What is the primary purpose of human resource management (HRM)?

The primary purpose of human resource management (HRM) is to optimize an organization's human capital to achieve strategic objectives. This means that HRM focuses on effectively managing people within the organization to enhance overall performance and align individual and team efforts with the strategic goals of the organization. By developing practices that foster recruitment, training, development, and retention, HRM plays a key role in creating a workforce that is capable and motivated to drive the organization toward its objectives.

In this context, optimizing human capital involves not just filling positions but ensuring that the right people with the right skills are in place to help the organization succeed. It encompasses a broad range of activities designed to improve employee engagement, productivity, and satisfaction, all of which contribute to achieving long-term strategic success. This holistic approach ties the management of human resources directly to the strategic vision of the organization, making it fundamental to HRM's role.

While managing employee benefits and compensation, enforcing labor laws, and overseeing daily operations are all important aspects of HRM, they serve more as functions or responsibilities within the broader goal of aligning human resources with the organization’s strategic needs. These functions support the optimization of human capital, but they do not capture the overarching purpose of HRM in its entirety.