What is the full form of HRM

Human Resource Management (HRM): What is it?

Human Resource Management deals with the human resources of a company. However, this is not, as is often wrongly assumed, about the person as a worker per se. Rather, the focus is on the skills, knowledge or motivation of the individual employee. Although HRM concepts include the subject area of ​​traditional personnel management, they also integrate aspects from the areas of strategic management, industrial relations and organization.

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What is human resource management?

Human Resource Management describes the optimal use of manpower (= resources) with the aim of contributing to the company's success. The human resource manager has the task of managing and developing employees so that they can do their work with commitment and effectiveness. The HR manager is the mediator between management and the workforce.

The central fields of action of HRM are:

Define at an early stage how you want to position yourself in the HR department in order to be able to cover the areas of activity of HRM well. This article will give you a few ideas on how to organize your HR department.

What are human resource management tasks?

Think of HRM architecture like a building. The corporate strategy forms the roof. Directly below is the qualitative and quantitative personnel planning. Your task is to manage employee groups according to their strategic importance and availability.

For each group of employees, you will develop individual measures on the following topics:

  • Recruiting and personnel selection
  • Training and development
  • Staff appraisal
  • Remuneration models
  • Further measures

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Up to this point, it is mainly the classic human resource management tasks. The HRM architecture building is flanked by the following subject areas. Because only if the personnel management covers these topics competently and reliably, it is human resource management.

  • HR key figures for target achievement control
  • Cultural management within the company
  • Change management and companion of transformation processes
  • Structural organization design
  • Demography Management
  • Ensuring organizational learning processes
  • Development of measures to meet the work-life balance of employees

HRM matters are always at the top management level. Only then does HRM achieve its important role as a strategic partner in the company.

What is HRM software?

Personnel management is becoming more and more strategic, but its contribution to added value is difficult to understand in many companies. Often there is a lack of numbers, which is where personnel controlling comes into play. It enables the contribution of HRM to value creation to be quantified and should “accompany” human resource management.

Cooperation between the strategic and controlling functions is possible using software solutions such as Personio. Because interfaces enable the data-related connection of HRM and the automated evaluation of various personal-related data as well as their analysis.

An HRM key figure system specially tailored to the company's situation serves as a control instrument for your personnel-related measures. To do this, you need data and a system that intelligently manages this data and makes it usable, for example in the form of reports.

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HRM and its importance in the company

The HRM contributes to the achievement of goals primarily through the planning of the qualitative and quantitative personnel requirements. For this purpose, the employees are divided into employee groups, taking into account their strategic importance for the company.

  • Which employee groups are necessary to what extent to achieve the strategic goals?
  • How is the internal and external availability of the individual employee groups structured?

Answering these two questions forms the basis for implementing HRM measures and processes. Both are target group-specific and conform to your company's strategy.


Strategic HRM succeeds if you consider the following recommendations for the successful establishment of a strategically oriented human resource management.

  1. Work out an individual vision and strategy for your human resource management and develop them continuously. HRM measures are never an end in themselves. They are consistently geared towards business requirements.
  2. Establish high quality personnel planning processes. Make sure that HRM is closely networked with other business and functional areas.
  3. Define key figures and regular monitoring processes. Concepts and processes for the various employee groups are in line with the strategy. HRM employees have had a very good education and are continuing their education. Competency assessments support you in determining required and existing competencies in HRM yourself.
  4. Secure the commitment of top management for the various HR topics. Corporate cultural aspects influence the development of processes or systems - take them into account.

It is essential to avoid hasty action, but pursue your goals proactively and systematically.