Overview

Human Resource Management (HRM) aligns workforce capabilities with organizational goals through recruiting, training, performance management, and total rewards. Effective HRM builds talent pipelines, fosters engagement, and ensures legal compliance.

Key Processes and Concepts

• Workforce Planning: Forecast labor demand, talent gaps, succession plans.
• Recruiting & Selecting: Job analysis, employer branding, structured interviews, validity & reliability of selection tests.
• Training & Development: ADDIE model, onboarding, e‑learning, leadership development.
• Performance Appraisal: SMART objectives, 360° feedback, management by objectives (MBO).
• Total Rewards: Base pay, variable pay, benefits, non‑financial recognition.
• Legal Compliance: Equal Employment Opportunity (EEO), FLSA, OSHA, FMLA.
• Labor Relations: Collective bargaining, grievance procedures, NLRA rights.
• Diversity & Inclusion: Bias training, ERGs, inclusive policies.

Step-by-Step Example

Scenario: TechStart’s turnover among software engineers hit 25 %. Design an HRM plan to improve retention.

Step 1 – Diagnose: Exit interviews reveal lack of career growth.

Step 2 – Training & Development: Launch technical career ladder with clear competencies.

Step 3 – Performance & Rewards: Tie bonuses to skill‑badge milestones; add stock options after Year 2.

Step 4 – Work–Life Balance: Introduce flexible schedules and remote‑work stipend.

Answer: Addressing growth, rewards, and flexibility should cut turnover toward the industry benchmark of 12 %.

Quick Tip