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Fundamentals of Human Resource Management – Quick guide Published 25 June, 2019   Report Issue

Fundamentals of Human Resource Management – Quick guide

People management or human resource management is not a new concept to the industry but has been in existence for quite long. In this article, we will learn more about the fundamentals of Human Resource Management, and we hope it will provide you a deeper perspective on this concept.


Defining HRM

Before we delve into the multiple facets of HRM, we need to understand what it refers to. The broader and simpler definition is that it refers to the management of people in a structured manner. 

By definition, Human Resource Management (HRM) encompasses all those activities involving the employees, starting from recruitment, training, and management of them across the organization, defining and enforcing policies governing employees and their relationship to the company and more. 

Now you might wonder on why we need a defined approach for managing people. If you are in an organization that comprises of a team of about 4-5 people, then wouldn’t it suffice if you have personal control and common sense to manage the people? This might work if you are working with 4-5 people only.

However imagine an organization where there are large numbers of people, scattered across multiple geographies, working in mutually exclusive departments. You have to manage them all without compromising on the company objectives and policies and do it seamlessly without pinching them too. This is where Human Resource Management comes in quite handy.

Why do we need an HRM?

The economies across the world have been moving towards a service-based industry which makes it inevitable for organizations to have a happy employee community. Even if we consider the manufacturing industry and other conventional sectors, we find that the competitive edge is attained only through effective resource management where resource also includes the workforce. 

Employees are the most important assets of the company, and they are treated so. The success factor of the organizations is now determined by the adaptability and resilience of the organization in the evolving business environment. 

It is a given that employees play a crucial role in the evolution of the organization and you need a climate that will help to groom their competence, skills, and commitment towards your organization. HRM is not only focused on hiring and training of employees, but it helps in creating a sustainable environment for them to grow, which further results in the organization growth.

What does HRM entail?

You may not be able to concisely define and set a boundary for the scope of HR management. But there are three main aspects that HRM in every organization covers.

Management of Personnel: As you can easily infer, it is about hiring, recruitment, training, development, orientation, transfers, promotions, rewards, compensations, layoffs and even productivity.  The role of HRM here encompasses everything to nurture the growth of the individual which will further enhance the growth of the organization.

Managing the welfare of employees: From safety services to workplace amenities, this segment is where HR takes care of employee welfare. It involves elimination of possible hazards in the work area, proper sanitation, lighting, ventilation, security and safety measures, sickness and other medical benefits, benefits to family, transportation, housing, canteen facilities and more.

Managing relations with the employee unions: As an area that is quite sensitive, this requires a lot of caution while handling. It is about safeguarding the interests of the employees without affecting the organization, settling disputes, solving issues, maintaining a good relationship with the employee unions and so on.

What we have given here is probably just the tip of the iceberg. There is more to HRM than what we generally see and understand.

Benefits of HRM

HRM is present in every industry, both conventional and modern and is all encompassing when it comes to employees.

It is a result based strategy that helps in grooming the employees, encouraging them to attain their full potential.

It nurtures people not just as individuals but also as team players, enabling them to contribute individually and in groups.

It places the right people for the right task ensuring that the outcome is successful and the productivity is at its best.

It helps maintain a positive relationship between top management and the employees, motivating the workforce facilitating a competitive environment.

It helps the organization to reach its goals by creating a sustainable environment of resilience and capability.

The advent of HRMS (HRM software) has helped them to move from being an administrative sector to a strategic sector that plans workforce management. Apart from handling employee recruitment to benefits efficiently, HRMS can also save money for the organization. 

It is clear that HRM plays a very important role in your business success. Here are some fundamentals of Human Resource management that you need to know as an entrepreneur or as an individual who manages the resources in an organization.

Fundamentals of Human Resource Management

We have not yet reached the age where machines run everything. Clearly, every business has its own set of personnel who keep it running successfully. Managing the personnel and aligning them with the objectives of the organization is one of the core functions of an HRM team. 

If you want to get the best team for your organization, then these tips will be of great help.

It is important to find out where the talents that your organization and industry needs can be found. You cannot simply hire personnel who are skilled not for your organization. Hiring the right talent for the right position is the key.

Define the roles of the employees and how they fit into your organizational culture before you start recruitment. It is important to know what you are looking for before you start searching.

Do not compromise while hiring the right talent. You do not want to cope up with shortcomings at a later stage. Choose the employee wisely so that there is a possibility of a longer loyal relationship between them and the company.

Pre-screening of the employees is a good way to find out any compromising characteristics, and it doesn’t even cost you more than a call or an email. 

During the interview, make sure to keep your expectations set clearly and more understanding to the candidate. You do not want to have misunderstandings and end up filling the position with someone not fitting the bill. Set your cards on the table and speak about your expectations and the company objectives clearly.

Will it be possible for you to judge a person’s ability with the first meeting? Definitely not! That is why we take references which you must ensure to check before hiring. This will give you a perspective on employee behavior in the workplace.

What we have provided above are the fundamentals of Human Resource management from a hiring point of view. 

While the guidelines for other facets of HRM might vary, the basic concept is to consider employees as your greatest asset, preserve them and nurture their growth to grow as an organization.


In this article on fundamentals of Human resource management, we have tried to provide you a sneak peek into the world of HRM.

The world of HRM is quite vast and wide and requires definitive time and effort to know more. The knowledge thus gained will, however, equip you to empower and enhance the workforce in your organization paving the way for your success.

With customer centered businesses gaining popularity, focusing on employee talent, recognition, retention and employee benefits will soon be the mantra for success, irrespective of the industry.


HRM Fundamentals of Human Resource HR management HR guide Personnel Management

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