Human Resource Management: Functions of Human
Resource Management
What is human resource management (HRM)?
Human resource management (HRM) is the practice of recruiting, hiring, deploying and
managing an organization's employees. HRM is often referred to simply as human resources
(HR). A company or organization's HR department is usually responsible for creating, putting
into effect and overseeing policies governing workers and the relationship of the organization
with its employees.
The term human resources was first used in the early 1900s, and then more widely in the
1960s, to describe the people who work for the organization, in aggregate.
HRM is employee management with an emphasis on employees as assets of the business.
In this context, employees are sometimes referred to as human capital. As with other business
assets, the goal is to make effective use of employees, reducing risk and maximizing return on
investment (ROI).
The modern term human capital management (HCM) is often used by large and midsize
companies when discussing HR technology.
What are the functions of human resource management?
HR functions can vary depending on industry, businesses size and the types of workers
employed. In most cases, the primary objectives are to acquire and cultivate talent and improve
communication and cooperation among workforce members. Other key human resource
management functions include:
1. Job design and job analysis
2. Employee hiring and selection
3. Employee training & development
4. Compensation and Benefits
5. Employee performance management
6. Managerial relations
7. Labour relations
8. Employee engagement & communication
9. Health and safety regulations
10. Personal support for employees
11. Succession Planning
12. Industrial Relations
1. Job design and job analysis:
One of the foremost functions of HRM is job design and job analysis. Job design
involves the process of describing duties, responsibilities and operations of the job. To
hire the right employees based on rationality and research, it is imperative to identify the
traits of an ideal candidate who would be suitable for the job. This can be accomplished
by describing the skills and character traits of your top-performing employee. Doing so
will help you determine the kind of candidate you want for the job. You will be able to
identify your key minimum requirements in the candidate to qualify for the job.
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Job analysis involves describing the job requirements, such as skills, qualification
and work experience. The vital day-to-day functions need to be identified and described
in detail, as they will decide the future course of action while recruiting.
2. Employee hiring and selection:
Recruitment is one of the primary functions of human resource management.
HRM aims to obtain and retain qualified and efficient employees to achieve the goals and
objectives of the company. All this starts with hiring the right employees out of the list of
applicants and favorable candidates.
An HRM helps to source and identify the ideal candidates for interview and
selection. The candidates are then subjected to a comprehensive screening process to
filter out the most suitable candidates from the pool of applicants. The screened
candidates are then taken through different interview rounds to test and analyze their
skills, knowledge and work experience required for the job position.
Once the primary functions of HRM in recruitment are completed, and the
candidate gets selected after rounds of interviews, they are then provided with the job
offer in the respective job positions. This process is important because these selected
employees will, after all, help the company realize its goals and objectives.
3. Employee training & development:
Imparting proper training and ensuring the right development of the selected
candidates is a crucial function of HR. After all, the success of the organization depends
on how well the employees are trained for the job and what are their growth and
development opportunities within the organization.
The role of HR should be to ensure that the new employees acquire the company-specific
knowledge and skills to perform their task efficiently. It boosts the overall efficiency and
productivity of the workforce, which ultimately results in better business for the
company.
HRM plays a very crucial role in preparing employees for bigger tasks and
responsibilities, which leads to the holistic development of employees at work. And an
organization which provides ample growth and development opportunities to its
employees is considered to be a healthy organization.
4. Compensation and Benefits:
Benefits and compensation form the major crux of the total cost expenditure of an
organization. It is a must to plug the expenses, and at the same time, it is also necessary
to pay the employees well. Therefore, the role of human resource management is to
formulate attractive yet efficient benefits and compensation packages to attract more
employees into the workplace without disturbing the finances of the company.
The primary objective of the benefits and compensation is to establish equitable
and fair remuneration for everyone. Plus, HR can use benefits and compensation as a
leverage to boost employee productivity as well as establish a good public image of the
business.
Therefore, one of the core HR department functions is to lay down clear policies
and guidelines about employee compensation and their available benefits. One of the
functions of HR manager is to ensure the effective implementation of these policies and
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guidelines. This creates equality and builds transparency among the employees and the
management within the organization. After all, the level of employee satisfaction at work
is directly proportional to the compensation and benefits they receive.
5. Employee performance management:
The next activity on HR functions list is effective employee performance
management. Effective performance management ensures that the output of the
employees meets the goals and objective of the organization. Performance management
doesn’t just focus on the performance of the employee. It also focuses on the
performance of the team, the department, and the organization as a whole.
The list of HR functions for performance management includes:
 Developing a proper job description
 Initiating an appropriate selection process to hire the right candidates for the job
positions
 Providing the right training and education needed to enhance the performance of
the employees
 Enabling real-time feedback and coaching employees to boost efficiency among
them
 Conducting performance reviews monthly or quarterly to discuss the positives and
the improvement areas of employees
 Formulating a proper exit interview process to understand why experienced
employees choose to leave the company
 Designing a proper appraisal and compensation system that recognizes and
rewards the workforce for their effort and hard work
6. Managerial relations:
Relationships in employment are normally divided into two parts — managerial
relations and labour relations. While labour relations is mainly about the relationship
between the workforce and the company, managerial relations deals with the relationship
between the various processes in an organization.
Managerial relations determine the amount of work that needs to be done in a
given day and how to mobilize the workforce to accomplish the objective. It is about
giving the appropriate project to the right group of employees to ensure efficient
completion of the project. At the same time, it also entails managing the work schedules
of employees to ensure continued productivity. It is essential that HR handles such
relations effectively to maintain the efficiency and productivity of the company.
7. Labour relations:
Cordial labour relations are essential to maintain harmonious relationships
between employees at the workplace. At the workplace, many employees work together
towards a single objective. However, individually, everyone is different from the other in
characteristics. Hence, it is natural to observe a communication gap between two
employees. If left unattended, such behaviours can spoil labour relations in the company.
Therefore, it is crucial for an HR to provide proper rules, regulations and policies about
labour relations. This way, the employees have a proper framework within which they
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need to operate. Therefore, every employee will be aware of the policies which will
create a cordial and harmonious work environment.
Such a structured and calm work atmosphere also helps with improving performance and
aching higher targets.
8. Employee engagement and communication:
Employee engagement is a crucial part of every organization. Higher levels of
engagement guarantee better productivity and greater employee satisfaction. Efficiently
managing employee engagement activities will help in improving the employee retention
rates too. HRM is the right agent who can manage the employee engagement seamlessly.
Proper communication and engagement will do wonders for the employees as well as the
organization. The more engaged the employees are, more committed and motivated they
will be.
Human resource teams know the ‘humans’ of the organization better than anyone
else. This gives them an upper hand in planning engagement activities. Although such
activities might not fall under the direct functions of HRM, they are indeed required for
the organizational welfare and employer branding.
9. Health and safety regulations:
Every employer should mandatorily follow the health and safety regulations laid
out by the authorities. Our labour laws insist every employer to provide whatever
training, supplies, and essential information to ensure the safety and health of the
employees. Integrating the health and safety regulations with company procedures or
culture is the right way to ensure the safety of the employees. Making these safety
regulations part of the company activities is one of the important functions of HRM.
10. Personal support for employees
HRM assists employees when they run into personal problems which may
interfere with the workflow. Along with discharging administrative responsibilities, HR
departments also help employees in need. Since the pandemic, the need for employee
support and assistance has substantially increased. For example, many employees needed
extra time off and medical assistance during the peak period of the pandemic. For those
who reached out for help, whether it may be in the form of insurance assistance or extra
leaves, companies provided help through HR teams.
11. Succession Planning:
Succession planning is a core function of HRMs. It aims at planning, monitoring,
and managing the growth path of the employees from within the organizations.
What usually happens is that promising and bright employees within the organization
who have excelled in their roles are handpicked by their supervisors and HRs, and their
growth paths are developed.
This, of course, becomes quintessential as those employees who recognize the
fact that the company is investing in their growth and development, and therefore, will
stay loyal in the long run. However, while developing such employees towards a higher
role, companies must keep in mind several aspects, such as improving employee
engagement, assigning challenging tasks and activities.
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An employee leaving the organization can prove to be disruptive and expensive.
Therefore, succession planning is a savior of some sorts, as it helps identify the next
person who is just right to replace the outgoing individual.
12. Industrial Relations:
It’s usually the production lines and manufacturing units where this HR function
is mostly used. You see, Unions exist in factories and manufacturing units. And their
responsibility is towards the goodwill about the workers — in fact, they’re always vocal
and upfront about.
Now, for a company, especially into manufacturing and production, the HRs must
have ongoing Industrial Relations practices. They must also continuously engage with the
Unions in a friendly and positive manner to maintain amicable relations.
The true motive of Industrial Relation touches on a lot of issues within the
company. For instance, Industrial Relations may be in place to meet wage standards,
reduce instances that call for strikes and protests, improve working and safety conditions
for employees, and reduce resource wastage and production time and so on.
Industrial Relations is extremely important because, if handled properly, it can
circumvent protests, violence, walkouts, lawsuits, loss of funds and production time. IR is
a sensitive yet critical function of the HR department; naturally, it requires personnel with
vast experience.
Conclusion:
HRM plays a major role in the smooth functioning of the organization. The
process starts with formulating the right policies for the job requirements and ends with
ensuring a successful business growth of the company. Therefore, HRM works as an
invisible agent that binds together all the aspects of the organization to ensure smooth
progress.
HRM: HR's importance in business
The importance of human resource management
The importance of HRM (Human resource management) is concerned with more than
just selecting the appropriate people for the right tasks. Also, it helps to foster a streamlined
process and build team spirit, in which employees realize their aspirations by developing
themselves and contributing to the achievement of organizational goals.
More businesses across the world are shifting from personnel management to human
resource management (HRM) since it is a more advanced and effective means of managing
people in the workplace. It focuses on improving employee performance while keeping set
objectives in mind.
Here are some functions that describe the importance of HRM:
Maximizing Productivity and Profitability:
It really focuses on both the quality and quantity of employees, as it provides them with
opportunities. Opportunities to grow in their respective domains. As a result of these
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opportunities, employees are highly motivated and meet the established goals. Hence, it allows
the organization to capitalize, create a presence in the market, and enhance profitability.
High Quality of Work:
A positive work environment, employee recognition, and a sense of responsibility
motivate employees to give their best, which makes sure to yield a high quality of work as it
helps to achieve set goals. Also, hiring the right people and making sure to train them well is
important for getting the best quality work. This is crucial, as it helps the employees learn and
quickly adapt to the organization’s working culture.
Helping employees achieve the set goals:
Human resource management is important in achieving the set goals, as companies
provide compensation, benefits, and rewards to recognize their employees. These activities help
motivate employees to give their best. It also improves employee morale and gives employees
new energy to perform better.
Improving Teamwork:
HR managers need to make sure every employee feels important and worthy in every
department. They emphasize the importance of HRM in teamwork and team spirit in the
workplace. So, that it will make a great contributions to get the desired results.
Reducing the gap between demand and supply of Human resources:
The role of HR management in an organization extends beyond personnel management.
So, to include determining the sufficiency of the pool of available human resources. HR
manager organize hiring and selection campaigns to fill any employment gaps that may exist
within the company. Similar to laying off ineffective employees, human resource management is
responsible for this.
Building a corporate image:
For businesses, sustainability involves preserving their storied, ideal reputation in the
marketplace. Everyone wants to be associated with a business that is well-known for its ethical
behavior. Also, this offers commitment to the community and its employees.
Contrarily, businesses that treat their employees more like resources than as people are in
danger of failing completely.
Conclusion:
In conclusion, human resources are critical for organizations of all sizes. So, they not
only keep the best interests of the firm in mind but they also provide a suitable atmosphere for
people to advance in their careers. On the other hand, HR professionals face a variety
of unexpected challenges at work. Hence, with the importance of HRM they will persevere in
order to ensure the well-being and happiness of their workers.
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HRM & Ethical concerns
HRM - Ethical Issues
Human resources managers strive to hire candidates who fit in with an organization's
culture. They must also keep an eye on diversity and equal opportunity as well as both traditional
and legal hiring practices.
In short, an organization's culture can be at odds with what's the best thing to do for HR
managers. As conflict arises, the HR manager must be adept at resolving conflicts between the
demands of company culture and those of ethical behavior.
Major Issues in Ethical Management
Some of the major issues an organization deals with is handling ethical challenges in
workforce diversity. The following are some of the major ethical challenges an organization
faces in ethical management −
Harming Some While Benefitting Others
HR managers do much of the screening while the hiring process is still on. By its very
nature, screening leaves some people out and permits others to move forward. In short, the ones
left out will be affected by not getting the job, no matter how much they need it.
HR managers can neglect the emotionalism of such situations by adhering strictly to the
skill sets and other needs of the position, but there will always be a gray area where HR
managers may scale how much each applicant wants and needs the job.
Equal Opportunity
The HR managers must regularly monitor the company's hiring practices to make sure
there is no discrimination in the hiring process based on ethnicity, sexual orientation, race,
religion and disability. However, simply abiding with Equal Employment Opportunity
Commission (EEOC) guidelines does not guarantee ethical behavior.
For example, if an HR manager recommends a candidate in order to fill a quota, that
decision is unethical, because it will remove other applicants that may be more qualified.
Privacy
Privacy is always a sensitive matter for an HR manager. Though a company culture may
be friendly and open and motivates employees to freely discuss personal details and lifestyles,
the HR manager has an ethical obligation to keep such matters private. This specifically comes
into play when the competing company calls for a reference on an employee. To remain ethical,
HR managers must abide with the job-related details and leave out knowledge of an employee's
personal life.
Compensation and Skills
HR managers can suggest compensation. While these recommendations may be based on
a salary range for each position, ethical dilemmas arise when it comes to compensating
employees differently for the same skills.
For example, a highly sought-after executive may be able to negotiate a higher salary
than someone who has been with the company for several years. This can become an ethical
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problem when the lower-paid employee learns of the discrepancy and questions whether it is
based on characteristics such as gender and race.
Human resources departments must handle a host of ethical and legal issues from the
regulations of the EEOC to the principles and practices of organizations such as the Human
Resource Management Institute.
Labor Costs
HR must cope with conflicting needs to keep labor costs as low as possible and to invite
fair wages. Ethics come into action when HR must select between outsourcing labor to countries
with lower wages and harsh living conditions and paying competitive wages.
While there is nothing illegal about outsourcing labor, this issue has the potential to build
a public relations problem if consumers object to using underpaid workers to save money.
Opportunity for New Skills
If the HR department selects who gets training, it can run into ethical issues. As training
is a chance for development and broadened opportunities, employees who are left out of training
may debate that they are not being given equal opportunities in the workplace.
Fair Hiring and Justified Termination
Hiring and termination decisions must be made without regard to ethnicity, race, gender,
sexual preference or religious beliefs. HR must take precautions to eliminate any bias from the
hiring and firing process by making sure such actions adhere to strict business criteria.
Fair Working Conditions
Companies are basically expected to provide fair working conditions for their employees
in the business environment, but being answerable for employee treatment typically means
higher labor costs and resource utilization.
Fair pay and benefits for work are more obvious factors of a fair workplace. Another
important factor is provision of a non-discriminatory work environment, which again may have
costs engaged for diversity management and training.
By now it’s pretty clear that while working in an organization, we come across people
with different backgrounds, cultural beliefs and we need to respect their beliefs. In case an
employee feels left out due to some problem, it may not work in the favor of the organization.
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