DECA Human Resources Management Complete Practice Test 2025

The primary purpose of Human Resources Management (HRM) is to effectively manage the human resources within an organization. HRM plays a crucial role in ensuring that the organization has the right people in the right positions, fostering a productive work environment, and maximizing employee performance and engagement. This includes recruitment, training and development, performance evaluation, and employee relations, all of which contribute to achieving the organization’s goals.

While increasing organizational profit margins is a desirable outcome and can be a result of effective HRM practices, it is not the main focus of the HR function. Similarly, legal compliance is an important aspect of HRM, as it ensures that the organization adheres to labor laws and regulations, but it is part of the broader scope of managing human resources. Enhancing technological capabilities of the workforce is also a component of HRM, particularly with the rise of digital tools and training methods, but it does not encompass the entirety of HRM's purpose. Therefore, the most comprehensive answer highlighting the core function of HRM is its focus on managing human resources effectively.