The concept of human resource management could be described as an organised management system aimed at maximising the skills and abilities of the personnel in an organisation or a company. As an example assume the establishment of a new company. Initially, the funding and purchase of the necessary equipment are essential steps. Afterwards, careful planning will be needed to identify how many and of what capacity employees are essential for that company. Four generic human resource management tasks are typically adopted by any organisation or company even not described in a documented procedure.

The first task in this process is called Human Resource Planning. At this stage, two main steps could be identified. The first one is called Job Analysis (Planning). At this step, it is necessary to understand the essential operation of a company. Those essential operations should be monitored and carried out by skilful people with appropriate training and experience. However, in this stage, it is easy to exaggerate concerning the quantity and availability of those employees in the local market. Therefore it is required to proceed with evaluating the demand and supply of the people needed in the market. This action will assist in making fair salary offers to competitive people. This step should be an ongoing process for a company by executing Forecasting Demand-Supply studies.

The second task is the Staffing of the Organization. Following thoughtful planning then the adoption of a successful recruitment strategy should be applied. Recruitment strategy will vary depending on the labour availability and the specialisation of employees required. For instance, low-skilled labour may be recruited locally through advertisement in local media. While for highly qualified personnel they may be available in foreign countries and/or they can be conducted through special agents.

The third task after the selection of employees should be the Development of the Workforce. This task is a constant effort by a company aiming its continuous improvement. An initial step is to provide training to each new employee. This period should be determined, clear in purpose and strictly monitored. The training period of an employee is twofold; firstly to minimise the potential errors that he/she may do, secondly to clarify the daily business style of the company. Each company has developed its unique management style which may be significantly different from the one that a new employee has been used to or wants to accept.

The fourth task that falls in the human resource management field is the determination of Compensation & Benefits for employees. This task will include procedures for the employees to understand the company's policies regarding their wages and salaries. Furthermore, a company may have developed an incentive & benefits program. A good idea for a company would be to adopt a fair and transparent compensation scale. Such an approach will reduce complains and dissatisfaction of employees which may lead to several turnovers.