15 Important Functions Of HRM In 2021
The Human Resource department is an indispensable part of any organization. Companies are always on the lookout for proficient HR professionals who can join their team. There are more than 12,000 job openings for HR professionals on job portals like LinkedIn. Human Resources offers a promising career for everyone interested in the field. Before you decide to make a career in Human Resources, you need to know the major functions of HRM.
In any organization, HR has several essential functions. We will be discussing 15 key Human Resource functions later in the article but first, let's understand what Human Resource Management (HRM) is.
What Is Human Resource Management (HRM)?15 Key Functions Of Human Resource Management
1. What Is Human Resource Management (HRM)?
As per Storey (1995), HRM is a transparent way of workforce management, which tries to accomplish competitive advantage through the strategic deployment of an exceptionally dedicated and able workforce, employing a combined array of cultural, structural, and personnel techniques.
The functions of HRM are mainly planning, directing, managing, and organizing, comprising the entire Human resource management in an organization. Let us explore how the functions of the HR department carry a seamless way to deal with a different aspect of HR.
2. 15 Key Functions Of Human Resource Management
Human resource planningRecruitmentPerformance managementLearning & developmentCareer planningInformation sharingRewards & recognitionsCompensation & benefitsIndustrial relationsPolicy formulationHealth and safetyPersonal well-beingEmployee engagementComplianceAdministrative responsibilities
1) Human resource planning
The principal function of HR is to know the future needs of the company. What sort of individuals does the company need, and how many? Understanding this will shape the recruitment, determination, execution of the executives, learning & development, and all other functions of HRM.
The second function of HR includes recruiting people to work for the organization and selecting the best suitors. Recruiting individuals generally begins with an employer brand. Being an alluring employer has many advantages and vice versa. For instance, a tobacco business that battles to pull in talent because of its tainted reputation. With a reliable employer brand and the privilege of sourcing policies, you're almost halfway there. When candidates apply, the selection process is an HR’s instrument to pick the best qualified and most potential candidates.
3) Performance management
Performance management is essential in ensuring that workers stay productive and engaged. Good performance management includes sound leadership, clear goal-setting, and welcoming feedback. Performance management tools include the (bi)annual performance evaluation, in which their manager reviews the performance of the employee. It also incorporates 360-degree feedback tools in which peers, directors, subordinates, and even clients evaluate the employee's performance. Performance management is additionally an instrument to close the gap between the workforce you have today and the one you will need tomorrow. Probably the ideal approach to build your future workforce is through Learning & Development (L&D). Performance management is one of the vital functions of the HR department.
4) Learning & development
Empowering representatives to build the skills they require in the future is one of the fundamental functions of HRM. Every organization understands the value of investing in the reskilling of its employees. It is one of the vital functions of the HR department to lead these efforts in the right direction.
5) Career planning
One of the vital functions of HRM includes career planning, guidance, and growth for employees. Guiding employees about how their aspirations can align with the organization's objectives helps to engage and retain them.
6) Information sharing
One of the essential functions of human resource management is sharing information with employees; this can be through a newsletter to keep everyone up to date with the latest news. It likewise involves safety procedures, announcements of layoffs, mergers, or acquisition, or any other significant occasion applicable for employees. Clear, straightforward, and ideal information sharing is critical in building and keeping up help and successful organizational change.
7) Rewards & recognitions
Recognition & rewards, one of the many functions of HRM, is to appreciate employees’ efforts and to sustain notable talent. Rewards and recognition make employees feel worthy of their work as the appreciation serves as motivation. They can be financial or non-monetary rewards.
8) Compensation & benefits
This function of HR requires continual observation of industry pay benchmarks and keeping up with the industry standards, including new and variable payment parameters in salary, simple pay expectations, and faster processes. Money is the prime motivation that drives individuals to work. Nonetheless, to retain individuals, this function is very important.
9) Industrial relations
Another crucial function of HR is managing and cultivating relationships with labor unions, other forums, and their members.
10) Policy formulation
Policies are the backbone functions of Human Resource Management. An organization needs policies that are tried and tested as much as it needs policies that are more up to date and sensitive. A reasonable and well-defined policy framework structure covers all the minute aspects of a company and its operations. Policies can control activities like better participation, standardized methods, procedures & implementation, and proper communication, to name a few.
11) Health and safety
Devising and implementing health and safety regulations are one of the significant functions of HRM.
12) Personal well-being
Supporting and taking care of employees when they're having personal problems that affect their performance is a key function of HR. Emotional well-being is about helping employees when circumstances don't go as planned.
13) Employee engagement
Employee engagement, as one of the essential functions of human resource management, has gained much attention over recent years affecting employee turnover positively to a considerable extent. Furthermore, introducing exciting employee engagement initiatives can acquire new and brilliant talent in the company. Organizations are putting significant sums in employee engagement to convince employees that they matter.
As an HR professional, seeing that your organization is complying with labor laws is one of the crucial functions of HR. The HR management department understands these legal concerns and ensures that the employee and the organization are protected. Compliance comprises the estimation of leave, payroll legalization, govt. and tax reporting, etc.
15) Administrative responsibilities
One of the crucial functions of human resource management includes administrative responsibilities. Operations like relocations, further upskilling, promotions, illness, leaves, and many more come under this function.
The functions of HRM are not only limited up to these points but also includes activities and initiatives that run under them. An HR department is the core of any company, similar to the nervous system in the human body that oversees & controls everything. An organization with well-defined functions of human resource management is organized and has a long way to endear.
If you are aspiring to build a career in HR and workforce management, check our 3-month People Analytics & Digital HR program. The online-live instructor-led program is directed by IIM Indore in collaboration with Jigsaw Academy.
Selection Process in Human Resource Management: 9 Easy Steps to followEVP (Employee Value Proposition): A Basic Guide (2021)Upskilling: A Simple Guide In 5 Points
Apr 4, 2021