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What is Human Resource Management: Roles, Functions, and Best Practices?

March 12, 2025

 

Written by Evans Momodu
Published 10:23 UK GMT


Discover the fundamentals of human resource management, including core functions, strategies for success, and career opportunities. Explore MSBM’s HRM courses.

Introduction to Human Resource Management (HRM)

Many employees have encountered the term “Human Resources Management,” often associating it with the professionals who handle vital functions within the workplace. 

So, what truly is Human Resource Management, and why is it attracting so many professionals in this dynamic digital business era? At its core, Human Resource Management (HRM) is about strategically managing the lifeblood of any organisation—its people. HRM focuses on cultivating a thriving work environment where talent is nurtured, skills are sharpened, and potential is realised.

In today’s fast-paced digital landscape, HRM has evolved to encompass not just the basics of retaining talent and monitoring performance, but also leveraging technology to enhance employee engagement and productivity. 

Professionals are drawn to this field because it’s no longer just about managing talent; it’s about shaping the future of work, fostering innovation, and creating a culture where everyone can flourish. 

Whether it's adapting to remote work, enhancing diversity and inclusion, or utilising data analytics to drive decisions, HRM is at the forefront of transforming organisational success in this new age. This makes it an exciting and essential career path for professionals passionate about people and progress.

Human resources management is the vital backbone of any organisation tasked with crafting and enforcing company policies that lay out the standards of conduct for employees and define the relationship between staff and the organisation. 

At the forefront of this critical function is the human resources manager, often known as the Admin manager in smaller firms where the workforce ranges from zero to fifteen. While the roles of an administrative manager and a human resources manager may overlap, it's essential to recognise their distinct functions. 

The administrative manager handles the operational logistics of the organisation, ensuring everything runs smoothly, while the human resources manager focuses on enhancing operational efficiency and nurturing the well-being of employees. 

Human Resource Management (HRM) transcends mere staffing to becoming a dynamic and essential part of organisational success. HRM emphasizes the recruitment, development, and management of employees, fostering a motivated and productive workforce. 

By aligning employee aspirations with the company’s objectives, HRM creates a thriving workplace culture that enhances employee satisfaction and drives overall business success. An effective HR strategy is a function and a pathway to a vibrant and successful organisation.

Are you an ambitious professional eager to make your mark in the dynamic field of Human Resource Management? If so, you’re in the right place! Let’s embark on an exciting journey together as we explore the essential functions of HRM. 

Understanding these core elements is crucial, as they not only fuel the success of organisations but also empower individuals like you to thrive in this vibrant industry. Join me as we dive deep into the fascinating world of HRM and unlock the secrets to effective human resource management.

                             
Key Functions of Human Resource Management

The human resources department is the heartbeat of any organisation, which ensures every operation runs smoothly. It is like a well-oiled machine—each part working in harmony, and at the centre of it all is HRM. 

From fostering a positive workplace culture to managing recruitment and onboarding, HRM is essential for optimising our daily operations. Let’s explore some of the key functions that make HRM indispensable in creating a thriving workforce:


1. Recruitment and Staffing

Talent acquisition, training, and retention are the lifeblood of any successful organisation as employees are the powerful engines that drive organisations towards sustainable growth and innovation. When you have the right team in place, your organisation can truly thrive.


However, without the right talent, your chances of success can plummet. 

That’s why effective Human Resource Management (HRM) is so vital. HRM must get the best candidates to fill positions, get the job done and contribute to a vibrant and dynamic workplace culture. 

Engaging talent, nurturing their skills through training, and ensuring they feel valued and motivated can make all the difference. Ultimately, it’s this foundation that supports your organisation in reaching new heights. Below are some of the ways HRM fulfils this obligation:

  • HRM Identifies workforce needs and fills the gap
  • Sources and attracts top talents in the industry
  • Conducts interviews and assessments to pick the best candidates
  • Onboards new hires efficiently

2. Training and Development

Every organisation thrives on its unique standard operating procedures and workplace etiquette, and all employees need to embrace these guidelines. That’s where the HRM steps in. They play a crucial role in empowering new hires by organising dynamic training sessions that make learning not just informative, but engaging. 


With the right orientation, a rookie can step into a new role equipped with all the knowledge they need to navigate their environment confidently. With the right training, they’ll be ready to tackle challenges and contribute to the team from day one. This is why human resources management is in high demand to make sure everyone is set to succeed and make a positive impact. HRM does this by ensuring the following:  

  • Providing employees with the necessary skills and knowledge.
  • Organising training sessions, workshops, and mentoring programs.
  • Encouraging continuous learning and career growth.

3. Performance Management

Every organisation aspires to have its employees not just meet but exceed their targets, all in alignment with the overarching mission. To achieve this goal, Human Resource Management (HRM) plays a crucial role in keeping a pulse on employee performance through regular assessments using key performance metrics. This proactive approach helps in identifying which employees might be struggling and need additional support. But how can HRM effectively monitor and manage performance? Here are some engaging strategies:

  • Setting performance goals and expectations
  • Conducting evaluations and feedback sessions
  • Implementing performance improvement plans
  • Incentivising employees and giving rewards for good performance.

4. Compensation and Benefits

Compensating employees is more than just a numbers game—it's a powerful way for management to demonstrate genuine care for their team members' well-being. When employees feel valued not just as workers but as individuals with dreams and aspirations, it makes a world of difference. 

This nurturing approach fosters a healthy work-life balance, which is crucial for keeping morale high and churn rates low. 


Human Resource Management (HRM) can take several dynamic steps to ensure employees feel appreciated and supported in their journey, both professionally and personally. Here are some inspiring strategies to consider: 


  • Developing competitive salary structures.
  • Reviewing employee salary and allowances regularly.
  • Managing employee benefits such as healthcare, retirement plans, and bonuses.
  • Ensuring equitable pay practices.

5. Employee Relations

Creating a vibrant and healthy working environment is essential for boosting employee performance and fostering collaboration to create an atmosphere where communication flows freely. In addition, feedback is not just welcome but encouraged. This is the type of atmosphere that the Human Resource Management (HRM) team must cultivate. 

The HRM plays a pivotal role in resolving those minor squabbles and misunderstandings among team members before they escalate into larger issues. By addressing these conflicts early on, HRM helps to eliminate any toxic elements or lingering resentments that could hinder teamwork and creativity. 


To unlock the full potential of collaboration and pave the way for organisational success, we can focus on a few key strategies: 


  • Open Communication Channels: Encourage transparency and let everyone know their voices are heard.  
  • Conflict Resolution Mechanisms: Establish clear guidelines for resolving disputes quickly and fairly.
  • Team-building Activities: Foster relationships through engaging activities that strengthen bonds and understanding among team members.
  • Regular Check-ins: Create opportunities for feedback to ensure everyone feels supported and aligned with the organisation’s goals.
  • Promoting Diversity and Inclusion: Make everyone feel welcome irrespective of their race or Background.
  • Maintaining a Positive Work Environment: Create an atmosphere that is free of toxicity.
  • Employee Well-being: Caring genuinely for employees without discriminating against them.


Importance of Effective HR Management

The significance of effective human resource management cannot be emphasized enough—it's truly the backbone of any organisation striving for success. Think about it: regardless of a company’s vision or mission, the right skill sets are crucial to turn aspirations into reality. 


Without proper management of human resources, even the most brilliant workforce can falter. At the heart of every thriving organisation is its workforce. Whether it’s a start-up or a multinational corporation, the talent within makes all the difference. A company can have all the right tools and infrastructure, but without an engaged and well-managed workforce, it might as well be running on empty. 


So, why should we prioritise effective HR management? Here are some compelling benefits that showcase its impact on organisational success:

1. Enhancing Employee Productivity

  • Motivate employees through training, healthy competition and recognition
  • Provide opportunities for professional growth through seminars and workshops.

2. Fostering a Positive Work Culture

  • Encourage open communication and collaboration among employees
  • Implement policies that support work-life balance

3. Compliance and Risk Management

  • Ensuring adherence to labour laws and regulations
  • Reducing legal risks through proper HR policies

Real-world Examples of Successful HRM Practices

1. Google: Employee Engagement

As the largest search engine in the world, Google is on a relentless quest to explore new horizons, and this ambitious journey demands a team of skilled professionals to power its technology and business hubs. That's why Google goes above and beyond in investing in human resource management, ensuring that its employees are geared up for peak productivity. 

Google prioritises the cultivation of an environment where employees feel valued and inspired. The company champions high employee engagement by creating innovative workspaces that spark creativity, offering abundant career development opportunities for growth, and fostering dynamic internal communication channels that keep everyone connected. In this vibrant culture, every team member is encouraged to thrive, contributing to Google’s mission to make information universally accessible and useful.

2. Netflix: Performance Management

The energy is palpable at Netflix, thriving in a high-performance workplace that fuels creativity and innovation. The company strategically embarks on the hunt for passionate team players who prioritise Netflix's goals and can thrive in a fast-paced setting.

What sets Netflix apart is its commitment to a performance-driven culture. They champion continuous feedback, ensuring that everyone is aligned with clear expectations and ready to tackle challenges head-on. 

By removing barriers to success, Netflix creates an environment where talent can soar, making every team member an integral part of the company's exciting journey.


  1. Zappos: Company Culture

Zappos has truly redefined the workplace with its iconic human resources management (HRM) strategy that fosters a vibrant culture of engagement and collaboration. Imagine stepping into an environment where every day feels like a celebration, with perks like free lunches, exciting activities, and comprehensive healthcare programs that prioritise your well-being. 

Such engaging activities make employees feel special and a big part of a small community. At Zappos, the company culture is the heartbeat of the organisation. They go above and beyond by not only hiring employees who align with their values but also by offering incentives that keep positivity flowing. It creates a dynamic atmosphere where everyone can thrive, innovate, and feel valued. With such an emphasis on cultural fit and a supportive environment, it’s no wonder that Zappos continues to be a leader in nurturing happy and motivated employees.

The Role of Technology in HRM

1. HR Software (e.g., Workday, SAP SuccessFactors)

It is actually possible for HR tasks to be seamless and efficient—this is what powerful tools like SAP offer. You can effortlessly manage core HR functions and payroll, dive deep into workforce analytics and planning, and enhance the overall employee experience with their cloud HR software. Think of it as your ultimate partner in supporting, developing, and rewarding your team. 

From payroll management to tracking employee performance, these tools streamline every aspect of HRM, allowing you to focus on what really matters—nurturing talent and fostering growth.

  1. Automation in Recruitment and Onboarding

In today’s fast-paced world, AI-powered recruitment tools are revolutionising the hiring process for HRM professionals, especially by helping to sift through mountains of resumes with ease. These innovative tools not only help filter countless applications to identify the crème de la crème but also streamline the onboarding experience, making it smoother and more efficient. By utilising AI, HR teams can focus more on what truly matters—finding the perfect match for their company and ensuring new hires feel welcome and integrated into their new environment from day one.

3. Data-driven Performance Management

HR analytics is a game-changer when it comes to understanding employee performance. It gives the management the power to make informed decisions about talent management by unearthing valuable insights right at your fingertips. With performance indicators presented through vibrant visualisations—like dynamic charts, eye-catching graphs, and interactive dashboards—organisations can dive deep into the data. These visual tools transform complex numbers into clear narratives, helping leaders make strategic decisions about employee performance, compensation, and rewards

Careers in Human Resource Management

HRM offers diverse career paths with opportunities for professional growth. Some of the key areas in HRM are as follows:

Key Roles:

  • HR Manager
  • Talent Acquisition Specialist
  • HR Analyst
  • Learning and Development Manager

Required Skills:

  • Communication
  • Conflict Resolution
  • Strategic Thinking
  • Data Analysis
  • Leadership

Tips for Career Growth in HR

  • Gain certifications like SHRM, CIPD, or MSBM
  • Stay updated with HR trends and best practices
  • Develop strong networking skills

How to Excel in Human Resource Management

Certifications:

  • MSBM HRM Certification: Provides in-depth knowledge and practical HR skills.
  • SHRM (Society for Human Resource Management): Recognised worldwide for HR professionals.
  • CIPD (Chartered Institute of Personnel and Development): Focuses on HR and learning development.

Best Practices for Effective HRM

  • Foster open communication within teams
  • Regularly review and update HR policies
  • Implement employee recognition programs
  • Use HR analytics for informed decision-making

Tools and Resources for HR Professionals

  • LinkedIn Learning (HR courses)
  • HR software like BambooHR, Workday, and Zoho People
  • Industry publications like Harvard Business Review (HBR)

Why Choose MSBM for Human Resource Management Courses?

  • Globally Recognised Certification: MSBM provides HR courses accredited by industry leaders.
  • Flexible Learning Options: Online courses that fit your schedule.
  • Expert Faculty: Learn from experienced HR professionals.

Conclusion

Human Resource Management is vital for building a strong and productive workforce. Organisations that invest in HRM practices experience higher employee engagement, improved productivity, and a positive workplace culture. Whether you're starting your HRM career or looking to advance, pursuing HRM certifications from MSBM can help you achieve your goals.

FAQs

1. What is the main role of HRM?

HRM is responsible for recruiting, training, managing employee performance, and ensuring compliance with labour laws.

2. How can I start a career in HR?

You can start by obtaining a degree in HR, gaining certifications (e.g., MSBM, SHRM, CIPD), and acquiring relevant work experience.

3. What are the best HR software tools?

Popular HR tools include Workday, BambooHR, and SAP SuccessFactors.

4. How does HRM impact company culture?

HRM shapes company culture by fostering open communication, promoting employee well-being, and ensuring fair workplace policies.

5. Why should I choose MSBM for HR courses?

MSBM offers accredited, flexible, and industry-relevant HR courses to help professionals excel in their careers.

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