Functions of Human Resource Management
Quality managers really discover how to master the five basic functions: planning, organizing, staffing, leading, controlling. And this step literally fits into other various departments of an organization. Human Resource like for example too follows the similar steps to execute their functions.
In this article, we will discuss managerial functions of human resource management i.e. planning, organizing, staffing, directing, coordinating, controlling in addition to reporting and budgeting in detail.
Define of Human Resource
The term “manpower” is highly associated with this definition of Human Resource. Manpower means the human power (workforce) present in an organization.
Human resources are the combined set of the people who together form the workforce of a particular organization. Hyman capital is embodied as a narrower concept merely meaning the knowledge possessed by the individual working, while Human Resource is a much-widened concept. Similar terms are manpower, labour, personnel, associates or simply people all are related to the term Human Resource.
A human-resources department of an organization functions with the Human Resource Management. The department checks various aspects of employment, such as working in compliance with the labour law and following the employment standards, taking care of the benefits of the employees and other aspects of recruitment and employee off boarding.
Define Human Resource Management
Human Resource management defines the process of recruiting, selecting, induction processing, orientation conducting, training and development process assuring, appraising the employees, deciding their pay scale, ensuring the safety of the employees, healthy relations with the employees, motivating the workforce, complying with all the standards, also maintain good terms with the trade unions are all included here in the definition.
Human Resource Management also involves the five basic management functions, further we sum up the role in the following points-
1. This involves procurement, development and all maintenance of human resource
2. HRM helps to achieve the individual, organizational and other social objectives
3. Human Resource Management is a multidisciplinary facet and thus includes the study of management, psychology.
4. The department also involves team spirit and teamwork.
5. HRM is a continuous process.
Functions of Human Resource Management
The functions of HRM are heavy role, the whole organization is somewhat dependent on this department as they connect with the workforce, the lifeblood of the business.
Recruitment and Selection
Recruitment is the process of inviting, screening, and selecting the required, potential and qualified candidates based on the job vacancy.
Orientation
Orientation is the fundamental step to guide a new employee to adjust himself to the work environment of the business. Here an employee is introduced with objectives and goals of the organization and how he can serve to achieve the long-term and short-term goals of the organization.
Maintaining Good Working Conditions
Human resource management provides good and healthy working conditions for the employee so that they are inclined to like the workplace and the environment.
Managing Employee Relations
Employees are the supporting pillars of any successful organization hence their relationship is a crucial function of human resource management.
Training and Development
Training always goes hand in hand with development, they are the indispensable functions of human resource management. They attempt to improve the current and future performance of an employee by enhancing their skills.
Importance of Human Resource Management
HR management bridges the gap between the employees’ performance and the organisation’s strategic objectives, whether long or short term. Human resource management contributes to the remarkable success of an organisation. Thus, human resource management has emerged as a popular course to study. The importance is summed down as under -
Strategy management development
Benefits analysis done
Training and development conducted
Interactivity within the employees
Conflict management
Establish a healthy work culture
Evolution of Human Resource Management
Human resource management was foremostly evolved for the Personnel management which was the former management system that was used to manage the working of the employees. Great psychologists on human behaviour and their receptive power were analyzed and experimented with by a famous psychologist Elton Mayo, he did many experiments on human behaviour in varied situations in the year 1924. His belief is based on work-life balance for improving the productivity of workers and this emphasis on human relations, that influences the productivity of the workers. He was regarded as the father of Human resources management.
Human Resource Management- Functions
Human resource management is the process of selecting, hiring and managing the employees of an organisation. It is abbreviated as HRM or is referred to as Human Resources or HR. The department of HR of an organisation or firm is responsible for creating and supervising the policies that govern the employees and also oversees the relationship of the firm with the workers working in the firm. The HR term was used for the first time in the 1900s. It became more widely used during the 1960s and was used to describe the workers of an organisation or firm. Human resources management emphasises the workers and the business. In this field, the workers are sometimes called human capital and are called the company’s assets. The aim is to make effective use of the workers, less risk and have maximum return on investment or ROI. A new term called human capital management or HCM has become more frequent in use currently. The HRM conducts orientation programs, has training and development of the employees, decides the pay scale or salary and also ensures the safety of the workers. They aim to build healthy relations between the company and its employees and also motivate the workforce.
They have 5 basic roles which are stated as follows:
Procuring, developing and maintaining the human resources
HRM aims to help the individual objectives as well the organisational objectives.
It is a multidisciplinary area and has the involvement of psychology and management studies.
This area of the company involves teamwork and motivation.
The area is a continuous process.
FAQs on Managerial Functions in Human Resource Management
1. What are the primary managerial functions of Human Resource Management (HRM)?
The primary managerial functions of Human Resource Management are the core activities that involve managing the workforce. These are based on the foundational principles of management and include:
- Planning: Forecasting future human resource needs and creating a strategy to meet them.
- Organising: Designing the structure of the organisation, defining roles, and establishing relationships between authority and responsibility.
- Directing: Guiding, motivating, and leading employees to achieve organisational goals.
- Controlling: Monitoring performance, comparing it with set standards, and taking corrective actions as needed.
2. What is the importance of these managerial functions in a business?
The managerial functions of HRM are crucial for a business's success and stability. Their importance lies in their ability to:
- Ensure the organisation has the right number and type of employees at the right time.
- Promote a positive work environment, leading to higher employee morale and motivation.
- Align workforce performance with the company's strategic objectives.
- Help in the optimal utilisation of human resources, which increases overall productivity and profitability.
- Ensure legal compliance and manage employee relations effectively, reducing conflicts and risks.
3. How is 'planning' applied as a managerial function in HRM?
In the context of HRM, the planning function, also known as Human Resource Planning (HRP), involves several key steps. It starts with analysing the organisation's objectives to forecast the future demand for and supply of employees. This includes activities like job analysis to determine the responsibilities and skills required for each role, and developing action plans for recruitment, selection, training, and promotion to fill future vacancies.
4. What does the 'organising' function of HRM involve?
The organising function in HRM involves establishing a structure for the efficient management of the workforce. This includes grouping tasks into specific jobs, creating departments, and defining a clear hierarchy of authority and reporting relationships. An HR manager organises the framework within which recruitment, training, compensation, and performance appraisal activities are carried out systematically.
5. How are 'directing' and 'controlling' executed in Human Resource Management?
Directing involves motivating and leading the workforce. An HR manager directs employees by implementing effective communication channels, fostering teamwork, providing leadership, and creating incentive programs to encourage high performance. Controlling involves monitoring and evaluating employee performance. This is done through performance appraisals, HR audits, and analysing metrics like absenteeism and turnover rates. If performance deviates from the standard, the controlling function ensures corrective actions, such as additional training or process improvements, are taken.
6. How do managerial functions differ from operative functions in HRM?
The two types of functions are distinct yet complementary. Managerial functions are strategic and involve planning and organising the framework for managing people. They are concerned with the 'thinking' aspect. In contrast, operative functions are the specific, day-to-day 'doing' activities required to execute the managerial plans.
- Managerial Functions: Planning, Organising, Directing, Controlling.
- Operative Functions: Recruitment & Selection, Training & Development, Compensation Management, Employee Relations, and Maintenance of records.
Essentially, managerial functions decide the 'what' and 'why', while operative functions handle the 'how'.
7. How does the effective execution of managerial functions in HRM contribute to achieving overall organisational goals?
Effective execution of managerial functions in HRM directly translates into organisational success. By planning for the right talent, the company ensures it has the skills needed for future growth. Through organising, it creates a clear structure where everyone knows their role, avoiding confusion and improving efficiency. By directing, it ensures the workforce is motivated and aligned with the company's vision. Finally, through controlling, it ensures that performance stays on track, allowing the company to meet its targets for productivity, innovation, and profitability.
8. Can you provide a real-world example of the 'controlling' function in HRM?
Certainly. Imagine a call centre sets a standard for its customer service executives to resolve 95% of customer queries within the first call. This is the standard. The HR manager then uses performance tracking software to measure the actual first-call resolution rate for each employee over a month. This is the measurement. If an employee's rate is only 80%, there is a deviation. The corrective action, which is the final step of controlling, could be to provide that employee with additional training on product knowledge or communication skills to help them meet the standard.
9. Why is 'Staffing' considered both a general management function and a specific HRM function?
Staffing is considered a general management function because every manager in an organisation is responsible for the staffing of their own department. For example, a Production Manager is responsible for hiring, training, and appraising the supervisors and workers under them. However, Staffing is also a specific, specialised HRM function because as organisations grow, a dedicated HR department is created to handle these activities on a larger, more formal scale, ensuring consistency, legal compliance, and efficiency across the entire company.
10. What is the relationship between Human Resource Management (HRM) and Human Capital Management (HCM)?
While often used interchangeably, there is a key philosophical difference. Human Resource Management (HRM) traditionally refers to the processes of managing people in an organisation, focusing on administrative functions like recruitment, compliance, and payroll. Human Capital Management (HCM) is a more modern and strategic approach that views employees as valuable 'capital' or assets. HCM focuses on acquiring, developing, and optimising the value of that talent through strategic investment in training and development to maximise the Return on Investment (ROI) for the organisation.
