HR Management: Definition, Functions, Objectives, Scope, and Complete Examples

Human resource management (HRM) is a very important area of ​​management in an organization. Nowadays, we probably hear cool terms from HR Management more often.

Many companies and organizations provide names Human Resource Management (HRM) for their Human Resource Management department.

In general, you probably already know that human resource management is closely related to the management of employees in an organization. Human resource management turns out to have quite complex functions, tasks, and scopes loh! Imagine if a company experienced the performance of many employees who fell, employees who were often late, and the level of turn over tall one. WellAt this time, HR management must carry out its functions.

Human resource management needs to apply various instruments to solve the case. They might have a program training to improve worker performance.

They may give it various forms rewards to motivate employees and prevent turn over. Alternatively, human resource management may carry out an evaluation using peer review to maintain performance and reduce worker tardiness.

The case illustrates that human resource management is a fairly broad scope of discussion. What exactly is meant by human resource management? What is involved in human resource management? What are the functions of human resource management in an organization? The following is some information about the meaning, purpose, function, and benefits of human resource management.

Understanding HR Management

The definition of Human Resources Management (HR) is the process of planning, organizing, leading and controlling human resources in an organization to achieve organizational goals effectively and efficiently.

HR management includes various activities related to managing individuals working in an organization, including recruitment, selection, training, development, performance appraisal, payroll, benefits management, as well as maintaining good working relationships between employees and the organization.

Human resource management is a combination of two phrases, namely management and human resources. Management is the activity of planning, organizing, leading and controlling the resources owned by an organization to achieve the goals of an organization effectively and efficiently (Jones, GR, George, JM, & Hill, CW, 2000). According to Big Indonesian Dictionary (KBBI), human resources are human potential that can be developed for the production process.

In this way, the literal meaning of human resource management is an activity to plan, organize, lead and control human potential sources to achieve organizational goals.

According to Dessler, G. (2000), human resources is a process for obtaining, training, assessing, providing compensation, and organizing relationships, health and safety, and justice issues that are owned by workers in the organization.

Management has a concept, namely the management process. The management process consists of: planning, organizing, staffing, leadingand controlling.

Human resource management is a field of management that focuses on functions staffing in the management process. Activity staffing including determining the qualifications of prospective workers, conducting recruitment, selection of candidates, organizing training and development, carry out performance evaluations, and provide compensation to workers.

Human resource management is often also referred to as human resource management (HRM) and personnel management. Management fields other than human resource management include financial management, marketing management, operations management, and strategic management.

HR Management Goals

Human resource management has a general purpose, namely to work hand in hand so that the organization can achieve its goals. The goals of the company itself vary. In general, companies want profit superior, customer satisfaction, consumer loyalty, sustainability, and so forth.

To obtain good economic conditions and working climate. HR management will ensure that workers have high performance, turn over low, as well as guaranteed welfare. Human resource management will implement various functions to ensure the company gets what they aspire to.

HR Management Function 

The function of human resource management can more or less be interpreted as the tasks carried out by this management field. Human resource management will carry out various instruments so that aspects of the company's human resources are managed properly. What are the functions of human resource management? The following are some of the functions of human resource management. 

Human Resource Planning

HR Planning or HR planning is the first activity carried out by human resource management. This planning includes various things, for example, recruitment, selection process, and procurement training. Not only that, human resource planning is also a process of determining compensation, performance appraisal methods, awarding rewards and punishmentt if it improves the performance of workers, and so on.

Recruitment and Termination of Workers

The recruitment process is a very important process for a company. Through recruitment, the company can obtain workers with expected performance to match the company's expectations. The recruitment process is an activity that is quite costly for the company. 

Recruitment and selection carried out by workers usually has several stages. Each company can implement a different system in the recruitment process.

There are companies that implement processes interview sjust. There may be companies that require psychological tests even medical check-up. The tighter recruitment process makes the company more potential to get candidates with excellent quality.

However, with the increasing number of recruitment processes, of course the company will incur more additional costs. Apart from recruitment, the HR department of the company also needs to organize employee loyalty and the employee resignation process.

Process resign good workers will usually be accompanied by exit interviews (interview to employees who will resign). Through interview In this case, human resource management can evaluate the reasons behind the employee resignation process.

Performance Evaluation and Assessment

The process of evaluating employee performance may vary from organization to organization. Even so, the performance appraisal process is still very important to do. Performance appraisal will let the company know progress the work of each worker and makes it easier for companies to determine what stages they can take to achieve their goals.

The evaluation process implemented by human resource management can have various variations, for example using evaluation peer review then it can also be done with job reporting.

Planning Career Path Worker 

Development and promotion is very important for many people. Workers will prefer jobs with determination career path clear. Human resource management has a big role in determining the career path of workers.

Worker Compensation Planning and Provision

Compensation is something that may not be separated from a person's decision to work for an organization. Human resource management needs to organize and manage attractive compensation plans so that workers can be loyal to the company and level turn over company is low. 

Training and development (Training and Development)

Training and development can be carried out by the company as a routine work program or only at certain moments. Training and Development is a program that of course requires money, so it is understandable if companies do not hold this activity often.

Human resource management will later play a role in coordinating and providing training in the form of seminars, courses, workshop, and others to workers. Process training this will usually be accompanied by an evaluation so that the procurement of the next agenda can run even better. 

Ensuring Worker Health and Safety

Human resource management has responsibility for maintaining the safety, health and welfare of workers. For this reason, heavy work that poses a safety risk is usually provided with uniforms and protective helmets for employees. Not only that, HR management also has responsibility for the physical and non-physical quality of the work environment. HR management is the party that will mediate if there is a conflict between workers.

Ensuring Effectiveness of Working Relations

Finally, the company's resource management needs to have standards for effective and efficient working relationships between each worker. HR management also needs to maintain good relations with trade unions so that demonstrations do not occur.

Specialization in HR Management

Large-scale companies usually have specialist workers who handle each of the human resources functions. The following is an example of an HR management specialist that is usually present in a company.

1. recruiters, tasked with finding suitable job candidates for certain job positions
2. Equal Employment Opportunity (EEO) coordinator, has the duty to carry out investigations and resolution of complaints around EEO (equality between all workers); examine practices that have the potential to violate the rules; collect and report EEO reports.
3. job analysts, tasked with collecting and conducting research on a job which will later be used to prepare job descriptions.
4. compensation managers, has the task of developing a compensation plan (compensation plan) and is responsible for benefits that workers get.
5. Training specialistsA training specialist is someone who has the task of planning, organizing, and directing training activities.
6. Labor relations specialists, this specialist has the task of advising the company's relations with the union.

HR Management Benefits

Human resource management 

Improve the performance

Human resource management will usually follow up on decreased performance experienced by employees. HR management will later implement various programs to overcome the problem of declining employee performance.

There are many ways that human resource management can respond to cases of decreased performance. HR management may provide instruments rewards and punishment that fits the case situation. They may also be able to provide compensation planning tailored to provide motivation for workers.

Increase Company Revenue

When the company's human resource management can make the company's work climate better, the work performance of employees can increase. Improved individual performance can increase the income received by the company.

Guaranteed Employee Welfare

The company's human resource management has a duty to ensure the safety and health of employees. In addition, HR management can provide various kinds of benefits to the workers' compensation planning.

Actually, the form of benefits offered by the company's personnel department is not only in form benefits form. For example, human resource management provides vacation leave as well as accommodation to take a vacation.

In multinational companies, human resource management will have a more complex scope compared to companies that only operate domestically.

In connection with this company, HR management needs to carry out expatriate management. According to Dessler, G. (2000), an expatriate is someone who works in a country where he is not a citizen of that country.

When doing the process staffing By involving expatriates, human resource management needs to provide attractive benefits because in fact working in a foreign country is not an easy thing. HR management needs to think about training (perhaps in terms of local culture and language) prior to departure, costs if spouses of workers attend, and so on.

turn Over Reduce

Through good human resource management, adequate compensation beneficial, career path what is clear, as well as good physical and non-physical conditions of the workplace, workers will feel at home and loyal to work for the company.

Apart from that, with HR management, companies can implement exit interviews. Interview this allows human resource management to conduct evaluations (because the company knows the reason for the employee's resignation). 

Smoother Recruitment Process

The recruitment process is a stage that is quite costly for the company. When having HR management, companies can choose what recruitment and selection methods are most suitable to be applied according to the positions available to apply for. Because of this experience, companies can save on recruitment costs.

Human resource management is a very important element for the sustainability of an organization. HR issues are very decisive company performance because HR is the main actor of the business. Would you like to learn more about human resource management?

Reference:

Dessler, G. (2000). human resources management. Pearson Education.

Jones, GR, George, JM, & Hill, CW (2000). Contemporary management. Boston, MA: Irwin/McGraw-Hill.

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