Hotel Skill & Competencies

Human resource management (HRM or HR) is the strategic approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems.

Reward and Compensation Management, which comes under human resource management is concerned with the implementation and formulation of policies and strategies that aspire to reward employees equitably, fairly and regularly in accordance with their performance and value to the company.

 HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and employee-benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws.

Compensation or reward is an important aspect of human resource management. It is a key driver of an individual worker’s choice of employer. Employee’s perception of the inadequacy of organizational rewards is an important determinant of their satisfaction and consequent performance. The literal meaning of compensation is to counter-balance.