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14 Functions of Human Resource Management (HRM)

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28th Jun, 2024
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    14 Functions of Human Resource Management (HRM)

    In today's organizations, people-centric approaches are crucial for boosting performance and reducing attrition rates. The Human Resource Management (HRM) department links the organization and its employees, fostering growth for both. This makes HRM a promising career choice.

    HRM assists with personnel matters, including recruitment, hiring, and management. The department forms work policies, determines salaries, and manages benefits. Function of HRM include job analysis, human resource planning, conducting interviews, training, payroll management, appraisals, dispute resolution, employee counseling, career planning, benefit management, and workplace safety. These tasks underscore HRM's role in promoting employee and organizational growth. Certification courses can help HR professionals gain skills in motivating and managing employees.

    This article will explore HRM functions and their impact on organizational success.

    Important Functions of HRM

    • Hiring the Right People: HRM ensures that the organization hires qualified and suitable candidates, aligning their roles with company goals for optimal performance. 
    • Training and Development: Continuous training and development programs enhance employee skills, job satisfaction, and productivity, contributing to overall and continuous growth. 
    • Resource Planning Effective: planning prevents understaffing or overstaffing, ensuring efficient use of human resources and meeting the organization’s needs. 
    • Compensation and Benefits: Well-designed compensation and benefits packages motivate employees, build loyalty, and help retain talent within the organization for a long time. 
    • Performance Management: Regular performance management ensures that employees meet their goals and contribute effectively to the organization’s success. 
    • Learning and Development: Ongoing learning and development keep the workforce agile and competitive, fostering a culture of continuous improvement. 

    HRM functions collectively create a motivated, skilled, and efficient workforce, driving the organization toward its objectives. 

    Objectives of Human Resource Management Function
    Objectives of HRM Function
    pockethrms

    What is the objective behind the functions of HRM? The objective is to provide a seamless experience to employees associated with the organization. Here is a quick look at the objectives of HRM functions.

    1. Achieving organizational goals: Utilization of available resources to fulfill the goals of the organization 
    2. Work culture: Promoting and maintaining a work culture that empowers employees 
    3. Training: Conducting training sessions to create a purposeful and effective workforce 
    4. Team integration: Maintaining proper coordination between different teams or departments of the organization 
    5. Employee motivation: Motivating the workforce to utilize their potential for better results 
    6. Retention: Ensuring workforce retention for the smooth operation of the organization 
    7. Relationship: Promoting and strengthening the relationship between the organization and the employees 

    Major Human Resource Management Functions

    1. Job design and job analysis

    HRM's main function includes job analysis and design. Job design involves describing duties, responsibilities, and operations to employees, ensuring they fit the role. This begins with creating a checklist from top-performing employees’ duties. Job analysis identifies day-to-day functions essential for the organization's growth and recruitment process.

    2. Planning of Human Resources

    HR planning is important in HRM. It involves training and distributing resources effectively to help the organization reach its potential. This function of HRM requires knowing the number and type of employees needed, setting goals, and understanding each department's specific needs to avoid understaffing or overstaffing.

    3. Employee hiring and selection

    Hiring is a core function of HRM. It starts with spotting qualified candidates who align with the organization's goals. The HR manager conducts a comprehensive screening and multiple interview rounds to ensure the candidate's fit. Post-selection, the HRM handles job offers and familiarizes new employees with organizational goals.

    4. Employee training and development

    HRM's role extends beyond hiring. Training procedures help new hires settle and understand growth opportunities, boosting their efficiency and productivity. This step ensures employees gain company-specific knowledge, aiding in their tasks and contributing to organizational and personal growth.

    5. Compensation and Benefits

    HRM designs compensation packages balancing fair employee remuneration and organizational finances. They establish clear rules for salaries, appraisals, and benefits, ensuring these elements motivate employees and boost productivity without harming the company's financial health.

    6. Employee performance management

    Effective performance management ensures employees meet organizational goals and maintain job satisfaction. HRM designs job descriptions, selects suitable employees, provides training, boosts performance, offers real-time feedback, conducts performance reviews, and handles appraisals and exit reviews.

    7. Employee Learning and Development

    Learning and development are continuous function of HRM. HR managers analyze skill gaps and design training programs to empower employees, enhancing their performance. Re-skilling and up-skilling programs help employees advance, increasing satisfaction and experience.

    8. Managerial relations 

    It is usually divided into two parts about relationships in employment. If you pick up any credible book on HRM, be it function of human resource management pdf or something else, you will see that they are labor relations and managerial relations. Labor relations a way that defines the relationship of a company with its workforce. On the other hand, managerial relations deal with the connections within the various processes that exist within an organization. The HRM department handles all the aspects related to the processes. 

    9. Labor relations

    Why is it essential to maintain a harmonious relationship between the employees and the organization? First, it is important to ensure that the employees collectively work toward the company's overall goal. Hence, it is the job of HR to spot the communication gaps between two employees or an employee and the organization. It is risky to keep those events unattended as that may lead to conflict and chaos within the organization. Also, the HRM needs to create policies that are fair and transparent. 

    10. Employee engagement and communication

    Encouraging the employees to engage and communicate is an essential part of any organization. Increased communication and engagement are the ways to ensure employee satisfaction. It is the responsibility of the HRM department to create an environment that helps the employees get motivated and more committed to working towards a common goal besides personal career development. This is done through regular communication and events that can help the employees to engage. This process is also required for the overall development of the organization. 

    11. Health and safety regulations 

    An employee working at an organization doesn’t just require proper remuneration. They also need an environment that takes care of the different health and safety regulations that are prescribed by the authorities. It is the responsibility of the human resources personnel to ensure that the rules and regulations are mandatorily followed. This also includes conducting regular sessions to inform the employees about their part in ensuring safety and health regulations within the organization. This is a way to create a workspace where employees feel safe to work. 

    12. Employees' support 

    Everyone talks about keeping their personal and professional lives separate. However, if an employee faces an issue in their personal life, it will interfere with their workflow too. Hence, there is a need for a space where the employees can discuss how to approach their work while dealing with personal issues. The HRM department is responsible for providing that space to help the employees in need. This has become increasingly important following the pandemic. The department can also help the employees know more about the insurance policies in place or leaves they can take in their time of need. 

    13. Succession Planning

    It is one of the core functions of the human resources department. Under this function, the department plans, monitors, and manages the growth of employees from within the organization. This is carried out to track promising employees who can contribute more to the organization. With the help of the data collected by the HRM department, employees get the chance to succeed in their careers as the organization considers it profitable to invest in their development. 

    14. Industrial Relations

    In the factories and manufacturing units, Unions exist. Hence, the HRM department plays an important role in acting as a liaison between the Union of an organization and its management. The department's responsibility is to create a balanced workspace that takes care of the employees' welfare and the organization's profit. 

    Types of HRM Functions

    Here are the three categories of HRM function: 

    Types of HRM Functions
    Managerial FunctionAdvisory FunctionsOperative Functions
    PlanningAdvising Top ManagementEmployment
    OrganizingAdvising Department HeadsCompensation
    Directing
    Training and development
    Controlling
    Working conditions and Welfare


    Performance Appraisal


    Personal Record


    Separation


    Industrial Relations

    A. What is Managerial Functions?

    There are certain managerial function of HRM. These functions help an HR manager maintain a proper balance within the organization, which helps with its smooth operation. An HR manager performs some of the most basic yet crucial managerial functions. They have to get involved in planning. Furthermore, they also have to be part of the organization or implementation of the plan. This function type can be divided into four major parts. They're planning, organizing, directing, and controlling. This article will take a detailed look at each sub-sect of HRM's managerial function. 

    Managerial Functions

    1. Planning

    A manager's job is to plan and manage subordinates who can efficiently and effortlessly implement the plan. It is essential to plan to identify and determine the organization's goals. One of such human resources functions contributes to personnel growth and the company's development. Here is a quick look at the tasks required under this function. They are: 

    • Determination of personnel programs 
    • Planning job requirements 
    • Contributing to organizational goals 
    • Anticipating vacancies 
    • Determining the recruitment sources 

    There are three steps in which an HR manager can complete this function efficiently. The first part is to have a clear idea of the job market conditions and the strategic viewpoints of the organization. The next step is identifying the organization's shortage or excess personnel. Lastly, the final step is to methodically work towards eliminating the shortage. 

    2. Organizing

    After planning, this is an essential task that the HR managers need to handle. An HR manager's job is to develop plans and establish objectives. Furthermore, they must also find the proper ways to reach their goals. Here are some of the things that an organization structure includes: 

    • Responsibility for assigning various functions to different individuals 
    • Responsibility for delegation of authority, keeping in mind the task assigned 
    • Responsibility for the coordination of activities of different individuals 

    3. Directing

    Once the planning part is concluded, the next step is implementation. The smooth and effective implementation process depends on a very important aspect - the motivation of the employees. It is, therefore, the job of the HRM to encourage people to work towards the achievement of goals willingly. This is a skill that one can develop after receiving proper training. 

    Some ways promote encouragement within the employees. Here is a quick look: 

    • Career planning 
    • Ensuring employee welfare 
    • Salary management 
    • Identifying the needs of employees 

    4. Controlling

    This is an aspect in which the HRM ensures the regulation of activities under the plans. In this step, the observation and comparison of results take place. That is an essential step in ensuring standards and correcting any deviations that may have occurred. In addition, this process helps the HRM to evaluate and control the performance of the personnel department. This step includes performance appraisal, personal audit, and examination of personal records. 

    B. What are Advisory Functions?

    It is one of the essential functions of human resource management. This function involves advising on important matters involving human resources. Through this function, an HR manager ensures the smooth running of the company. However, to whom HRM shares the advice? Take a quick look: 

    Advisory Functions

    1. Advise top Management

    A trained personnel manager assists top management when formulating procedures, policies, and programs related to the organization's human resources. An HR manager also suggests maintaining good human relations while ensuring high employee morale. 

    2. Advise departmental heads

    This is another responsibility of an HR manager. They also advise department heads on aspects of job analysis and design, manpower planning, selection and recruitment, training, placement, and performance appraisal. 

    C. What are Operative Functions? 

    Under operative functions, the HRM deals with duties designed specifically for the department. The HR managers deal with different aspects like employment, compensation, development, and maintenance of personnel. Let's take a detailed look at the operative functions of HRM. 

    Functions of Operative Functions

    Functions of Operative Functions
    techjockey

    1. Employment

    This step involves finding candidates who can turn into employees and is a perfect fit for the organization. It also involves recruiting someone with a proper skill set and understanding the number of persons needed to fulfill the organization's goal. Some of the steps involved in this sub-sect of operative functions are recruitment, selection, and personnel placement. 

    2. Compensation

    As the name suggests, this is a step involved with determining the remuneration amount for an employee in exchange for their contribution to the organizational goals. As an aspiring HR manager, it is essential to remember that the remuneration can be monetary or non-monetary rewards. Certain factors influence the remuneration of an employee. They are: 

    • Requirement of the job 
    • Basic needs 
    • Legal provision 
    • Organization’s capacity to pay 

    3. Development

    This function can be described as a follow-up of the employment function. Under this, the HR manager is responsible for training the new employees properly. They have to teach each employee properly to ensure their skill sets are utilized appropriately. It is also a process that lays the foundation for developing an employee in a way that can help them climb the ladder within the organization.

    To ensure the growth of the employees, HR managers are required to create proper training programs to help solve the purpose. It is important to mention that the HR managers are responsible for training not just the new employees but the old ones too. Wondering how managers come up with effective programs? They have to learn it, and the KnowledgeHut certification course can help.

    4. Working conditions and Welfare

    The function of the HR department doesn't end with just hiring someone and training them. There is much more to that situation; it involves creating a workspace where employees feel comfortable and motivated to work. An HR manager's job is to ensure appropriate workplace conditions. They need to ensure that the workspace is safe and healthy for employees. As an HR manager, one has to provide all the services related to the employees' physical, mental, and social welfare. Some of the aspects are: 

    • Cafeteria 
    • Restrooms 
    • Group insurance 
    • Education for children of employees 
    • Counseling 
    • Recreational activities 

    5. Motivation

    Keeping employees motivated is among the key functions of the human resource department. It has been seen that employees often hold back from relating to the overall organizational goal because they don't feel motivated enough. The HRM department's responsibility is to create such an environment where the employees feel adequately motivated to give their best. 

    6. Personal Record

    An employee's journey is documented right from the day they joined. It is the HRM department's responsibility to maintain the personnel records. The records contain information on their appointment, training, appraisal, promotion, transfer, achievement, and other things related to the organization. Other than these, the department also maintains records to ensure that employees follow the organization's policies properly. 

    7. Separation

    When an employee decides to leave a company or retire, it is the job of the HRM department to handle the separation of that person from the organization. Also, the personnel manager is the one who handles the retirement benefits for employees who are retiring from the office. 

    8. Industrial Relations

    No one can work alone. It is also true for an organization that has to stay in touch with several other bodies to ensure its smooth working. A human resource manager is responsible for maintaining relationships with other industries. As an HR manager, one can help in several things, like collective bargaining, settlement of disputes, and joint consultation. Furthermore, their job is to maintain an efficient relationship with the labor union or other concerned bodies. 

    Top HRM Function tools

    One of the main functions of human resource management is to comply with various industry regulations. So naturally, managing all the processes manually is nothing less than a Herculean task and is time-consuming. That is why, with the help of advanced technologies, innovators came up with a range of tools that introduce automation in the working process of an HR manager. As a result, these tools help save both effort and time. 

    There are also numerous other benefits of opting for HR function tools that benefit organizations. The advantages include the following: 

    1. Accuracy 
    2. Efficiency 
    3. Consistency 
    4. Less time consuming 
    5. Cost-effective 

    So, what are the top five tools you should explore as an HR aspirant? Let’s take a look: 

    • Jotform: This platform doesn’t require any code to automate the various functions of human resource management. It is flexible and can easily accommodate a wide range of HR processes.  
    • KissFlow: This cloud-based tool has pre-designed modules that cover a wide range of subjects, including employee review and offboarding. The data-driven approach of this platform has made it popular among HR personnel. 
    • BambooHR: This platform can be the one-stop solution for all HR needs without a hefty price tag. This tool covers different things, including advisory functions of HRM.

    Conclusion 

    Human resource is a field that is power-packed and dynamic. Major function of HRM are in place to ensure employee satisfaction and organizational growth. An HR professional has several duties and responsibilities while liaising between the employees and the government. It won't be wrong to say that this life-changing role will take your career to new heights.

    Frequently Asked Questions (FAQs)

    1What is the Role of the HR Manager in Personnel Record Keeping?

    An HR manager must maintain the records of the employees working with the organization, from their appointment letters to their achievements, promotions, etc. An HR manager documents the entire journey of an employee within the organization. 

    2Why are HR functions important?

    HR functions are important to retain an organization's human resources and motivate them to work in a way that can help achieve the overall goal. 

    3What is human resources advisory?

    The advisory function requires an HR manager to advise top management and respective departments about the employee-related programs or policies they form. 

    4What is the Separation Function of HR Managers?

    Under the separation function, an HR manager is responsible for ensuring that the process of an employee leaving the organization is completed smoothly. The manager is also responsible for initiating the retirement plan for a retired employee.

    Profile

    Abhresh Sugandhi

    Author

    Abhresh is specialized as a corporate trainer, He has a decade of experience in technical training blended with virtual webinars and instructor-led session created courses, tutorials, and articles for organizations. He is also the founder of Nikasio.com, which offers multiple services in technical training, project consulting, content development, etc.

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