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Home › Strategic Human Resources Management › What is Strategic Human Resource Management?

What is Strategic Human Resource Management?

TABLE OF CONTENTS

Strategic human resource management is a process that helps the human resources department maximize the potential of its workforce through strategic planning, talent management, leadership development, organizational design, and performance management.

In the past, strategic HR management was an administrative function. Today, HR managers play a critical role in ensuring that the organization has the right people that help improve business performance and ensure that it delivers on its mission.

It means that HR professionals need to understand its goals and objectives. How they can best help the organization achieve those goals, and what actions will allow them to do so. This article will help you better understand what strategic human resource management is and how a smart plan can bring tremendous value to the organization.

If you’re interested in learning more via video, then watch below. Otherwise, skip ahead.

What are Strategic HR Management Goals?

Strategic human resource management involves developing and implementing strategies for attracting, retaining, motivating, and managing talented individuals who contribute to the organization’s success. HRM also includes policies and practices designed to ensure fairness in employment relations.

Strategic human resource management aims to achieve a competitive advantage by creating value for customers, shareholders, employees, and other stakeholders. The term “strategy” refers to the organization’s overall plan of action to create value. It is not just one thing; it is a combination of many things, including:

• Actions are taken by the organization to meet customer needs
• Policies and procedures used to manage the organization
• Processes used to produce goods or services
• Marketing activities used to sell products and services
• Financial decisions made to fund operations
• Organizational structure
• The technology used to support business processes
• People-related issues such as recruitment, selection, training, compensation, benefits, and performance management
• Legal requirements and regulations affecting the organization

How Can Businesses Benefit from HR Strategic Planning?

Businesses benefit from strategic human resources management because it allows human resource departments to make better decisions. For example, companies can develop plans to improve productivity, reduce costs, increase profits, and enhance employee satisfaction. The sales and HR departments play a role in determining whether the company should expand into new markets, acquire another company, or merge with another business.

If you want to attract more customers, understand what your target market wants and how you can provide it. It would be best if you also decided which marketing methods would work best.

To retain current customers, you must first find out why they buy from you instead of competitors. Then you must figure out ways to keep them satisfied. You may even wish to consider offering discounts or gifts to reward loyal customers.

You must also think about motivating your employees to perform well and stay productive. If you want to hire more qualified candidates, you must first understand the qualities you are looking for in potential hires. You must also decide if you’re going to use job descriptions or conduct interviews when hiring.

Once you have determined your priorities, you can begin to implement changes to improve results.

Strategic Human Resources Management Benefits

Strategic HR involves careful consideration and analysis. Due to that, here are specific benefits of human resource strategic planning for businesses:

• Identify areas of weakness and strengths
• Develop strategies to address these weaknesses and strengths
• Establish sub-goals and objectives to measure progress toward the end goal
• Make sure there is alignment between business strategy and human resources strategy
• Ensure that all aspects of the organization revolve around the same set of goals and objectives
• Create a culture of continuous improvement
• Evaluate the effectiveness of programs and policies
• Increased job satisfaction
• Employee retention

Check our certified HR courses if you want to learn more about developing and implementing a strategic HR management plan. Master HR management and how to get the best out of your employees.

7 Steps to Creating a Strategic HR Plan

One of the main functions of HR is to provide an effective organization’s workforce management. It includes operational and strategic management and developing a plan that helps employees evolve. To do this, you need to start by determining the purpose of your human resource strategy.

Next, you need to look at the organizational structure of your company. How many levels are there? Do you have a different human resources department within each class? Are some divisions larger than others?

Some of the target outcomes for human resources planning include the following:

• Increase profitability through a strategic HR planning process
• Improve customer service
• Enhance employee morale and motivation
• Provide training and development opportunities
• Reduce turnover rates
• Maintain high-quality standards

Once you have these outcomes in mind, you can follow the following steps in developing a strategic HR department.

1. Define Goals

Defining goals helps you focus on a more strategic human resource management strategy. It gives you direction and provides a framework for measuring success. A goal is an objective you hope to achieve within a specific time frame. It’s something you want to accomplish. A plan is usually quantifiable. For example, you might say, “I want to increase my sales revenue by 20% to achieve a competitive advantage.”

Goals break down into sub-goals. The intermediate goals help you reach the ultimate goal. Additionally, they provide milestones in the strategic HR planning process. For example, if your ultimate goal is to increase sales revenue by 20%, then your intermediate goals can be:

• Achieve a 5% increase in sales revenue over last year.
• Achieve a 10% increase in sales revenue from January to June.
• Achieve a 15% increase in sales revenue during July.

It’s also essential to develop a SWOT analysis when defining your strategic HRM goals. The SWOT analysis helps identify any potential threats or obstacles that may hinder organizational success.

When conducting a SWOT analysis of your HR strategy, consider the following questions:

• What are your strengths?
• What are your weaknesses?
• Where are your opportunities?
• What are your threats?

Answering these questions will help you define business goals and improve business performance.

2. Determine Objectives

Objectives are measurable actions you take to meet your goals. They are how you achieve your goals.

Your objectives should be realistic. They should not be too ambitious. If they are too complicated, you may fail. You also don’t want them to be so easy that you will never succeed.

You should have a working strategic human resource management process to define specific human resource objectives for your business. Some examples include:

• Increase the number of new hires by 50%.
• Increase the average length of employment by three months.
• Reduce the percentage of employees who leave their jobs by 25%.
• Eliminate the use of temporary workers.
• Increase the number and proportion of women in management positions.
• Increase the proportion of senior managers with MBA degrees.

Your HR objectives should align with your overall company objectives. For example, if your company wants to increase its market share, setting up similar goals makes sense. Additionally, you should align all your HR objectives to your company’s financial objectives.

Keep in mind that the more tangible your objectives are, the easier it will be to measure progress.

3. Create Strategies

Strategic human resource management is all about the strategies you intend to use to achieve your objectives. They are the methods you’ll use to get there. There are many different strategies available. However, there are three main types.

• Change Strategy  – This involves changing the current status quo or making changes that are already underway.
• Reinforcement Strategy  – Involves reinforcing existing practices and policies.
• Innovation Strategy  – Introduces new ideas and processes.

Your organization’s strengths and weaknesses are the foundation for your strategic human resource management. There isn’t a single best tactic. Instead, the best strategy depends on the situation.

4. Develop Tactics

Develop HR techniques you’ll use to implement your strategies. There are two kinds of tactics:

• Direct Tactics  – These involve implementing your strategies immediately. Examples include hiring additional staff, promoting more people, giving raises to employees, and employee retention strategies.
• Indirect Tactics  – These involve using other resources to support your strategies. Examples include advertising, training, outsourcing services, etc.

When developing strategic human resource management tactics, think about the results you expect from each tactic. Do you need immediate results? Or can you wait until later? How much money will you need? How much time do you have before you need to start seeing results?

It would be best to keep in mind that you can only do what you have authority over. So, if you’re trying to promote employees but they report directly to someone else, you won’t be able to do anything about it.

5. Plan Implementation

Planning is determining when, where, and how to execute each tactic. Planning includes deciding whether to act now, wait until later, or do nothing.

While implementing, it’s essential to closely monitor different factors that may affect the composition of a workplace. These factors include:

• Age  – Older employees tend to have more significant experience than younger ones. Younger employees are usually less experienced. It can be hard to find good talent among young people.
• Gender  – Women typically make up about half of the workforce. Men generally make up the rest. Companies with a higher proportion of female employees tend to have better performance.
• Race  – People of color tend to earn lower salaries than white men. In addition, they are less likely to receive promotions.

6. Monitor Performance

Monitoring results is the process of evaluating what has happened after implementation. Monitoring includes measuring performance against pre-determined benchmarks. It also includes assessing the impact of any changes made by strategic HR management to improve effectiveness.

Monitoring performance is an ongoing activity. It requires constant attention. Monitoring helps determine what works and what doesn’t.

There are several tools you can use, including:

• Observation

7. Evaluate Performance

Evaluating performance is critical in any HR department. It is the process of comparing actual results to expected outcomes. Evaluation can be done by analyzing data collected through monitoring and evaluation.

Evaluating your performance is crucial because it lets you know if your strategies are working. If not, then you need to change them. For example, if your HR strategies aren’t producing desired results, you might consider changing your approach, including outsourcing strategic human resource services.

Including strategic human resource management in the overall business strategy help with creating a productive environment, but it also helps with other crucial aspects such as retaining employees.

If the human resource department succeeds in creating an effective strategy, it brings value to the organization.

Take time to create the human resource management strategy. Having the right plan creates a streamlined process that’s easy to follow. Good luck.

If you are new to human resources and are looking to break into an HR role, we recommend taking our HR Certification Courses , where you will learn how to build your skillset in human resources, build your human resources network, craft a great HR resume, and create a successful job search strategy.

We offer a wide variety of programs and courses built on adaptive curriculum and led by leading industry experts.

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In the organizational tapestry, Human Resource Management (HRM) threads the narrative of unity and purpose. Far from just hiring or firing, HRM encapsulates the essence of nurturing and aligning human capital to meet strategic visions. It's where HR strategy intertwines with individual aspirations, championing a balanced approach to human capital management. From recruitment's initial steps to the golden handshakes of retirement, HRM ensures harmony, productivity, and motivation. Amidst changing business terrains, HR stands as the constant, evolving yet anchoring both individual growth and organizational milestones. Dive into this intricate dance of people and strategies to truly understand the organization's heartbeat. For HR rookies, seasoned veterans, and strategic thinkers alike, this template offers a lens into HRM's vast expanse. Each slide distills complex HR narratives into bite-sized, relatable insights. Your story, your way. Personalize each slide, letting your distinctive perspective resonate. For presenters, this toolkit is gold. Simplifying HRM's complexities, it ensures engagement, clarity, and profound connections. Illuminate, captivate, and guide your audience through the rich saga of Human Resource Management.

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WELCOME TO HRM604: STRATEGIC HUMAN RESOURCE MANAGEMENT Topic 1:

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Strategic Human Resource Management

Strategic Management & Strategic Competitiveness

Understanding Strategic Human Resource Management

© 2007 by Prentice Hall1-1 Chapter 1 Meeting Present and Emerging Strategic Human Resource Challenges.

OS 352 1/10/08 I. Welcome and introductions II. Course requirements; syllabus III. Introduction to human resource management.

Managing the Information Technology Resource Course Introduction.

Human Resource Management and Strategic Human Resource Management

Human Resource Management

Chapter 2 Strategic Training

Strategic Human Resource Management. Overall Goal of Strategic Management for an Organization Deploy & allocate resources ==> competitive advantage.

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved

Human capital management

UNIT 22- Managing Human Resources

CHAPTER NO. 8 STRATEGIC HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE

For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Human Resource Management.

Human Resource Management (HRM)

Concept of Strategy.

DEFINITION OF MANAGEMENT

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The Table of Contents for the Human Resources & Organizational Strategy Template:

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Human Resources Strategic Plan Templates

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Human Resources & Organizational Strategy

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Elevate your company culture and compensation design with frameworks that reinforce your values, and utilize scorecards to track the effectiveness of culture initiatives.

Core Values & Core Competencies

Define and uphold your core values, align your core competencies with your organizational strategy, and develop initiatives to strengthen these foundational elements.

Performance & Strategy Frameworks

Ensure alignment across your organization with cascading goals and KPIs, utilize milestone frameworks to track progress, and leverage powerful 3-box frameworks for strategic decision-making.

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Implement employee certification processes for skill validation and use employee assessment strategies to identify potential and areas of growth.

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Establish company norms for efficient collaboration, and design a cohesive employee journey strategy that aligns with your organizational goals.

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Implement retention strategies to nurture talent, create team charters to foster high performing teams, and drive a culture of continuous improvement .

Company Culture Initiatives & Employee Diagnostic Results

Drive cultural transformation with well-defined culture initiatives, and gain valuable insights into your organization's strengths and areas for improvement through employee diagnostic surveys.

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Craft a comprehensive compensation framework that aligns with your organizational goals, and prioritize strategic procurement to optimize resource allocation with this human resources strategic plan template.

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Utilize project planning templates to ensure successful execution of your HR initiatives, and conduct problem statement exercises to address organizational challenges effectively.

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STRATEGIC HUMAN RESOURCE MANAGEMENT

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Human Resource Management Strategy Powerpoint Presentation Slides

Develop a positive work culture by employing Human Resource Management Strategy PowerPoint Presentation Slides. Incorporate your agenda for human resource management. Showcase the key role of human resources by mentioning roles and responsibilities, skills, and challenges faced by the company with the help of human resource planning PowerPoint slideshow. Highlight the skills needed for HRM such as recruiting, screening, negotiation, scheduling, communication, conflict management, change management, etc by taking the assistance of HR development PPT visuals. It is important to monitor how employees work and how managers lead. Assess future organizational requirements with the help of content ready human talent management PPT graphics. Also, showcase the five stages of the recruitment process using HR management PPT templates. Showcase details like compensation types, types of appraisal methods, workplace safety, and health laws using the HR management PowerPoint templates. Download this amazing HR process PPT presentation and estimate your company's future HR requirements.

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Content of this Powerpoint Presentation

Slide 1 : This slide introduces HR Management Strategy. State Your Company name and begin. Slide 2 : This slide depicts Agenda. Slide 3 : This slide shows the Outline of the presentation. Slide 4 : This slide shows Human Resource Key Roles & Responsibilities. Slide 5 : This slide depicts Human Resource Key Roles and Responsibilities. Slide 6 : This slide showcases Skills Needed For HRM. Slide 7 : This slide Depicts C Allenges Faced By Our Company. Slide 8 : This slide showcases Developing And Implementing Strategic HRM Plans. Slide 9 : This slide Showcases Strategic Human Resource Planning. Slide 10 : This slide shows Assessing Future Organizational Requirements. Slide 11 : This slide depicts Matching Demand and Supply. Slide 12 : This slide Showcases Developing Talent Strategis In Each Stage. Slide 13 : This slide shows HRM Plan. Slide 14 : This slide depicts the Overview with- Diversity Plans, Diversity and Multiculturism. Slide 15 : This slide showcases the Overview contaning- Language, Age, Gender, National Origin, Female, Male, % of Employees, English Speaking, Non-English Speaking, Slide 16 : This slide showcases Diversity Plan. Slide 17 : This slide depicts The Recruitment Process Slide 18 : This slide showcases The Recruitment Process. Slide 19 : This slide describes Recruitment Strategies and Planning. Slide 20 : This slide showcases Recruitment Sources. Slide 21 : This slide showcases Recruitment Process Timeline. Slide 22 : This slide depicts Recruitment Budget. Slide 23 : This slide describes Selection Process. Slide 24 : This slide depicts Criteria Development and Resume Review. Slide 25 : This slide describes Interviewing process. Slide 26 : This slide depicts Employee Verification Process. Slide 27 : This slide describes Making the Offer. Slide 28 : This slide showcases Compensation and Benefits with- Types of Pay Systems, Other Types of Compensation (Perks & Benefits), Compensation Structure, Developing a Compensation Package. Slide 29 : This slide depicts Developing a Compensation Package. Slide 30 : This slide shows Types of Pay Systems. Slide 31 : This slide shows Compensation Structure. Slide 32 : This slide represents Other Types Of Compensation. Slide 33 : This slide depicts Other Types Of Compensation Template 2 with- Employee Benefits, Health Insurance, Meal Breaks, Achievement Award, Paid Vacation, Social Security, Perks & Bonuses, Pay Raise, Employees Allowance. Slide 34 : This slide depicts Retention & Motivation with- The Costs of Turnover, Retention Plans, Implementing Retention Strategies. Slide 35 : This slide showcases The Cost Of Turnover. Slide 36 : This slide depicts the Retention Plan. Slide 37 : This slide shows Implementing Retention Strategies. Slide 38 : This slide depicts Training & Development Strategy Slide 39 : This slide showcases Training & Development Startegy. Slide 40 : This slide shows Successful Employee Commnication. Slide 41 : This slide showcases Communication Strategies. Slide 42 : This slide showcases Managing Employee Performance. Slide 43 : This slide shwcases Employee Performance Tracking. Slide 44 : This slide depicts Handling Employee Performance. Slide 45 : This slide describes Employee Assessment. Slide 46 : This slide depicts Performance Evaluation. Slide 47 : This slide depicts 360 Degree Appraisal Method. Slide 48 : This slide depicts Rating Scales Appraisal Method. Slide 49 : This slide showcases Work Standard Appraisal Method. Slide 50 : This slide represents Workplace Safety and Health Laws Slide 51 : This slide presents Workplace safety and health laws. Slide 52 : This slide showcases Health Hazards At Work. Slide 53 : This slide depicts HR KPI Dashboard. Slide 54 : This slide showcases Human Resources KPI Dashboard. Slide 55 : This slide depicts Human Resources KPI Dashboard. Slide 56 : This slide showcases Human Resources KPI Dashboard with- Key Metrics, Employee Turnover, Speed to Hire (Days), Promotion Rate, Total Employees, Employee Churn, Open Positions by Division. Slide 57 : This slide displays Human Resources KPI Dashboard with data in percentages. Slide 58 : This slide presents Human Resources KPI Dashboard. Slide 59 : This slide depicts Human Resource KPI Dashboard. Slide 60 : This slide also shows Human Resource KPI dashboard with- Staff Strength, Employees Count by CTC, Compensation Distribution by Department, Staff Strength by Department, Marketing, R&D, IT, Human Resources, Finance, Customer Support, Administration, Sales, Accounting. Slide 61 : This slide depicts Human Resource KPI Dashboard with- Absence by Reasons (Days). Slide 62 : This slide depicts Human Resource KPI Dashboard. Slide 63 : This slide depicts Human Resource KPI Dashboard with Employee Count. Slide 64 : This is Human Resource Management Strategy Icon slides. Slide 65 : This is Human Resource Management Strategy Icon slides. Slide 66 : This slide displays Column Chart with product comparison. Slide 67 : This slide displays Line Chart with product comparison. Slide 68 : This slide is titled as Additional slides for moving forward. Slide 69 : This is Our Mission slide with Vision, Mission and Goal. Slide 70 : This is Our Team slide with names and Designations. Slide 71 : This is About us slide to showcase Company specifications. Slide 72 : This is Idea Generation slide to highlight ideas, information etc. Slide 73 : This is Our Goals Slide. State your Goals. Slide 74 : This is Financial slide. Showcase finance related stuff here. Slide 75 : This is Venn slide. Slide 76 : This is Puzzle slide with icons and text boxes. Slide 77 : This is Thank You slide with Address, Contact number and Email address.

Human Resource Management Strategy Powerpoint Presentation Slides with all 77 slides:

Use our Human Resource Management Strategy Powerpoint Presentation Slides to effectively help you save your valuable time. They are readymade to fit into any presentation structure.

The key responsibilities of human resource management include recruitment and selection, compensation and benefits, employee retention, training and development, employee performance management, and workplace safety and health.

Some common challenges faced by companies in HR management include attracting and retaining top talent, managing diversity and inclusion, complying with workplace laws and regulations, and ensuring employee engagement and satisfaction.

The recruitment process involves sourcing and attracting candidates, screening and selecting candidates, and making an employment offer to the chosen candidate.

A compensation package typically includes the employee's base salary, bonuses, benefits such as health insurance and retirement plans, and any other perks or incentives offered by the company.

Some key metrics used to measure HR performance include employee turnover rate, speed to hire, promotion rate, total number of employees, and open positions by division. These metrics can help companies track progress and identify areas for improvement in their HR strategies.

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STRATEGIC HUMAN RESOURCE MANAGEMENT

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STRATEGIC HUMAN RESOURCE MANAGEMENT. DISCUSSION. What is meant by the term “Strategic Human Resource Management” and how has it been used to study the employment relationship?. HUMAN RESOURCE MANAGEMENT.

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DISCUSSION What is meant by the term “Strategic Human Resource Management” and how has it been used to study the employment relationship?

HUMAN RESOURCE MANAGEMENT “… human resource management (alternatively, ‘employee relations’ or ‘labor management’) includes the firm’s work systems and its models of employment. It embraces both individual and collective aspects of people management. It is not restricted to any one style or ideology. It engages the energies of both line and specialist managers… and typically entails a blend of messages for a variety of workforce groups.” Purcell & Boxall (2003) P. 24

HUMAN RESOURCE MANAGEMENT • “HRM as a subject of study assumes that the interests of employees and employers will coincide and is preoccupied with the shared goal of organizational effectiveness that marginalizes the interests of other stakeholders such as employees. HRM is also predominantly focused on the individual and seeks solutions to HR problems within the firm, with an analytical focus on the motivations and aspirations of individual employees.” • Bach (2005) P. 4

STRATEGY “The determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.” Alfred Chandler, Strategy and Structure, (MIT Press, 1962), P. 13

STRATEGY • At the core, its is the debate between best fit and best practice • Used for gaining a competitive advantage • Innovation • Offer something new; different from competitors • Quality Enhancement • Products and services • Cost Reduction • Attempt to be the lowest cost provider • Optimal strategy depends on the wants and nature of competitors

TYPES OF STRATEGY • Business • Examines correspondence between each firm’s competitive strategy and its system of high performance work practices • Operations • An internal approach; connected to the work organization inside a firm • Resource View • Views human resources as sources of sustained competitive advantage

STRATEGICHRM • “(S)trategic HRM is about how the employment relationships for all employees can be managed in such a way as to contribute optimally to the organization’s goal achievement.” Legge (2005) P. 223

HR PRACTICES LINKED WITH COMPETITIVE STRATEGY • Recruitment • Training • Career Path • Promotions • Socialization • Openness

HIGH PERFORMANCE PRACTICES • Features • Comprehensive selection/recruitment procedures • Incentive compensation • Extensive employee involvement/training • Expected Results • Improve knowledge, skills, and abilities of employees • Increase motivation • Reduce shirking • Enhance retention of quality employees (reduce tenure of non-performers) Huselid (1995) P. 635

HIGH COMMITMENT PRACTICES • Unique to the High-Performance Paradigm • Sophisticated selection and training • Emphasis on values, human relations skills, and knowledge skills • Behavior-based appraisal • Single status policies • Contingent pay systems • Traditional Personnel Practices • Job security • Above market pay and benefits • Grievance systems Godard (2004) P. 351

CONCLUSION Model of the Basic Strategic HRM Components EMPLOYEE RELATIONSHIP BEHAVIORS: Psychological Contracts, Citizenship, Discretion HUMAN CAPITAL POOL: Knowledge, Skill, Ability PEOPLE MANAGING PRACTICES: Staffing, Training, Rewards, Appraisal, Work Design, Participation, Recognition, Communication Wright, P. Dunford, B. and Snell, S. (2001) Human Resources and the Resource Based View of the Firm, Journal of Management, 27:6

CONCLUSION • Effectiveness can be increased by systematically melding human resource practices with the selected competitive strategy • The success or failure of a firm is not likely to turn entirely on its strategic human resource management practices, but these practices are likely to be critical

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Human resource management (HRM)

• Human Capital Management
• Human Resource Management

It’s often said that people are an organization’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, globalized markets and changes in organizational 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, responding to employee grievances, working with labor unions, etc., can help support regulatory compliance.
• 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 Recognizing 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 minimize supervisory needs.

HCM Buyer’s Guide: Evaluating integrated HCM solutions

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 If it’s determined that a new or revised policy is needed, HR professionals typically consult with executives and other managers, write the supporting documentation and communicate it to employees. Policies may cover vacations, dress codes, disciplinary actions and other types of workplace protocol.
• Administering pay and benefits In order to attract and retain talent, compensation must meet industry standards and be comparable to what other employees in similar roles are being paid. Creating such a fair pay system requires careful consideration of an employee’s years of service with the business, experience level, education and skills.
• Retaining talent Compensation isn’t the only thing that retains talented employees. HR managers may need to proactively address issues with workplace environments, organizational 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 Laws that affect the workplace – whether they’re related to discrimination, health care or wages and hours  – are constantly evolving. HR professionals are required to keep up with these changes and notify the rest of the organization in support of compliance.
• Maintaining safety Safety in the workplace means protecting not just the physical health of employees, but also their private information. To minimize workers’ compensation claims and data breaches, HR must implement security measures and ensure that all federal, state and union standards are met.

Human resource management and small business

While human resource management is important to all businesses, the stakes may be higher for smaller organizations. 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:

• Assess current operations to determine if new hires are needed or if existing employees and production methods can be utilized more effectively.
• Take an active role in the recruitment process and write job descriptions that match prospective talent to business needs.
• Create an employee handbook or an official document that clearly outlines company policies.
• Provide continuing education opportunities as needed by the particular industry.
• 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. This technology is available with a variety of options to suit businesses of any size. Basic systems may offer recruitment services , payroll and benefits , while more robust solutions tend to include 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
• Optimize 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:

• Identify what the organization would like to accomplish, change or improve and how technology can help achieve those goals.
• Ensure that the HRMS can keep pace with the rapidly changing regulatory and statutory requirements in all applicable jurisdictions (local, state, federal, international, etc.).
• Prioritize security and know exactly how sensitive data will be stored, transferred and backed up.
• Look for implementation models with a change management strategy  that will get the HRMS up and running efficiently.
• Address stakeholder questions, concerns and objections to drive widespread HRMS support.
• Ask about service plans to manage the hundreds of post-payroll tasks necessary for compliance .
• Inquire into the vendor’s financial history and investments in innovation.
• 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 customized 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-recognized security to help safeguard sensitive information

Learn more about ADP Workforce Now® HR Management →

Frequently asked questions about HRM

What is human resource management and its functions.

Human resource management is the strategic approach to nurturing and supporting employees and ensuring a positive workplace environment. Its functions vary across different businesses and industries, but typically include recruitment, compensation and benefits, training and development, and employee relations.

What are the three major roles of human resources management?

The job of an HR manager can be broken out into three major roles:

• Administrator Running payroll , writing job descriptions, creating workplace policies and procuring benefits packages are typical of HR administration.
• Change manager HR professionals must monitor regulations and communicate policy or procedural changes with employees to help support compliance.
• Personnel manager Managing people entails resolving conflicts, overseeing training and development, and fostering employee engagement.

What are the five main areas of HR?

HR professionals perform many activities in the pursuit of employee well-being and organizational stability, but their responsibilities generally lie within five main areas:

• Recruitment and staffing – identifying talent gaps, acquiring applicants, arbitrating contracts, maintaining ethical hiring practices
• Compensation and benefits – determining pay scales, approving raises, negotiating benefits packages
• Training and development – onboarding new hires, making educational opportunities available
• Compliance and safety – monitoring legislative changes, implementing safety measures, processing workers’ compensation claims
• Employee relations – resolving employee conflicts, addressing harassment or abuse allegations, working with union leaders

What are seven functions of HR?

Over the years, HR has evolved from a personnel department engaged largely in administration to a strategic partner that works closely with management teams on organizational development. It’s seven key functions today include:

• Strategic planning
• Recruitment
• Training and development
• Compensation and benefits
• Policy creation
• Employee and labor relations
• Risk management

What is HR compliance?

HR compliance means keeping an organization from violating the growing number of employment laws enacted by federal, state and local governments. This responsibility requires HR professionals to monitor and understand regulatory requirements, enforce policies, classify workers correctly, practice fair hiring practices and provide a safe work environment, among other tasks.

This guide is intended to be used as a starting point in analyzing an employer’s HR obligations and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.

ADP Editorial Team The ADP editorial team is comprised of human resource professionals with extensive experience solving complex HR challenges for businesses of all sizes.

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