Functions of HRM: 1. Strategic HR Management
Functions of HRM: 1. Strategic HR Management
Functions of HRM
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 are sought to be realized through
functions like remuneration, assessment etc.
HRP includes creating venture teams with a balanced skill-mix, recruiting the right people,
and voluntary team assignment. This function analyses and determines personnel needs in
order to create effective innovation teams. The basic HRP strategies are staffing and
employee development.
Compliance with equal employment opportunity (EEO) laws and regulations affect 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.
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 with 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 inexperienced employee. In addition,
organization often provide both on the job and offthe job training programmes for those
employees whose jobs are undergoing change.
Likewise, HR development and succession planning of employees and managers both are
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.
This function monitors employee performance to ensure that it is at acceptable levels or not.
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 and in the matter of staffing; people are generally attracted to organizations
offering a higher level of pay in exchange of 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.
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.
HRM addresses various workplace risks to ensure protection of workers by meeting legal
requirements and being more responsive to concern 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.