Understanding the Nature of Human Resource Management

Imagine you’re the conductor of a giant orchestra. You have all these fantastic instruments – violins, trumpets, drums – but if nobody knows how to play them, or they’re constantly fighting, the music will sound awful, right? Well, an organisation is kind of that orchestra. You need the right people in the right places, working together in harmony, to achieve success. That’s where the nature of human resource management revolves around various functions, processes, and strategies that help recruit, manage, and develop the workforce.

Human resource management (HRM) has essential functions! So, grab your popcorn because we’re about to delve into the fascinating world of HRM! We’ll explore what it is, why it’s essential, and how it helps organisations like yours thrive. Buckle up because it’s going to be a fun ride!

About Human Resource Management

Human resource management is well recognised as the support that plays a central role in an organisation’s functioning. It concerns the most valuable component of any form of business people.

The concept of human resource management cuts across every aspect of the employment process, from recruitment, selection, development, protection, and nurturing of human resources within an organisation to meeting its legal obligations as per the existing provisions of the law.

Nature of Human Resource Management (HRM): Opening the Core

The concept of human resource management is quite complex as it concerns itself with the human element in an organisation. Recruitment, training, employer-employee relations, and managing human resources efficiently and effectively are vital goals.

As the eventual element connecting a company’s different operational aspects, force is the mortar that holds everything together.

Here’s a deeper dive into the critical aspects of the nature of HRM:

1. People-Centric: 


As of now, HRM focuses on people. It understands that people are not ‘human resources’ but can be aggregated and used interchangeably in the organisation. Still, they have talents, desires, rights, and obligations.

This way, HRM is centred on employees’ needs, effectively creating a healthy and productive working culture and supporting people’s development.

The nature of human resource management (HRM) lies in strategically managing an organization’s most valuable asset: its people.

2. Pervasive Function: 


HRM isn’t confined to a single department. It permeates the entire organisation. Imagine a company’s marketing team needing to hire a graphic designer. The HR department is vital in this process, from attracting qualified candidates to ensuring a smooth onboarding experience.

This process involves identifying qualified candidates and their recruitment or selection, as well as ensuring proper staffing through the onboarding process, all of which are critical duties of the HR department.

Understanding the nature of human resource management allows us to see how it influences everything from recruitment to employee well-being.

3. Continuous Process: 


HRM is a never-ending cycle. It’s not a one-time task of hiring employees and letting them be. HRM constantly monitors employee needs, provides training opportunities, and adapts to changing workplace dynamics.

4. Strategic:


Economic HRM is a means of implementing the organisational strategic plan. As an orchestra would play random notes, an organisation would suffer if the workforce did not contribute to its objectives. Valuable means that HRM ensures that the skills and expertise possessed by its employees match the firm’s vision.

5. Future-Oriented:


The proactive character of HRM can also be used to evaluate its nature. It considers future requirements and then produces and allocates employees according to the projected need. For instance, a company might diversify its products by developing new ones. 

Looking at the HR department, the system might uncover some deficiencies in the employees’ skills and proceed to train them for the anticipated change.

The Essential Functions of Human Resource Management

One must first acquaint oneself with the nature of human resource management to understand the various core concepts. These functions can be categorised into several key areas: 

1. Recruitment and Selection


Some of the steps of the HRM process include recruitment, selection, and employee hiring. It involves posting job descriptions, shortlisting candidates, interviewing, and finally selecting the best candidates for the firm’s vacancies. 

Human resource management encompasses the recruitment and selection process, which involves identifying human capital and ensuring that the person is hired with the right qualifications and character to complement the organisational culture.

2. Training and Development


Organisational learning aims to improve employee performance through programs that increase their understanding. Thus, the dynamics of human resource management here are developmental-promoting learning that makes employees professional and profitable for the firm.

3. Performance Management


Performance management can be understood as the process of assessing personnel’s performance and giving them feedback. It also comprises activities such as establishing performance goals, providing performance appraisals, and implementing development programs. 

In performance management, HRM is more about creating an organisational culture for excellent and responsible performance.

4. Compensation and Benefits


Compensation and benefits are among these variables that are the primary concerns of the HRM for development and implementation. This includes decisions on such fundamental aspects as payment, incentives, medical and other employer-provided benefits, and anything else called a perk. 

5. Remuneration for Employees


Compensation and benefits are essential in human resource management, which focuses on attracting and maintaining maximum talent by providing reasonable pay.

The nature of human resource management in employee relations can be described as the relationship between the employer and employee to establish mutual understanding and respect.

The Role of Technology in Human Resource Management

Another significant implication of technology is that Human Resource Management has often changed to unrecognisable forms. Its nature is constantly evolving, adapting to new technologies and workforce demographics.

Several applications and programs exist for HR, and these have made the processes more accessible and efficient. 

Here are some ways technology has impacted HRM:

1. Recruitment Software


Recruitment software reduces human involvement in hiring by helping with tasks like posting jobs, sorting resumes, and scheduling interviews. Technology has made recruitment more efficient for human resource management.”

2. Learning Management Systems (LMS)


Learning Management Systems (LMS) use interactive features to offer training and development exercises that enhance employees’ skills and performance. This flexibility has made human resource management training more measurable and portable with the help of technology. 

3. Performance Management Tools


PM framework sets goals, assesses performance, and offers feedback. In performance management, there has been an enhanced focus on data and transparency in human resource management practices.

4. HR Analytics


HR analysis is about using analytical skills in an organisation’s human resource management practices decision-making process. This is because it aids in establishing trends for future consumption and analysing the achievement of HR interventions. Human resource management’s approach has changed to strategic with the help of analytics.

HR Function

Impact of Technology


Automated Job Postings, Resume Screening, Interview Scheduling

Training and Development

Online Training Resources, Accessible Learning Platforms

Performance Management

Data-Driven Goal-Setting, Tracking, and Feedback

HR Analytics

Informed Decision-Making, Trend Analysis, Predictive Insights

In the context of the social media revolution, the future of human resource management thesis is conspicuous because of its uniqueness, which is the subject of the present discussion.

The Future of Human Resource Management

Here are the points exploring the future of human resource management ;

1. Artificial Intelligence (AI)


The privileged role of AI is evident in every stage of society, including HRM, ranging from recruitment to engagement. Thus, AI effectively selects employees, designs paths, and understands general mood.

2. Remote Work


Due to the COVID-19 outbreak, the contemporary world is moving toward remote working. Human resource managers must understand the changes in managing staff remotely, boosting their productivity, and keeping them engaged.

3. Employee Well-Being


Supporting employees’ needs and improving their well-being is becoming more important. Human resource management will focus more on employees’ mental well-being and maintaining a healthy work-life balance.”

4. Continuous Learning


With this updated business and working environment pattern, we must continue to learn and update ourselves. The nature of human resources management shall continue with training and development to strengthen employees, teams, and the organisation’s competitive advantage.

Future Trends in HRM

Given below are the future trends in HRM :

Future Trend


Artificial Intelligence (AI)

AI in Recruitment, Training, and Employee Engagement

Remote Work

Managing and Engaging Remote Teams

Employee Well-being

Focus on Mental Health, Work-Life Balance

Continuous Learning

Emphasis on Lifelong Learning and Upskilling


In conclusion, it explores that the nature of human resource management is not limited to a single notion or activity; it is a broad concept subject to change at all times. It incorporates activities such as selecting and developing its people through recruitment and training and their appraisal and exercise control through performance management and compliance.

HRM is an organisational function that is responsible for managing a firm’s workforce. One of the defining nature of human resource management is its role in fostering a positive and productive work environment. It enables organisations to achieve their business strategies while handling issues like diversity, technology use in global competition, and methods of attracting and maintaining employees.

Nature of Human Resource Management : FAQs

Q1. What is Human Resource Management (HRM)?

HRM can be defined as the action plan commonly employed by employee managers. Ensuring that eligible and qualified people are sourced, mentored, and retained to serve the organisation.

Q2. Define the essential roles and tasks of HRM

Key activities carried out under HRM include staff procurements, staff development, staff remunerations and incentives, staff performance evaluation and management, and staff relations.

Q3. Why is HRM important?

Appropriate HRM contributes to better productivity, employee performance, minimum turnover rates, and a favourable market and society image. It also makes the organisation healthier in all ways.

Q4. How is technology changing HRM?

Technology is making work less about manual labour and more about tasks that call for human intellect and a grand attempt at catering to individual employees’ needs.

Q5. What are some future trends in HRM?

The challenges regarding the future of HRM can include a shift towards an AI-based, data-driven approach and increased attention to the moment the candidate transforms into an employee.

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