Human Resources Management: What It Is, Functions and Objectives

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Human Resources Management (HRM) defines the processes by which companies plan, organize and manage the tasks and assets related to the people who make up the organization.

As we will see below, human resource management is an area with increasing weight within the executive committees of companies, regardless of their size.

This Management involves areas such as remuneration, talent management, company training, selection, international mobility of workers, Management of the work environment, performance evaluation, Management of organizational changes that affect personnel, resolution of labor conflicts, the implementation of personnel policies and many other functions, which of course include the administrative tasks derived from these areas.

Effectively managing the aspects mentioned above is a challenge for organizations. It will largely depend on them to have adequate personnel in terms of skills and training who remain motivated to carry out their daily functions and are actively involved in the company walking in the proper way.

What Is It, And Why Is It So Important?

The impact of HR management can be significant in the company if its policies are appropriately managed. Keep in mind that this area is the link between the company’s mission, vision, and values ​​and the employees who work for it. If getting employees and management goals on the same page are challenging, achieving it so that employees are committed and motivated to those goals is even more difficult. Human resource management has the function of communicating all these policies and worrying about promoting the organization’s values to the employees. For this, it is essential to analyze the leadership models that exist in the organization, the existing communication channels, the direction or directions in which the communication between Management and employees travels,

In short, human resource management encompasses all the necessary areas so that employees stop feeling that it is “the payroll department” and constitute a department that cares about each of the people within the organization. Achieving it implies an improvement in the work environment, a greater sense of belonging to the organization, a greater degree of organizational awareness, and, consequently, more excellent performance and productivity data that greatly facilitate the company’s daily operations.

Its Duties?

As we have already seen, human resource management is the link between the company’s central values and its employees. However, in the performance of its functions, human resources management can never be separated from the rest of the company’s areas. HR needs to be an active part of the business, and for this reason, it must have first-hand knowledge of the other departments of the organization and their needs to provide effective solutions.

In addition to being in permanent contact with the business and other departments, human resource management involves an indeterminate number of areas within the company. The human resources department also has different powers depending on the type of company in question. At a general level, human resources management is responsible for establishing policies, baselines of action and behavior guidelines to be followed by employees. In more detail, some of the most critical areas that HR management is responsible for are:

Establish The Personnel Selection Policy

Through the skills management system and using tools such as the job description (DPT), human resources management is responsible for defining the selection and reception of new employees in the company. Some related tasks are curriculum screening, interviews and conducting entrance tests, evaluation of candidates and reception of new employees.

Establish Training Policy

Human resources management is responsible for drawing up the company’s training plan. To do this, you must consider the organization’s needs, the departments, and the employment status of each employee within the talent map…

It is also in charge of managing the budget that the company invests in training and managing the credit from the State Foundation for Training and Employment.

Establish The Performance Evaluation Policy

Human resource management is the one that designs employee evaluation processes: what is evaluated, who evaluates, when… It is also essential to define what feedback employees get from their superiors about their work performance, how often, etc.

Establish The Remuneration Policy

The remuneration policy is one of the most sensitive policies within the organization. Not having a well-defined and structured policy can lead to daily chaos in the Management of conflicts caused by comparative grievances or perceptions of injustice. Human resources management defines the salary levels or bands, the remuneration package (fixed remuneration, variable remuneration and other benefits) for each position, social benefits, the flexible remuneration system or any other incentive system.

Also Read: New Tools And Digital Trends To Manage Human Resources

Talent Management

A critical task in human resource management is the definition of talent in the organization. The talent map will be structured, which will define where each employee is within the organization based on the performance they are executing and the potential they have. This aspect is essential in situations of internal promotion.

Working Environment

HR is in charge of fostering a good work environment among the organization’s colleagues. About this aspect, events or actions aimed at improving the work environment and disseminating the company’s values ​​can be launched.


The administrative part of the department could not be missing. In this area, the most administrative tasks are collected, such as payroll preparation, legal aspects of hiring, the necessary documents in the event of dismissal, Management and updating of the employee file, etc.

What Are Human Resources By Competencies?

Competences are the qualities that people have, and it is the set of knowledge, motivations, expectations, attribution models and personality traits that a given person presents. Competency-based human resource management consists of translating the company’s values ​​into a series of transversal competencies that all organization members should share.

These competencies constitute the base from which the rest of the areas are based since they are the competencies that bring together the behaviors that the company is looking for in its workers. Policies are developed from this base, selection, training, promotion, remuneration, etc.

What is Human Capital Management?

Human capital is understood as the conception of the company’s human resources from a more economic perspective. The cost of a company’s personnel is usually among the main expenses of the same, whatever its main activity. Therefore, it is essential to analyze the impact of human resources from an economic point of view.
Examples of this would be the cost analysis of a general increase in wages, the cost that absenteeism entails for the company, the investment in training and the costs derived from not implementing adequate training, the economic impact of a high rate of turnover of workers, the cost of firing someone, etc.

What Are The Objectives of Human Resource Management?

Previously, we have detailed the objectives emanating from each of the functions in human resource management. In general terms, we could define that the main objective of good human resource management is to align the company’s objectives with the objectives of the people who work in it, always ensuring that the company achieves its objectives while guaranteeing the well-being of all workers.

Human Resources Management is a vast subject of knowledge. If you are interested in the subject and want to learn more, visit our Master in Human Resources page. In it, you can find additional information about this world with which to complement the information in this article and train you in this professional area.

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