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Functions of Human Resource Management (HRM)

18th Jun, 2024
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    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. Key functions 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.

    Objectives of HRM Function 
    Objectives of HRM Function

    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

    One of human resource management's main functions is to deal with job analysis and design aspects. Wondering what they are all about? Let us take you through a quick session to clarify the functions and how an HR manager can fulfill them. 

    Job design is a process that involves several aspects. Some of them are describing duties to employees, taking them through the responsibilities, and of course, educating them about the operations of the job. It is thus essential to select such employees who are suitable for the required job. This process starts with creating a checklist while searching for candidates. Then, the potential employees should fulfill the requirements. One of the ways to create the checklist is by observing the duties and responsibilities fulfilled by the organization's top-performing employees. 

    The next part is job analysis which involves identifying the day-to-day functions required for smooth functioning. This is done to determine a future course of action for the organization's recruitment process. This process is essential to ensure that the organization goes through proper growth. 

    2. Planning of Human Resources

    Proper planning of the available human resources is an essential part of the HRM job profile. Each organization has certain available human resources. It is the job of the HR managers to train and distribute the resources in a way that helps the organization reach its potential in the best way. This step of planning involves creating an effective process that is purposeful. Through this process, the HRM department also aims at creating a balanced environment within the organization. 

    This is one of the basic functions of HRM that requires knowledge about the number of employees required in the organization and also the type. Furthermore, an HR manager needs to determine the goals and tasks the employees must fulfill while working for the organization. This way, they can also design an effective hiring process. Finally, the HRM also has to understand the requirements of individual departments regarding the candidates they are looking for. It is necessary as the needs of different departments could be drastically different from one another. 

    The HRM department makes sure that the company is not understaffed or overstaffed. Hence, they carefully consider the demand of each department. 

    3. Employee hiring and selection

    It is already established that finding a suitable human resource for the organization is one of the primary functions of the HR department. In other words, hiring or recruitment is a primary function that an HR manager has to fulfill. It is their responsibility to spot an efficient and qualified candidate who can help in achieving the objectives and goals of the organization as an employee. So, naturally, that all begins with hiring candidates from a list of suitable applicants. 

    The HR manager identifies suitable candidates for the organization and begins the selection process. First, the favorable candidates go through a comprehensive screening process which the HRM handles. This is done to ensure the potential candidate is a good fit for the company. Besides screening, the candidates also go through different rounds of interviews that test their skills and knowledge about the required position.

    Once a candidate is selected, the HRM department also handles the aspect of the job offer. They also take the newly recruited employee through the different goals and objectives they must fulfill while working with the organization.

    4. Employee training and development

    Does the job of the HRM department end with the selection and hiring of the right candidate? No. On the contrary, it is just the beginning. Once a person is selected, the HR department will take them through the necessary training procedures. These procedures are designed in a way that not only helps the candidates settle in the organization and learn more about the opportunities that can help them understand the growth opportunities. This step is essential because it is a way that helps a newly joined employee to be a part of the organization.

    An employee needs to have company-specific knowledge that can help them perform their tasks efficiently. Alongside this, it is also a way to increase the overall efficiency and productivity of the employee and the overall workforce. Furthermore, having a knowledgeable and capable workforce only helps the organization's overall development.

    Once an employee knows how an organization operates, they will be much more prepared to carry out their regular work in a way that ultimately proves fruitful for the organizational goals and their personal career growth. In other words, without training by the HRM department, an employee will lack the tools to function properly within the organization.

    5. Compensation and Benefits

    The compensation and benefits provided to the employees are an important part of the company's overall expenditure. This also included the appraisals and salary increases of the employees working in the organization or the ones who are joining. Hence, the HRM department needs to design compensation packages that can help the employees get proper compensation without harming the finances of the organization in any way. It is the primary objective of HR to ensure that the remunerations for the employees are fair and proper. Furthermore, they also need to develop benefits that can boost the employees' productivity.

    As an HR manager, one has to lay down clear and proper rules that will determine the remuneration and the benefits of the employees.

    6. Employee performance management

    As we explain the functions of HRM, it is also important to mention an HR manager's role in ensuring proper employee performance management. What is the need for effective management? It is to ensure that the employees meet the goals and objectives of the organization. At the same time, the HRM department also needs to consider the employees' job satisfaction. Therefore, the HRM department ensures that the performances of individual employees, the team they belong to, and the overall organization improve. 

    The performance management function of an HR manager involves certain things. Take a look: 

    1. Designing a proper job description 
    2. Initiating the selection process for suitable employees for a job position 
    3. Providing right training 
    4. Boosting the performance of the employees 
    5. Real-time feedback 
    6. Performance review 
    7. Designing proper appraisal and benefits 
    8. Performing exit review 

    7. Employee Learning and Development

    The learning and development part can be considered one of the advisory functions of HRM. Learning and development is a continuous process that encourages the development of employees. As an HR manager, one needs to analyze the skill gaps existing within the organization. Furthermore, they must design training programs to empower employees to gain specific knowledge. The training programs should also have the capability of boosting the overall performance of the employees. 

    There are different ways of implementing learning and development. The HRM department can also help the employees by sharing insights and knowledge. 

    It is also a part of the learning and development process to re-skill or up-skill the employees. This is a way the employees can move forward on the ladder of success within the organization. This process also helps in increasing employee 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 functions 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
    Training and development
    Working conditions and Welfare

    Performance Appraisal

    Personal Record


    Industrial Relations

    What is Managerial Functions?

    There are certain managerial functions of the HRM department. 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. 

    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. 

    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

    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.


    Human resource is a field that is power-packed and dynamic. Major functions 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.


    Abhresh Sugandhi


    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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