FUNCTIONS OF HRM

2.2 INTRODUCTION
Human Resources management has an important role to play in equipping
organizations to meet the challenges of an expanding and increasingly competitive sector.
Increase in staff numbers, contractual diversification and changes in demographic profile
which compel the HR managers to reconfigure the role and significance of human
resources management. The functions are responsive to current staffing needs, but can be
proactive in reshaping organizational objectives. All the functions of HRM are correlated
with the core objectives of HRM .For example personal objectives is sought to be realized
through functions like remuneration, assessment etc.
2.2 OBJECTIVES
After reading this lesson, you should be able to
 Know the functions of Human Resource Management.
 Ascertain the different types of functions in HRM.
 Define and present detailed explanation on functions of HRM.
2.3 CONTENTS
2.3.1 Functions of Human Resource Management.
2.3.2 Managerial Functions of Human Resource Management.
2.3.3 Operative Functions of Human Resource Management.
2.3.1 Functions of Human Resource Management
Human Resources management has an important role to play in equipping
organizations to meet the challenges of an expanding and increasingly competitive sector.
Increase in staff numbers, contractual diversification and changes in demographic profile
which compel the HR managers to reconfigure the role and significance of human
resources management. The functions are responsive to current staffing needs, but can be
proactive in reshaping organizational objectives. All the functions of HRM are correlated
with the core objectives of HRM. For example personal objectives is sought to be realized
through functions like remuneration, assessment etc.
HR management can be thought of as seven interlinked functions taking place within
organizations. Additionally, external forces—legal, economic, technological, global,
environmental, cultural/geographic, political, and social— significantly affect how HR
functions are designed, managed, and changed.
The functions can be grouped as follows:
1. Strategic HR Management
As a part of maintaining organizational competitiveness, strategic planning for HR
effectiveness can be increased through the use of HR metrics and HR technology. Human
resource planning (HRP) function determine the number and type of employees needed to
accomplish organizational goals. HRP includes creating venture teams with a balanced
skill-mix, recruiting the right people, and voluntary team assignment. This function
analyzes and determines personnel needs in order to create effective innovation teams. The
basic HRP strategy is staffing and employee development.
2. Equal Employment Opportunity
Compliance with equal employment opportunity (EEO) laws and regulations affects all
other HR activities.
3. Staffing
The aim of staffing is to provide a sufficient supply of qualified individuals to fill jobs
in an organization. Job analysis, recruitment and selection are the main functions under
staffing. Workers job design and job analysis laid the foundation for staffing by identifying
what diverse people do in their jobs and how they are affected by them.
Job analysis is the process of describing the nature of a job and specifying the human
requirements such as knowledge, skills, and experience needed to perform the job. The
end result of job analysis is job description. Job description spells out work duties and
activities of employees. Through HR planning, managers anticipate the future supply of
and demand for employees and the nature of workforce issues, including the retention of
employees. So HRP precedes the actual selection of people for organization. These factors
are used when recruiting applicants for job openings.
The selection process is concerned with choosing qualified individuals to fill those
jobs. In the selection function, the most qualified applicants are selected for hiring from
among the applicants based on the extent to which their abilities and skills are matching
with the job.
4. Talent Management and Development
Beginning with the orientation of new employees, talent management and
development includes different types of training. Orientation is the first step towards
helping a new employee to adjust himself to the new job and the employer. It is a method
to acquaint new employees with particular aspects of their new job, including pay and
benefit programmes, working hours and company rules and expectations. Training and
Development programs provide useful means of assuring that the employees are capable of
performing their jobs at acceptable levels and also more than that. All the organizations
provide training for new and in experienced employee. In addition, organization often
provide both on the job and off the job training programmes for those employees whose
jobs are undergoing change.
Likewise, HR development and succession planning of employees and managers is
necessary to prepare for future challenges. Career planning has developed as result of the
desire of many employees to grow in their jobs and to advance in their career. Career
planning activities include assessing an individual employee’s potential for growth and
advancement in the organization. Performance appraisal includes encouraging risk taking,
demanding innovation, generating or adopting new tasks, peer evaluation, frequent
evaluations, and auditing innovation processes. This function monitors employee
performance to ensure that it is at acceptable levels. This strategy appraises individual
and team performance so that there is a link between individual innovativeness and
company profitability. Which tasks should be appraised and who should assess employees’
performance are also taken into account.
5. Total Rewards
Compensation in the form of pay, incentives and benefits are the rewards given to the
employees for performing organizational work. Compensation management is the method
for determining how much employees should be paid for performing certain jobs.
Compensation affects staffing in that people are generally attracted to organizations
offering a higher level of pay in exchange for the work performed. To be competitive,
employers develop and refine their basic compensation systems and may use variable pay
programs such as incentive rewards, promotion from within the team, recognition rewards,
balancing team and individual rewards etc.
This function uses rewards to motivate personnel to achieve an organization’s goals of
productivity, innovation and profitability. Compensation is also related to employee
development in that it provides an important incentive in motivating employees to higher
levels of job performance to higher paying jobs in the organization. Benefits are another
form of compensation to employees other than direct pay for the work performed. Benefits
include both legally required items and those offered at employer’s discretion. Benefits are
primarily related to the area of employee maintenance as they provide for many basic
employee needs.
6. Risk Management and Worker Protection
HRM addresses various workplace risks to ensure protection of workers by meeting
legal requirements and being more responsive to concerns for workplace health and safety
along with disaster and recovery planning.
7. Employee and Labour Relations
The relationship between managers and their employees must be handled legally and
effectively. Employer and employee rights must be addressed. It is important to develop,
communicate, and update HR policies and procedures so that managers and employees
alike know what is expected. In some organizations, union/management relations must be
addressed as well. The term labour relation refers to the interaction with employees who
are represented by a trade union. Unions are organization of employees who join together
to obtain more voice in decisions affecting wages, benefits, working conditions and other
aspects of employment. With regard to labour relations the major function of HR personnel
includes negotiating with the unions regarding wages, service conditions and resolving
disputes and grievances.
2.3.2 Managerial Functions
The Human Resource Manager is a part of the organizational management. So he
must Perform the basic managerial functions of planning, organizing, directing and
controlling in relation to his department.
There functions are briefly discussed below:
1. Planning
To get things done through the subordinates, a manager must plan ahead. Planning
is necessary to determine the goals of the organization and lay down policies and
procedures to reach the goals. For a human resource manager, planning means the
determination of personnel programs that will contribute to the goals of the enterprise, i.e.,
anticipating vacancies, planning job requirements, job descriptions and determination of
the sources of recruitment. The process of personnel planning involves three essential
steps. Firstly, a supply and demand forecast for each job category is made. This step
requires knowledge to both labour market conditions and the strategic posture and goals
of the organization. Secondly, net shortage and excess of personnel by job category are
projected for a specific time horizon. Finally, plans are developed to eliminate the forecast
shortages and excess of particular categories of human resources.
2. Organizing
Once the human resource manager has established objectives and developed plans
and programs to reach them, he must design and develop organization structure to carry
out the various operations. The organization structure basically includes the following:
1. Grouping of personnel activity logically into functions or positions;
2. Assignment of different functions to different individuals;
3. Delegation of authority according to the tasks assigned and responsibilities
involved;
4. Co-ordination of activities of different individuals.
3. Directing
The plans are to be pure into effect by people. But how smoothly the plans are
implemented depends on the motivation of people. The direction function of the personnel
manager involves encouraging people to work willingly and effectively for the goals of the
enterprise. In other words, the direction function is meant to guide and motivate the
people to accomplish the personnel programs. The personnel manager can motivate the
employees in an organization through career planning, salary administration, ensuring
employee morale, developing cordial relationships and provision of safety requirements
and welfare of employees. The motivational function poses a great challenge for any
manager. The personnel manager must have the ability to identify the needs of employees
and the means and methods of satisfy those needs. Motivation is a continuous process as
new needs and expectations emerge among employees when old ones are satisfied.
4. Controlling
Controlling is concerned with the regulation of activities in accordance with the plans,
which in turn have been formulated on the basis of the objectives of the organization.
Thus, controlling completes the cycle and leads back to planning. It involves the
observation and comparison of results with the standards and correction of deviations that
may occur. Controlling helps the personnel manager to evaluate the control the
performance of the personnel department in terms of various operative functions. It
involves performance appraisal, critical examination of personnel records and statistics
and personnel audit.
2.3.3 Operative Functions
The operative functions are those tasks or duties which are specifically entrusted to
the human resource or personnel department. These are concerned with employment,
development, compensation, integration and maintenance of personnel of the organization.
The operative functions of human resource or personnel department are discussed
below:
1. Employment
The first operative function of the human resource of personnel department is the
employment of proper kind and number of persons necessary to achieve the objectives of
the organization. This involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower requirements
both in terms of number and quality of the personnel. Recruitment and selection cover the
sources of supply of labour and the devices designed to select the right type of people for
various jobs. Induction and placement of personnel for their better performance also come
under the employment or procurement function.
2. Development
Training and development of personnel is a follow up of the employment function. It is
a duty of management to train each employee property to develop technical skills for the
job for which he has been employed and also to develop him for the higher jobs in the
organization. Proper development of personnel is necessary to increase their skills in doing
their jobs and in satisfying their growth need. For this purpose, the personnel departments
will device appropriate training programs. There are several on- the-job and off-the-job
methods available for training purposes. A good training program should include a
mixture of both types of methods. It is important to point out that personnel department
arranges for training not only of new employees but also of old employees to update their
knowledge in the use of latest techniques.
3. Compensation
This function is concerned with the determination of adequate and equitable
remuneration of the employees in the organization of their contribution to the
organizational goals. The personnel can be compensated both in terms of monetary as well
as non-monetary rewards. Factors which must be borne in mind while fixing the
remuneration of personnel are their basic needs, requirements of jobs, legal provisions
regarding minimum wages, capacity of the organization to pay, wage level afforded by
competitors etc. For fixing the wage levels, the personnel department can make use of
certain techniques like job evaluation and performance appraisal.
4. Maintenance (Working Conditions and Welfare)
Merely appointment and training of people is not sufficient; they must be provided
with good working, conditions so that they may like their work and workplace and
maintain their efficiency. Working conditions certainly influence the motivation and
morale of the employees. These include measures taken for health, safety, and comfort of the
workforce. The personnel department also provides for various welfare services which relate to
the physical and social well-being of the employees. These may include provision of cafeteria,
rest rooms, counseling, group insurance, education for children of employees, recreational
facilities, etc.
5. Motivation
Employees work in the organization for the satisfaction of their needs. In many of the
cases, it is found that they do not contribute towards the organizational goals as much as
they can. This happens because employees are not adequately motivated. The human
resource manager helps the various departmental managers to design a system of
financial and non-financial rewards to motivate the employees.
6. Personnel Records
The human resource or personnel department maintains the records of the employees
working in the enterprise. It keeps full records of their training, achievements, transfer,
promotion, etc. It also preserves many other records relating to the behavior of personnel
like absenteeism and labour turnover and the personnel programs and policies of the
organization.
7. Industrial Relations
These days, the responsibility of maintaining good industrial relations is mainly
discharged by the human resource manager. The human resource manager can help in
collective bargaining, joint consultation and settlement of disputes, if the need arises. This
is because of the fact that he is in possession of full information relating to personnel and
has the working knowledge of various labour enactments. The human resource manager
can do a great deal in maintaining industrial peace in the organisation as he is deeply
associated with various committees on discipline, labour welfare, safety, grievance, etc. He
helps in laying down the grievance procedure to redress the grievances of the employees.
He also gives authentic information to the trade union leaders and conveys their views on
various labour problems to the top management.
8. Separation
Since the first function of human resource management is to procure the employees,
it is logical that the last should be the separation and return of that person to society.
Most people do not die on the job. The organization is responsible for meeting certain
requirements of due process in separation, as well as assuring that the returned person is
in as good shape as possible. The personnel manager has to ensure the release of
retirement benefits to the retiring personnel in time.
2.4 REVISION POINTS
1. Functions of HRM
HR management can be thought of as seven interlinked functions taking place
within organizations. Additionally, external forces—legal, economic, technological,
global, environmental, cultural/geographic, political, and social— significantly
affect how HR functions are designed, managed, and changed.
2. Managerial functions
The Human Resource Manager is a part of the organizational management. So he
must Perform the basic managerial functions of planning, organizing, directing and
controlling in relation to his department.
3. Operative functions
The operative functions are those tasks or duties which are specifically entrusted to
the human resource or personnel department. These are concerned with
employment, development, compensation, integration and maintenance of
personnel of the organization.
Qualities of HR Managers
The qualities which will be applicable in general can be summarized as follows.
(i) Personal Attributes
The HR manager, as in case of any other manager, must have initiative
resourcefulness, depth of perception, maturity in judgment, and analytical ability.
Freedom from bias would enable the HR manager to take an objective view of both of
management and workers. He must thus have intellectual integrity. HR manger should be
thorough with labour laws. The HR manager must be familiar with human needs, wants,
hopes an desires, values, aspirations, etc., without which adequate motivation is
impossible.
The HR manager should also possess other personal attributes like:
(a) Intelligence: This includes skills to communicate, articulate, moderate,
understand, etc., command over language, mental ability and tact in dealing with people
intelligently, ability to draft agreements, policies etc.
(b) Educational skills: HR manager should possess learning and teaching skills as he
has to learn and teach employees about organizational growth, need for and mode of
development of individuals.
(c) Discriminating skills: HR manager should have the ability to discriminate
between right and wrong, between the just and unjust, merit and demerit.
 (d) Executing skills: HR manager should execute HR issues with speed, objectivity
and accuracy. He should also be able to streamline the office, set standards Coordinate
and control, etc. of performance Coordinate and control, etc. He should also have
leadership qualities, deep faith in human values, empathy with human problems,
foreseeing future needs of employees, organization, government, trade unions, society, etc.
(ii) Experience and Training
Previous experience is an added advantage, provided the experience in an appropriate
environment and in the same area, Training in psychological aspects, labour legislations
and in HR management. Experience in an enterprise in some other executive capacity can
also be towards an appreciation of the general management problems and a practical
approach in meeting HR problems.
(iii) Professional Attributes
HR manager should have patience and understanding, ability to listen before offering
advice. HR manager should have the knowledge of various disciplines like technology,
engineering, management, sociology, philosophy and law He must be able to couple his
social justice with a warm personal intent in people which must be secured by an
uncommon degree of common sense.
3.3.3 Qualification of HR Managers
The job of personnel managers is complex. Meeting the ever increasing needs,
aspirations and expectations of employees is not easy.
To complicate his role further, top management expects the personnel manager to:
1. Convey its commands, instructions policies and programs to employees in an
effective way.
2. Liaison with line managers smoothly.
3. Look after the safety and welfare of employees.
4. Take care of the legal provisions governing the workplace.
5. Offer expert advice on issues relating to human resources planning, recruitment,
training, appraisal, compensation etc.
In Union management relations the personnel man is expected to absorb frayed
tempers, notes of discontent and disagreements while creating a dialogue and bringing
about peace. While discharging the above duties and responsibilities he is not expected to
lose sight of his moral and social obligations towards employees and the general public.
The question of prescribing a set of qualifications for personnel manager, in view of the
expanding list of tasks, makes the search or a suitable candidate rather challenging.
Keeping the diversity and elasticity of the personnel Manager’s job in mind.

Forwarded by :
Prof. Gautam Roy
Visiting Faculty , IIBS