Human Resource Management – What Is It & How Is It a Business Process?

Human resource management (HRM) and business management are essential aspects of every business’s operations, regardless of its size. Besides large organizations, small businesses without clear business administration structures or HRM departments still practice HRM and business management processes, too.

The two fields share many similarities but have several noteworthy differences. In this article, we offer a brief guide on the similarities and differences between business management and human resource management (HRM) and provide insights into how the latter is a business process.

What Is Human Resource Management?

Human resource management involves managing an organization’s employees to optimize their performance and productivity. Human resources refer to everything the organization’s employees have to offer, including their knowledge and time.

The HRM department handles everything involving an organization’s employees, from recruiting to off-boarding (and everything between, such as training and compensation). Here is an overview of the seven most important HRM processes:

  • Recruiting.
  • Onboarding.
  • Workforce planning.
  • Talent management.
  • Performance management.
  • Learning and development.
  • Off-boarding.

An organization’s employees facilitate all of its operations, highlighting the importance of human resources management. This is why business management and human resources are closely intertwined.

What Is Business Management?

Business management involves organizing an organization’s resources to optimize performance and achieve goals. Resources in this context is a broad term that includes employees and things such as information and money.

This means that human resources management is a subset of business management. However, business management focuses more on the organization’s goals than human affairs.

It is worth noting that business management is distinct from business administration – the latter focuses on an organization’s operations and strategies. So, is human resource management under business administration? The most direct answer is yes, both as a career and a subject in school.

The Interaction between Business Management and Human Resources

Human resources management is a subset of business management, and both disciplines share many similarities. Some of their roles intersect, and many of their educational and skill requirements are similar.

Business management and HRM roles intersect at the oversight level. Business management partly entails overseeing the employees’ functions at the workplace, which is closely similar to much of what HRM entails. The HRM department also needs to be continuously aware of the business’s operations and goals to streamline its operations.

Both disciplines also have closely similar educational requirements. You will need a bachelor’s degree in a relevant discipline, such as a Bachelor of Science in Human Resource Management or a degree in business administration. They also require similar skills, including organizational, analytical, leadership, and communication skills.

Which Is Better: Business Management or Human Resource Management?

Now that we have covered the similarities and differences between business management and HRM, which one do you think is better? Ultimately, the best option for you will depend on your interests and preferences.

However, learning business management would be a tactical decision for many reasons, ranging from salary to employment opportunities. Most notably, it is a tactical decision because it equips you with the foundation (education, experience, and skills) you need to venture into HRM with some extra training.

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