The role of HRM in business

The existence of each company is justified by a goal to be achieved, a mission to accomplish. But no business can operate without human resources.

The human resources department is at the same level of importance within a company as other services essential to its proper functioning and the achievement of objectives, such as: finance, sales, marketing and production.

The actors

The different actors involved in the management of human resources are mainly:

  • the senior management
  • service managers
  • trade unions
  • the employees

They each have their rights, roles and responsibilities in the company to contribute to its success.

The interactions

To represent interactions between the actions of the HR function and the results of the company, we use the model of the staircase, invented by Le Louarn and Wils.



This model allows to decompose the contribution of Human Resources to the success of an organization in three types of distinct contributions to the production of value:

  • Human Resources in the form of inputs (those provided by the skills, abilities and knowledge of individuals),
  • Decision-makers in the form of transformation (by management acts – practices, policies, processes, … – whether they come from the HR function or management),
  • The effect of HRM” – in the form of outputs (the “human results” that create the added value). This latter type of contribution is sometimes referred to as “intermediate HR results” by other authors or in other decompositions of the value-added chain.

Among other things, the staircase model shows how a good basic human resource management program can lead to organizational success because its results largely depend on the attitudes and behaviors of employees.

The laws

Subsequently comes the legislative aspect. Every company must comply with a multitude of laws and set up its own regulations. This will require the development of an employee handbook that will include company policies and working conditions, and ensure that they are respected and consistently applied.

Trade unions

Another important reality to remember is the presence of the unions. Company leaders need to behave in a way that makes unionization possible so that the union is not seen as an enemy, but a partner, which will facilitate the management of employees and at the same time ensure their best performance through respect for the collective agreement, as employees will be happier in their work (safety and bargaining power).

The recruitment

Then comes the part of the staffing. And it is a process that is not as simple as it may seem. In fact, it consists of several stages including: planning, recruitment, selection and hosting. Failure to follow these steps or parts of them may have a negative impact.

The optimization

Performance management, skills development and equitable compensation are also very important aspects to consider. They maximize the potential of employees while motivating them and preparing them for potential future changes.

Finally, what complements any good human resource management strategy is mobilization. In short, the more we do for the employees, the more they provide us back.

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