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Role and Functions of HRM

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18 views11 pages

Role and Functions of HRM

Uploaded by

Avinash garg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Role & Functions of

HRM
BY DR. VIDYA HATTANGADI
HR Department
HR department includes recruiting, vetting (performing background check), selecting,
hiring, onboarding, training, promoting, paying, and firing employees and independent
contractors.
Human resource department is run by a person or group of people at a company who
manage all things related to its employees.
Humans have an ability to transform things into valuable resources that can be utilized
for useful purposes therefore they called resource.
Definition
John R. Commons, an American institutional economist, first coined the term human
resource in his book ‘The Distribution of Wealth’, published in 1893. However, HR
departments were formally developed and tasked with addressing confusions between
employees and their employers in 1950s. These departments were called personnel
department.
Elton Mayo famous for Hawthorne Works of the General Electric Company in
Chicago between 1924 and 1927.
Functions of HRM
Labour relations: Labour relations refers to the relationship between employers and
employees in industry, and the political decisions and laws that affect it.
Relationship between employer-employee: An organization's constant effort to engage
its employees through strategies that help maintain open communication in the
workplace and promote togetherness.
Performance management: Performance management is an ongoing process of
communication between a supervisor and an employee that occurs throughout the year,
in support of accomplishing the strategic objectives of the organization.
Functions of HRM
Compensation & Benefit: Put simply, compensation covers people's direct pay, their
salary. Benefits cover employees' indirect pay, things like health insurance and stock
options but also social benefits such as parental leave.
Fringe benefits: any nonwage payment or benefit e.g., pension plans, profit-sharing
programs, vacation pay, and company-paid life, health, and unemployment insurance
programs granted to employees by employers.
Functions of HRM
Training and development: Training and development involve improving
the effectiveness of organizations and the individuals and teams within
them. Training and development helps companies gain and retain top
talent, it increase job satisfaction and morale, and training improves
productivity and earn more profit. Additionally, training helps employees to
increase their productivity.
Recruitment & Hiring: hiring involves soliciting and reviewing applications
for an open position. Recruiting, on the other hand, involves continuous
research to find the best employees for the organization. Recruitment
should happen on a regular basis, not just when organization needs to fill
a position. It’s all about building awareness of the company among
talented professionals.
Functions of HRM
Job analysis: Job analysis is a family of procedures to identify the content of a job in
terms of the activities it involves in addition to the attributes or requirements necessary
to perform those activities.
Job design: refers to the way that a set of tasks, or an entire job, is organized. Job
design helps to determine what tasks are done. How the tasks are done. How many
tasks are done etc
Functions of HRM
Remuneration & Payment: Remuneration is the total compensation paid to the
employees for their services. In addition to the basic salary, it includes benefits like
commissions, bonuses, overtime pays, and other financial compensation paid by the
employers to their personnel.
Firing Employees: Termination or firing employees is an unpopular but mandatory
process. All businesses, big or small may, at some time, fire an employee because of
business compulsions.
Reasons: poor performance, indiscipline, company policy etc.
Strategic Role of HRM
Vision statements mention aspirations of the organization; they lay out the
most important primary goals for a company. A vision statement is a
company’s road map, indicating both what the company wants to become
and guiding transformational initiatives by setting a defined direction for the
company’s growth.
A good mission statement will not only explain a brand’s purpose, but will also foster a
connection with customers.
“Give people the power to build community and bring the world closer together”
Facebook
Strategic Role of HRM
Mission Statement: A mission statement describes the overall purpose of an
organization. A mission statement should be brief and answer key questions about the
business of organization. Questions such as what are the basic objectives of the firm?
Who are the target audience? These points should be mentioned in the mission
statement. A mission statement describes what an organization hopes to achieve.
“To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value”. ITC’s Mission
Statement
Role of Vision & Mission
Statement in HR and Productivity
Mission and vision statements play three critical roles: (1) communicate the purpose of
the organization to stakeholders, (2) inform strategy development, and (3) develop the
measurable goals and objectives by which to gauge the success of the organization's
strategy.
Productivity is a measure of how efficiently a person completes a task. It’s key aspect of
people management, where leaders use incentives, goals, development and
communication techniques to help employees and teams increase their productivity.

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