Functions of HRM

HRM Functions, Objectives and Features of Human Resource Management

Table of Content:-

Functions of human resource management 

Human resource management is also known as Personnel Management. HRM is an organized activity or practice through which an organisation’s resources are managed and exploited.

One of the basic objectives of HRM is to maintain productivity by providing the organisation with a sufficient number of skilled and efficient workers. 

The Functions & Objectives of Human Resource Management – HRM are as follows:

Functions of human resource management – HRM can be classified into the following two categories:

1). Managerial Functions

2). Operational Functions

The functions of HRM - Human Resource Management

The Functions of HRM are as follows:

The functions of HRM – Human Resource Management can be classified into the following two categories.

  • Managerial Functions, and
  • Operational Functions

1. Managerial Functions

The managerial function of hrm: Manager’s job is to manage people. All the managers carry out managerial functions of their departments and industry. The basic managerial functions of hrm are given below: 

Five basic managerial functions of human resource management are as follows:

1) Planning: It is concerned with the pre-planning of activities in advance that are to be performed in the future. It is the process of taking any action after thinking about it. Planning is related to the strategy formulation of personnel programs and changes in advance that will help in the accomplishment of organizational goals. HRP, Hiring, Selection, Training, Development, etc. are some of the HRM functions that require planning.

2) Organising: It is the procedure of aligning people and other resources so that they can work collectively to achieve a goal. For this, firms generally need to establish relationships among the employees so that they can mutually contribute to fulfilling the organizational goals.

3) Directing: Directing is concerned with telling employees to perform a specific task and making sure the work done is as per the given directions. The voluntary and effective cooperation of employees for the fulfilment of organizational goals is possible in the right direction. It is the responsibility of human resource management to motivate, develop a communication network, integrate people, maintain discipline and resolve employee grievances quickly and properly.

4) Coordinating: Coordination among the employees is necessary at all levels of management. Attainment of organizational goals is possible only through coordination among groups and their activities. Developing, interpreting, and reviewing policies and programs for employees is the responsibility of human resource management. The last decision is to be taken by the top management and line managers but the personnel department can give their suggestions for improvements.

5) Controlling: Controlling is the process of examining and verifying that everything is as per the set plans and standards. Some of the means through which human resource management functions and be controlled and made effective are auditing training programs, directing morale surveys, analysis of labour turnover, and conducting personal interviews.

2. Operational Functions

Operational functions are particular activities that employees have to perform for each and every department of the organisation. These are the structured functions of the human resource department. It focuses on all the activities of the employees in an organization from HR planning to their exit. 

These functions are as follows:

1) Employment: It deals with acquiring and hiring potential candidates for the attainment of the objectives of an organization. Job analysis, recruitment, manpower planning, induction, selection, placement, etc. are some of the important activities which are involved in the employment function.

2) Human Resource Development: HRD is the procedure of building and transforming skills, creativity, knowledge, attitude, etc., according to the existing and upcoming requirements of the job and organization. It consists of performance evaluation, training, and development, career planning and development, etc.

3) Compensation: Compensation is about motivating employees by providing them with reasonable and satisfactory remuneration so that they can work more effectively. Employee benefits, bonuses, incentives, and social security benefits are the components of a compensation package. Job evaluation and wage and salary administration are the processes of compensation management.

 4) Human Relations: It is the procedure of integrating people through interaction at the workplace. It helps people to work collectively in a team to gain high productivity and job satisfaction in terms of money, mind, and society. It involves dealing with employee grievances timely through a well-developed grievance procedure, disciplinary action, and employee counselling to give them relief from stress and frustration, etc.

Functions of HRM

Objectives of Human Resource Management 

Successful human resource management enables a company to grow, but for the success of human resource management, the team must have a clear objective. Human Resource Management professionals should be aware of how to choose and understand the basic objectives of HRM. 

Human resource – HR objectives are a basic part of an organization’s strategic plan, that directly contribute to an organization’s achievement of its objectives.

The objectives of HRM are as follows:

1) To Support in Achieving the Goals Set by the Organisation: The main aim and function of HRM are to support the employees in achieving the desired organizational goals. If it is not able to do so its existence will come to an end.

2) To Help the Employees Secure their Personal Goals for Individual Growth: HRM not only focuses on the organizational goals but it equally tries to explore and develop the skills of the employees by coaching and developing them so that employees can achieve their personal as well as organizational goals. This not only enhances the efficiency of the employees but also increases the loyalty of the employee toward the organization.

3) To Make Maximum Utilization of Employee’s Potential: The essence of HRM lies in its basic function of effectively matching the skills of the employees with the work assignment in the organization. This helps to fully explore the capabilities of the employees for the benefit of the organization and its stakeholders.

4) To Procure Efficient Employees within the Organisation: HRM focuses on maintaining an effective reward system to motivate the employees to improve their efficiency of the employee.

5) To Enhance Job Satisfaction: Various programs of human resources welfare have been framed and implemented by the HRM to enhance the quality of life. This helps in increasing the job satisfaction of the employees. 

6) To Improve Quality of Work Life: HRM has to make the organization a pleasant place for employees. This is necessary as organizational performance cannot be enhanced without upgrading the quality of work life.

7) To Update the Employees about Managerial Policies: One of the most significant responsibilities of HRM is to update the employees with the internal policies, feedback of customers, and opinion of the management, and also to produce creative concepts from the workforce.

8) To Fulfil Social Responsibility: The HRM function also ensures the fulfilment of the social responsibility of the organization towards the different groups of society, adhering to the moral and legal norms

9) To Maintain Discipline among Employees: HRM also focuses on the maintenance of discipline among the employees in the organization by giving them incentives based on their performance. It tries to create an employee-friendly atmosphere in which the focus is on a healthy working style.

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10) To Increase Organisational Productivity: HRM tries to enhance the overall productivity of the organization by effective utilization of available resources.

11) To Focus on Quality Performance: The critical task of HRM in every organization is the assignment of the right job to the right candidate at the right time. This brings efficiency to the working system of the organization and enhances quality performance.

12) To Develop Harmony in the Work Culture: HRM makes continuous efforts to fill the gap between individual and organizational goals. This results in building a cordial relationship between the organization and the employees for the achievement of the desired objectives of the organization as a whole.

13) To Create a Respectful Environment: HRM must ensure that a respectful environment of dignity, trust, and happiness exists within the organization for everyone. If such an environment is lacking then there are chances of crisis within the organization.

Some more objectives of Human Resource Management – HRM are as follows:

1) Personal Objectives – Being a responsible HR, one needs to know how to retain employees by utilizing them in the best possible way and should also have a good understanding of HRM. HRM should help employees to achieve their personal goals so that they remain satisfied and helpful to the company, this includes helping employees to achieve their personal goals, such as higher salary, job satisfaction, better working conditions, working hours, promotion, motivation, welfare facilities, social security, etc.

2) Societal Objectives – Human Resource Management (HRM) is socially responsible for the benefit and interest of the society, needs, demands, and challenges of the society and legal issues like denial of equal opportunity and equal pay should not be violated and should also ensure that the available resources are used for the benefit of the society.

3) Organizational Objectives – Human Resource Management (HRM) involves accomplishing the goals of the organization effectively and efficiently. It is responsible for assisting the organization with all its objectives.

4) Functional Objectives – To maintain the contribution of the department at the proper level, the organization should meet the needs and try to maintain the contribution of the department at the level commensurate with the needs.

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5) Aim for employees – An essential component of human resource management involves setting objectives for employees. When selecting employee objectives managers must consider whether the business is most important. For example, if sales are important to businesses, increasing employee sales skills is an example of a wise objective. 

“Human Resource Management through Strategic Partnerships”, the progress of improving the process of communicating effectively with the most important HR objectives is employee activism as well as training, and awareness for employees. To enable the skills to have a growing understanding of customer requirements.

6) Strategic objective – Strategic objectives in human resource management are not related to individual employees, but as a whole, strategic human resource objectives common with employees include reducing employee turnover, increasing employee morale, and reducing employee absenteeism. 

To achieve these goals, human resource managers must implement specific measures aimed at accomplishing them. For example, to increase employee morale, a human resources manager may increase employee benefits, increase financial incentives to reduce workload or reduce employee performance.

7) Financial Objectives – Many financial objectives can measure human resource management. Common measures include HR return on investment, HR expense ratio, and HR revenue ratio. HR return from investment is made by the firm divided by profit labour and profit cost. Calculating HR expense ratio by dividing HR expense by all operating expenses. 

The human resources revenue ratio is a calculation of total revenue divided by the number of employees. Each organization will have specific human resources finance to achieve these metrics to allow higher management personnel to acknowledge the actual achievement of these goals.

8) General Objectives – Managers should select HR objectives according to SMART criteria, which say that objectives are specific, measurable, and actions that should be relevant and timely. 

For example, a company not only aims to increase employee performance — a better goal is to increase employee sales by 35% over the next six months. The aim is that SMART norms are easier and more likely to be successful in keeping an eye out.

9) Organizational Objectives: Activities that help in ensuring the efficiency of the organization include training, hiring the right amount of employees for a given job, or maintaining a high employee retention rate.

10) To secure integration: It aims to secure the integration of individuals and groups with the organization. It reconciles individual and group goals with those of the organization. Thus people feel a sense of participatory commitment and loyalty toward the firm.

11) Procurement of Personnel: The first objective of human resource management is to recruit talented people who can create, sell and distribute manufactured products. HRM focuses on appointing people who can deal with all the organisation’s activities.

Features of HRM – Human Resource Management 

1. HRM is employee-oriented:

Human resource management is concerned about both employees and groups in achieving goals.

It is also concerned with the emotional, behavioural & social aspects of the employees. It is a process of getting people and organisations together so that the objectives of both can be fulfilled.

2. HRM is  a comprehensive function:

It is applied to all employees in all types of organisations in the world.

Human resource management includes all categories and levels of employees. It applies to managers, workers, officers, supervisors, and other types of personnel.

3. HRM is a continuous function:

HRM is a continuous and never-ending process. Human resource management cannot be turned on and off like water from a tap; it cannot be practised only for an hour, one day or each week but it has to be performed continuously.

4. HRM is development-oriented:

Every Individual employee’s goal is to have job security, job satisfaction, attractive fringe benefits, a high salary,  challenging work, pride, status, recognition, an opportunity for development etc.

Human resource management is concerned with developing the potential of employees so that they can emanate maximum satisfaction from their work and give their best efforts to the organisation.

5. HRM is  a challenging function:

Managing human resources is a challenging task as people are dynamic in nature and it is very difficult to understand them. Human resource management aims at securing unreserved cooperation from all employees to achieve predetermined goals.

Related Articles:

  • Foundation of organisational behaviour
  • objectives of organisational behaviour
  • Evolution of HRM
  • Roles and responsibilities of a manager
  • Organization of HR Department
  • Responsibilities of an HR manager
  • Models of organisational behaviour