HRM is the process of hiring and developing employees so that they become more valuable to the organization. Human Resource departments face different challenges, ranging from a constantly changing workforce to ever-present government regulations, technology changes, and economic conditions. Here are 5 function areas that should be a part of effective human resource management:

• Hiring: to ensure that the organization has the right number of employees, with the right skills, in the right jobs at the right time, to achieve organizational objectives. The staffing process involves job analysis, human resource planning, recruitment, and selection.

• Talent Development: consisting of training and development, career planning, organization development, performance management and appraisal.

• Compensation: which include rewards that individuals receive as a result of their employment. It consists of direct and indirect financial compensation, as well as non-financial compensation.

• Safety: Protecting employees from injuries caused by work-related accidents as employees who work in safe environments and enjoy good health are more likely to be productive.

• Labor relations: in countries where businesses are required by law to recognize a labor union and bargain with it in good faith if the firm’s employees want the union to represent them.

The role of HR managers has evolved over the years into a very strategic one, since talent is the most important asset of any business. Good HR practices need to be continually reviewed and adjusted to meet the changing demands of today’s fast paced business environment. Remember, to win in the marketplace you must first win in the workplace!