How an organization manages its people is critical, as it gives a competitive advantage. Thus, firms compete with effective human resources management (HRM) processes to attract and retain the best employees to increase productivity. However, finding and keeping the best employees is a challenge even for the most famous companies. To effectively manage people, the organization needs to be proficient in all four parts of the HRM process.

The human resources management process involves planning for, attracting, developing, and retaining employees. It is also known as the staffing process. In organizations large enough (usually about 100 or more employees) to have a separate human resources department, the department performs each of the four functions of the HRM process. Many HR jobs require maintaining records, auditing, or controlling.

Generally, the smaller the firm, the wider the job responsibilities within the HRM department, and vice versa in a larger firm. Outsourcing is becoming more common in business. Many firms, especially small businesses, are outsourcing most or parts of their HRM functions. The largest professional association for HRM is the Society for Human Resource Management (SHRM). The HR department is primarily responsible for developing employment policies, procedures, and rules, but it is the line managers and employees who implement the standing plans. As a manager or employee, you need HRM knowledge and skills.