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Human Resources Management, HRM

HRM (Human Resources Management) is a field of knowledge and practical activities aimed at attracting qualified personnel, which is able to perform the duties assigned to it, to the organization, and the optimal use of it. Personnel management is an integral part of automated enterprise management systems.

There may be other names in various sources: human resources management, human capital management, and personnel management.

The main methods of personnel management that are implemented using the HRM system:

  • Economic: material incentives and sanctions, financing and lending, salary, cost, profit, price, etc.
  • Organizational and administrative: maintaining discipline, imposing responsibility, using coercive means, normative and documentary assignment of functions, etc.
  • Socio-psychological: motivation, moral encouragement, social planning, etc.

According to Forrester Research materials, modern integrated HRM systems contain six main functional blocks that are responsible for:

  • payroll accounting;
  • employee records;
  • recruiting;
  • talent management;
  • performance and training management;
  • user interaction with the system.

The main tasks solved by the HRM system:

  • Staffing the company in accordance with its development strategy in the short, medium, and long term. Attraction, retention, and motivation of the most qualified personnel.
  • Creating a management reserve training system, ensuring the continuity of management, and reducing the risk of personnel losses.
  • The orientation of personnel management services to achieve production results.
  • Ensuring the development and training of personnel in accordance with the objectives of the enterprise and its divisions.
  • The iImplementation of the optimal and low-cost accounting function in the field of personnel management.

The following fact speaks about the importance of solving these tasks for the enterprise. According to the American Management Association, the loss associated with the replacement of the employee lost by the company can range from 30 to 150% of his or her annual salary depending on the level of his or her knowledge and skills. Staff turnover is a serious problem that can significantly worsen the overall performance of the enterprise. The HRM system is capable of solving it as well as other problems related to personnel.

The “Personnel” solution, included in the IT-Enterprise system, provides automation of the recruitment process, the work of the personnel department, the department of labor and wages, time-keeping, and all tasks related to payroll. The KPI-based motivation system, the collection, and analysis of information about the personnel of the enterprise, makes it possible in the end to prepare a team of professionals capable of solving all the tasks facing the enterprise.


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