Editing Human resource management (section)

{{Short description|Approach to the effective management of people in a company}}
{{Business administration}}
'''Human resource management''' ('''HRM''') is the strategic and coherent approach to the effective and efficient management of people in a company or organization such that they help their business gain a [[competitive advantage]]. It is designed to maximize [[employee performance management|employee performance]] in service of an employer's strategic objectives.<ref>Johnson, P. (2009). HRM in changing organizational contexts. In D. G.Collings & G. Wood (Eds.), Human resource management: A critical approach (pp. 19-37). London: Routledge.</ref>{{request quotation|date=June 2017}} Human resource management is primarily concerned with the management of people within organizations, focusing on [[policy|policies]] and [[system]]s.<ref>Collings, D. G., & Wood, G. (2009). Human resource management: A critical approach. In D. G. Colligs & G. Wood (Eds.), Human resource management: A critical approach (pp. 1-16). London: Routledge.</ref> HR departments are responsible for overseeing [[employee benefits|employee-benefits]] design, employee [[recruitment]], [[training and development]], [[performance appraisal]], and [[reward management]], such as managing [[Wage|pay]] and employee benefits systems.<ref>Paauwe, J., & Boon, C. (2009). Strategic HRM: A critical review. In D. G. Collings, G. Wood (Eds.) & M.A. Reid, Human resource management: A critical approach (pp. 38-54). London: Routledge.</ref> HR also concerns itself with [[organizational change]] and [[industrial relations]], or the balancing of organizational practices with requirements arising from [[collective bargaining]] and governmental [[law]]s.<ref>{{cite web | url=https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/human-resource-management/ | title=Human Resource Management &#124; Introduction to Business }}</ref>

The overall purpose of [[human resources]] (HR) is to ensure that the organization can achieve success through people.<ref>{{Cite book|title=Armstrong's handbook of human resource management practice|author=Armstrong, Michael|date=2009|publisher=Kogan Page|others=Armstrong, Michael, 1928-|isbn=9780749457389|edition= Eleventh |location=London|oclc=435643771}}</ref> HR professionals manage the [[human capital]] of an organization and focus on implementing policies and processes. They can specialize in finding, recruiting, selecting, training, and developing employees, as well as maintaining employee relations or benefits. Training and development professionals ensure that employees are trained and have continuous development. This is done through training programs, performance evaluations, and reward programs. Employee relations deals with the concerns of employees when policies are broken, such as in cases involving harassment or discrimination. Managing employee benefits includes developing compensation structures, [[parental leave]] programs, discounts, and other benefits. On the other side of the field are HR generalists or [[business partner]]s. These HR professionals could work in all areas or be [[Industrial relations|labour relations]] representatives working with [[labor union|unionized]] employees.

HR is a product of the [[human relations movement]] of the early 20th century when researchers began documenting ways of creating [[business value]] through the [[strategic management]] of the workforce.<ref>{{Cite journal|last=Obedgiu|first=Vincent|date=2017-01-01|title=Human resource management, historical perspectives, evolution and professional development|url=https://doi.org/10.1108/JMD-12-2016-0267|journal=Journal of Management Development|volume=36|issue=8|pages=986–990|doi=10.1108/JMD-12-2016-0267|issn=0262-1711}}</ref> It was initially dominated by transactional work, such as [[payroll]] and [[employee benefits|benefits]] administration, but due to [[globalization]], company consolidation, technological advances, and further research, HR {{as of|2015|lc=on}} focuses on strategic initiatives like [[mergers and acquisitions]], [[talent management]], [[succession planning]], [[industrial relations|industrial]] and [[labor relations]], and [[multiculturalism|diversity]] and [[Inclusion (value and practice)|inclusion]]. In the {{as of|2015|alt= current}} global work environment, most companies focus on lowering [[employee turnover]] and on [[Employee retention|retaining]] the talent and knowledge held by their workforce.<ref>{{Cite web |title=Employee retention: 10 strategies for retaining top talent |url=https://www.cio.com/article/251060/employee-retention-10-strategies-for-retaining-top-talent.html |access-date=2024-05-29 |website=CIO |language=en}}</ref>