Function of Human Resource

Management
A mission statement states the purpose of a company,
Organization or person, its reason for existing. . .
Its like a goal for what the company wants to
do for the world.

Example: Google’s mission is to organize, the world’s

Information and make it universally accessible and useful.
The overall goals and purpose of a business
that have been established by its management
and communicated to its employees.
HR is the set of individuals who make
up the workforce of an organization
or economy.
 Function of Human Resource
Management
• Human resource management involves blending the traditional administrative functions along with
the changing concepts of employee welfare in the organisation.
• The retention of employees is dependent on how they are perceived and treated in the organisation
based on their performance, abilities and skills.
• The extent of activities carried out by the HR is dependent on the size and scope of the
organisation, the nature of operations and the attitude of management towards the employees.
• HRM functions can be broadly classified into the following two categories:
• Managerial functions
• Operative functions
• Advisory functions
 Managerial

Planning Organizing Staffing Directing Controlling

 Operational

Employment HR Development Compensation Mgt Employee Relations

HR Planning Performance Appraisal Job Evaluation

Recruitment Training Wage and Salary Admn

Selection Management Development Incentives

Career Planning and

Placement Bonus
Development

Induction Fringe Benefits

1.PLANNING - It’s the process of thinking
about & organizing the activities required
to achieve a desired goal.
Example : To prepare agenda for a program.

2. ORANIZING – Organizing effective management

is crucial for nearly all large organizations &
generally valuable for those of any size.
3. STAFFING – It is the process of obtaining and maintaining capable and
competent personnel in various positions at all levels, i.e.manpower
planning, recruitment, selection, placement and induction.

4. DIRECTING – It is said to be a process in which

the managers instruct , guide and oversee
the performance of the workers to achieve
predetermined goals.
5.CONTROLLING – It helps to check the errors and to take the
corrective action so that deviation from standards are minimized &
stated goals of the organization are achieved in a desired manner.
 Function of Human Resource
Management
Operative functions of HR department: Operative functions of HR department are those core functions
that only the HR department is assigned to perform. These functions are:

Employment

Employment is the first operative function of HRM. This involves procuring and employing individuals with
suitable knowledge, skills, experience and aptitude necessary to perform various jobs.

The various functions of employment are:

• Job analysis
• HR planning
• Recruitment
• Selection
• Placement
• Induction
 Function of Human Resource
Management
HR development
• HR development concentrates on developing the workforce so that both the employees and the organisation
in turn can achieve their goals.
• This includes functions starting with evaluating the performance of the employees, providing necessary training
and development programmes to fill the gaps between current performances to the optimum performance of employees.

HR development involves functions such as:

• Performance appraisal – This is the process of evaluating the performance of an employee on the job and
developing a plan for the employee’s improvement.
• Training – Training is the systematic development of knowledge, skills and attitudes required
to perform a given task or job successfully, in an individual.
• Management development – It is the concept of developing the employees of an organisation
to meet future changes and challenges.
• Career planning and development – Career planning and development refers to identifying
one’s career goals and formulating plans for achieving them through various means such
as education and work experience.
 Function of Human Resource
Management
Employee relations

• It deals with the employees, in the organisational context, as a social group that contributes to
the organisation. It includes:
 Increasing employee productivity.
 Keeping the employees satisfied and motivated.
 Developing team building, team management, leadership skills in employees.
 Function of Human Resource
Compensation Management
• It includes all the rewards that an employee receives during the course of his or her job–for his or her
contributions to the organisation. It includes:
 Job evaluation – It is a systematic determination of the value of each job in relation to other jobs
in the organisation, in the industry and in the market.
 Wage and salary administration – It is the process of formulating and operating a suitable
wage and salary programme.
 Incentives – These are the rewards that an employee earns in addition to regular wages or salary
based on the performance of the individual, the team or the organisation.
 Fringe benefits – These are monetary and non-monetary benefits given to employees during
their employment and sometimes, also in the post-employment period.
 Advice & counsel top management in initiating &
recommending changes
 Provide service to line & other staff groups
 Perform control or inspection function for line managers
 Forsee coming problems of personnel & suggest
precautionary measure
 Should win sympathetic attitude of line managers,may face
opposition from line managers
 The process of HRM consists of 4 basic functions:

◦ Acquisition of human resources

◦ Development of human resources

◦ Motivation of human resources

◦ Maintenance of human resources

 Process of identifying and employing people possessing
required level of skills

◦ Job Analysis

◦ HRP

◦ Recruitment

◦ Selection
 Process of improving, moulding and changing the skills,
knowledge and ability of an employee

◦ Employee Training

◦ Management Development

◦ Career Development
 Process of integrating people into a work situation in a way
that it encourages them to perform / deliver to the best of
their ability

◦ Understanding needs

◦ Designing motivators

◦ Monitoring
 Process of providing employees the working conditions that
help maintain their motivation and commitment to the
organisation

◦ Satisfaction Levels

◦ Retention
 Role of HR Executives
• Managing people is one of the biggest challenges for a manager. Few of the reasons
are:
 Individuals differ from each other in terms of their values, attitudes, beliefs and
culture. This leads to a very complex situation.
 The stimulating and motivational factors might not be the same for all employees.
• It is important to understand the individual needs of the employees and cater to those
needs.
• This involves taking up different roles by the HR.
• The specialist role of HR manager includes:
 Role of HR Executives
• Service provider – Management needs to gather information such as market statistics, pay rates and
labor laws and legislations from the market as well as from their competitors before making decisions
on various employee related issues.
• Managing Administrative expert – The administrative role involves record keeping and legal
compliance.
• Facilitator – They act as a facilitator when training and development actions are planned and
conducted and when performance appraisals are done.
• Consultant – While supervising the employees, managers face many problems.
• Auditor – HR specialists are responsible for ensuring that all members of the management perform
their respective roles efficiently and also ensures that there is effective use of the human resources of
the organisation.
 Role of HR Executives
• Change agent – It is the HR that helps organisations to implement changes and help employees
adapt to changes.
• Employee advocate – HR employees are the link between the top management and the
employees. The concerns of the employees are first reported to the HR personnel. They report
these issues to the top management and try to resolve the issues.

HR in any organisation has multiple roles to play. No HR can perform just one role. They may
have to perform all the mentioned roles at different stages in their career as HR personnel.