Human Resource Management is a management function concerned with hiring, motivating, and maintaining workforce in an organization. Human resource management deals with issues related to employees such as hiring, training, development, compensation, motivation, communication, and administration. Human resource management ensures satisfaction of employees and maximum contribution of employees to the achievement of organizational objectives.
According to Armstrong (1997), Human Resource Management can be defined as “a strategic approach to acquiring, developing, managing, motivating and gaining the commitment of the organization’s key resource – the people who work in and for it.”
Human Resource Management functions can be classified in following three categories.
- Managerial Functions
- Operative Functions
- Advisory Functions
Managerial Functions:
The Managerial Functions of Human Resource Management are as follows:
1. Human Resource Planning
In this function of HRM, the number and type of employees needed to accomplish organizational goals is determined. Research is an important part of this function, information is collected and analyzed to identify current and future human resource needs and to forecast changing values, attitude, and behavior of employees and their impact on organization.
2. Organizing
In organization tasks are allocated among its members, relationships are identified, and activities are integrated towards a common objective. Relationships are established among the employees so that they can collectively contribute to the attainment of organization goal.
3. Directing
Activating employees at different level and making them contribute maximum to the organization is possible through proper direction and motivation. Taping the maximum potentialities of the employees is possible through motivation and command.
4.Controlling
After planning, organizing, and directing, the actual performance of employees is checked, verified, and compared with the plans. If the actual performance is found deviated from the plan, control measures are required to be taken.
Operative Functions:
The Operative Functions of Human Resource Management are as follows:
Recruitment and Selection
Recruitment of candidates is the function preceding the selection, which brings the pool of prospective candidates for the organization so that the management can select the right candidate from this pool.
Job Analysis and Design
Job analysis is the process of describing the nature of a job and specifying the human requirements like qualification, skills, and work experience to perform that job. Job design aims at outlining and organising tasks, duties, and responsibilities into a single unit of work for the achievement of certain objectives.
Performance Appraisal
Human resource professionals are required to perform this function to ensure that the performance of employee is at acceptable level.
Training and Development
This function of human resource management helps the employees to acquire skills and knowledge to perform their jobs effectively. Training an development programs are organised for both new and existing employees. Employees are prepared for higher level responsibilities through training and development.
Wage and Salary Administration
Human resource management determines what is to be paid for different type of jobs. Human resource management decides employee’s compensation which includes – wage administration, salary administration, incentives, bonuses, fringe benefits, and etc.,
Employee Welfare
This function refers to various services, benefits, and facilities that are provided to employees for their well-being.
Maintenance
Human resource is considered as asset for the organisation. Employee turnover is not considered good for the organisation. Human resource management always tries to keep their best performing employees with the organisation.
Labour Relations
This function refers to the interaction of human resource management with employees who are represented by a trade union. Employees comes together and forms an union to obtain more voice in decisions affecting wage, benefits, working condition, etc.
Personnel Research
Personnel researches are done by human resource management to gather employees’ opinions on wages and salaries, promotions, working conditions, welfare activities, leadership, etc. Such researches help in understanding employee’s satisfaction, employee’s turnover, employee termination, etc.
Personnel Record
This function involves recording, maintaining, and retrieving employee related information like – application forms, employment history, working hours, earnings, employee absents and presents, employee turnover and other data related to employees.
Advisory Functions:
The Advisory Functions of Human Resource Management are as follows:
Human Resource Management is expert in managing human resources and so can give advice on matters related to human resources of the organization. Human Resource Management can offer advice to:
- To Top Management:
Personnel manager advises the top management in formulation and evaluation of personnel programs, policies, and procedures.
- To Departmental Heads:
Personnel manager advises the heads of various departments on matters such as manpower planning, job analysis, job design, recruitment, selection, placement, training, performance appraisal, etc.
