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What is Human Resource Management? Overview, Functions, Career Options

Updated on 13 November, 2024

6.8K+ views
12 min read

Human Resource Management (HRM) is the strategic approach to managing an organization's most valuable asset: its employees. From recruitment and onboarding to performance management and employee relations, HRM handles them all.

HRM offers a wide range of career paths, from talent management to HR analytics. Technological advancements such as AI and data analytics allow HR professionals to move beyond traditional functions. If you’re curious to know “what is human resource management?” and the changing technological trends, this blog is your destination. Dive in!

What is Human Resource Management? Exploring its Core Principles

HR Management is a specialized profession within an organization that adopts techniques to optimize its workforce so that it can meet its business goals. 

Unlike personal management, which focuses on individual needs, HRM adopts a broader perspective, aligning employee needs with organizational goals.

As an HR professional, you'll use several core principles to manage human capital effectively. These principles will help you attract, develop, and retain top talent, thereby driving your organization's success.

The following are some core principles you’ll need to follow as an HRM.

  • Recruitment and selection
  • Performance management
  • Training and development
  • Compensation and benefits
  • Employee relations
  • Legal compliance
  • Strategic thinking

As an HR professional, your overarching goal is to optimize human resources in your organization. However, there are other important purposes and objectives of HRM.

  • Attract and retain the top talents in the organization
  • Increase employee engagement
  • Ensure employee well-being
  • Develop a skilled workforce
  • Ensure the organization follows laws and regulations
  • Balance employee growth and business goals

To excel in HRM, you'll need a blend of technical and soft skills. Here are some vital skills that will help you succeed in the role.

Also Read: What is Human Resource Planning? Process, Meaning, and Features

Essential Functions and Responsibilities of HR Professionals

As an HR professional, you’ll be responsible for pre-employment activities like recruitment and onboarding and post-employment tasks such as performance management.

Some important duties you’ll perform as a HR professional are given below.

  • Pre-employment duties: Recruitment, onboarding, job design.
  • Post-employment duties: Performance management, training and development of employees, ensuring legal compliance, conducting exit interviews.

What are the Key Functions of Human Resource Management?

While your role as an HR professional generally involves employee management, you can further categorize your functions into managerial, operational, and advisory roles.

HRM professionals perform managerial functions to achieve organizational goals. Here are some essential managerial functions you’ll have to perform as an HRM.

  • Predicting future human resources needed in an organization.
  • Selecting suitable candidates for job roles based on skills, experience, and organizational requirements.
  • Evaluating the performance of employees against set standards.
  • Devising optimal compensation strategy for the organization.
  • Addressing employee grievances.

Operative functions are the day-to-day activities that HR professionals perform to execute organizational plans and strategies. You’ll need to perform the following operative functions.

  • Maintaining up-to-date employee records.
  • Designing incentives to motivate employees.
  • Guiding employees in their career progression.
  • Introducing employees to the organization’s culture and procedures.
  • Introducing facilities to improve employee welfare.

An HR professional provides expert advice and guidance to management on various organizational issues. Your advisory functions as a HRM include the following.

  • Recommending changes in the organization’s structure
  • Recommending performance appraisal methods.
  • Advising on suitable training programs for employees.
  • Suggesting compensation structures for employees.
  • Give input on the organization's internal policies.

Why Effective HRM Matters and Benefits Organizations?

To become an HR professional in India, you'll need deft management skills to manage human resources. Through effective HRM, you'll ensure your organization benefits from its human resources.

You can check the following benefits associated with effective HRM.

  • Supports positive culture: Creates a positive environment for employees to shine.
  • Engagement & retention: Helps retain the best talents in the organization.
  • Legal compliance: Ensures the organization complies with labor laws and regulations.
  • Internal bonding: Promotes collaboration and teamwork within the organization.
  • Data-driven decision-making: Data provided by HR helps in making informed strategic decisions.
  • Enhance productivity: Fair compensation and incentives motivate employees to perform better.

Also Read: What is Human Resource Management Process?

Strategic HRM: Aligning Goals with Organizational Strategy

As an HR professional, you can use strategic human resource management (SHRM) to align HR practices with broader organizational strategies. 

By effectively managing people, you'll ensure your organization has the right talent with the right skills to execute its business strategy.

With the growth of strategic HRM, specialist roles like HR Business Partner and Organizational Development Consultant are gaining importance. Here are some key job roles associated with strategic HRM.

  • HR business partner: Align HR strategies, talent management, and organizational transformation.
  • Organizational development consultant: Facilitates cultural change and develops leadership.
  • Talent acquisition specialist: Implement recruitment strategies and attract top talents.
  • Compensation and benefits specialist: Conducts salary surveys and develops benefits packages.

The growth of data-driven decision-making in organizations has created new specialized roles in HR analytics. You can check the following emerging roles in this field.

Specialist Role Average Annual Salary
People Operations Analyst INR 4L
HR Business Intelligence Analyst INR 5L
HR Data Analyst INR 6L

Source: Glassdoor

Steps to Begin a Career in HRM

As an HR professional, you'll enjoy a dynamic role that involves connecting with people. If you need help starting your HR career, we’re here to assist.

Here's a step-by-step guide to become an HR professional in India.

  • Step 1: Before starting a career in HR, understand your job roles and the relevant skills you need.
  • Step 2: Consider pursuing a bachelor's degree in fields such as Business Administration, Human Resources, Psychology, or management.
  • Step 3: Additionally, you can enroll in certification courses such as PHR (Professional in Human Resources) to gain specialization knowledge.
  • Step 4: Apply for internships or entry-level positions like HR Assistant, HR Intern, and Payroll Assistant to gain hands-on experience.
  • Step 5: Upskill yourself with critical skills such as time management, problem-solving, communication, and collaboration.
  • Step 6: Follow industry leaders on LinkedIn or join HR associations like the Society for Human Resource Management (SHRM) to stay informed about HR industry trends.
  • Step 7: Attend HR conferences, job fairs, or webinars to connect with professionals in this field.
  • Step 8: If you want to excel in this role, consider pursuing a master’s in HRM or an MBA with a specialization in HR. 
  • Step 9: Once you've gained sufficient knowledge, practical experience, and certifications, start applying for roles like HR Coordinator, HR Generalist, and Talent Acquisition Specialist.
  • Step 10: Keep attending workshops, webinars, and courses to refine your skills and stay competitive in the job market.

Ready to take the next step in your career as a HR? Enroll in UpGrad’s HR Certification Course and gain in-depth knowledge from industry professionals.

HR Career Growth: Evolving Roles and Salary Progression

As an HR professional, you have a promising career path ahead. Your role can evolve from entry-level positions to strategic leadership roles.

As you gain experience and expertise, you may progress through the following job roles.

Career Progression Roles Average Annual Salary
HR Generalist INR 5L
HR Specialist INR 6L
HR Manager INR 8L
Chief Human Resources Officer (CHRO) INR 22L
HR Director INR 30L

Source: Glassdoor

Apart from the above mentioned roles, If you are looking for a specialized career in employee engagement and compliance management, you can explore the following roles.

Job Roles Average Annual Salary
Organizational Development Consultant INR 4L
HR Compliance Officer INR 6.5L
Data Privacy Officer INR 24L
Employee Engagement Manager INR 27L

Source: GlassdoorAmbitionbox

Also Read: Top 5 Human Resource Management Books to Become a Better HR

What Certifications and Courses Can Help Advance Your HR Career?

While a master’s degree in HR can help you land job roles in HRM, certification courses will give you expertise in specific HR areas, boosting your career growth.

Here are some popular courses and certifications that can help you grow in your career.

Courses and Certifications Average Duration Eligibility Skills Gained
Professional in Human Resources (PHR) 3 to 4 months
  • Bachelor's degree (or equivalent) 
  • At least 1 year of HR experience
  • Business management
  • Talent acquisition
  • Legal Compliance
Senior Professional in Human Resources (SPHR) 4 to 6 months
  • Bachelor's or Master’s degree in HR or a related field
  • 4–6 years of HR leadership experience
  • Strategic HR Planning
  • Leadership and organizational development
  • Employee relations & engagement
SHRM-CP (SHRM Certified Professional) 2 to 4 months
  • Bachelor's degree in HR or any related field and at least 1 year of HR experience 

OR

  • 3 years of HR-related work experience
  • HR competency development
  • Business acumen
  • Employee development
Certified Employee Benefits Specialist (CEBS) 12 to 18 months
  • A Bachelor’s degree (any field) 

OR

  • At least 3 years of work experience in the employee benefits domain
  • Employee benefits & welfare plans
  • Compensation design
  • Benefits communication
Certified Professional in Learning and Development (CPLP) 4 to 6 months
  • Bachelor's degree (or equivalent).
  • At least 5 years of experience in training, learning and development, or talent development 
  • Instructional design
  • Training delivery
  • Learning technologies

If you’re planning to explore specialization courses in HR, UpGrad’s industry-oriented courses and certifications are here to help you.

Also, here are some popular courses by UpGrad that will help you grow your career in Human Resources.

Ready for a career hike? UpGrad’s MBA certification will give you the knowledge and skills to lead organizations and drive business success. Join now!

Challenges and Considerations in Modern HRM

Rapid changes in strategies, workplace dynamics, and workforce demographics have significantly impacted the role of an HR professional. Here are some emerging challenges you can face in modern HRM.

  • Rapid technological advancement: Technologies like Artificial Intelligence and automation are replacing traditional HR processes.
  • Hybrid work environment: Evaluating employee performance in remote work environment.
  • Diversity of employee population: Handling employees belonging to different cultures and ethnicities.
  • Talent retention: Retaining the best talent in the competitive labor market.
  • Employee well-being: Balancing employee performance and mental well-being.
  • Addressing the skill gap: Employees need help to keep up with the advancements in technology.
  • Data security issues: Protect employee data from cybersecurity threats.
  • Technological integration: Adopt technological tools that are unbiased and give a balanced view.

To overcome these emerging challenges, you'll need to adopt the following proactive measures.

  • Build strong relationships with employees: Build communication channels with employees for their feedback.
  • Be compliant with laws and regulations: Do not circumvent the laws of the land.
  • Focus on employees: Invest in employee training. Provide a flexible work environment to improve work-life balance. 
  • Adopt modern technology: Use technologies like data analytics to identify trends and predict future needs.
  • Build a strong employer brand: Develop a strategy to highlight the unique benefits and culture of your organization.
  • AI-driven learning platforms: Develop learning modules to help employees learn new skills quickly without taking time away from work.
  • Adopt suitable automation technology: Leverage automation and AI to perform routine tasks that do not require human intervention.

Emerging Trends and the Future of HRM: What’s Next for Human Resources?

Emerging trends in HRM, such as AI, hybrid work environments, and data-driven decision-making, are shaping the future of work. As an HR professional, you'll have to stay updated on these trends to remain competitive.

You’ll need to follow the given tips to stay ahead of the emerging challenges in HRM.

  • Follow industry publications: Stay updated with the latest trends through HR publications, blogs, and newsletters.
  • Join professional organizations: Membership in organizations like SHRM can create networking opportunities, and provide industry insights.
  • Certification courses: Enroll in online courses like Professional in Human Resources (PHR) to gain specific skills and certifications.
  • Mentorship: Connect with experienced HR professionals to gain valuable insights and guidance.
  • Adopt HRIS: Use HR Information System to automate tasks, streamline processes, and improve data management in the organization.
  • Use AI and Machine learning tools: These can help you with talent acquisition, performance management, and employee engagement.
  • Implement virtual work environment: Utilize collaboration tools to facilitate remote work and improve communication.

How is Technology Shaping Modern HRM?

Technology is revolutionizing the HR profession by automating tasks, driving decision-making, and improving employee experience. In fact, no task can be completed without using modern technological tools.

Here are some significant changes happening in HR practices due to technology.

  • Automated hiring process
  • Seamless onboarding and offboarding
  • Easy salary management
  • Personalized leave management
  • Decisions based on analysis

The emergence of new technology can be beneficial to some extent. The following are the major benefits of technology in HRM.

  • Increases efficiency: HR software can manage functions such as onboarding, offboarding, and performance management.
  • Data-driven decision-making: Analytics tools can help make informed decisions about workforce planning, talent acquisition, and retention.
  • Enhance employee experience: Modern tools can help employees manage their leave requests and check performance reviews.
  • Improve talent acquisition: Automated recruitment tools can help identify the most suitable applicant for the job role.
  • Increase employee engagement: Modern HR platforms facilitate communication, collaboration, and feedback between employees and managers.

You’ll need the following tools to perform your job as an HR professional. 

Type of Software Popular Examples
Human Resource Information Systems (HRIS)
  • Workday
  • BambooHR
  • Paylocity
  • Gusto
Applicant Tracking Systems (ATS)
  • Workable
  • Greenhouse
  • JazzHR
Performance Management Software
  • Workday
  • 15Five
  • BambooHR
Learning Management Systems (LMS)
  • Moodle
  • Docebo
  • Adobe Captivate Prime
Communication Tools
  • Slack
  • Microsoft Teams
  • Zoom

Want to know what HRIS is? Check the details below.

What is HRIS? 

A Human Resource Information System (HRIS) is a software solution that integrates and automates various HR functions.

HRIS software personalizes information and communication to individual needs, allowing HR to focus on more pressing issues.

You can explore the following key features of HRIS.

  • Employee information: It contains all information about an employee, including contact details, employment history, and emergency contacts.
  • Self-service: Enables employees to access and update their personal information, view pay slips, and submit leave requests.
  • Attendance record: Tracks employee time and attendance to generate accurate payroll data.
  • Employee payroll: Automates payroll calculations, tax deductions, and direct deposit.
  • Generates insight reports: Tracks critical metrics like employee profits, time-to-hire, and workforce demographics.
  • Employee training: It can track employee training and development activities.
  • Recruitment process: It manages the entire recruitment process, starting from job postings to candidate onboarding.

You can reap the following benefits by using HRIS software.

  • Cost reduction: Automation of tasks can reduce costs for the organization.
  • Improve decision-making: Insights generated by HRIS can help management make informed decisions.
  • Streamlining processes: HRIS streamlines processes like onboarding, offboarding, and performance reviews.
  • Employee communication: HRIS facilitates personalized communication with employees.
  • Data protection: You can protect Employees' sensitive data on HRIS systems.
  • Suitable talent acquisition: HRIS helps shortlist suitable applicants for job roles.

Did you know the future of HRM is constantly evolving? Equip yourself with UpGrad’s specialized courses and certifications to stay ahead of the curve. Enroll now!

Conclusion

Human Resource Management (HRM) is a strategic function that is critical to an organization's success. Adopting best HR practices can help you optimize talent acquisition, improve employee engagement, and implement a positive work environment. 

By adopting modern technological practices and staying updated with the latest industry trends, you can further elevate the role of HRM and contribute to your organization's overall growth and sustainability.

Are you unsure about your next steps in HR? UpGrad's expert career counseling can guide you down the right path. Book a free consultation today.

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Frequently Asked Questions (FAQs)

1. What is the role of Human Resource Management?

The role of Human Resource Management (HRM) is to align the workforce of an organization with its strategic goals.

2. What is the future trend in HRM?

Automation, artificial intelligence, and generative AI are some of the future trends in HRM. 

3. Is HR a good career option?

Yes. HR is a good career option for those interested in helping organizations create a vibrant workplace culture, develop employees, and manage talent. 

4. What is HR’s salary?

The average annual salary of an HR professional in India is INR 6L. The actual figure depends on the organization and experience level.

5. Which degree is best for HR?

The best degrees for HR are a master's in human resource management (MHRM) or a master's in business administration (MBA) with a focus on HR.

6. Can I do an HR course after completing my B.Com?

Yes. A BCom degree provides a strong foundation in business and general management principles.

7. What is the function of HRIS?

Human Resource Information System (HRIS) is a software tool designed to support human resources in their various tasks in the organization.

8. What are the examples of HRIS?

Workday, BambooHR, Gusto, SAP, and Paylocity are some of the examples of HRIS.

9. What are the jobs for HRM graduates?

Human resources officers, Office managers, Occupational psychologists, and Training and development officers are some of the jobs for HRM graduates.

10. Is HR a good career for females?

Yes. Women can excel in this role as they are better at soft skills and have higher emotional intelligence than men.

11. Which country is best for HR jobs?

Countries like Canada, Australia, the US, the UK, New Zealand, and Germany are good options for HR jobs.

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