Scribd
Upload
24 views9 pages

Introduction To HRM - Roles, Functions, Importance in Business

Human Resource Management (HRM) is a strategic approach focused on managing people to achieve business goals, encompassing core functions like recruitment, performance management, and employee relations. Traditional HRM is reactive and administrative, while strategic HRM emphasizes proactive partnerships, alignment with organizational strategy, and data-driven decision-making. Effective HRM can significantly enhance business performance, reduce turnover costs, and drive innovation, while facing modern challenges such as remote work and diversity initiatives.

Uploaded by

merinsilsaalogroups
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
24 views9 pages

Introduction To HRM - Roles, Functions, Importance in Business

Human Resource Management (HRM) is a strategic approach focused on managing people to achieve business goals, encompassing core functions like recruitment, performance management, and employee relations. Traditional HRM is reactive and administrative, while strategic HRM emphasizes proactive partnerships, alignment with organizational strategy, and data-driven decision-making. Effective HRM can significantly enhance business performance, reduce turnover costs, and drive innovation, while facing modern challenges such as remote work and diversity initiatives.

Uploaded by

merinsilsaalogroups
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Introduction to HRM – Roles, functions, importance

in business
Also traditional and strategic HRM
Introduction to Human Resource
Management

• Human Resource Management (HRM) is a strategic approach


to effectively managing people within an organization to
achieve business goals and gain a competitive edge,
encompassing functions like recruitment, training,
compensation, and employee relations.
Core Functions of
HRM
• Recruitment and talent acquisition
• Performance management and development
• Compensation and benefits design
• Employee relations and engagement
• Organizational culture building
Traditional HRM
Model
• Administrative and compliance-focused
• Reactive personnel management approach - focuses on addressing issues and
problems as they arise, rather than proactively anticipating and
preventing them
• Emphasis on paperwork and legal requirements - focusing on tasks like record-
keeping, payroll management, and ensuring adherence to labor laws,
often with a reactive approach to issues as they arise.
• Limited strategic organizational contribution - an individual's or team's
involvement in shaping the organization's overall direction and goals is
restricted, potentially hindering long-term success
Strategic HRM
Evolution
• Proactive business partner approach - anticipating challenges, proactively
addressing issues, and fostering strong, collaborative relationships to
drive mutual success and achieve long-term goals.
• Aligns human capital with organizational strategy - ensuring that an
organization's people strategies and practices directly support its overall
business goals and objectives, leading to better performance and
success.
• Data-driven decision-making - the process of making decisions based on data
analysis and evidence, rather than intuition
• Focus on talent development and retention
Key HRM
Responsibilities
• Talent acquisition and recruitment
• Training and professional development
• Employee engagement programs
• Workplace policy implementation - ensure clear communication,
consistent enforcement, and ongoing training, while also involving
stakeholders and regularly reviewing and updating policies.
• Conflict resolution and mediation
Impact on Business
Performance
• 48% higher revenue per employee with effective HRM - Revenue per employee
is a ratio that measures the total revenue of an organization divided by
its current number of employees. It provides a rough estimate of how
much money is generated per employee at an organization.
• Reduces turnover costs by up to 35% - some studies suggesting potential
cost savings of up to 35% of an employee's salary when finding and
hiring a replacement.
• Drives innovation and organizational adaptability
• Enhances overall workplace productivity
Modern HRM
Challenges
• Remote work management
• Diversity and inclusion initiatives
• Technology integration
• Generational workforce differences
• Continuous learning environments
Future of Human
Resource Management
• AI and machine learning integration
• Personalized employee experience
• Predictive workforce analytics
• Flexible and agile organizational structures
• Continuous skill development focus

You might also like