Human Resource Management (HRM) is both an academic theory and a business practice. It is based on the notion that employees are firstly human, and secondly should not be treated as a basic business resource. HRM is also seen as an understanding of the human aspect of a company and its strategic importance.
Human Resource Management is seen as moving on from a simple "personnel" approach because it is preventative of potential problems, and secondly it should be a major aspect of the company philosophy, in which all managers and employees are champions of HRM-based policies and philosophy.
The basic premise of the academic theory of HRM is that humans are not machines. Therefore we need to have an interdisciplinary examination of people in the workplace. Therefore fields such as psychology, sociology, and critical theories such as postmodernism and post-structuralism play a major role.
Critics of HRM have noted that HRM suffers the problem of the connotation of its own name: treating humans as a resource.
Human Resource Management is part of a business or company which recruits, develops and utilizes an organization's personnel in the way which would benefit the firm's objectives. Creating alignment between an organization's HRM strategy and the core objectives of a business is seen to be essential.
Human resources management's functions extend to deciding the type of staff needed (manpower, labor, office staff, etc.), evaluation of the personnel's performances and granting the appropriate compensations and benefits to them. The human resource manager holds the personnel's data, records, policies, and has the access to the pool of other applicants when the company's need for new/additional staff arises.
The human resource staff is the foremost implementer of the company's rules and regulations regarding staff/personnel behavior and discrepancies. The human resource department also covers the regular updating and improvement of personnel performances through development activities, surveys and evaluation exercises.
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