Human Resource Management: Understanding Functions and Benefits for Business

05 March 2024

Human resource management or HRM (Human Resources Management) is something that is important for business owners to know.

The reason is, a good company has three resources, namely; physical resources, financial resources, and human resources. Acting as a driving force, human resources must be managed well for the sustainability of the company.

Moreover, a successful company depends on the quality of its human resources. This makes good HRM necessary to achieve company goals.

Understand more about what is meant by HRM, its functions and benefits for your company in the following review.

Understanding HRM

HRM or Human Resources Management is the activity of organizing and managing employees in a company to implement the vision, mission and business goals.

HRM is reliable enough to maintain the smoothness and efficiency of business, both for small and large scale companies.

Activities include recruitment, training, compensation, retention and employee motivation.

HRM Function in the Company

The following is a more complete explanation of the HRM function in the company, including:

Recruitment and selection

A company's HRM holds responsibility for planning, advertising, selecting and recruiting employees as needed.

This process includes interviews, assessments, and selecting the most suitable employees for the available positions.

Training and development

The second HRM function is as a designer and implementer of training programs.

The training provided must be able to improve employee skills, knowledge and competence.

For example, HRM plans training that involves employees from various departments to learn and master the latest software.

The program includes hands-on training sessions, case studies, and real projects that require employees to apply their new knowledge in the context of everyday work.

This series of training will increase employee productivity which will ultimately result in the company's progress.

Performance manager

Performance management is an important HRM task that involves assessing employee performance. HRM sets goals, provides feedback, evaluates performance, and designs improvement plans.

For example, HRM can help in setting measurable performance goals and providing constructive feedback to employees.

By conducting regular evaluations, HRM can identify performance strengths and weaknesses, as well as design training programs to improve employee performance.

Communication intermediary

The next function of HRM in the company is as a communication intermediary between leaders and employees and vice versa.

Information such as policy announcements and company developments, as well as input on a problem, is usually communicated first to HRM.

For example, a company faces a policy change regarding flexible working hours. Before the official announcement to all employees, the company leadership conveys the information first to HRM.

HRM is then responsible for communicating the policy to all employees.

HRM not only conveys information, but also opens communication channels to receive input and questions from employees.

This creates transparency in the company's internal communications and helps manage change more effectively.

Employee welfare manager

HRM is also responsible for ensuring the safety, comfort of the work environment and security standards for employees.

Apart from that, HRM is tasked with handling employee benefits such as health insurance, leave and other welfare programs.

Employee position planning

HRM workforce planning is said to be successful if the company can maintain operational continuity well, including when someone leaves.

For example, when a senior level employee chooses to leave, the company can quickly find a replacement so that productivity is maintained.

Likewise, when a staff member is to be appointed senior, he or she will receive provisions first so that they are better prepared for their appointment.

Conflict management

HRM is a key role in handling conflict among team members or between the team and leadership. They can mediate, resolve disputes, and find solutions that support a harmonious work environment.

By mediating, they facilitate constructive discussions and reach an agreement that satisfies both parties. These actions help maintain a positive work atmosphere and support team productivity.

Benefits of HRM for Companies

If the HRM functions above run well, the company can obtain several benefits:

  • Play a role in achieving departmental or company targets as a whole which has an impact on increasing profits.
  • Appropriate placement of employees according to competency and company needs to maximize work results.
  • Maximum time management resulting in optimal productivity.
  • Facilitates the delegation process from leadership, so that employees can focus on carrying out their respective tasks.
  • Providing employees with a series of training to improve their abilities and skills in preparation for their next career level.

That's the information you need to know about what HRM is, its functions and benefits for your company. A good HRM system is one that is able to produce a solid, productive and profitable team for the company.

However, an HRM system that was successful 5-10 years ago is not necessarily still relevant today. An HR manager must keep up with various changes ranging from the way business is managed, technology, to the expectations of today's job seekers.

If you want to explore HR that is relevant today, follow the short program HR Today: Building Employee Excellence from Prasmul Eli.

In the two-day program, the scope of learning includes:

  • HR Today - What & Why, People Strategy
  • HRM Models
  • Acquiring - DEI & EVP (Employer Branding)
  • Developing - Bench Strength & Reskilling Upskilling
  • Guest Speakers
  • Rewarding - total reward package
  • Maintaining - Well Being, Mental Health, Hybrid Working, Work Life & Play
  • Wrap Up

Register yourself via the following link to take this class!

Human resource management or HRM (Human Resources Management) is something that is important for business owners to know.

The reason is, a good company has three resources, namely; physical resources, financial resources, and human resources. Acting as a driving force, human resources must be managed well for the sustainability of the company.

Moreover, a successful company depends on the quality of its human resources. This makes good HRM necessary to achieve company goals.

Understand more about what is meant by HRM, its functions and benefits for your company in the following review.

Understanding HRM

HRM or Human Resources Management is the activity of organizing and managing employees in a company to implement the vision, mission and business goals.

HRM is reliable enough to maintain the smoothness and efficiency of business, both for small and large scale companies.

Activities include recruitment, training, compensation, retention and employee motivation.

HRM Function in the Company

The following is a more complete explanation of the HRM function in the company, including:

Recruitment and selection

A company's HRM holds responsibility for planning, advertising, selecting and recruiting employees as needed.

This process includes interviews, assessments, and selecting the most suitable employees for the available positions.

Training and development

The second HRM function is as a designer and implementer of training programs.

The training provided must be able to improve employee skills, knowledge and competence.

For example, HRM plans training that involves employees from various departments to learn and master the latest software.

The program includes hands-on training sessions, case studies, and real projects that require employees to apply their new knowledge in the context of everyday work.

This series of training will increase employee productivity which will ultimately result in the company's progress.

Performance manager

Performance management is an important HRM task that involves assessing employee performance. HRM sets goals, provides feedback, evaluates performance, and designs improvement plans.

For example, HRM can help in setting measurable performance goals and providing constructive feedback to employees.

By conducting regular evaluations, HRM can identify performance strengths and weaknesses, as well as design training programs to improve employee performance.

Communication intermediary

The next function of HRM in the company is as a communication intermediary between leaders and employees and vice versa.

Information such as policy announcements and company developments, as well as input on a problem, is usually communicated first to HRM.

For example, a company faces a policy change regarding flexible working hours. Before the official announcement to all employees, the company leadership conveys the information first to HRM.

HRM is then responsible for communicating the policy to all employees.

HRM not only conveys information, but also opens communication channels to receive input and questions from employees.

This creates transparency in the company's internal communications and helps manage change more effectively.

Employee welfare manager

HRM is also responsible for ensuring the safety, comfort of the work environment and security standards for employees.

Apart from that, HRM is tasked with handling employee benefits such as health insurance, leave and other welfare programs.

Employee position planning

HRM workforce planning is said to be successful if the company can maintain operational continuity well, including when someone leaves.

For example, when a senior level employee chooses to leave, the company can quickly find a replacement so that productivity is maintained.

Likewise, when a staff member is to be appointed senior, he or she will receive provisions first so that they are better prepared for their appointment.

Conflict management

HRM is a key role in handling conflict among team members or between the team and leadership. They can mediate, resolve disputes, and find solutions that support a harmonious work environment.

By mediating, they facilitate constructive discussions and reach an agreement that satisfies both parties. These actions help maintain a positive work atmosphere and support team productivity.

Benefits of HRM for Companies

If the HRM functions above run well, the company can obtain several benefits:

  • Play a role in achieving departmental or company targets as a whole which has an impact on increasing profits.
  • Appropriate placement of employees according to competency and company needs to maximize work results.
  • Maximum time management resulting in optimal productivity.
  • Facilitates the delegation process from leadership, so that employees can focus on carrying out their respective tasks.
  • Providing employees with a series of training to improve their abilities and skills in preparation for their next career level.

That's the information you need to know about what HRM is, its functions and benefits for your company. A good HRM system is one that is able to produce a solid, productive and profitable team for the company.

However, an HRM system that was successful 5-10 years ago is not necessarily still relevant today. An HR manager must keep up with various changes ranging from the way business is managed, technology, to the expectations of today's job seekers.

If you want to explore HR that is relevant today, follow the short program HR Today: Building Employee Excellence from Prasmul Eli.

In the two-day program, the scope of learning includes:

  • HR Today - What & Why, People Strategy
  • HRM Models
  • Acquiring - DEI & EVP (Employer Branding)
  • Developing - Bench Strength & Reskilling Upskilling
  • Guest Speakers
  • Rewarding - total reward package
  • Maintaining - Well Being, Mental Health, Hybrid Working, Work Life & Play
  • Wrap Up

Register yourself via the following link to take this class!

Prasetiya Mulya Executive Learning Institute
Prasetiya Mulya Cilandak Campus, Building 2, #2203
Jl. R.A Kartini (TB. Simatupang), Cilandak Barat, Jakarta 12430
Indonesia
Prasetiya Mulya Executive Learning Institute
Prasetiya Mulya Cilandak Campus, Building 2, #2203
Jl. R.A Kartini (TB. Simatupang), Cilandak Barat,
Jakarta 12430
Indonesia