Functions of Human Resource Management | iACT Global


Human Resource Management is an integral part of any organization / company. It is a management function which is concerned with hiring, maintaining a workforce in an organization and motivating the employees. Human resource management is commonly known as HRM and it deals with issues related to employees which included hiring, training, compensation, development, motivation, and administration. Human resource management is a middle force which works hard to make a win-win situation both for employee and employer. It makes sure there is employee satisfaction and at the same time ensures the maximum contribution is given by employees towards the organizational achievement.

Human resource management can be classified into 3 categories :

  1. Operative functions
  2. Managerial functions
  3. Advisory functions

Operative Functions:

Recruitment and Selection – It’s a procedure of selecting a right candidate for the right profile. This procedure helps in bringing together the pool of prospective candidates and helps the organization and management to choose the best suitable candidate.

Job Analysis & Design – Is the nature of a job and requirements like qualification, work experience, skills etc. to perform that particular job. Job design aims at organizing and outlining the tasks, responsibilities, duties into a single unit of work for the achievement of certain objectives.

Performance Appraisal – As the name suggests it mainly focuses on the performance of the employees and this function is conducted to ensure that the performance of the employee is at an acceptable level.

Training and Development – Training and development helps the employees to acquire knowledge and skills to perform their tasks effectively. These programs are performed both for existing and new employees. Apart from this, it helps employees to get trained and prepared for higher level responsibilities.

Wage and Salary Administration – Human resource management decides what is to be paid for the different type of jobs. Management also decides employees’ compensation which includes – salary administration, wage administration, bonuses, incentives etc.

Employee Welfare – This function refers to the well being of employees which include various facilities, benefits, and services that are given to employees.

Maintenance – Employee turnover is not considered good for the organization. Human resource management always tries to retain the best performing employees with the organization.

Personnel Record – This function helps to maintain and retrieve records of an employee such as – application forms, working hours, employment history, earnings, attendance( absents and presents), employee turnover and other data related to employees.

Managerial Functions :

Human Resource Planning – This function of HRM works on research and it is considered as an important part of this function.

Directing – Employees are motivated and directed at different levels so that they can contribute maximum to the organization through motivation and command.

Controlling and Organizing – Actual performance of employees is checked and verified. If the performances are not up to the mark, control measures are taken to bring it under control. The tasks are allocated among its members so that they can collectively contribute to the organization.

Advisory Functions :

Advised to Top Management & Departmental Heads:
Advice is given to the top management by Personnel manager in formulation and evaluation of personnel programs, policies, and procedures. Also to various department heads on a matter such as recruitment, planning, manpower, training, performance, appraisals etc.

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