Human Resources management (HRM) is the management department in a company dealing with the people involved in the business. Its aim is to maximize productivity by coordinating employees’ performance with long-term employer objectives.

HR main areas of responsibility are:

  • interface to the staff;
  • employee compensation and benefits;
  • organization, utilization, and maintenance of a company’s work force;
  • designing work plans and strategies;
  • employee development and training.

Staffing corresponds to the ongoing process of managing the flow of personnel into, within (through transfers and promotions), and out of an organization. It deals with, but not limited to, recruiting, selection, interviews, reference checks, testing, and other tools. Another part of the HR functions is the more general analysis of the market as to anticipate industry needs in terms of personnel, as well as plan various employment positions. This may include identification of job and industry trends, and anticipation of future employment levels and skill requirements.

The organization involves designing an organizational framework that makes full use of the human resources available in the organization and establishes effective means of communication. Human resource maintenance activities concerning safety and health usually entail compliance with laws that protect employees from hazards in the workplace. Maintenance tasks also may include: working with labor unions or handling complaints related to misconduct (e.g. sexual harassment).

Performance appraisal supposes the assessment of employee job performance and providing feedback to employees regarding both positive and negative points. Performance measurements are fundamental in evaluations, and are the basis for determining salary increases, promotions, and, on the other side of the spectrum, dismissal.

Implementing a rewards system is also part of the HR department in this respect, by setting up the mechanism through which the organization may offer employees rewards for past achievements and incentives for high performance in the future. It is also a means by which organizations handle issues with the work force, such as application of disciplinary measures.

HR is also in charge of assessing the training needs of an organization, and furthermore preparing and evaluating employee development schemes designed to address those needs. These training programs can range from orientation programs, which are designed to acclimate new hires to the company, to team-building events or camps, to academic education programs intended to familiarize workers with a new software system. In addition to that, the HR managers also provide the necessary tools, techniques, and methods in order to encourage the development of a business climate ultimately leading to employee innovation and development.