Principles of Human Resource Management


Human Resource Management (HRM) is developed for the management of people within an organization. The HRM term used to explain formal systems. The responsibilities of a human resource manager are split into three major areas: defining/designing work, staffing, employee compensation, and benefits. 

Essentially, the purpose of HRM is to maximize the output of an organization. The HRM department of an organization focuses on optimizing the effectiveness of its employees. 

This mandate is unlikely to change in any basic way, despite the ever-increasing pace of transformation in the business world. As Edward L. Gubman observed in the Journal of Business Strategy,

“the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business. Those three challenges will never change.”

Until fairly of late, an organization’s human resources department was often designed to stay in lower rungs of the corporate hierarchy. The practice is in sharp contrast with the fact that mandates the task to stock up and nurture.

The task is what often makes up an organization’s greatest reserve, its work force. 

However, in recent years, recognition of the importance of human resources management to a company’s general health has grown radically. This recognition of the importance of HRM widens to small businesses.

It’s been for a while that the management does not generally contain the same volume of human resources requirements as do larger organizations. These organizations are too rife with personnel management issues. These issues can have a decisive impact on business health. 

As Irving Burstiner mentioned in The Small Business Handbook,

Hiring the right people and training them well; can often mean the difference between scratching out the barest of livelihoods and steady business growth. Personnel problems do not discriminate between small and big business. You find them in all businesses, regardless of size.”


Business consultants note several overriding principles that guide modern human resource management. Perhaps a simple recognition of the human resources is the most important assets of an organization; managing this resource effectively is what ensures that a business is successful.

Another important principle, expressed by Michael Armstrong in his book A Handbook of Human Resource Management, is that business success

“is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans.” 

A third guiding principle, similar in scale, explains that finding guiding, securing, and developing employees lies within the HR’s responsibility. Fulfilling those tasks makes sure that talents and desires are sourced with the operating needs. They need to fulfill future goals of the company ultimately. 


There are a couple of factors that shape corporate culture. These factors can encourage integration and cooperation across the company. Factors are likely to institute quantitative performance measurements, or taking some other action.

These factors are also commonly referred to as key components in business success. HRM, as projected by Armstrong,

is a strategic approach to the acquisition, motivation, development, and management of the organization’s human resources. It is devoted to shaping an appropriate corporate culture, and introducing programs which reflect and support the core values of the enterprise and ensure its success.”


Human resource department responsibilities concern a broad concept. The responsibilities are divided into three areas: individual, organizational, and career. Individual management involves helping employees recognize their strengths and weaknesses; right their shortcomings, and deliver their best input to the enterprise. 

These duties are performed through a range of activities. These activities ensure a company’s smooth operation, measuring performance reviews, training, and testing.

 Organizational development, meanwhile, focuses on developing a successful method that capitalizes on human (and other) resources contributing to larger business strategies. This important duty also includes the formation and maintenance of a change program.

The change program allows the organization to meet evolving outside and interior influences. 

Finally, managing career development involves maintaining responsibilities. This requires business managers to match individuals. Individuals are likely to hold the most suitable jobs and career paths within the organization.


The human resources term — first used in the early 1900s. Then, the term gained widespread recognition more widely in the 1960s. For the people who work for the organization, in aggregate, the term received widespread usage.

HRM deals with employee management tactics. The management sector puts an emphasis on those employees as valuable assets of the business. In this context, employees are sometimes mentioned as human capital. 

As with other business assets, the business goal puts an emphasis on making effective use of employees. Business assets are enforced to reduce risk and maximizing return on investment (ROI).

Human capital management (HCM) is also referred to as with the modern HR technology term, , has come into more frequent use than the term, HRM, with the widespread adoption by large and midsize companies and other organizations of software to manage many HR functions.


Areas of HRM Supervision include the following:

  • Employee recruitment 
  • On boarding and retention
  • Talent management and workforce management
  • Job role assignment
  • Compensation
  • Labor law compliance
  • Performance management
  • Learning and training
  • Succession planning
  • Employee engagement and recognition


Almost all areas of HRM deals with everything related to smooth operation of an organization. HRM platforms and systems are geared toward helping business owners and employees to coordinate organizations and candidates with each other.

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