What Is Human Resource Management? What Does HRM Include?

1. What Is Human Resource Management? What Does HRM Include?

Human Resource Management (stand by HRM) also known as employee management. HRM is known as nurturing, developing, and maintaining resources so that human resources can maximize their capacity to serve the business and develop themselves in the best way. At the same time, HRM is also the link between the leaders of the enterprise and its employees.

In short, the ultimate goal of HRM is to help businesses run smoothly, bringing the best results for the firms, employees, and maximum strength. 

What does human resource management include?

1.1. Manage and set policies related to human resources

HR is the core for any business to support its development and be strong. And to improve the quality of human resources and ensure the regulations and policies of the state government, enterprises need to have specific guidelines related to different human resource departments.

1.2. Providing internal services for businesses – Recruiting employees

When receiving additional staffing notices, HR managers need to develop plans to attract more potential candidates. At the same time, organize interviews effectively, optimizing recruitment costs. Or human resource managers will actively give opinions and propose additional personnel, issues related to human resources of the enterprise.

1.3. Work performance management, job security

The employee-manager will be responsible for monitoring and checking other departments on implementing policies related to personnel. From there, we can evaluate the performance and the strengths or weaknesses of employees to come up with policies and plans to help manage human resources more smoothly. Simultaneously, measures propose to help employees maximize their capacity and potential at work.

1.4. Timekeeping, salary, and benefits for employees

To attract and retain employees, the human resource management department needs to ensure the regimes and benefits for the employees. Besides being between the legs, they will motivate employees to devote more to the business, with the ultimate aim of helping the firms grow more and more.

1.5. Training and developing human resources

The growth of a company is the growth of each individual in it. Therefore, developing and improving skills for employees is indispensable. Human resource managers will be responsible for orienting, proposing, and organizing training courses on employees’ knowledge, professional skills, and soft skills.

2. Employee Management Process

For any business, the human resource management problem is not easy. Each organization or business model group will have its methods and processes for managing employees differently. However, they will all have a basic framework from which to build. And that process will follow the following steps in order:

2.1. Human resource planning

A reasonable process and human resource management plan will help businesses manage their critical human resources more effectively. And Workforce Planning is the first step in the process.

Human resource planning is an activity to identify and manage the human resource needs of an organization or enterprise shortly (near or far). In particular, this plan includes calculating the company’s human resource supply and demand, forecasting current and future human resource trends, and finally developing and implementing an appropriate strategy.

2.2. Personnel recruitment

Recruitment is an essential step in the employee management process. It is an activity to find and attract potential candidates to interview. Depending on the recruitment requirements or the size of the business, the recruitment process will change flexibly. In general, the recruitment steps that most companies are using are: 

• Identify recruitment needs and the skills and experience required of candidates.
• Interviewing and recruiting candidates
• Determine the salary and the candidate’s policies and regimes following the salary bracket
• Announcement of regulations, corporate culture

2.3. Develop job descriptions for each position and personnel

A specific working process will help employees determine the direction of work faster. Work will not duplicate, overlapping between groups and departments on a larger scale. In addition, a specific, transparent process will make it easier for managers to track progress and evaluate employee results.

In addition to building a clear job description, human resource managers need to understand employees’ capabilities, strengths, and weaknesses to allocate the system to the appropriate positions to help them maximize their potential power.

2.4. Reward and punishment policy

Clear reward and punishment policies will be a top vital factor to attract many talents and retain them to stay at the company. These policies will take care of employees’ mental and physical well-being.

For effective employees, worthy rewards will help them feel recognized and appreciated for their efforts and abilities. It is encouraged to increase productivity and promote potential and work quality.

On the contrary, for underperforming employees, appropriately reprimanding will help them realize their mistakes, thereby adjusting their behavior and the way they work.

2.5. Document system applied in the company

Public documents regulate many enterprises, such as regulations on functions and tasks of departments and units, labor rules, limitations on punishment, rewards. The rules, regulations, and processes will be different depending on the business. Therefore, it is necessary to rely on practice to develop appropriate internal normative documents.

2.6. Building and developing company culture

Last but not least, corporate culture is an indispensable element in human resource management. The core of corporate culture lies in the spirit and values ​​of the enterprise. A strong corporate culture is a foundation to maintain employee engagement and dedication to the business, thereby helping the business to stand firm. And the human resources department is the one to shape and nurture this culture through the company’s regular training sessions and meetings.

3. Top 5 Golden Rules of Effective Employee Management

3.1. Advanced skills

Professional skills are necessary skills for any job, including human resource management. Some of the professional skills that an HR manager should have are:

• Anticipate staffing needs.
• Planning human resources, sketching potential candidates.
• Hold an impressive interview with many questions that capture the candidate’s personality.
• Building a two-way internal information system.
• Help new employees integrate into the company

3.2. HR skills

Of course, as an HR manager, you need to master HR skills such as:

• Planning and organizing human resource recruitment
• Employee management strategy
• Orientation for training and human resource development
• Organizational design
• Salary and benefits for employees

3.3. Work skills

The ability to calculate salary and bonus, understand the labor law, and organize the personnel apparatus are skills that an employee-manager needs to know. In addition, to do this job well, human resource managers must have good analytical, evaluation, and organizational skills.

3.4. Communication skills

Good communication and teamwork skills are crucial in a natural working environment with many people. It is necessary to be skillful, flexible in behavior and communication, grasp human psychology quickly, and always be ready to help and give appropriate advice.

3.5. Negotiation skills

Not only need good communication, but the HR profession also needs to have remarkable persuasion skills. Human resource managers need to face issues between employees and employers, solve problems between people, and mediate internal conflict.

4. Talentnet’s human resource management consulting service

With the predecessor as Human Resources Services of PricewaterhouseCoopers Vietnam and a team of consultants with more than 20 years of experience in human resources, Talentnet Vietnam is confident to be a leading HR consultancy in Vietnam. Talentnet currently provides comprehensive, professional, and practical human resource management solutions suitable to the needs of businesses.

Reasons to choose Talentnet

• Experienced in working with many different business models, from private enterprises to multinational corporations in various fields.
• Providing the most suitable solutions through a skillful combination of international standard methods and understanding the domestic market.
• Professional staff with many years of experience, solid in human resource consulting. There are leading experts from Talentnet Mercer and consultants for large projects in the region.
• Talentnet is always ready to provide professional post-project support so that customers can smoothly operate their systems.