete

How is a person critical to the functioning of processes

  • Is a particular person critical to the functioning of the organization?
  • Who is their substitute? What is the probability of such a situation?
  • What are the alternatives?

How employee training and development works

  • Who is responsible for development and training, and what are their training plans
  • When was the last time a person received training, what's in store for them in the future
  • The requirements of compulsory education legislation are met

Employee departure planning

  • What to prepare or do when an employee leaves
  • Is there a trained or prepared substitute? (succession planning)
  • What work has to be handed over, where the employee is involved (contracts, contacts with customers)
  • What work equipment must be returned or handed over?
  • What privileges must be revoked?

Searching for job applicants

  • One of the fundamentals of human resource management is the search for job applicants.
  • This requires knowledge of the needs of the job as well as knowledge of the labour market to find attractive candidates.
  • Often, finding the right candidate is done through a talent search within the organization itself.
  • HR is responsible for advertising vacancies

Recruitment

  • Search process for job applicants and candidates
  • Recruitment and admission process

Wages, remuneration, and benefits

  • Ensuring employee payroll processing
  • Processing of the payroll agenda is in-house (handing over to the company accountant) or with the help of an external company

Employee involvement and communication

  • Active management of employee relations
  • Feedback from employees and escalation of their requests, topics and issues
  • Resolving employees' life and work situations

Health and safety

  • Ensures a healthy working environment
  • Cooperates with other organizational units to ensure a suitable working environment

Staff training and development

Employee training and development is important to maintain employee satisfaction and alignment with the needs of the company.

  • Ensuring staff training and development
  • Organization of training and education and up-skilling of employees
  • Maintaining the necessary qualifications (certificates, regular re-testing)

Employee performance

  • Setting up and maintaining a system of employee evaluation, motivation and remuneration
  • Conducting regular interviews and monitoring performance

Employee's departure and offboarding

  • Setting up the right employee departure process
  • Managing the quality and safety of employee departures

Compliance with regulations

  • Legal compliance of HR processes and documents in the company
  • Employment contracts and other documents relating to employment relations
  • Redundancy process