Key Human Resource Management Concepts and Processes

Human resource management (HRM)

Activities managers perform to plan for, attract, develop, and retain an effective workforce.

Human capital

The productive potential of employee knowledge, experience, and actions.

Knowledge worker

Someone whose work mainly involves generating or interpreting information.

Social capital

The productive potential of strong, trusting, cooperative relationships.

Strategic human resource planning

Developing a comprehensive strategy to understand current and predict future employee needs.

Job analysis

Determining the basic elements of a job through observation and analysis.

Job description

A summary of what a job holder does and how and why it is done.

Job specification

The minimum qualifications needed to perform a job successfully.

Human resource inventory

A report listing employees' education, training, languages, and other information.

Recruitment

The process of locating and attracting qualified applicants.

Internal recruitment

Filling jobs from within the organization.

External recruitment

Filling jobs from outside the organization.

Realistic job preview

A clear picture of both the positive and negative features of a job before hiring.

Selection process

Screening applicants to hire the best candidate.

Structured interview

Asking each applicant the same questions and comparing answers to a standard.

Behavioral interview

Focuses on what applicants have actually done in the past.

Ability tests

Tests that measure physical, mechanical, mental, or clerical abilities.

Compensation

Wages or salaries, incentives, and benefits.

Onboarding

Programs that help employees integrate and transition into new jobs.

Performance appraisal

Assessing an employee's performance and providing feedback.