Chapter – 3

HRM Functions
 Course Objective
This course is designed to expose students to current knowledge related to the
best practices in human resource management.

Course Outcome
An understanding of the major issues currently facing human resource
management professionals

Knowledge of conducting the day-to-day activities required to effectively manage

human resources in organizations

An understanding of issues related to individual career management as well as

those associated with HRM systems and practices.

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 FUNCTIONS OF HRM
• MANAGERIAL FUNCTIONS :
Managerial

Planning Organizing Staffing Directing Controlling

 FUNCTIONS OF HRM
• MANAGERIAL FUNCTIONS :
• Planning : personnel manager is expected to determine the personnel
programme regarding recruitment, selection and training of employees.
• Organizing : is concerned with proper grouping of personnel activities,
assigning different group of activities to different individuals and
delegation of authority.
• Staffing : It is filling the position with qualified people and keeping it
filled . Recruiting hiring training evaluating transferring are the specific
activity of this function.
• Directing : it involves supervising and guiding the personnel. Personnel
manager must be an effective leader who can create winning teams
taking into consideration the expectation of employees at different level.
• Controlling : it comprises of measuring the employees performance
providing them feedback on their performance weaving path for their
further development.
• OPERATIVE FUNCTIONS :
2. HR Development
• Performance Appraisal: Performance Appraisal is the systematic
evaluation of the performance of employees and to understand the
abilities of a person for further growth and development. 
• Training : is a continuous process by which employees learn skills,
knowledge to achieve further individual as well as organizational goals.
• Executive development: process of developing managerial skills and
capabilities through appropriate programs.
• Career planning and development: it is concerned with the task of
planning employees career plans by the means of education, training
etc.
• Human resource development: it aims at development of total
organization. It creates working environment where employees are
required to update their knowledge at regular interval of time to attain
organization as well as individual goals.
3. Compensation
• Job Evaluation: is the process of analyzing and assessing various jobs
systematically to ascertain their relative worth in an organization. 
• Wage & Salary administration : Salary and wage administration is the
process of compensating an organization's employees in accordance with
accepted policy and procedures
• Incentive: A monetary gift provided to an employee based on performance
, which is thought of as one way to entice the employee to continue
delivering positive results. Incentive pay may come in the form of a bonus
, profit-sharing, or commission.
• Bonus : Bonus pay is compensation over and above the amount of pay
specified as a base salaryor hourly rate of pay. 
• Fringe Benefits: Fringe benefits are forms of compensation you provide to
employees outside of a stated wage or salary. Common examples of fringe
benefits include medical and dental insurance, use of a company
car, housing allowance, educational assistance, vacation pay, sick pay,
meals and employee discounts.
4. Employee Relations
The term 'employee relations' refers to a
company's efforts to manage relationships
between employers and employees. An
organization with a good employee relations
program provides fair and consistent treatment
to all employees so they will be committed to
their jobs and loyal to the company. Such
programs also aim to prevent and resolve
problems arising from situations at work.
Integration function Emerging issues

1. Grievance redressal 1.Personal records

2. Discipline 2. Human resource audit
3. Teams and teamwork 3. Human resource research
4. Collective bargaining 4. Human resource
5. Employee participation and accounting
empowerment 5. Human resource
6. Trade unions and employees information
association system
7. Industrial relation 6. Stress and counseling
7. International human
resource
management
• Integration function:
• Grievance redressal : it is concern with addressing problems
related to wages, hours or condition and of employment. It
focuses on sorting issues between trade union and
management.
• Discipline : it abides the employees to follow rules and
regulation set by organization to monitor and control the
activities of workforce.
• Team and team work: it focuses creating teams, groups in the
organization and coordinate their activities towards
organization task accomplishment.
• Collective bargaining: it take place in organization to get
collective consent of management as well as employees on
certain terms and conditions. Agreement is mostly based on
issues related to wages, hours of work, promotion etc.
• Employee participation and empowerment: refers decentralized
system of decision making in the organization. It enhances
employees performance as employees get feeling of belonging
towards organization.
• Trade unions and employees association: it is an association of
employees or employers. It is permanent body working in the
organization to protect interest of employees in company.
• Industrial relations : it main object is to maintain harmony
between employees and management.
• Emerging issues:
• Personal records : refers to maintaining records of various
events that take place in organization. Maintained data will
serve as reference for future use.
• Human resource audit: refers to examination and evaluation of policies,
procedures and practices to determine the effectiveness of HRM in
company.
• Human resource research: evaluating the effectiveness of existing HR
policies.
• Human resource accounting: measurement of cost and value of human
resource to the organization.
• Human resource information system: it is designed to maintain HR
information as serves as reference to top management to obtain employee
detail.
• International human resource management: it give an brief overview global
competition in differences in organizational environment across nations.
 FAQs

• What are various functions of HRM?

• What are operating functions of HRM?
How does it makes the organizations
efficient in its working?
• What are integrating function of hrm?
• How emerging issues are resolved with
HRM?

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THANK YOU