18 Key Functions of Human Resource Management (HRM)

18 Key Functions of Human Resource Management (HRM)

Human resource management is the backbone of the corporate world. Do you know how many responsibilities they undertake?

Read this article to find out the functions of human resource management in any organization.

Functions Of Human Resource Management

Functions of HR in an Organization

1. Planning

To get tasks completed by his juniors and subordinates, a manager has to plan ahead. It is, therefore, necessary to strategize in order to continue providing the organization with its determined targets.

Planning additionally serves to devise the most effective strategies for meeting the goals. In fact, some successful managers dedicate a significant portion of their time to planning.

Planning in the human resource department includes defining the personnel plans that can support the corporation in attaining its objectives.

Estimating the organization’s future staffing needs, defining job criteria, descriptions, and choosing recruitment sources are all part of these programs.

2. Organizing

HR is all about harnessing an employee’s potential to the fullest in order to achieve the organization’s goals.

The function of human resource management in an organizational setup is vital in selecting the best course of action.

An organization is a system in which a team of cooperative human beings assigns responsibilities to employees, establishes connections, and coordinates their efforts toward a shared objective.

As one of the managerial functions of HRM is to systematize the flow of work from the top to the bottom and provide counsel, it also establishes intricate relationships between specialized departments and general departments.

This leads to employees actively contributing to the company’s ultimate agenda that also yields their personal benefits.

3. Directing

The cornerstone of the management process is regarded to be directing.

The direction function, which is the performance of the plan, is the next function of human resource management after planning and organizing.

Employee motivation, direction, commanding, and empowering employees and recruits at every stage is the core responsibility of human resource management.

Excellent employee cooperation is widely sought after because it upholds organizational goals, and this can only be done by receiving the right direction under HR managers. Motivation and command are the two ways to get the most out of a workforce.

Another important purpose of HRM is coordination, which is accomplished by combining efforts to ensure that objectives are accomplished.

4. Controlling

The managerial function of controlling is an umbrella role that encompasses planning, staffing, organizing, implementing, and directing. After these five slabs of duties are completed and reported, the HR department takes up the role of controlling.

Controlling entails evaluating performance to ensure that personnel management tasks are carried out in accordance with an organization’s policies and goals.

It also includes evaluating and verifying the results, equating the results with the expectations, detecting discrepancies, and setting the standard through controls.

Controlling the personnel’s management duties might include reviewing labor turnover data, monitoring training programs, directing morale surveys, and conducting individual interviews with each employee.

Operative Functions of HRM

The human resource or personnel department is entrusted with the operative duties, which are tasks, duties, or activities that a corporation assigns to them.

These operative functions of HRM are independent of managerial functions as they do not form a part of the core management tasks such as planning, organizing, staffing, directing, and controlling.

1. Development

Human resource acquisition is unquestionably the most vital department in every organization. However, we must understand that the world is transforming at a great speed, requiring organizations to adjust as well. They need improved staff in order to keep pace with the evolving economy.

Due to a number of downsides as a direct consequence, a corporation cannot simply retrench the existing workforce and employ a new one every time.

The only way to deal with the ever-changing work environment is by providing Training and Development to the employees to improve them and sharpen their skills. This way businesses can cope better and adjust quickly.

Related: Differences Between an eCommerce and eBusiness

2. Compensation

Everyone seeks employment and wants to work to gain benefits of various sorts. People usually work in exchange for a monetary reward. Compensation is simply the remuneration for the labor performed by any organization’s employees.

The aspect of equitable remuneration for the same quantity and quality of labor for different employees should be recognized by HR professionals. This duty is responsible for determining fair and equitable compensation for employees.

3. Employment

Human resources are the most valuable asset in every business since they are the ones that spin other resources into finished products or output.

However, this does not imply that the company begins employing thousands of people without first estimating its necessities. In fact, the HR managers’ preliminary operative function is to assess the organization’s staffing requirements.

They do it by examining the workforce and workload. Concludingly, in this function, the HR department recruits the appropriate amount of people and appoints them to appropriate departments or duties in order to achieve the company objectives.

It covers human resource recruitment, selection, and placement, among other things.

Employment is an important function of HR

4. Welfare and working conditions

Training and development only improve employees’ abilities to generate productivity and work efficiently, but it does not guarantee high output or completion of targets. It is because there are other aspects that are just as essential.

These factors involve the workplace environment, employment conditions, and so on. This function is responsible for maintaining the workplace and creating an environment that allows employees to operate effectively and efficiently.

5. Motivation

People are productive only to a certain level, their work bears only a general degree of efficiency. They require fresh incentives to put in effort for, after a period of time. This is where the idea of motivation comes into play.

The function of motivation under operative functions of HRM necessitates the employment of financial and non-monetary incentives to motivate the staff to work better and contribute more.

6. Human Resource Record Keeping

Under this responsibility, an HR manager maintains track of employees operating in various departments under various headings.

They also keep track of their progress and efforts. This documentation helps them in devising strategies for motivation, staffing functions, and so forth.

7. Industrial Relations

For every organization, the relationship between all of the employees in the business is of great importance.

HR managers in the organization are now in charge of this task. They assist with collective bargaining, joint consultation, and conflict resolution.

It is because they have a solid understanding of different labour laws.

8. Separation

While the first responsibility of human resource management is to hire employees, it only makes sense that the last responsibility should be to separate and reintegrate that worker into society. The majority of people do not perish on the job.

The organization is obligated to adhere to specific separation process criteria as well as to ensure that the returned individual is in the best shape possible.

The HR manager must oversee that retirement benefits are delivered to retiring employees in a timely fashion.

Also Read: Differences Between Database and Spreadsheets: What HRs Should Use and Why

Advisory Functions

Human resource managers have received specialized instruction and training in human resource management.

They are experts in their field and can provide guidance on issues pertaining to the organization’s human resources.

1. Advisor To The Top Management

The HR manager assists senior management in the development and assessment of personnel policies, processes, and programs.

He/She also serves as a guide on how to establish and maintain positive connections with people and strong employee morale.

2. Advisor to Departmental Heads

HR executives advise department heads on subjects such as workforce planning, job analysis, and design, recruiting and selection, placement, training, and performance evaluation, among other things.

Some Key Skills Your HR Department Must Have

Objectives of HRM

1. Designing Organizational Structure and Increasing Productivity

Human Resource Management’s core focus is on achieving company objectives. It must help organizations by defining and attaining clearly defined goals.

It defines the primary problems to be addressed and regulates rules and urgencies, in addition to accomplishing the goals.

Recruiting competent people, educating them, and efficiently retaining them, fosters organizational efficacy.

2. Increasing Organizational Departmental Coordination

Human Resource Management is in charge of coordinating and harmonizing operations within and across divisions.

The resources are configured to meet the company’s goals. It must also be ensured that human resources are fully utilized and cultivated to their full potential.

HR Should Improve Departmental Coordination

3. Extending Employee Satisfaction

Hiring and training suitable personnel is an unquestionable responsibility of Human Resource Management. It should be maintained that everyone in the company is treated with respect, and that individual needs are met.

HR strategies, policies, and approaches for personal development must be aligned with the organization’s overall objectives.

It should satisfy employees’ own aspirations so that personal and corporate goals may be synchronized, allowing for optimal productivity and competitive advantage.

4. Adherence to Societal and Ethical Models

Human resource management is responsible for ensuring that legal, ethical, and social-environmental challenges are appropriately addressed.

It should ensure that human capital is dealt with in a formal and compliant manner and that their needs are acknowledged and met. It should also take into account societal ethics and social responsibility.

It must also strive to improve the company’s competitive advantage via social approaches, such as ethically responding to societal needs and issues. Fair opportunity and equal pay are two legal concerns that should be addressed as part of societal goals.

Related: The Various Types of Accounts in Accounting

Is HR Important For An Organisation?

The importance of HRM in an organization is unsurmountable. It is the coal-and-ice of better and smooth working in a typical corporate setting. It would be foolish to ignore HRM when starting up a business.

Human resource management guarantees that the optimum amount and quality of staff are a part of the workforce. It provides room and chance for individuals and groups of employees to develop and improve their careers.

Employees that are driven to work hard to achieve their personal professional goals have a direct impact on the organization’s efficiency. Productivity is defined as minimizing costs and maximizing profits.

It is essential since it serves a variety of functions, one being employee training and development. Employees are kept updated with the skills they need to adapt to changes in the organizational framework, structure, and technology through training and development programs.

HRM examines existing personnel at regular intervals to determine if the organization has a sufficient quantity of employees.

When an organization’s human resources are insufficient, human resource management undertakes actions such as recruiting and selection to meet the need. In the same manner, if the company has too many employees, it can fire unproductive workers.

Human resource management is concerned with making the most of human resources and keeping them in the organization for a long time.

HRM conducts activities such as giving fringe benefits, salaries, and incentives to eligible employees. These efforts not only assist in retaining workers but also efficiently attaining the organization’s goals.


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What is the one thing that no successful business can do without? While any organization has many such significant priorities, it is the human resources department that acts as a foundation upon which the pillars of a corporation stand.

Many people have no idea what operating under human resources involves. They only sit through orientation and are given a breakdown of their pay when they start a new job.

Hopefully, the above-mentioned functions have helped you understand the three broad roles an HR manager performs.

Human Resource Management (HRM) is vital to the survival of most businesses. The HR department’s major responsibility is to develop an organization’s human capital by carrying out a variety of procedures that allow them to provide the most efficient and productive economic growth possible.

Frequently Asked Questions (FAQs)

What does Human Resources Department do?

HR is a critical component of the employee journey. This includes employer branding, recruitment, onboarding, performance management, learning and development, compensation and benefits, workplace safety, and culture, among other things.

What is Human Resource Development?

Human Resource Development is the ongoing process of enhancing the skills needed to meet corporate and individual objectives.

Human Resource Management is a subset of this concept. It is made up of numerous subsystems, including assessment, counseling, training, incentives, and welfare, as well as the quality of the workplace.

What is performance appraisal?

The term “performance appraisal” refers to determining the extent of performance of workers in an organization.

It directly concerns the employees since their degree of performance is to be evaluated.

Its goal is to create a foundation for promotion, transfer, and training, along with many other things.

What are the three recruiting methods?

The three recruiting methods are:

– Direct
– Indirect
– Third-Party

What is Job Design?

The process of settling on the nature of a job with regard to its duties and responsibilities is known as job design.

In terms of strategies, systems, and processes to be employed in carrying out the work, as well as the interaction that should occur between the employee and his superiors, subordinates, and coworkers.

What is the difference between Job Description and Job Specification?

A job description is a measure of the job, whereas a job specification is a measure of the person doing the job.

Job specification is a summary of the traits and skills necessary in the employee to conduct the task properly, whereas a job description is an overview of the functions, responsibilities, and other aspects of the job.

The job specification enables management in finding the right person for the position.

The job description explains what must be done and the demands of the job, whereas the job specification explains what qualities must be present in the person doing the job.

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  • Great article on functions of human resource management. Learned so much about its operative, and advisory functions as well as objectives and importance.

    • Hello Vikalp,
      Thank you so much for your feedback. Stay tuned for more such articles.

  • Is it important to hire a HR who is extrovert?

    • Hello Rudra,

      The individual’s attitude and level of commitment to his or her work genuinely determine this. People frequently believe introverts are shy. This is untrue. Communication abilities are not lacking in introverts; they are often quite eloquent and interesting. Extroverts enjoy brainstorming new ideas and chatting with coworkers to find out how things are going and what they are working on.
      The presence of others energizes extroverts and makes them more productive. Ambiverts are also thought of as the ideal workers. Unlike total Extroverts or total Introverts, “Ambiverts” are comfortable working alone as well as with others. They like socializing as well as teamwork.

      Therefore, it is not crucial to specifically hire an extrovert. During the interview process, learn more about one particular person. Take into account his/her dedication and effectiveness when hiring.

  • I’ve seen these two job descriptions, but could you please clarify whether talent acquisition and human resources are the same?

    • Hello Amritha,

      A human resources department handles a variety of tasks, such as designing the workforce strategy, hiring, performance management, staff training and development, salary and benefits, conflict resolution, and talent management.
      Employers use a process known as talent acquisition to find, track, and interview candidates for open positions as well as onboard and train new hires. Typically, the HR department is in charge of it.

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