GACE Business Education Practice Exam 2026 – Your Comprehensive All-in-One Guide to Exam Success!

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What is the definition of human resource management?

The management of a company’s finances

The strategic approach to managing an organization's employees and workplace culture

Human resource management is defined as the strategic approach to managing an organization's employees and workplace culture. This definition emphasizes the importance of aligning human resources practices with the overall strategic objectives of the organization. It involves not just the administrative tasks associated with managing personnel, such as hiring and training, but also includes developing a work environment that supports employee engagement and productivity.

By taking a strategic view, human resource management seeks to ensure that the organization has the right people in the right roles, fostering a positive workplace culture that enhances employee satisfaction and overall performance. This broader view incorporates behavioral sciences to develop practices that can lead to improved organizational outcomes, making it a critical component of business strategy.

Other options discuss different areas of business management—financial management, marketing, and competitive analysis—none of which relate specifically to the management of an organization's human capital and its associated culture.

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The process of marketing products to consumers

The analysis of a company’s competition

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