Human resource management foundations

Human resource management (HRM) is the management of people at work: acquiring, developing, motivating and retaining employees so that individual and organisational goals are met together. It is both a line responsibility (every manager manages people) and a staff function (the HR department provides expertise and systems). Worked example: a firm with high turnover in one department should not start with a pay rise; HRM diagnosis runs in order — job analysis (is the job itself the problem?), recruitment and selection (are the right people being hired?), induction and training (are they prepared?), and compensation and appraisal (are they rewarded and treated fairly?). Pay is only one suspect among four.