Human resource management has become an essential part of every business today, especially in an economy where there is an abrupt increase in the service-based industry; human resource management has become an important feature for businesses everywhere, since it is the people who invariably drive a business. With this increase the importance of human resource management has not only amplified, but along with it, its functions have also grown in number. Though human resource management is prone to large organizations, where more employees are needed and monitored, however; it is also important for small organizations to adopt some of its characteristics, by making work policies, and manuals for employees, to ensure smooth working in the organization.
A common mistake made by people today is the difference between HRD (human resource development) and HRM (human resource management). It is necessary to understand that, HRD is a profession, whereas HRM is a process or a management activity. HRM focuses on managing the work force while HRD comprises a wider variety of activities to build up personnel inside an organization. For example, the development of careers, employee training and the development of the organization.
There are many functions of Human Resource Management; some of them are listed as follows.
1. Planning Manpower in the Organization
It is important for the human resource management of an organization, to determine the manpower needed, for the jobs that need to be done. This may seem easy, but it not as it may look. Many factors need to be taken into consideration while deciding on the number of people need to be hired. For example;
•Due to understaffing the business loses market share and specialization, considering the fact that there won’t be enough workers to complete orders, it will result in losing customers and profits.
•Overstaffing may result in, reducing the competitive competence of an organization. It is also wasteful and expensive for the company.
When planning staff levels the HRM department needs to analyze and assess the present and the future needs of the company and compare them with the present and future predicted resources. Employee details are to be taken into consideration, according to their work demographics and then adjusted to future predictive retirements, movements, promotions etc. suitable steps need to be taken to bring supply and demand of workforce into balance.
2. The Recruitment and Selection of Employees in an Organization
In this function the HRM recruits staff, based on the organizations needs and wants, during this, the HRM department needs to analyze the job that they are advertising for to better understand the kind of recruits they need to short list. This helps them to, determine what factors will be an advantage for the organization and what will prove to be as disadvantages. For instance, it would not be proper to short list a person with a degree in medical sciences for a business manager’s job, nor would it be accurate to hire a person who has an introvert personality trait for a supervisor’s job.
3. Motivating Employees
To maintain good staff, it is important to encourage them and motivate them in terms of rewards, either financial or psychological, for instance promotions with more responsibilities or just general appreciation for good work. If this reward system is made customary in the organization, it will empower workers to work harder and with more zest. Also, HRM should determine wage or salary packets, on fair and just basis, or else the employees will not be motivated.
4. Evaluating Employees
The HRM department is the one that constantly checks employee performance and behavior in the organization and evaluates it to determine the worth of the employee in that organization. So that they can give feedback to managers, who in turn will use that information to improve employee performance in the organization, identify the potential of some workers to refer them for promotions or appraisals or transfer them to other divisions where better use of their talent/experience can be taken. Also this is also important for performance appraisals done annually in organizations.
5. Industrial Relations
This function involves the HRM to help maintain good relations, between clients, employees, employers as well as with government agencies. Employees may include unions and representatives of the organizations etc. By marinating good relations between all these parties, it makes it easier for an organization to function more smoothly.
6. Provision of Employee’s Services
[large]In big organizations, it is important to pay attention to the mental and physical needs of the employees, since hiring and firing wastes time, resources and money, as new employees need to be trained according to the organizations customs. In order to keep good staff, there well-being needs to be taken into consideration, for instance, giving loans or counseling them when needed and making schemes for the benefit of employees, like, sick leaves and payments, medical and healthcare facilities etc.
In conclusion, it is important to understand, that human resource management functions vary according to the size, structure and the policy of organizations, it cannot be expected of every organization to have the same functions being performed by their human resource management, neither is it being implied that all these functions are of the utmost importance for an organization, they just make it easier for an organization to run smoothly, but in order to do that, for a large organization to perform all these functions, it would require them to have a big HRM team. However the above listed are just a few of the many functions that are performed by HRM everywhere.
Written By: Hannah Paul