Functions of Human Resource Management

HR managers are performing a variety of functions. The functional areas of HR managers are changing as time goes on. Functions of Human Resource Management (HRM) is advisory in nature.

In management terminology, it is a staff function. The personnel manager advises the operating departments on matters relating to personnel. He does not issue orders to them but gives them advice.

The main Human Resource Management (HRM) functions include:

  1. Human resource planning.
  2. Job Analysis.
  3. Recruitment.
  4. De-recruitment.
  5. Selection.
  6. Placement.
  7. Orientation.
  8. Training.
  9. Job Evaluation.
  10. Performance Appraisal.
  11. Compensation.
  12. Discipline.
  13. Collective Bargaining.
  14. Negotiation.
  15. E-HRM.
  16. Green HRM (GHRM).

Functions of Human Resource Management (HRM)

1. Human Resource Planning

Human resource planning is an important activity that involves estimating the size and makeup of the future workforce.

It is a process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently complete assigned tasks.

Planning of human resource is the lifeblood of the firm.

Without the right people in the right place at the right time, the firm could go out of business. Through planning organizations can avoid sudden talent shortages and surpluses.

2. Job Analysis

Job analysis is the process of determining the tasks that make up the job and the knowledge, skills, and abilities an employee needs to successfully accomplish the job.

From job analysis, job description and job specification can be prepared. A job description is a written statement of what the jobholder does, how it is done and why it is done.

Job specifications state the qualifications necessary for a job.

3. Recruitment

Recruitment is the process of finding and attracting qualified or suitable applicants to fill vacancies. Recruiting is important because the best-qualified applicants must be found to fill vacancies.

The methods and procedures used to’acquire an understanding of jobs are called job analysis. This is discussed in the next. There are mainly two sources of recruitment: internal and external.

Promotion from within an organization is called internal source and recruiting new people from outside the organization is known as an external source.

4. De-recruitment

De-recruitment, on the other hand, is a process to reduce the workforce to make a balance between demand and supply of employee.

If HR planning shows a surplus of employees, managers may want to reduce the workforce through de-recruitment, which is not a pleasant task for any manager.

Derecruitment options may include firing, layoffs, attrition, transfer, early retirement, and job sharing.

5. Selection

Once the recruiting effort has developed a pool of candidates, the next step in the HRM process is to determine who is the best qualified for the job. Selection is a process of hiring suitable people for the job.

It is the process of screening job applicants to ensure that the most appropriate candidates are hired. The right man for the right job is the main goal of selection. Selection device must be valid and reliable.

Managers can use a number of selection devices to reduce errors. The best-known selection devices are application forms, written tests, interviewing, medical test, references or background investigations, and the final decision of hiring.

6. Placement

Placement is the assignment or reassignment of duties to an employee. It may take different forms such as promotion, transfer, demotion, and termination.

7. Orientation

Orientation is a process of getting new employees acquainted with the organization, its culture, rules and regulation, objectives and supervisors and other employees. It is the act of introducing new employees to the organization and their work units.

Many organizations have formal orientation programs which might include a tour of the work facilities, a PowerPoint presentation describing the history of the organization. It is important because it helps the new employee to adapt to new situations.

8. Training

Training is a continuous process of helping employees to perform at a high level. It is a process of acquiring new skills to do the job properly.

Training changes and modifies employee attitudes and behaviors that will improve his ability to perform on the job. To be effective, a training program must accomplish a number of objectives.

  1. First, it must be based on both organizational and individual needs.
  2. Second, the objectives of training should spell out what problems will be solved.
  3. Third, all training should be based on sound theories of learning.
  4. Finally, a training program must be evaluated to determine whether it is working or not.

9. Job Evaluation

Job evaluation is a process of measuring and determining the value of each job in relation to all jobs within the organization. Jobs are ranked in order to arrive at each job’s appropriate worth.

It is the basis of designing a well- balanced compensation program.

The widely used methods of job evaluation are the ranking method, classification method, point rating method, and factor comparison method.

10. Performance Appraisal

Performance appraisal is a process in an organization whereby each employee is evaluated to determine how he or she is performing. An employee may be appraised against absolute standards or relative standards.

The appraisal process consists of six steps;

  1. establish performance standards,
  2. communicate performance expectations to employees,
  3. measure actual performance,
  4. compare actual performance with standards,
  5. discuss the appraisal results with the employee, if necessary, and
  6. initiate corrective action.

Managers can choose different performance appraisal methods such as written essays, critical incidents, graphic rating scales, behaviorally anchored rating scales, MBO, and 360-degree feedback.

11. Compensation

Compensation is the reward or price for labor.

The goal of compensation administration is to design the lowest-cost pay structure that will attract, motivate and retain competent employees, and that also will be perceived as fair by these employees.

12. Discipline

Discipline refers to a condition in the organization when employees conduct themselves in accordance with the organization’s rules and standards of acceptable behavior.

For the most part, employees discipline themselves.

But not all employees will accept the responsibility of self-discipline. Some are problem employees. These employees require some degree of extrinsic disciplinary action.

This extrinsic is labeled punishment. The most frequent discipline problems can be related to attendance, on-the-job behavior, dishonesty, and outside criminal activities.

Disciplinary actions available to the manager include oral warning, written warning, suspension, demotion, pay cut, and dismissal.

13. Collective Bargaining

Trade or labor union is an organization of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining. It assists workers in dealing with the management of an organization.

The goals of unions include;

  1. Influencing the wage and bargaining other terms and conditions of employment;
  2. Establishing a security system for members;
  3. Influencing the administration of rules;
  4. Obtaining political power in the state and over the economy, and
  5. Promoting and fostering what is called a grievance procedure or a specific process for the resolving of differences between workers and management.

14. Negotiation

Collective bargaining is the negotiation, administration, and interpretation of a written agreement between two parties; at least one of which represents a group that is acting collectively, that covers a specific period of time.

15. E-HRM

E-HRM has different names, for example, digital HRM and web-based HRM on worldwide. The processing and transmission of digitized HR information are called electronic human resource management (e-HRM).

E-HRM is the application of IT for HR practices which enables easy interactions within the employee and employers. It stores information regarding payroll, employee personal data, performance management, training, recruitment, and strategic orientation.

E-HRM has been defined as “a way of implementing HR strategies, policies and practices in organizations through conscious and directed support of and/or with the full use of web-technology- based channels”.

16. Green HRM (GHRM)

Green HRM (GHRM) is an emerging topic in the current scenario. The Green movement across the world gave birth to Green HRM.

GHRM refers to making efforts to improve energy efficiency or reduce the pollution produced by our home, business and general living habits (Rajasshrie and Sivathannu).

The main purpose of going green is to reduce the potential negative impact that energy consumption and pollution can have on the environment.