12 Functions of Human Resource Management
12 Functions of human resource management: Human Resource Management is alarmed with the dimension of people within the management. Every organization is a blend of people, obtaining their services, enhancing skills, encouraging them to higher levels of performance and making it sure that they continue to work for the accomplishment of the organizational objectives.
An important has been played by the Human Resources Management to fulfil the challenges related to the expansion and rapidly increasing competitive sector. HR Managers are induced to reconfigure the role as well as the significance of human resources management by maximizing the number of employees, diversification on a contractual basis and alterations in demographic profile.
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12 Functions of Human Resource Management
The main responsibility of the HRM is to meet the current needs of the staff but can be hands-on in shaping the motives of the organization from time to time. There is a correlation between the functions and core objectives of the HRM. To exemplify, personal motives are realized via functions such as remuneration, assessment and so on.
There are two categories of functions of Human Resource Management which are as follows:
- Managerial Functions
- Operative Functions
The changes in the HRM’s functions have been affected due to external forces such as economic, technological, global, environmental, political, cultural, legal, and social. So, these forces have an impact on the designing and alteration of HR functions.
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Managerial Functions include:
1. Planning: It is an integral part of maintaining the competitiveness within the organization and the HR metrics as well as technology can increase the effectiveness of HR by planning strategies. The function of Human Resource Planning to evaluate the count and kind of employees required to achieve the organizational objectives.
It also comprises of planning, which means to determine something in advance. It leads to observe a change in the internal and external environment to accomplish the goals set up by the organization. There is a need for proper anticipation, forecasting and predictions. It establishes a link between the present and the future and it is a continuous process with short term and long term goals.
These objectives, sometimes, are financial and non-financial and even, a blend of both. Planning helps to provide a base for effective as well as most economical action for the future and lead to the use of efficient methods in achieving the goal of the organization with the help of better coordination and control. As far as the function of HR is considered, it includes the planning of manpower needs and associated issues that contribute towards the organization’s goal.
2. Organizing: Another important step is the Organization. All the tasks associated with the success of the business is allocated among the employees according to their skills and abilities that paved the way towards the goal of the organization.
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It is helpful to develop and design the structure of the company. Basically, it includes the following:
- Positions and groups are assigned to the employees for performing various activities.
- Various functions ought to be allocated to different persons.
- Authority must be delegated according to the tasks and duties that are assigned.
3. Directing: This step helps to activate employees at various levels and they should contribute towards the profitability of the business. Encourage the potential among the employees through the constant motivation as well as command which is the primary focus.
It is a biggest challenge for HRM to direct some motivational methods, proper planning of employee’s career and good relations with human resources. Moreover, they should be capable of finding the needs and problems related to the employees.
4. Controlling: The performance of all the employees in an organization is measured, evaluated and analyzed time to time according to the goals of the company. If it is found that the performance is not up to mark, then measure should be taken to control the same.
Where the function of controlling ends, the planning begin again. A set of outcomes is maintained by the HR Manager to know the difference between the achieved targets as compared to the set standards.
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Operative Functions include:
1. Recruitment and Hiring: Recruitment aim is to supply qualified and experienced individuals to fill the vacancies in an organization. Under the staffing process, the main functions include analysis of job, recruitment and selection of staff. All the candidates selected to achieve the goals of the organization and management takes the decision too.
With the help of HR planning, the managers forecast the supply of and need for staff according to the work issues which involves the retention of employees. So, the actual selection of the staff for an organization is preceded by HRP. All these factors take into consideration when recruiting candidates for job openings.
Choosing the right and qualified employee for vacant positions is concerned with the selection process. In the procedure of choosing candidates, the most qualified candidate is selected for the job positions out of the applications received according to the skills, abilities and experience required for the position.
2. Job Analysis and design: The solid foundation of employees laid down by designing and analyzing the job and what are the effects on their jobs. The process of Job analysis includes the description of nature of the job and specifying the requirements of the human which involves skills, knowledge and experience needed to perform the job in a good way. A job description is related to the job duties and activities of employees and is the end result of Job analysis.
3. Training and Development: To begin with the orientation of new employees, various kinds of training is required to manage the talent and develop it. Orientation is the first step to get familiar with the environment of the organization and get comfortable with co-workers. It is a way to explain new employees regarding all the realms of the new job which includes pay and benefit programs, hours of working and rules and expectations of the organization.
The programs of training and development provide some valuable information to the employees about the job performance at an acceptable level and the duties that they are capable of doing.
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New and inexperienced employees get training on behalf of the organization. In addition to this, if the nature of job changes, then on the job as well as off the job training programs are also provided to the employees.
Similarly, the development and succession planning of HR for employees and managers are essential to prepare them for the future challenges on the job and also get prepared for the advancement in their career. The activities related to career planning includes the assessment of employee’s potential for growth and development of the organization.
4. Performance Appraisal: The evaluation of performance comprises of motivation to take risks, demand for innovation, generating or getting new duties, evaluation by peer, evaluation and auditing of innovation procedures.
All these functions are monitored by the HRM team in order to ensure that the employee is at an acceptable level or not. Individual and team performance is appraised by some strategies as there is a connection between the profitability of the business firm and the innovativeness of an employee. They take into account which task should be appraised and how to assess the performance of the employees.
5. Compensation and Benefits: To motivate the employees to enhance their performance for organizational goal, rewards as compensation is given to them in the form of pay, incentives and benefits. The management of compensation is the alternative for evaluating how an employee ought to be paid for performing various task and duties of the job. Staffing gets affected by the compensation and in case of staffing, people are generally get attracted towards the organization paying the higher range of pay in exchange for the task performed.
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To stay in the competition, the basic compensation system develops and refines with the help of variable programs like incentive rewards, promotion in the organization, recognition reward, balancing team and reward for individuals and so on. This particular function of productivity, innovation and profitability of the organization’s goal is achieved with the help of these functions to encourage the personnel.
The development of employees is highly associated with compensation and it offers a vital incentive for inspiring employees to achieve a higher level of job performance in the company. The rewards are beyond the financials such as base salary, performance-based salary, bonuses, social environment, job security, status, alternating work, autonomy, growth opportunities, feedback and formal as well as informal job opportunities.
Apart from the direct payment for the work done by an employee, compensation acts as another form of compensation to the benefits. While fixing the remuneration of employees, some factors should be borne in mind such as fundamental needs, minimum wages, the ability of the company to pay, legal provisions, etc.
6. Employee’s Protection: Various risks related to the workplace addresses by the HRM to make sure that it finalizes the protection of the workers by fulfilling the legal requirements. Moreover, an organization also provides health and safety insurance with the plan of recovery and disaster.
The function of the HR Manager is to take care of the health and safety of the employees. If the work of an employee is risky and involve some hazardous tasks, the HRM share all the measure and precautions to do the work. Moreover, there should be regular medical checkup of all the employees along with free medicines and treatment provided to the employees who are ill.
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7. Labor Relations: The conflicts and relationships between the managers and the employees must be managed legally and effectively. The rights of employee and employers must be tackled. From time to time, the procedure, as well as policies of Human Resource, should be developed and updated so that the employees know what they can expect. Most of the organizations also address management or union relations.
The term of labour relations defines the interaction between the employees who are signified by the trade union. Organization of the employees are known as Unions who get together to get hold of more voice decisions that have an impact on the wages, benefits, conditions of working and other related aspects of the employment. Here, the highlighted function of HRM is to negotiate with the employees union regarding the working conditions, wages or salaries and put an end to the disputes and grievances.
8. Personal Record: Personal records of all the employees should be stored by the human Resource Department such as their overall performance, salary status, personal information, joining details, Provident funds, etc. On the other side, HRIS (Human Resource Information System) is useful to store all the information and data related to the employees. The whole data is maintained and implemented on systems for making some sensible and profitable decisions for the business.
All the functions ought to be done in an effective manner and at the same token, there is a need to regularly update the policies as well as regulations to cope up with the requests and overcome all these challenges.
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