Functions of Human Resource Management are very crucial in every organisation. The Function of HRM is extended throughout the organisation in each department. The function of HRM can be divided in 5 major heads namely managerial, developmental, strategy, analytical and operational. Let us discuss the functions in detail
- Managerial Function:
The basic function of HRM is to perform the managerial Functions required for the smooth run of the organisation. It includes the regular managerial role like any other department. The Managerial functions of HRM include:
Planning is one of the regular activities of every manager. Here the function of HRM is to plan the activities of HRM well in advance. The HR manager must plan right from acquiring best employee, give them proper training, engage them with the organisation and also plan to analyse their performance according to the organisational goal. The planning must be in such a way that what are the activities that need to be conducted, when it is to be conducted and how to conduct it.
HRM organises various activity in the organisation. In every important activity conducted by HRM is organised by HR department. The activities organises by HRM includes Recruitment and selection, Training and development, Welfare and recreational activities, Performance Appraisal etc.
HRM also acts as a controller in various aspects in the organisation. Controlling includes the monitoring that HRM does to keep a check on various activities planned and organised by HRM. It keeps on supervising that is the things are going well as per the plan. Whether the activities are been conducted is a fruitful way etc. This controlling will help to enhance the overall performance of the organisation.
d. Decision Making:
As the role of HRM is crucial in the organisation the person performing the role that is HR manager must be a capable person to take decisions in an effective way. While taking any decision the HR manager must keep in mind the situation, organisational practice, goals, result etc.
HRM acts as a bridge between the employees and management and among the departments also. As the role of HRM is extended and need to be performed in every part of organisation it requires coordination to a greatest possible level. HR must coordinate the activities of various departments in the organisation.
Innovativeness and novelty is a key to success in today’s competitive world. It implies even to the HR manager. HR needs to be innovative and creative to perform his duties in an effective way. He must also encourage the innovative and creative employees in the organisation.
- Operational Function:
Operational functions are the functions that are required to administrate the manpower in the organisation. These functions are also the basic functions as it is much important for the smooth running of the human resource department. The operational functions include:
a. Human Resource Planning:
HRP means planning for the human resource in the organisation. HR department analyse the present human resource available in the organisation and compare it with that of the future requirement. As per the difference HR department decides to recruit the required man power. The HR department plays a vital role by do the comparison keeping in mind the present organisation policy.
Compensation is the one more role played by HR department. As the compensation of the employees will be fixed by HR department in consultation with the management and considering the applicable legal rules as per the case. Compensation includes Wage, salary, allowances, bonus, PF, Gratuity etc. All the above said details need to be taken care by the HR department carefully
c. Employee Safety:
Employees safety is a major concern for each organisation especially with that of the manufacturing organisation. HR department takes care of this issue by practicing and implementing all the required safety policies and procedures in and off production. The HR department takes care of the health and safety part of the employees by following the government laid rules in concern with these matters. Safety and health concern considers Hazardous air, pollution, temperature, humid, noise, air flow, cleanliness etc.
Human Resources Information System is a modern role played by the HR department. HRIS means through this system the HR department can be able to collect record protect and produce the required information about the current and past employees of the organisation. Through this system the HR department can keep a watch and record all the activities involved by each individual in the organisation.
- Developmental Functions:
Developmental functions are the functions that are required to enhance the skill and knowledge of the employees. The development activities will be properly planned and executed by the employees properly. The development functions of the employees includes:
Human Resource Development is the activity conducted by the HR department to develop the employees in individual level. HRD includes career planning and succession planning which will benefit both the employees and organisation.
Training and development is the activity which is conducted regularly in the organisation. Some are need based and some are development based. The planning for T&D starts by the HR department in the starting of the year itself and the calendar for training will also be proposed by the HR department well in advance.
c. Performance Appraisal:
Performance appraisal is the process by which the HR department evaluate the performance of the employee and take appropriate steps to appraise the performance of the employees. Various methods are available to appraise the performance of the employee. The HR department will decide the appropriate method by considering various aspects.
Total quality management is one more concept which is followed by the HR department. This concept believes that quality is something which is not only to be practised in the products or the services of any organisation rather it is to be practised throughout the organisation. This can be practised by using various tools like kaizen, 5’s or quality circle.
- Analytical Function
Apart from other basic function HR also performs analytical function in the organisation. HR takes care of certain things in which complete analysis is required. The analytical function of HR includes:
a. HR research
A research on human resources both internally and externally will help the organisation to get more deserving candidates to the organisation. By having the research about the labour market will give a clear picture about the deserving and eligible employees for a given post in the organisation.
b. HR Audit:
Same like financial audit HR audit will also be conducted every year in the organisations. In this audit the HR department audit the skill set, knowledge, qualification of the employees. Training given, career planning options given, etc to individual employees will also be counted in HR Audit.
- Strategic Function:
In this competitive market condition HR department unlike being a separate department it needs to act as business partner to the management. The HR department must plan its activity in a strategic way. The strategic Function includes:
Strategic Human Resource Management is a function of hr department on which they plan the activities of the HR department in the purview of organisatioIn SHRM each and every activity of the HRM, there will be a strategy to achieve the organisational Goal.nal goal. SHRM acts as a link between the employees and the organisational goal.
Outsourcing is a modern practice which is organised by the HR department. In today’s scenario performing every activity in a cost effective way becomes mandatory. HR department uses the tool Outsourcing as a tool for cost effective. It practices outsourcing in two ways:
It outsource certain activity of the organisation which can be effectively done when outsourced. Eg. Housekeeping, Security guards etc..
It also outsource its employee to the client organisation to handle the projects of the clients. There are many successful organisation who earn profit through outsource its employee eg. Tata Technologies ltd., Infosys etc..
The above said are the functions that are performed by the HR department in the organisation. According to the size, product and practice of the organisation the role of HRM varies in the organisation.