Human Resource management, sometimes known as human capital management, is a comprehensive strategic approach to the effective management of human assets in a company or firm so that they assist their employer in achieving a highly superior standard of performance at work. It involves the allocation of resources among different employees based on their individual worth and contributions to the overall success of the organization. This is particularly applicable in firms where there are multiple career fields or departments, or where different types of employees are employed to perform different tasks in the workplace. The concept behind the management strategy is that human assets are not all of a uniform quality, and that different types of workers will need different levels of training and development, will require different levels of job flexibility, and will be prone to different types of career temptations. Human resource management therefore seeks to address these issues and other relevant concerns by creating policies, procedures, and systems that effectively promote the employment of high quality individuals who contribute to the firm's success.
The main functions of human resource management include identifying potential candidates by analyzing the current work history and skills of employees, screening them for suitability for the positions in which they are qualified, evaluating the potential of each candidate to perform those tasks and responsibilities in the best possible manner, developing and executing a recruiting plan, maintaining communication with potential candidates, and encouraging current employees to remain with the organization. The employer also needs to keep tabs on the progress of each candidate throughout the recruitment process as it can sometimes become difficult to make the right decisions when there is so much conflicting information. Human resource management thus encourages efficiency in the employment process by making sure that the right candidates are hired and kept on the payroll.
Another important function of human resource management is training and developing employees so that they attain maximum productivity and contribute to the successful management and operation structure. Many employees grow bored with their jobs and this can have a negative effect on the level of performance. A comprehensive strategic approach to HR management ensures that the workforce is provided with activities and resources that promote work satisfaction, motivates employees, develops their skills, and teaches them the skills they need to perform their roles in a better way. A comprehensive strategic approach will ensure that human resource management focuses on the entire human resources sector, including training and development, recruitment, placement, and performance management and helps employers gain an advantage over their competitors in the market.