What are the aims of HRM?

Timon Singh

The purpose of human resource management differentiates from company to company. For some it is ensuring that the firm is covered legally in terms of looking after its staffs needs, and for others it means being able to get the most out of their staff.

In Michael Armstrong's 'Handbook of Human Resource Management', he states that the overall aims of HRM is to "ensure that the organization is able to achieve success through people." Through this, "HRM systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities" and it can do this in several areas.

Effective organization

Extensive research has shown that distinctive human resource practices can mould a firm's core competencies and determine how they compete in a given market and how the firm performs as a whole.

By having an effective HR department, it has been proven that it can improve company-wide organizational effectiveness and generally create a decent place to work. However, this all depends on the firm having a "clear vision and a set of integrated values." With these in place, a HR department can concern itself with the development of both the company and customer relations policies.

Good human capital management

The human capital of an organization are the people who work there and upon whose shoulders the success of the business depends. Human capital has always been regarded as the prime asset of an organization and as such, businesses are encouraged to invest in their staff as well as their clients to ensure their 'survival' and growth.

A good HRM department would aim to ensure that as such the company find and keep the best possible skilled, committed and motivated workforce that the firm needs, and this often means taking steps to assess and ensure that staff needs are met. This can include developing their skill-set by providing learning and other training opportunities.

Armstrong's book defined human capital management as "represent(ing) the human factor in the organization; the combined intelligence, skills and expertise that give the organization its distinctive character. The human elements of the organization are those that are capable of learning, charging, innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the company."

Meeting diverse needs of staff

The aims of HRM also sees the implementation of polices that balance and adapt to the needs of its stakeholders and provide for the management of a diverse workforce, taking into account various individual and group differences, needs, works styles and possible rewards.

Studies has shown that HRM can often enhance motivation, job engagement and commitment by introducing policies and processes that ensure people are valued and rewarded for what they do and achieve.

Despite what you may think, the aims of HRM are more than sorting paychecks and ensuring you have the right chair.

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