What is Human Resource Management Process and Its Role in an Organization?


By: Site Engineer, Staff

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Human Resource Management (HRM) encompasses a number of important activities one critical aspect of the process is human resource planning. Human Resource Management (HRM) is the management of various activities designed to enhance the effectiveness of an organization’s workforce. This involves assessing the human resource needs associated with an organization’s strategic plan and developing plans to meet those targeted needs. The staffing component includes attracting and selecting individuals for appropriate positions.

Immediately individuals become part of the organization their ability to contribute effectively is usually enhanced by various development and training and periodic performance evaluation.

Compensating employees is another important factor in the HRM process because adequate rewards are critical not only to attract but also to motivating and retaining valuable employees.

Finally, entrepreneurs and managers must take various issues that influence workforce perceptions of the organization and its treatment of employees very seriously.

Human resource planning is the process of determining future human resource needs relative to an organization’s strategic plan devising the steps necessary to meet those needs. The planning relies on job analysis, job description, job specification, and job evaluation. A job is an organization means a unit of work.

Job Analysis

There are different kinds of jobs, the specific tasks that constitute the job, along with the skills, knowledge, and abilities that are required of the workers, make one job different from all others.

Job analysis could be defined as the systematic collection and recording of information concerning the purpose of a job. In other words, job analysis is the determination by all observation and study, relevant information about the nature of a specific job.

From the personnel perspective job analysis held:

  • Identify basic information on operational procedures.
  • Provide the data needed for developing a job classification system.
  • Make sure there is compliance with such legal regulations as those of the fair labor standard act.
  • Clarify lines of authority and responsibility.
  • Determine the requirements for measuring employee performance.
  • Evaluate the workstation to see how it relates to other positions.
  • Identify activities to be performed.
  • Identify potential safety hazards.

From job analysis the information obtained is used in one of these three:

1. Job Description

This is a written description of what an employee is to do on a particular job he hired for. It is a statement of the duties, working conditions, and other significant requirements associated with a particular job.

The job description must always include the followings:

  • The job title
  • Specific tasks to be performed
  • The job’s relation to other jobs.
  • The skills tools and equipment used and how they are to be used.
  • The materials and supplies used.
  • The physical and mental skills required.
  • Specific duties and responsibilities assigned to the job.

The description serves management as the basis for job placement and for training, appraising and transferring employees.

2. Job Specification

A job specification simply describes the qualification, which is a statement of the skills, abilities, education, and previous work experience that are required to perform a particular job, while the job description describes the job a person is to do, job specification describes the qualification.

Here is a job specification for a welder operation’s job.

  • Physical-Knowledge-Proficiency: must have a minimum of 5 credits at the secondary level.
  • Work Experience: No previous work experience necessary, however, a history of work in any capacity would be desirable.
  • Aptitudes: Should have the ability to learn and retain instructions.
  • Personal Characteristics: Should be emotionally stable and have the ability to adapt self to varying conditions and work harmoniously with other individuals.

Job Evaluation

Job evaluation compares each particular job with others to ensure that it is being fairly priced.

Job evaluation can be done in different ways but the most popular way is to break a job down into the identifiable component and then assign points to each component.

Finally, each job in the organization is evaluated in terms of those components. Parts that are often assigned points are skill, responsibility, effort, and working environment. Any of the work components that score highest out of these factors mentioned above is always priced higher than any other one with lower points.

Activities of a Personnel Manager

  • Promotion/transfer/separation procedures.
  • Pension plan administration.
  • Health plans administration
  • Employee relations/discipline.
  • Recreation/social/recognition programmes.
  • Personnel records and reports.
  • Personnel research.
  • Insurance benefit administration.
  • Wage and salary administration.
  • Management development.
  • Community relation and fund drives.
  • Food services.
  • Management Appraisal/Management By Objective (MBO)
  • Suggestion system.
  • Security/plant protection.
  • Supervisory training
  • Safety programmes.
  • Payroll processing.
  • Administration Services (Mail Messenger etc.)
  • Skill Training.
  • Employee Orientation.
  • Recruiting/Hiring.
  • Vacation leaves procedures.
  • Pre-employment testing.
  • College recruiting.
  • Employee communication.
  • Performance evaluation.
  • Counseling programmes.
  • Tuition aid/scholarships.
  • Union/labor relations
  • Human resources planning,
  • Executive compensation.


Staffing consists of two parts: Recruiting and Selecting People. There are certain steps that are followed that lead to the employment of a prospective employee. This process is often referred to as the staffing process.

The chain of events involves an elaborate use of other subsystems such as application forms, interviews, tests, reference checks, and physical examination.

This staffing process is shown below.


The Staffing Process -> Manpower Planning -> Authorization for Staffing -> Development of Sources of Applicants -> Evaluation of Applicants -> Employment Decision and Offer -> Promotion, Transfer, Demotions -> Separation: (Retirement, Discharge, Resignation, Layoff, Disability, and Death)



Recruiting is the process of forming a pool of qualified applicants. It simply means, announcing job opportunities to the public in such a way that the majority of suitable people will apply for them. Recruiting can be conducted both internally and externally.

Internal Recruitment

The process of finding potential internal candidates and encouraging them to apply and be willing to accept organizational jobs that are open is called internal recruitment.

This is normally done by job posting. Job posting means internal recruitment.

Job posting means placing information about job vacancies in noticeable places in the organization such as boards, bulletins, and organization newsletters.

Advantages of Internal Recruitment

  1. Recruitment costs are lower.
  2. Internal morale is increased due to upward mobility opportunities.
  3. Candidates are already oriented to the organization.
  4. Good performances are rewarded.
  5. Reliable information is available about candidates.

Disadvantages of Internal Recruitment

  1. Expensive training may be necessary.
  2. There may be fewer new ideas.
  3. Selection is more susceptible to office politics.
  4. Candidate’s current work may be disrupted.
  5. Unsuccessful contenders may become upset.

External Recruitment

This is the process of finding potential external candidates and encouraging them to apply and be willing to accept organizational jobs that are open.

There are several sources for obtaining external job candidates, thus:

  • Colleges and universities
  • Employment agencies.
  • Advertisement (the most frequently used method)
  • Labor Unions
  • Other companies (competitors, customers, and non-competitors).
  • Unsolicited applicants
  • Employee referrals
  • Present employees
  • Friends of employees

Advantages of External Recruitment

  1. Candidates may be familiar with competitors.
  2. Candidates are a potential source of new ideas
  3. Candidates may have new specialties.
  4. Candidates may have broader experience.

Disadvantages of External Recruitment

  1. Recruitment process may be expensive.
  2. The probability of mistake is higher because of less reliable information.
  3. Potential internal candidates may be resentful.
  4. The new employee may have a slower start because of the need for orientation to the organization.

It is important to note here that the entrepreneur should know which source of recruitment that provides the best result for his organization.


The selection means choosing from that number of those applicants who are most likely to succeed in the new jobs. During this process, entrepreneurs must determine the extent to which job candidates have the skills, and knowledge required to perform effectively in the positions for which is being considered.

The important concept of the selection methods is validity. Entrepreneurs must comply with equal employment opportunity laws by employing regardless of the tribe, race, sex, religion, age, etc. This has to be done without discrimination or bias.

  • Reliability: A test is reliable if it is consistent in its measuring ability. A reliable test gives consistent results.
  • Validity: This is the degree to which a measure actually assesses the attribute that it is designed to measure.


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