Everything You Need To Know About HRM Functions

HRM functions (Human Resource Management) are all about people at work and their relationships with each other. It may be defined as the set of programmes, functions and activities designed to maximize both personal and organisation goals.

This role involves the establishment of various policies to deal with the employees and retain them with the company.

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HRM functions can be divided into four categories:

1) Managerial Functions:

The primary managerial functions consist of Planning, Organizing, Directing, and Controlling.

A) Planning: deals with the future course of action to achieve the desired results. Planning of manpower today always prevents the crisis tomorrow. HR manager is expected to have a plan regarding recruitment, selection and training of the employees of the organisation.

B) Organizing: This function is primarily concerned with grouping to personal activities, assignment of different activities to different groups and delegation of authority.

C) Directing: Directing involves supervising and guiding the personnel to complete the execution of plans. Direction consists of motivation and leadership. The HR manager must be a good motivator. He must also be a good leader to execute the leader style suitable to the situation.

D) Controlling: Controlling involves measuring employee’s performance. Controlling also makes individuals aware of their performance through review reports, records and other audit parameters. This step is required to ensure that the activities carried out are in line with the stated plans.

2) Operative functions:

The operative functions of HRM relate to employment, employee development, compensation and relations.

Employment: It is all about employing the people possessing necessary skill, knowledge and aptitude to achieve the organisational objectives. It contains functions such as job analysis, manpower planning, recruitment, selection, placement, induction and internal transfers.

A) Job Analysis is a method of collecting information relating to operations and responsibilities of a particular job.

B) Manpower planning is a method of determining and assuring that organisation will have a right number of qualified people to perform jobs that would meet the needs of the company.

C) Recruitment: It is a process of searching for prospective employees and stimulating them to apply for roles in an organisation.

D) Selection: It is the process of checking the qualifications, experience, skill, knowledge of an applicant and decide whether the candidate is suitable for the job.

E) Placement: It is the process of assigning the candidates with the most relevant jobs. It is the process of matching the employee specifications with the job requirements.

F) Induction and Orientation: Induction and orientation are the techniques that are introduced to new employees regarding work environment, practices, policies, purposes and people of the company.

3) HRM (Human Resource Development):

It is the process of improving moulding, changing and developing the skills, knowledge, creative ability, aptitude, attitude and commitment based on present and future job and organisational requirements. This function also includes:

A) Performance Appraisal: It is the evaluation based on several performance parameters that vary in every job profile. It also identifies the potential for development.

B) Training: Training is the systematic approach by which employees learn skills, knowledge, abilities and their attitudes to excel in their jobs.

C) Career Planning: It is a continuous process of learning and development.

4) Compensation:

It is the process of providing fair remuneration to the employees. It includes job evaluation, salary administration, incentives, bonus and social security measures.

A) Job Evaluation: It is the process of determining the value of the job when compared to other jobs in the company. The primary objective of work evaluation is to decide the pay structure of the employee.

B) Salary Administration: It is the process of reviewing salaries across the organisation.

C) Incentives: The incentives may include pay raise, bonus, profit sharing and stock option within the company.

D) Social Security Measures: These measures include Workman’s compensation for those workers who are involved in accidents, Maternity benefits, dependent benefits and retirement benefits like provident fund and Gratuity.

5) Human Relations:

It is the process of resolving conflicts between different employees or between employees and management and motivates them to work together productively and cooperatively.

These are some of the HRM functions that are followed in any organisation. HRM functions and policies can be revised every six months depending on the requirement of the organisation.

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