Management & Leadership

What is Human Resource Management (HRM) and Why is it Important?

Aug 04, 2020 | By Saranne Durham
What is Human Resource Management (HRM) and Why is it Important?

People are an organisation’s most valuable resource. Those that work within an organisation can often determine the success or failure of it. Therefore, the efficient and effective management of employees is vitally important. Human Resource Management (HRM) seeks to bridge the gap between performance of employees and an organisation’s strategic objectives.

What is Human Resource Management (HRM)?

HRM is the efficient management of people within an organization. An effective HR Manager understands the basic psychological dynamics of people processes and practices. Thereby bridging the gap between an employee’s performance and an organization’s strategic objectives.

“HRM bridges the gap between employee performance and organisational strategic objective.”

5 Focus areas within HRM are:

  1. Human Resource Planning and Strategizing
  2. Employee Recruitment, Selection and Introduction
  3. Performance and Reward Management
  4. Talent Development and Training
  5. Administration of Labor and Employee relations

What’s the difference between HRM, Personnel Management and Industrial Psychology?

While all three areas fall under the broad umbrella of Human Resources (HR), there are important differences between the focus and intent of HRM, Personnel Management and Industrial Psychology.

  • Human Resource Management: Is proactive in approach and relational in nature. It focuses on an organization’s needs as well as an employee’s personal growth. It does this by monitoring and adjusting systems to ensure that employees are motivated and incentivized (onboard), in order to achieve their organization’s objectives.
  • Personnel Management: Is largely reactive in nature and operates off a rules-based system. It focuses on maintaining administrative and personnel systems such as employment planning, payroll and legal compliance with labour laws.
  • Industrial Psychology: Assesses the individual, group and organizational workplace dynamics; with the intention of improving the well-being and performance of both the employees and the organization.

“HRM is proactive in approach and relational in nature.”

Why is HRM important?

Finding someone who fits into an organisation and will stay within the organisation after being employed are two different things.

To keep someone wanting to work within an organisation isn’t as simple as paying them enough. Often it’s the nuances within the organisation and the perceptions thereof that keep someone from looking for another job.

Three Questions Employees ask:

  1. Does this job make use of my skill set and is my contribution recognised?
  2. Does management value personal growth, learning and allow for new opportunities?
  3. Is management fair in how it deals with employee issues?

HRM essentially seeks to ensure that the answer to these three questions is YES! Which makes HRM important to managers because happy employees result in less staff turnover eh more time to successfully complete work.

How Does Human Resource Management (HRM) Make a Difference?

HRM ensures that employees are motivated, feel valued and are happy within their job. It does this by creating benefit options, which incentivise employees and get them onboard with achieving the company’s goals. Preventing disputes is managed through training, communication and management.

“HRM helps to reduce staff turnover by better ensuring job satisfaction.”

Key to HRM is nurturing employee development to optimise their potential as well as recognising an employee’s contribution to the organisation’s success.

Who Should Study HRM?

Working in HRM requires building bridges between what is good for the organisation and the people who work at it. It requires innovative thinking, a flexible approach, having a solution orientated response to what is and could happen within a company as well as within the marketplace. If you enjoy working with people to help them realise their potential and are interested in business strategy, then HRM could prove to be both a rewarding and challenging career path for you.

Where will an HR manager work?

With the skills amassed through obtaining an HRM degree, there are many potential employment avenues that will open up to you within the public, private and non-profit sectors. For example, you could step into a HR Business Partner, Assistant, Advisor or Consultant role.

“The skills obtained through an HRM degree opens doors into the private, public and non-profit sectors.”

Additionally, you would be able to explore work opportunities in workforce planning, talent management, employee relations, learning and development, work-related wellbeing and organisation development as broad areas of HRM. 

How / Where can I study Human Resource Management (HRM)?

If you’re interested in a degree that develops critical skills to help you lead the way in contemporary and impactful human resource management (HRM), then apply online today.

The SACAP Bachelor of Applied Social Science majoring in Psychology and Human Resource Management (HRM) has been designed to develop robust knowledge, skills and understanding of human resource theories, as well as practices, methodologies and competencies. Equipping you with the necessary toolkit to function effectively and meaningfully in a human resource role. Successful graduates are then eligible for admission to both the HRM honours degree or postgraduate studies in psychology, the social sciences or related fields.

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