8 Components of Human Resource Management

Components of Human Resource Management

HRM combines planning, organizing, directing, and controlling the procurement, development, compensation, integration, maintenance, and separation of human resources to accomplish individual, organizational and societal objectives.

Human Resources Planning

Human Resources Planning is assessing the organization’s human resources needs in the light of organizational goals and making plans to ensure that a competent, stable workforce is employed.

The planning process includes analyzing skill levels among employees and in the external labor market of current and expected job openings, plans for expanding or reducing staff throughout the organization, and the external legal environment.

The planning process is closely related to the staffing process and depends on the organization’s overall strategic plans.

Job and Work Design

It specifies the task to be performed by individuals and groups within the organization and establishes the rules, schedules, and working conditions under which people perform those tasks.

Through careful design or circumstance, events converge to create jobs to which people are assigned and the conditions surrounding those jobs.

Some of the systems used to help manage job design include time and motion study and work simplification, aiming to do jobs easy to learn and workers more efficiently.

Other job design systems, such as job enrichment, involve restructuring jobs to make them more interesting and challenging. Periodic discussions within a work tern about allocating tasks can be considered a job design system.


Staffing is the process that results in the continuous assignment of workers to all positions in the organization. This broad process includes the following activities.

Attracting qualified people to the organization, selecting from among candidates; bringing new people from aboard, assigning and maintaining them to their jobs; reassigning employees through transfer, promotion, or demotion; ultimately managing employees’ operation through resignation and discharge or retirement.

Training and development

Training and development is a complex mixture of activities intended to improve the performance of individuals and groups within the organization.

Some organizations that carry out complex and specialized operations and are confronted with rapid technological changes are heavily committed to training and development.

Another view of the process is to foster the career development of their employees at all levels. But almost all employees in any organization need some initial training or orientation when they start new jobs.

Performance Appraisal and Review

This component is the ongoing evaluation of individual and group contributions to the organization and the communication of those evaluations to the persons involved.

Such evaluations are made for a variety of purposes.

To provide feedback about performance, determine the need for training, make decisions about a pay increase, select people for promotion, and make judgments about the need for discipline.

The communication of appraisals (review) is part of this process because how the appraisal is communicated will affect the extent to which it becomes a learning experience.

Compensation and Reward

This component is the flow of events that determines what wages, salaries, and incentives are paid and what supplemental benefits and non-financial rewards are provided.

The presence or absence of rewards and recognition is important to employee morale and performance.

Non-financial rewards such as recognition staffed unpaid volunteers.

Some systems in managing this process include job evaluation, plant-wide productivity plans, suggestion plans, and wage and benefit surveys.

Protection and Representation

Most organizations have formal or informal ways to protect employees from arbitrary and impulsive treatment, physical damage, and health hazards.

In addition, individuals or groups may interact with others, again either informally or in an organized formal fashion. An important element of this process is accommodation.

Collective bargaining and health and safety management.

Organization improvements

This component is the flow of events that determines how organizations attempt to improve their effectiveness, employee satisfaction, or enhance the organizational environment.

This component aims to increase the level of cooperation, teamwork, and performance throughout the organization. This way, human resource management gives a competitive advantage in the job market.

The focus may be on organizational outcomes such as product or service quality, the quality of the working life in the organization, or both.