What is Human Resource Management (HRM)?

It’s often said that people are an organisation’s greatest resource. Yet, until fairly recently, human resource management was not considered as critical to success as other business operations, like marketing, finance or sales. This notion has been largely altered by new technology, globalised markets and changes in organisational hierarchies. Today, business leaders place great emphasis on hiring the right people and keeping them engaged.

What is human resource management?

Human resource management involves creating personnel policies and procedures that support business objectives and strategic plans. Central to this mission is fostering a culture that reflects core values and empowers employees to be as productive as possible.

What are the functions of human resource management?

HR functions can vary depending on industry, businesses size and the types of workers employed. In most cases, the primary objectives are to acquire and cultivate talent and improve communication and cooperation among workforce members. Other key human resource management functions include:

• Job analysis
  Determining the skills and experience necessary to perform a job well may make it easier to hire the right people, determine appropriate compensation and create training programs.
• Workforce operations
  Creating health and safety policies, addressing employee grievances, and engaging with worker representatives can help support compliance with Indian labour regulations.
• Performance measurement
  Evaluating performance is important because it not only fosters employee growth through constructive feedback, but also serves as a guide for raises, promotions and dismissals.
• Incentive programs
  Recognising achievements and rewarding high performers with bonuses and other perks is a proven way of motivating employees to take ownership of business objectives.
• Professional development
  From orientation to advanced educational programs, employee training serves to improve productivity, reduce turnover and minimise supervisory needs.

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What are the responsibilities of human resource management?

HR professionals generally are tasked with creating and administering programs that improve workplace efficiency and employer-employee relationships. Within this broad assignment are several different, but critical responsibilities, such as:

• Staffing
  Staffing a business or an individual department requires a number of key steps. Hiring managers must first determine how many new employees the budget can support, then find and interview qualified candidates, and finally, make selections and negotiate compensation.
• Developing workplace policies
  When new or updated policies are needed, HR professionals collaborate with management to document and share them with employees. These policies may include leave entitlements, workplace conduct, disciplinary actions, and other protocols suited to the organisation’s culture.
• Administering pay and benefits
  To attract and retain talent, compensation should align with industry standards and reflect factors such as experience, education, skills, and length of service, while also complying with Indian statutory benefits and allowances.
• Retaining talent
  Compensation isn’t the only thing that retains talented employees. HR managers may need to proactively address issues with workplace environments, organisational culture and relationships between employees and supervisors.
• Training employees
  When employees develop new skills, they tend to be more productive and satisfied with their job. Some of the training programs typically run by HR departments include team-building activities, policy and ethics education, and on-the-job instruction and skills, e.g. how to run a machine or computer program.
• Complying with regulations
  HR professionals must stay updated with recent changes in Indian labour laws, such as the new labour codes on wages, industrial relations, social security, and occupational safety, to ensure ongoing compliance.
• Maintaining safety
  Workplace safety includes protecting employees’ physical health as well as safeguarding their personal information. To reduce workplace incidents and data risks, HR must implement appropriate security measures and comply with Indian laws and industry best practices.

Human resource management and small business

While human resource management is important to all businesses, the stakes may be higher for smaller organisations. For example, one incompetent employee in an office of 10 people can be much more detrimental than one in a workforce numbering in the thousands. To improve their people processes, small business owners generally can:

1. Assess current operations to determine if new hires are needed or if existing employees and production methods can be utilised more effectively.
2. Take an active role in the recruitment process and write job descriptions that match prospective talent to business needs.
3. Create an employee handbook or an official document that clearly outlines company policies.
4. Provide continuing education opportunities as needed by the particular industry.
5. Maintain a work environment where employees are treated fairly and can be productive.

HRM systems and software

Faced with rising numbers of contract-based workers and increasingly complex regulations, HR professionals have turned to HRM software to help them keep pace with changing workforce environments and people management needs. A Human Resource Management System (HRMS) helps mid-market organisations manage the full employee lifecycle, from hiring through to retirement. Some tiers of HRM systems may focus on recruitment services, payroll and employee benefits, while more robust HRM solutions tend to offer talent management, international compliance support and advanced analytics.

Why use a human resource management system (HRMS)?

HRMS are designed to meet the core needs of HR and turn basic administrative functions into critical enablers of business value. With the aid of these people-centric, data powered solutions, HR managers may be able to:

• Improve their hiring processes
• Manage people more effectively
• Optimise workforce productivity
• Engage and retain employees
• Eliminate costly redundancies
• Make data-driven decisions
• Maintain regulatory compliance

How to choose a human resources management solution

Finding the right solution often requires a strategic evaluation process, such as the following:

1. Identify what the organisation would like to accomplish, change or improve and how technology can help achieve those goals.
2. Ensure that the HRMS stays updated with the latest regulatory and statutory requirements applicable in India.
3. Prioritise data security and understand how sensitive employee information will be stored, transferred, and backed up in compliance with Indian data protection norms.
4. Look for implementation models with a change management strategythat will get the HRMS up and running efficiently.
5. Address stakeholder questions, concerns and objections to drive widespread HRMS support.
6. Ask about service plans to manage the hundreds of post-payroll tasks necessary for compliance.
7. Inquire into the vendor’s financial history and investments in innovation.
8. Get outside-in perspective by looking at peer reviews, industry analyst feedback and product demos.

Examples of HRM software

Business leaders and HR professionals who are looking for software to help them accomplish more with less resources generally have three options available to them:

• Human resource information systems (HRIS)– perform core HR functions, like applicant tracking, payroll and benefits administration
• Human resource management systems (HRMS)– offer the benefits of HRIS, plus talent management services
• Human capital management (HCM) solutions– provide a broad suite of HR capabilities, including global payroll and compliance support and in-depth analytics

Why choose ADP for your human resource management needs?

ADP’s HR management solutions automate and streamline key needs so that HR professionals can focus more time on their people and less on paperwork. We offer basic and customised packages with some of the following features:

• Powerful workforce reporting that turns data into a trusted source of decision-making
• Preconfigured new hire templates for a simplified onboarding process
• Self-service and mobile apps so time-sensitive tasks can be performed quickly
• Industry-recognised security to help safeguard sensitive information