HR Management: Definition, Functions, Purpose, Benefits and Scope

HR management  is human resource development which functions to carry out human resource planning, implementation, recruitment, training, employee or employee career development and to carry out initiatives for the organizational development of an organization or company.

Basically, there is no company that doesn’t need HR management or the cool term Human Resource (HR). It is the Human Resources section that is responsible for taking care of various company needs related to Human Resources (HR), including Human Resource Management (HRM) so that all activities or work run smoothly and more efficiently.

In carrying out activities in both organizations and companies, competent human resources are needed in their respective fields. In carrying out activities in a company or organization, Human Resources (HR) management is also needed so that the activities to be carried out run well and achieve the desired targets.

This challenge can be answered through the book Human Resource Management: Building a New Paradigm by Dickdick Sodikin, Djaka Permana, Suhenda Adia which in his presentation provides a new description and understanding of HR Management.

Definition of HR Management

Human Resource Management (HRM) is one of the areas of general management, such as financial management, marketing management, and operations management.

Human resource management is an important field of study in companies because the problems faced by companies are not only problems with raw materials, capital, work tools, and production, but also human resource problems, which incidentally are the parties that run and manage production factors at the same time. is the goal of the production activity itself.

The definition of Human Resource Management (MSDM) is “Personnel management is the planning organizing, directing, and controlling of the procurement, development, compensation, integration, and maintenance of the people for the purpose of contributing to organizational, individual and social goals” ( Flippo: 1976).

Personnel management is planning, organizing, directing, supervising the activities of procurement, development, compensation, integration, maintenance of employees or employees in order to achieve individual, organizational and community goals. The statement from Flippo equates the understanding of human resource management with personnel management.

It is also said by Rivai (2005) , the existence of human resource management is very important for companies in managing, managing, managing, and using human resources so that they can function effectively, productively, and efficiently to achieve company goals.

The opinion of Mondy and Noe, human resource management or human resource management is the utilization of human resources to achieve company goals.

Disclosed by Cascio (2003) that every manager who is responsible for human resources must pay attention to matters such as hiring staff, retaining employees, developing employees, maintaining employee obedience and order, and increasing company capabilities.

Human resource management is a strategic and related approach to managing the company’s most valuable assets, namely the people who work in the company both individually and in teams in order to contribute to achieving the company’s vision.

The explanation above shows that Human Resource Management (HRM) includes the capabilities and potential of leaders and employees in a company. Employees should not be treated as machines and it is necessary to realize that employees have potential and talents that can be continuously developed for the benefit of the company. After being developed, the leader needs to create a conducive atmosphere to be able to apply his abilities in the company.

However, the application of HRM itself is not only done in companies, in an organization HRM is also an important asset so that the organizational goals to be achieved can be achieved. In the book Human Resource Management for Students and the Public, an explanation of HRM in an organization in an effort to increase the effectiveness of existing human resources will be explained in detail.

HR Management Function

The task of Human Resource Management (HRM) is to manage people as effectively as possible in order to obtain a human resource unit that is mutually beneficial. Human Resource Management (HRM) is part of general management that focuses on human resources.

HRM itself is a field of study that studies how the role and human relations exist in helping to achieve the goals of organizations and companies. In this book entitled Human Resource Management by Malayu SP Hasibuan, the HRM concept will be explained in an easy and structured way for Sinaumed’s.

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In principle, this human resource management function includes several activities that significantly affect the entire work area of ​​a company which consists of planning, hiring and dismissing employees, remuneration of benefits, performance appraisal, awards and career development, training and development, occupational safety and health. , leadership, and productivity. The functions of human resource management are as follows.

a. Human Resource Planning

Mondy, Noe, and Premeaux stated that human resource planning is a process of assessing and reviewing human resource needs systematically to ensure that the number of employees needed and according to the skill requirements that have been determined and available when needed. The Human Resources (HR) planning function includes several activities, including:

Analysis of positions within the company to determine the tasks, objectives, skills, knowledge and abilities needed.
Planning and forecasting the company’s workforce demand both in the short and long term.
Develop and implement plans to meet the two needs above.

Planning activities for the quality and quantity of Human Resources (HR) is the work of human resource management that contains the most uncertainty due to the forecasting factor of the tendency for the business environment to continue to move very dynamically. Related to this, companies must be able to see trends in technological developments, such as those that can affect the quality and quantity of the company’s human resources in the future. Planning human resources (employees) effectively to suit the needs of the company for the realization of company goals.

b. Appointment and Termination of Employees

In this process, the activities of filling out formations include recruiting employees, screening, and selecting applicants as well as placing formations. The function of human resource management is increasingly complicated because various regulations provide equal opportunities for all levels of society to get a job and the formation of positions to be filled is increasingly complex. The process of appointment and dismissal (staffing according to company requirements) includes:
1) Recruitment of prospective job applicants.
2) Selection of prospective workers or employees according to the requirements needed by the company.
3) Hold a good termination process for employees.

Human resources managers need to be careful when screening potential employees. Recruitment and job evaluation processes include application forms, interviews, psychological tests, and checking references.

When the term of office or term of office has ended, the company has the responsibility to terminate the employment relationship with employees as well as possible.

c. Allowance Wages

Wages for employees are said to be successful if they are based on justice and fairness.

1) The balance between wages paid for different jobs in one company.
2) Payment of fair and reasonable wages to employees or employees who are in the exact same position in one company.

Wages basically include all the awards received by employees or employees as a result of their work. Mondy, Noe, and Premeaux stated that awards can be in the form of one or a combination of wages, benefits, or non-financial awards.

Wages can be in the form of money received by an employee or employees for their performance. Allowances are in the form of additional financial awards in addition to basic salary (gapok), including leave allowances, sick expenses, holiday allowances (THR) and health insurance.

d. Performance Appraisal, Career Development

This function is carried out after employees or employees work in a company. Not only positive assessments, the company also analyzes if the performance of employees or employees is negative. The function of this work assessment includes:
1) Appraisal and evaluation of the performance of employees or employees.
2) Analysis and encouragement of employee or employee performance.
3) Provision of assistance to employees or employees in the context of career development.

Performance appraisal of these employees or employees is to determine how appropriate the awards are given to employees for their performance so that they can be used as a reference for career development.

If the company helps its employees or employees in career development, then the desire of employees to change workplaces will be minimal. This can retain employees who have high loyalty and commitment to the company.

e. Training and development

Companies can train their employees and develop them through formal or informal procedures. Formal procedures may be carried out with the introduction of new positions or as a means of keeping up with technological change. Meanwhile, informal procedures can take place in the workplace and are administered by senior employees.

In this process, it means that the field of human resources can provide training, courses, workshops and coordinate opportunities in companies with employee or employee career planning. This training and development includes activities such as designing and implementing training programs and their evaluation programs.

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f. Occupational Health and Safety

In this process, human resource management focuses on:

1) Design and implementation of occupational safety and health management.
2) Implementation of employee motivation programs or employees.
3) Compilation of strategies to overcome company conflicts
4) Calculation of the level of company productivity.

To increase company productivity, of course, it must carry out an integration process that results in adequate reconciliation between several interests. So as to create an increase and improvement of physical and non-physical quality in the work environment.

g. Implementation of the Effectiveness of Work Relations

In this function, companies must be able to establish standards for how effective and efficient working relationships can be implemented. Activities that can be done include:

1) Mutual respect for the rights of employees or employees.
2) Establish procedures for how worker complaints are submitted.
3) Conduct research activities on human resource management (MSDM).

If the company is not careful in dealing with any problems regarding the rights of employees or employees, protest actions may arise, such as what happened in several companies in Indonesia.

HR Management Objectives

The objectives of human resource management in each company are varied. According to Ulrich and Lake (1990) a human resource management system can be a source of corporate capability that allows companies to continuously learn to demonstrate new opportunities.

Cushway gave the opinion that the purpose of human resource management is to give management consideration in making human resource policies to ensure that the company has employees or employees who have high performance, are always ready to deal with change, and fulfill their obligations as workers legally.

Not only that, the next goal is to implement and maintain all human resource policies and procedures that enable the company to achieve its goals.

The role of HRM itself in outline is to achieve company goals, which involves the human workforce in it, who are not only capable, skilled, but also must have the will and sincerity to work effectively and efficiently. This is discussed in the book entitled Company Human Resource Management by Taufiq Rachman.

However, specifically human resource management has the following objectives:

  • Develop a work system with high performance which includes the process of recruiting, selecting, incentive systems, as well as management development and training activities related to the needs of the company.
  • Develop management practices with high commitment that recognize that employees or employees are valuable stakeholders in the company and help develop a climate of cooperation and mutual trust.
  • Ensuring that equal opportunities are available to all, meaning that there is a mutually beneficial relationship between the company and employees.
  • Ensuring that employees or employees are valued and valued for what has been done and achieved.
  • Maintain and improve the physical and mental well-being of employees or employees.
  • Creating a humane, harmonious and productive climate that can be maintained between management and employees or employees.

Benefits of HR Management

Human Resources (HR) is an important asset in a company so this needs to be designed effectively. Some of the benefits that can be obtained from human resource management (P. Siagian: 1994) include:

a. Companies can make good use of existing Human Resources (HR).

Human resource managers in a company need to pay attention to the strengths and weaknesses of the company, such as the number of available employees, their respective years of service, knowledge and skills possessed, talents that need to be developed, and the interests of the employees concerned.

b. The productivity of existing employees is increasing

Good Human Resource Management (HRM) will certainly be proportional in the placement of employee formations. Too many employees are also not good for the company and can reduce employee morale. Lack of employees is also not good for the company will result in hampered work. So it has to be right.

c. Determination of the need for labor or employees

The need for manpower in the future both in terms of quantity and qualifications to fill certain formations and carry out new activities

Large companies need to have strategic planning. The utilization and needs of human resources in the future may include the number of employees promoted to higher positions, how many vacancies are vacant, the number of employees needed at that time, to the number of qualified employees needed.

d. Handling of employment information

Handling information on human resources owned can include the length of service of each employee, marital status, benefits, amount of income, education and training that has been completed, special skills possessed by employees, and positions that have been occupied.

e. Study

Before planning, research is needed. Including research on Human Resource Management. This is done in order to obtain an accurate description and information to form the basis for human resource management activities.