UNIVERSITY OF EMBU

BBA 214: FUNCTIONS OF HRM

By: Dr Bengat Kipyegon J.

University of Embu
 FUNCTIONS OF HRM

The definition and nature of HRM indicate

that management of human resources
consists of several inter-related functions.
These functions are common to all
organizations though every organization may
have its own human resource management
programme. These functions of human
resource management may broadly be
classified into two categories, viz
1) Managerial functions, and (2) Operating
functions
 A) MANAGERIAL FUNCTIONS

Managing people is the essence of being a

manager. Like other managers, a human source
manager performs the functions of planning,
organizing, directing and controlling.
Managerial Functions: 1. Planning
 A plan is a predetermined course of action. Planning
is the process deciding tire goals and formulating
policies and programs to achieve the goals,
planning involves forecasting and research.
Forecasting implies scientific anticipation he future
environment.
 Human resource management involves forecasting
needs human resources, predicting trends in labour
market, wages, union demands, and their impact on
the organization.
1: Planning

 Planning helps to face successfully the ages that are likely to

take place in future. It bridges the gap between where we and
where we want to go. Without planning events are left to
chance. Planning is means to manage change. Planning today
avoids crisis tomorrow.
 In the area of human resource management, planning involves
deciding human resource goals, formulating human resource
policies and programs, preparing human resource budget, etc.
2: ORGANIZING

 . In order to implement the plans, a sound

organization structure mired. Organizing is the
process of allocating tasks among the members of
the Group establishing authority responsibility
relationships among them and integrating their
activities cowards the common objectives

2: ORGANIZING

 In this way, a structure of relationships among jobs,

personnel and physical factors is developed. The
right organization structure is the foundation of
effective management because without it the best
performance in all other areas will be ineffective.

 Organization is the framework through which

management directs, controls and coordinates the
efforts of people.
 3: DIRECTING.

 Directing is the process of motivating, activating, leading and

supervising people. Directing includes all those activities by which a
manager influences the actions of subordinates.

 It involves getting others to act after all preparations have been made.
Directing is the heart of the management process because it is
concerned with initiating action.

 It helps to secure the willing and effective cooperation of employees for

attaining organizational goals.

 A manager can tap the maximum potential of employees through proper

direction. Directing also helps in building sound individual and human
relations in the organization.
4. CONTROLLING

 It implies checking, verifying and regulating to ensure that

everything occurs in conformity with the plans adopted and
the instructions issued. Such monitoring helps to minimize the
gap between desired results and actual performance.

 Controlling the management of human resources involves

auditing training programs, analyzing labour turnover records,
directing morale surveys, conducting separation interviews
and such other means.
B: OPERATIVE FUNCTIONS

 The operative or service functions of human

resource management are the tasks which are
entrusted to the human resource department.

 These functions are concerned with specific

activities of procuring, developing, compensating
and maintaining an efficient work force.
OPERATIVE FUNCTIONS

The following are the operative functions of HRM

1. Procurement Function
2. Development Function
3. Compensation Function.
4. Integration Function
5. Maintenance Function
 OPERATIVE FUNCTIONS: 1- PROCUREMENT FUNCTION

1: PROCUREMENT FUNCTION: It is concerned with securing and

employing the right kind and proper number of people required
to accomplish the organizational objectives. It consists of the
following activities:
a)Job Analysis. It is the process of studying in detail the
operations arid responsibilities involved in a job so as to identify
the nature and level of human resources required to perform the
job effectively. Job descriptions and job specifications are
prepared with the help of information provided by job analysis.
b) Human Resource Planning

It is the process of estimating the present and future manpower

requirements of the organization, preparing inventory of present
manpower and formulating action programs to bridge the gaps in
manpower.
c) Recruitment: It is the process of searching for required human
resource and stimulating them to apply for jobs in the
organization. A proper balance should be maintained between the
internal and external sources of recruitment.
 D: Selection.

It implies judging the suitability of different candidates for

jobs in the organization and choosing the most appropriate
people.
E: Placement. It means assigning suitable jobs to the
selected candidates so as to match employee qualifications
with job requirements.
 F: Induction or Orientation.

It involves familiarizing the new employees with the company,

the work environment and the existing employees so that the
new people feel at home and can start work confidently.
OPERATIVE FUNCTIONS: 2- Development Function

Human resource development is the process of improving the

knowledge, skills, aptitudes and values of employees so that they can
perform the present and future jobs more effectively. This function
comprises the following activities:
 a)Performance and Potential Appraisal.

 It implies systematic evaluation of employees with respect to their

performance on the job and their potential for development
b)Training. It is the process by which employees learn knowledge, skills and
attitudes to further organizational and personal goals.
c)Executive Development. It is the process of developing managerial talent
through appropriate programs.

d) Career Planning and Development. It involves planning the career of

employees and implementing career plans so as to fulfill the career
aspirations of people. It involves mobility of human resource through
promotions and transfers.
3: COMPENSATION FUNCTION.

It refers to providing equitable and fair remuneration

to employees for their contribution to the
attainment of organizational objectives. It consists
of the following activities:
a) Job Evaluation. It is the process of determining
the relative worth of a job.
 Compensation Function.(Con…)

b)Wage and Salary Administration. It implies developing and

operating a suitable wage and salary programme. Surveys are
conducted to determine wage and salary structure for various
jobs in the organization.
c) Bonus. It involves payment of bonus under the payment of
Bonus Act, 1965 as well as non-statutory bonus and other
incentives.
 4: Integration Function

It is the process of reconciling the goals of the organization with

those of its members. Integration involves motivating employees
through various financial and non-financial incentives, providing
job satisfaction, handling employee grievances through formal
grievance procedures, collective bargaining, workers'
participation in management, conflict resolution, developing
sound human relations, employee counselling, improving quality
of work life, etc.
5: Maintenance Function.

 It is concerned with protecting and promoting the physical and

mental health of employees. For this purpose, several types of
fringe benefits such as housing, medical aid, educational facilities,
conveyance facilities, etc. are provided to employees.

 Social security measures like provident fund, pension, gratuity,

maternity benefits, injury/disablement allowance, group insurance,
etc. are also arranged. Health, safety and welfare measures are
designed to preserve the human resources of the organization.
 THANK YOU

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