Human Resource Management (HRM) is a systematic approach that works to fill the gap between an organization and its employees. Functions of HRM have been developed by the Minister of Human Resource Development to simplify the task of managing the human capital of the organization. These works are broadly classified into two categories:
# Key Functions of Human Resource Management
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Managerial Functions
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Operative Functions
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Managerial Functions:-
Human resource management(HRM) is required at all levels of an organization. Top management is responsible for strategizing and directing the successful application of such schemes. In this process, they perform the following functions:
1. Planning
Planning is the first and basic function of management and everything depends on the plan; before thinking of anything else, management needs to be aware of the vacancies or workforce needs of the organization. After that, they are very much required to formulate a strategy to meet future requirements.
2. Organizing
The purpose of human resources is to bring together the available human resources and physical resources with the organization, the manager sets a framework for operative tasks. Along with organizing everything related to HR and the organization, Human resource managers should be well aware that organizing is a process of creating and organizing everything in a proper way to avoid any confusion and conflict.
3. Directing
Directing is a knowledge, discipline, and formal way of communicating to others what you expect from them or an organization. Unless a human resource manager has the ability to direct, a human resource manager cannot be said to be full-fledged. When the HR manager has the right guidance capabilities, the manager instructs the team to act accordingly and provides appropriate guidance to meet the organizational objective.
4. Controlling
Human resource managers must have full knowledge of handling all matters related to human resources, as they must be fully capable of thinking and deciding what should be done and what should not be done They also need to know how employees should be treated and how not. Simultaneously he sets the standard for management performance and subsequently analyzes the results based on such criteria through performance evaluation and job analysis.
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Operative Functions:-
Operative functions are those that are performed at the departmental level or middle level and are primarily concerned about the execution of plans and strategies created at the managerial level. Below we have mentioned about various types of operative functions:
1. Procurement
Acquisition of human resources is the primary function of a manager. This includes all requirements of personnel, recruitment, and selection of suitable candidates, an appointment to the right place of the workforce, and estimation of orientation.
2. Training & Development
Providing proper training to managers to develop the necessary skills and talents within the employees and ensuring the correct development of the selected candidates is an important function of HR. Overall, the success of an organization depends on how well employees have trained for the job and their growth opportunities within the organization. The role of HR is to ensure that new employees acquire company-specific knowledge and skills so that they can perform their tasks efficiently. This increases the overall efficiency and productivity of the workforce, resulting in better business as well as greater profitability for the company.
3. Providing Compensation and Benefits
Benefits and compensation are a major part of the total cost expenditure of any organization. It is necessary to plug expenses, and at the same time, it is very necessary to pay employees well. Therefore, the role of human resource management is to create packages such as bonuses, benefits, and compensation for them to attract more employees in the workplace without disturbing the company’s finances. By which he will be able to give more good production to the company by doing his work with more interest.
4. Integration
Integration means introducing new employees to the organization and their work or process. This includes motivating employees through various financial and non-financial incentives, providing job satisfaction, dealing with employee complaints through formal grievance procedures, collective bargaining, labor participation in management, conflict resolution, development of sound human relations, employee consultation, improving quality of work-life, etc.
5. Maintenance
It is the most important function, it is related to saving and promoting the physical and mental health of the employees, which aims to provide many types of fringe benefits like PF, life insurance, accident insurance, health insurance, pension to the employees. It is necessary to provide gratuity with various benefits and facilities such as allowances and other health and safety measures.
# What is HRM? Objectives, Functions & Difference Between HRM and PM
Human Resource Management (HRM) sees all people as organizational assets and internal customers, besides working for employees job satisfaction, employee efficiency, and greater effectiveness. HRM aims to focus on internal sources of competitive advantage. Here we will discuss HRM objectives, importance, scope, and Difference between HRM & PM.
What is HRM?
Human resource management (HRM) is defined as the process of managing employees in a company and some elements include hiring, training, compensation, and motivating employees. HRM is a formal system designed to manage employees and other stakeholders within a company. The main objective of HRM is the best way to increase the productivity of an organization through its employees. Despite the ever-increasing revenge in the corporate world, no change in the role of HRM is possible.
Objectives of HRM
8 Objectives of Human Resource Management (HRM)
- The objective of HRM is to help the organization achieve its goal by providing well-trained and motivated employees.
- To employ the skills and knowledge of the employee efficiently and effectively.
- Increase job satisfaction and self-realization by encouraging and helping every employee to release their potential.
- To maximize the development of members of the organization by providing training and development opportunities.
- Development and maintenance of the quality of work line
- Maintain high morale and good human relations with the organization.
- Helping to maintain ethical policies and behavior inside and outside the organization.
How does HRM work?
Human resource management is performed by dedicated HR professionals, who are responsible for the day-to-day execution of HR-related tasks. Most human resources will include a full department within each organization. Human resources departments of different organizations may differ in the size, structure and nature of their individual positions. For small organizations, it is not uncommon for some HR generalists to have a wide range of HR functions. Larger organizations may have more specialized roles, such as individual employees dedicated to tasks such as recruitment, immigration and visas, talent management, benefits, compensation, and more. Although these HR positions are differentiated and specialized, job functions may still overlap with each other.
Scope Of HRM
The role of an HR professional comprises developing and managing their company’s culture. HRM is a mighty disciplinary subject including-
- Personnel aspect – Concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity, etc.
- Welfare aspect – It deals with working conditions and amenities such as canteens, rest and lunchrooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
- Industrial relations aspect – This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.
Importance of HRM
Human resource management is a very important function in every organization because, without human resource management, companies will not be able to recruit and retain their employees effectively, HRM is required in an organization and workplace culture. These are some more importance of HRM:-
- HRM regularly helps the company achieve its objectives by developing a positive attitude among employees.
- HRM is important because it aims to attract the right type of people during recruitment.
- HRM motivates employees through its performance evaluation process.
- They help in providing excellent training for the employees.
- They follow a certain set of protocols to select the right candidate for a certain task.
- It is also important because they develop an awareness of the workplace and provide details about it.
- They provide the right job according to the expertise of the employee.
- HRM plans succession that leads the organization to success in the future.
Who is Responsible for HRM?
Managers are mostly responsible for human resource management in the organization. It is the top-level manager for the administration of all HR activities. Directors oversee functions such as compensation, benefits, staffing, affirmative action, employee relations, health and safety, and training/development, etc. They are well looked after by professional HR staff and are very helpful in enhancing the system.
Benefits of HRM
Here are the Benefits of HRM:
- It helps to build teams in an organization.
- It helps in building organizational culture and values
- It gives quality Employees Hiring and Training
- HRM takes care of the performance management system
- HRM helps manage conflict between employer and employee
- It affects the overall productivity and profitability of a business organization
- It handles disputes and resolves all questions of the workforce from time to time.
Difference Between Human Resource Management and Personnel Management
| BASIS FOR COMPARISON | HUMAN RESOURCE MANAGEMENT | PERSONNEL MANAGEMENT |
| Meaning | The branch of management that focuses on the most effective use of a unit’s manpower to achieve organizational goals is known as human resource management. | The aspect of management that relates to the workforce and their relationship with the unit is known as personnel management |
| Approach | Modern | Traditional |
| Treatment of manpower | Asset | Machines or Tools |
| Type of function | Strategic function | Routine function |
| Basis of Pay | Performance Evaluation | Job Evaluation |
| Management Role | Transformational | Transactional |
| Communication | Direct | Indirect |
| Initiatives | Integrated | Piecemeal |
| Decision Making | Fast | Slow |
| Management Actions | Business needs | Procedure |
| Focus | The manpower of an organization is considered valuable, utilized, and protected. | Mainly worldly activities such as employee recruitment, remuneration, and training. |
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