7 Important Functions of Human Resource Management

Last updated on April 6th, 2024 at 02:06 am

In this article, we will discuss the Functions of Human Resource Management. HRM is a broad field, consisting of several functions such as recruitment, training, conflict management and so on. 

In These modern times, where the organizations and the society are emphasizing on the importance of Human resource management, it is important that we are also aware about the Functions of Human Resource Management. 

HRM plays several important roles in an organization. It helps the organization to meet its needs of Human resources in such a way that the organization can stay at the top of their market. Increasing competent staff, laying off unneeded workforce, training old employees to keep them updated, it’s all done by the HR department to help the organization. 

Functions of Human Resource Management

When we talk about the Functions of Human Resource Management, they depend upon the current need of the organization. If the organization is newly established, the work could be more policy related, if the organization needs more workers, the Functions of Human Resource Management could be more hiring and Training and development related and so on.

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Let us see what are the Functions of Human Resource Management in detail,

Employee and labor relations

When we talk about Functions of Human Resource Management, Employee and labor relations are to be expected as one of the most important Functions of Human Resource Management.

The HR department is the one responsible for handling and managing the workforce. HR has to make sure that every message regarding the organizational issue is received by the employees. HR has to make sure that the employees are aware about what the organizational values are, what the vision and mission is, and what they have to work towards. Basically, the HR department has to make sure to communicate all the basics about the organization to the Employee/workforce. 

Another of the Functions of Human Resource Management in Employee and labor relations is that they have to manage the organization’s relation with the union. Labor union is a group of employees that is formed so that employees can keep their complaints and demands to the organization in a group, so it will be more effective. So, the HR team has to listen to the union’s demands and complaints and communicate it to the top management. HR acts as the middleman between the union and the organization. Usually, the HR have to negotiate about the salary, wages, grievance, services, etc with the union.

Staffing

Another one of the Functions of Human Resource Management is Staffing. This process is hiring of the workforce according to the needs of the organization. The main factors under staffing are providing job description, job analysis, recruitment, select and training and development.

In job analysis, all the data about the job is analyzed, which means, the positions that have to be filled, the needs about that position are studied. The skills required, the nature of the job, knowledge needed, if experience is required or not, all of this is studied. 

Next in this Staffing process comes Job description. It’s the next phase after the job analysis. All the data that has been collected during the Job analysis is used here. The Job Description describes the job requirement for the candidates, so they know what the job is, and what skills are required for the job. 

The HR department uses the HRP (Human Resource Planning) to forecast the demand and supply for HR, which department would require it, what job skills would be required, how much workforce would be needed. This makes it easy for the HR, because they already know how many candidates they have to select. 

Then next comes in the Selection process. In this process, the most qualified applications received are selected for the next interview round. And again in the proceeding round, based on the skills and qualification, applicants are hired for the job till the required number of employees are acquired. 

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Human Resource Planning

One of the forecasting techniques in the Functions of Human Resource Management is HRP. The main reason for Human Resource Planning is to keep the organizations competitive edge. And the aim of HRP is to forecast the demand and supply of HR. 

Human Resource Planning is a process in which the HR demands are predicted. Which type of employees will be required in future? What position would they acquire? How many candidates are required? What should be their skills and domain knowledge? These are all the questions that are considered when doing Human Resource Planning.

The aim is to create an innovative and qualified team. The HR team has to make sure they consider all the requirements of all departments and fill those vacant positions with qualified candidates.

Equal Employment Opportunities

Next one of the Functions of Human Resource Management is Equal Employment Opportunities. 

The HR department has to make sure that they comply with the law of Equal Employment Opportunities. An Equal Employment Opportunities is an internal policy of the organization that makes sure that no employee in the organization suffers from any form of discrimination. 

The Equal Employment Opportunities laws state that the employees should be protected from any form of discrimination that includes their sex, race, color, relationship  status, disability, age, caste, religion or their country of origin. 

The Equal Employment Opportunities is done so that no one should be left out of getting an opportunity at work. This is to make sure everyone is treated fairly and gets the opportunity they deserve. 

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Talent Management and Development

Another in the list of the Functions of Human Resource Management is managing talent and developing employee skills by various types of training. 

HR have to make sure that they provide training and development programs for the new and inexperienced employees. The reason for this programme is so that the employee get familiar with the work they have to do. Training and Development programmes are also arranged in case new technology is assumed to be used in the organization, this way, the organization can save the previous employees, update their skills and save the cost of hiring new employees.

HR succession planning is a process in which the HR observes the candidate’s potential. In this, they observe the employees’ work and if they see potential, they encourage those employees with more responsibility to check their potential and skill levels. This is majorly done so that the organization can identify and place extraordinary talents at the right place in the organization.

Compensation 

The next is Compensation management, it is one that is most widely known in this list of Functions of Human Resource Management. In organizations, compensation is done in the form of wages, salary, incentives and benefits. 

Compensation management is the process of determining how much compensation has to be given for a certain job and in what form it is to be given i.e. wages, sales, or bonus. Usually, bonus or incentives are given for occasions or when someone outperforms their job, bonus is token of gratitude from the organization for the work done. 

Salary and wages are the main attraction point for any organization as an employer. The better the compensation, the more talent is attracted. This is why organizations try to have competitive compensation management techniques to attract better talent. 

Benefits are another form of compensation for the employees. Benefits aren’t direct pays to the employee like salary, these are in indirect form. It includes benefits like retirement plans, provident funds, health care, etc. Benefits are legally required to be offered to the employees. The HR have to make sure that every employee in the organization receives their compensation. This is why Compensation is considered one the most important functions in the Functions of Human Resource Management.

Risk management

The last in the list of Functions of Human Resource Management is Risk management. This function is regarding safety at the workplace. 

The HR department is assigned with tasks of making sure the workplace is safe for the workers to work. This is a legal requirement by the government as well to make sure no one gets hurt.

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FAQs

What are the main function of Human Resource Management?

The main Functions of Human Resource Management are Compensation management, conflict management, risk management training and development, staffing and employee relation management.

What is the cycle of HR?

The HR cycle is a repetitive cycle with goes like this :

– Workforce planning – Recruitment and Selection – Training and development – performance appraisal – lay off –

Final Words

Human Resource is one of the most under-appreciated yet important departments in most of the organizations. The functions they perform are not only just salary related and in favor of the employee, but they also have to make sure the organization follows the rules and regulations set by the government. They have to make sure everyone gets fair treatment and give chances to everyone based on their knowledge and skills. 

I hope this article about the Functions of Human Resource Management was helpful to you. If you have any queries or suggestions, let me know in the comment box.

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