Human resource management (HRM) is the strategic process of organizing and directing employees in an organization. HR professionals oversee numerous company-wide operations, including recruitment, employee training, performance management, and policy <a href='https://masterclass.com/articles/robin-robertss-tips-for-effective-communication' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/robin-robertss-tips-for-effective-communication","linkCopy":"communication","category":"automated-link"}' automatic='true'>communication</a>. 

With a focus on developing a positive and efficient workplace culture, human resource management provides employees with the administrative tools they need to contribute to the company’s overall success. 
The purpose of HRM is to increase an organization’s productivity through the performance of its employees. Human resource managers focus on organizational behavior, ensuring employees stay engaged and committed to the business or nonprofit’s mission. 

By organizing community outreach and company culture events, HR professionals provide employees with team-building opportunities that help employees feel connected to the organization. Learn more about [team-building activities](https://www.masterclass.com/articles/team-building-activities-explained). 
Here is a brief overview of the origins and evolution of HRM:

- __Beginnings__: Human resources departments first developed as a specialized field in the early twentieth century, as manufacturers used scientific management strategies to improve economic productivity. Originally, human resource management strictly focused on payroll and labor relations. 
- __Training programs__: As human resource management grew within the US, educational and professional opportunities in HR developed. In 1945, Cornell University founded the School of Industrial and Labor Relations to train individuals in workplace productivity and labor laws. In 1948, a group of professionals established the Society for Human Resource Management, the largest professional HR association, to support the field’s growth. 
- __Evolving the field__: Human resource management has grown in scope and demand over the past twenty years. With the rise of [globalization](https://www.masterclass.com/articles/how-globalization-works-pros-and-cons-of-globalization) and the digital age, human resource management has transitioned from an administrative role to a strategic role. The position of HR professionals encompasses more than payroll, as human resource managers aid with organizational workplace structure. 
HR departments oversee different aspects of company structuring, from employee hiring to professional development. While HR practices mainly focus on employee needs, the main areas of human resource management also cover the operational functions of an organization. 

1. __Employee recruitment__: While hiring managers oversee the hiring process, human resource management also plays a key role in recruitment and talent acquisition. HR professionals evaluate candidates, providing hiring managers with potential new hires that fit the job requirements. After the organization hires a candidate, the HR department communicates the new employee’s start date and provides the necessary paperwork for onboarding. 
2. __Employee retention__: Employee retention is an integral aspect of any organization, and the HR department is responsible for both recommending and implementing employee retention strategies. These strategies include increasing employee benefits, developing new training programs, adding new internal promotions, and structuring flexible time off. 
3. __Professional development__: Performance and job analysis is another area of human resource management. HR professionals review and assess employee metrics with routine performance appraisals. These reviews provide team members with constructive [feedback](https://www.masterclass.com/articles/how-to-give-good-feedback-at-work), motivating employees each quarter. 
4. __Organizational culture__: Along with employee development, human resource management also assists in organizational structure on a project and company-wide basis. HRM oversees how projects function within each department and whether those projects remain aligned with the organization’s mission. From a company-wide perspective, HRM can organize events to remind employees of the mission and purpose. 
5. __Labor relations__: HRM deals with employee compensation, ensuring payroll complies with federal regulations and employment law while remaining competitive within the industry. The HR department also administers pay distribution and employee promotions. If conflicts arise with labor unions, the HR department works to resolve them. 
6. __Employee relations__: HR departments develop procedures for conflict management and team building to help organizations foster positive employee relations. By outlining fair and clear strategies for preventing and resolving workplace disputes, HR professionals help employees work together. They also handle more serious conflicts, such as sexual harassment complaints and lawsuits.
Rather than focusing on specialized tasks, HR generalists perform a wide range of HR functions, covering employee and company needs. 

1. __Strategic planning__: The HR department in any organization helps with <a href='https://masterclass.com/articles/how-to-develop-a-smart-business-strategy' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/how-to-develop-a-smart-business-strategy","linkCopy":"business strategy","category":"automated-link"}' automatic='true'>business strategy</a> and organizational development. HR professionals view company situations from an employee-relations perspective; therefore, they provide decision-making strategies for managing human capital.
2. __Organizing training and development__: HR managers coordinate events that encourage long-term career development, such as industry training programs and cultural awareness forums. These events provide employees with ongoing educational opportunities, improving employee performance and increasing employee engagement.
3. __Staffing__: Many of the human resource management practices revolve around staffing. HR professionals oversee the hiring process, from initial job application reviews to final interviews and selection. 
4. __Resolving disputes__: Another primary function of a human resources manager is conflict resolution. HR professionals step in when team members have complaints. If the situation requires serious action, the HR professional is responsible for executing the necessary disciplinary action. 
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Human resources management is an integral component of any organization. HRM works as people management, creating a positive work environment, so all stakeholders are productive.

Human resources management is an integral component of any organization. HRM works as people management, creating a positive work environment, so all stakeholders are productive. 

Human Resource Management Guide: 4 Functions of HRM

Human resource management (HRM) is the strategic process of organizing and directing employees in an organization. HR professionals oversee numerous company-wide operations, including recruitment, employee training, performance management, and policy <a href='https://masterclass.com/articles/robin-robertss-tips-for-effective-communication' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/robin-robertss-tips-for-effective-communication","linkCopy":"communication","category":"automated-link"}' automatic='true'>communication</a>. With a focus on developing a positive and efficient workplace culture, human resource management provides employees with the administrative tools they need to contribute to the company’s overall success.

What Is Human Resource Management?

The purpose of HRM is to increase an organization’s productivity through the performance of its employees. Human resource managers focus on organizational behavior, ensuring employees stay engaged and committed to the business or nonprofit’s mission. By organizing community outreach and company culture events, HR professionals provide employees with team-building opportunities that help employees feel connected to the organization. Learn more about <a href='https://www.masterclass.com/articles/team-building-activities-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/team-building-activities-explained","linkCopy":"team-building activities","category":null}'>team-building activities</a>.

Purpose of Human Resource Management

Here is a brief overview of the origins and evolution of HRM:<ul class="mc-m-4 list-styled"><li class="">Beginnings: Human resources departments first developed as a specialized field in the early twentieth century, as manufacturers used scientific management strategies to improve economic productivity. Originally, human resource management strictly focused on payroll and labor relations. </li><li class="">Training programs: As human resource management grew within the US, educational and professional opportunities in HR developed. In 1945, Cornell University founded the School of Industrial and Labor Relations to train individuals in workplace productivity and labor laws. In 1948, a group of professionals established the Society for Human Resource Management, the largest professional HR association, to support the field’s growth. </li><li class="">Evolving the field: Human resource management has grown in scope and demand over the past twenty years. With the rise of <a href='https://www.masterclass.com/articles/how-globalization-works-pros-and-cons-of-globalization' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-globalization-works-pros-and-cons-of-globalization","linkCopy":"globalization","category":null}'>globalization</a> and the digital age, human resource management has transitioned from an administrative role to a strategic role. The position of HR professionals encompasses more than payroll, as human resource managers aid with organizational workplace structure. </li></ul>

Origin and Evolution of Human Resource Management

HR departments oversee different aspects of company structuring, from employee hiring to professional development. While HR practices mainly focus on employee needs, the main areas of human resource management also cover the operational functions of an organization. <ol class="mc-m-4"><li class="mc-my-4"> 1. Employee recruitment: While hiring managers oversee the hiring process, human resource management also plays a key role in recruitment and talent acquisition. HR professionals evaluate candidates, providing hiring managers with potential new hires that fit the job requirements. After the organization hires a candidate, the HR department communicates the new employee’s start date and provides the necessary paperwork for onboarding. </li><li class="mc-my-4"> 2. Employee retention: Employee retention is an integral aspect of any organization, and the HR department is responsible for both recommending and implementing employee retention strategies. These strategies include increasing employee benefits, developing new training programs, adding new internal promotions, and structuring flexible time off. </li><li class="mc-my-4"> 3. Professional development: Performance and job analysis is another area of human resource management. HR professionals review and assess employee metrics with routine performance appraisals. These reviews provide team members with constructive <a href='https://www.masterclass.com/articles/how-to-give-good-feedback-at-work' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-give-good-feedback-at-work","linkCopy":"feedback","category":null}'>feedback</a>, motivating employees each quarter. </li><li class="mc-my-4"> 4. Organizational culture: Along with employee development, human resource management also assists in organizational structure on a project and company-wide basis. HRM oversees how projects function within each department and whether those projects remain aligned with the organization’s mission. From a company-wide perspective, HRM can organize events to remind employees of the mission and purpose. </li><li class="mc-my-4"> 5. Labor relations: HRM deals with employee compensation, ensuring payroll complies with federal regulations and employment law while remaining competitive within the industry. The HR department also administers pay distribution and employee promotions. If conflicts arise with labor unions, the HR department works to resolve them. </li><li class="mc-my-4"> 6. Employee relations: HR departments develop procedures for conflict management and team building to help organizations foster positive employee relations. By outlining fair and clear strategies for preventing and resolving workplace disputes, HR professionals help employees work together. They also handle more serious conflicts, such as sexual harassment complaints and lawsuits. </li></ol>

6 Main Areas of Human Resource Management

Rather than focusing on specialized tasks, HR generalists perform a wide range of HR functions, covering employee and company needs. <ol class="mc-m-4"><li class="mc-my-4"> 1. Strategic planning: The HR department in any organization helps with <a href='https://masterclass.com/articles/how-to-develop-a-smart-business-strategy' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/how-to-develop-a-smart-business-strategy","linkCopy":"business strategy","category":"automated-link"}' automatic='true'>business strategy</a> and organizational development. HR professionals view company situations from an employee-relations perspective; therefore, they provide decision-making strategies for managing human capital. </li><li class="mc-my-4"> 2. Organizing training and development: HR managers coordinate events that encourage long-term career development, such as industry training programs and cultural awareness forums. These events provide employees with ongoing educational opportunities, improving employee performance and increasing employee engagement. </li><li class="mc-my-4"> 3. Staffing: Many of the human resource management practices revolve around staffing. HR professionals oversee the hiring process, from initial job application reviews to final interviews and selection. </li><li class="mc-my-4"> 4. Resolving disputes: Another primary function of a human resources manager is conflict resolution. HR professionals step in when team members have complaints. If the situation requires serious action, the HR professional is responsible for executing the necessary disciplinary action. </li></ol>

4 Primary Functions of Human Resource Management

Get the <a href='https://www.masterclass.com' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com","linkCopy":"MasterClass Annual Membership","category":null}'>MasterClass Annual Membership</a> for exclusive access to video lessons taught by business luminaries, including Bob Iger, Chris Voss, Robin Roberts, Sara Blakely, Daniel Pink, Howard Schultz, Anna Wintour, and more.

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Human resources management is an integral component of any organization. HRM works as people management, creating a positive work environment, so all stakeholders are productive.

Human resources management is an integral component of any organization. HRM works as people management, creating a positive work environment, so all stakeholders are productive. 
