2.1.1—HRM purpose and roles

Human resource management plans, recruits, develops, rewards and supports people so the organisation has the capability to achieve its objectives.

HR decisions affect cost, productivity, skills, morale and legal risk. HRM is therefore a strategic function, not only an administrative payroll task.

If a firm plans a new digital service, HRM may forecast skills, recruit or train staff and redesign roles before launch.

A “people-first” policy is not automatically effective; its value depends on fit with work, resources and objectives.