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Human resource management (HRM)

People are the key organisational resource; without them organisations would not exist or function. All businesses need to plan for and manage the people they employ if they are to use this resource effectively and efficiently in pursuit of their objectives. In modern and forward-looking organisations this implies a proactive approach to the management of people which goes beyond the bounds of traditional personnel management and involves the establishment of systems for planning, monitoring, appraisal and evaluation.

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Training and development and for integrating the internal needs of the organisation with the external demands of the marketplace. Such an approach is associated with the idea of human resource management. As in other areas of management, HRM involves a wide variety of activities related to the formulation and implementation of appropriate organisational policies, the provision of opportunities for monitoring, evaluation and change, and the application of resources to the fulfilment of organisational ends.

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Key aspects of ‘people management’ include:

  • recruitment and selection;
  • working conditions;
  • training and career development;
  • job evaluation;
  • employee relations;
  • manpower planning; and
  • legal aspects of employment. In most, if not all, cases these will be affected by both internal and external influences (e.g. size of the firm, management style, competition, economic and political developments), some of which will vary over time as well as between organisations.

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