What is human resource management? Functions and good human resource management processes

Human resources are the key factor that directly determines the success of a business. Therefore, human resource management must always be put first. The following article by 1C Vietnam will analyze what human resource management is, the role and effective human resource management process of an organization. Check it out now!

1. What is human resource management?

Human resource management is the process of managing and operating all aspects related to resources, personnel, and people in a business. The process of human resource management not only aims to ensure that business activities are operated most smoothly, but also contributes to creating a positive working environment, maintaining good relationships between departments in the business. From there, managers can create a strong and solid internal strength, creating international value for the business, especially in the context of integration and globalization as today.

2. The role of human resource management

In the current fierce competition, effective human resource management not only helps businesses maximize their labor resources, but also contributes significantly to achieving the common goals of the business. Currently, human resource management is always the top concern of large businesses, especially leading technology companies such as Google, Facebook, Amazon, ... contributing to creating the best working environment in the world.

In addition to the role of increasing labor productivity, retaining talent and ensuring compliance with legal regulations, human resource management is also a springboard to create a solid foundation for the development of the economy and society. At the same time, this is also a prerequisite for businesses to achieve success and a sustainable position in the market.

3. 7 outstanding functions of human resource management

The human resource management system determines the quality of operation and development of the enterprise. The human resource manager will need to ensure the following functions:

3.1 Recruitment and selection of suitable personnel

Finding and retaining talent is an important goal in human resource management . This can directly affect the competitiveness and adaptability of businesses in today's volatile environment.

With a well-planned recruitment plan, employers can attract suitable candidates for the required position, while applying different methods and tools to increase efficiency and optimize recruitment costs for the business.

3.2 Performance Management

Performance management is one of the important tasks of managers in monitoring and improving employee productivity. By assigning tasks or KPIs to employees on a weekly, monthly, quarterly or yearly basis, HR managers will grasp the work process, directly guide and support all employees to complete their work in the best way.

Typically, a performance management process will include planning, monitoring, evaluating, and rewarding. Through this, the management will be able to evaluate, classify, and eliminate weak personnel who do not meet job requirements.

3.3 Training and human resource development

The business environment increasingly requires flexibility and the ability to adapt quickly to change, especially in terms of technology. Well-trained employees will be able to come up with innovative solutions, thereby creating a competitive advantage. Investing in human resource development not only improves the capacity and qualifications of employees but also promotes innovation and competitiveness of the business.

The process of training and human resource development will be planned and implemented by the human resource management department. Therefore, managers need to make specific plans about budget, time, location, number and participants.

3.4 Resource Contingency Planning

In business, human resource management also helps businesses create a backup plan to deal with unexpected situations such as employees leaving suddenly. This is especially important for key positions such as managers, department heads, and leaders.

In this case, human resource management needs to develop contingency plans, including preparing replacement personnel to ensure continuity of operations, while filling gaps and senior positions in the business.

3.5 Determine appropriate benefits and benefits

Benefits and welfare management is one of the important functions of human resource management, especially in maintaining and developing the resources of the enterprise. Through performance management, managers can propose appropriate reward policies for the contributions of employees. Thereby, helping to retain employees and promote the spirit of dedication and loyalty to the enterprise.

3.6 Human resource information system

In human resource management, updating the human resource information system is an important task. Applying smart human resource management solutions helps businesses store, monitor and evaluate employees effectively and accurately. Thanks to that, the leadership can clearly understand the strengths and weaknesses of each individual, thereby providing appropriate adjustment plans or development strategies.

3.7 Analysis and evaluation of human resource data

It can be seen that the trend of digital transformation and digital office model is bringing many benefits to human resource management . Using human resource management software can help managers monitor and evaluate employees anytime, anywhere. At the same time, it helps them come up with the right strategies and bring about efficiency.

4. Effective human resource management process in business

To ensure the effectiveness of the human resource management system, building a systematic management process is extremely important, helping businesses attract talent, develop and maximize human resources. This process includes the stages of recruitment, training, development and building corporate culture.

4.1 Step 1: Set up a recruitment process

Establishing a systematic, scientific and optimal recruitment process not only helps businesses attract talented and suitable candidates but also makes the human resource management process more effective. In general, a human resource recruitment process is often implemented in the following steps: Determining the human resource structure, planning, identifying recruitment sources, searching for candidates, interviewing, selecting and guiding employees to get acquainted with the business.

4.2 Step 2: Develop human resource policies

In a business, building policies and regimes for employees is a key factor in retaining talent and increasing work performance. Thereby, helping businesses build a positive, dynamic and comfortable working environment for both material and spiritual needs of employees.

4.3 Step 3: Training and developing staff

Training and human resource development is an indispensable factor in the human resource management process. Investing in these programs not only helps employees develop and improve their professional qualifications, improve work performance, but also helps businesses reduce turnover rates, promote satisfaction and increase competitive advantage in the market.

4.4 Step 4: Determine work goals and evaluate performance

At this step, the manager will set goals corresponding to each stage of the departments in the business. The clearer the goals, the higher the success rate. Then, the manager will rely on the performance evaluation table to propose objective rewards and punishments, to encourage or deter each individual to complete the task effectively.

4.5 Step 5: Building and developing corporate culture

In any business model, corporate culture is an important foundation, determining the work efficiency and development of the organization. Human resource management is responsible for building and nurturing culture, maintaining core values ​​to help the business maintain its reputation, attract talent and determine business growth and efficiency.

5. Necessary skills of a human resource manager

In the current business context, human resource management is one of the important positions, contributing to ensuring the sustainable development of the enterprise. However, to build a positive working environment, retain talent and improve work performance, what skills do human resource managers need? Let's find out with 1C Vietnam right below:

• Professional skills

This is considered a key factor for a human resource manager. Professional skills allow them to predict human resource needs, thereby developing strategies and profiles of potential candidates.

In addition, a good HR manager will also know how to master the interview, ask questions to fully exploit the candidate's personality and nature. At the same time, guide and support new employees, helping them quickly integrate into the corporate culture.

• Human resource management skills

Human resource skills allow managers to perform tasks related to human resources such as: Identifying and implementing human resource management strategies, planning and orienting human resource development, establishing an organizational structure, planning recruitment and attracting talent... This not only helps optimize work processes, but also ensures that all activities are directed towards the common goals of the business.

• Leadership skills

Human resource managers need leadership skills to guide and support employees in solving problems. At the same time, they need to build and develop a professional working environment where employees are comfortable, satisfied and dedicated to the business. In addition, leadership skills also help human resource managers make smart decisions, effectively resolve conflicts and ensure the sustainable development of the business.

• Time management skills

The human resource management department will have to handle work within a limited time period, including managing staff, handling problems, making decisions, and implementing business strategies. Therefore, time management skills will help human resource managers set up a scientific work schedule, ensuring that every individual clearly understands the tasks and deadlines to achieve the business's goals.

• Communication skills

Communication skills are an important key to help human resource managers build a united working community. These skills can include a keen sense, tact in handling situations, understanding tasks, job characteristics, each person's personality and giving appropriate advice to each employee in the business.

• Problem solving skills

Problem-solving skills will demonstrate the level of competence of a human resource manager. During the working process, human resource people may encounter many different situations, including conflicts between employees, work performance, work ethics, etc. Problem-solving skills will help them analyze and evaluate situations flexibly, thereby providing appropriate solutions.

6. Optimal human resource management with 1C:Company Management solution

Instead of looking for human resource management software, businesses can optimize their resource management process with the comprehensive business management solution 1C:Company Management.

With a series of useful features, 1C:Company Management almost fully meets all business needs. The solution is capable of storing personnel information, effectively managing employee productivity, managing salaries and optimizing the recruitment process...

Below are some of the outstanding benefits that the 1C:Company Management solution brings in resource management:

• Establish a complete human resource management system, supporting managers at all levels to assign work and control employee performance.
• Allows HR managers to categorize jobs and can assign multiple jobs at the same time.
• The system provides dynamic, customizable reporting, multi-dimensional analysis, and support for building business strategies appropriate to each stage. As a result, businesses can optimize performance and improve their competitiveness in the market.
• Helps businesses decentralize and control users effectively. At the same time, the search engine and interface are smart and easy to use.
• The process and procedures for timekeeping and payroll are fully automated, helping managers save time, ensure accuracy and develop steadily in the digital age.

Above is all the knowledge to help your business understand what human resource management is as well as the functions and processes of effective human resource management. In particular, implementing the 1C:Company Management solution not only helps businesses optimize their human resource management processes but also creates a positive working environment, contributing greatly to the success of the business. Contact 1C Vietnam now for advice and experience the solution!