9 Characteristics of HRM (Human Resource Management)
Are you aware that companies with strong HRM practices are 17% more likely to outperform their competitors?
Companies can drive positive business results, improve employee engagement, and foster a productive culture by incorporating practical HRM principles into daily activities. It also covers essential factors like workforce planning, talent acquisition and retention, employee development, performance management, and ethical business practices.
What is HRM (Human Resource Management)?
HRM, also known as Human Resource Management, involves strategic planning and managing the organization’s workforce.
As an HR expert, John Smith defines it as “HRM is the strategic backbone of every successful organization.” In the words of Mary Johnson, “HRM is a culmination of factors like talent acquisition, employee development, performance management, and employee relations.”
HRM practices and principles aim to maximize a firm’s productivity, create a positive work environment, and strictly adhere to laws and regulations.
It primarily includes activities like attracting and retaining top talent, aligning human resources with organizational goals, and promoting employee engagement.
They are crucial to building a motivated and capable workforce to drive the success of the business organization.
9 Characteristics of HRM
The characteristics of HRM are mostly industry-specific and vary according to organizational needs. However, the nine key characteristics are:
1. Embracing Diversity
HRM aims to build an inclusive workplace culture that celebrates employee diversity. They do so by embracing the differences in skills, abilities, experiences, backgrounds, etc., and encouraging individuals’ unique strengths.
2. Strategic Alignment
HRM helps align the HR goals to the organization’s overall strategic goals. HR professionals actively participate in strategic planning and decision-making by providing insights on workforce planning, talent acquisition and management, and organizational culture development.
3. Cultivating Commitment
HRM helps build a commitment among the workforce by fostering a sense of loyalty and trust in them. In addition, they help promote a positive environment and a culture of transparency and accountability, along with nurturing long-term relationships with the workforce.
4. Mutual Benefit
HRM aims to create a mutual environment where the employees and the organization benefit equally. This promotes collaboration, mutual trust, and respect among employees and management. So, in this situation, the organization achieves its goals while providing fair opportunities for growth and development for the employees.
5. Balancing Perspectives
HRM aims to balance the unitarian and the pluralist perspectives of the employees. The unitarian perspective views the organization as a single entity with a common goal and aspirations. The pluralist perspective acknowledges the presence of multiple ambitions and goals of various stakeholders like employees, shareholders, managers, etc. A balance between the two helps nurtures efficient communication, synergy in the team and prompt conflict resolution.
6. Valuing Human Capital
HRM values employee contributions to organizational development. Therefore, they focus on attracting, developing, training and developing talent to drive the organization toward business profitability and success.
7. Aligned with Values
HRM helps align the organizational processes and HR practices with the organization’s mission, vision, and core values. They promote the values of integrity, honesty, fairness, and sustainability among the workforce to ensure the organization’s compliance with legal and ethical standards.
8. Harmonizing Outcomes
HRM caters to organizational and individual needs by achieving results benefiting both parties. Their main goal is to enhance organizational productivity and profitability along with employee satisfaction and well-being. Thus, they need help balancing business goals and employee satisfaction simultaneously.
9. Integrated System
HRM encompasses various HR functions like planning, designing and implementing HR practices and policies to create a culture where HRs take an active role in the business decision-making process and manage the organization’s daily operations.
How will it help the Organization?
Adopting a strong view towards HRM practices will help the organization in the following ways:
- Enhance Employee Capabilities
Organizations can generate a rich pool of ideas by adopting a diverse outlook toward workforce management. This also assists in improving problem-solving capabilities and creativity within the organization.
- Improved Business Performance
Aligning the HR goals with the overall business goals facilitates increased productivity and streamlined business processes by optimizing the firm’s human resources. All these lead to the long-time survival of the firm and increase its profitability.
- Employee Engagement
HRM practices help nurture employee loyalty, facilitating a culture of mutual respect and trust and increasing employee retention and engagement.
- Strong Organizational Culture
They also help build a strong organizational culture that serves the business in the long run and enriches the values of integrity, honesty, and inclusivity among the employees. Thus, organizations can build a group with an ethically strong and engaged workforce.
- Integrated System
Incorporating HR practices with organizational processes helps organizations to streamline their mundane activities. This enables the HRs to focus on strategic decision-making and drive the organization toward success.
Wrapping it Up
In a nutshell, effective HRM practices are essential to cultivating a thriving work environment that results in increased employee satisfaction and organizational productivity. Moreover, by leveraging the benefits of HRM’s characteristics with IceHrm, firms can surpass their competitors and achieve sustained growth in the ever-changing business world.