What is Human Resource Management (HRM)?

Human Resource Management can be defined as recruiting and hiring candidates as employees in an organisation, providing training and development, assessing and evaluating the performance of employees, deciding compensation and providing benefits, motivating employees, and maintaining proper relations with employees. In brief, HRMS is responsible for managing employees.
HRM is usually responsible for creating, putting into effect, and overseeing policies governing workers and the organisation’s relationship with its employees.

Role of Human Resource Management (HRM)

Human Resources management is responsible for overseeing the most important aspect of a successful business, i.e., a productive and hard-working workforce. It requires to consider employees as human assets and not costs to the organisation. A talented workforce, when strategically used, adds value to the organisation.

Supporting, Staffing, and Recruitment Efforts

This process involves the responsibility of the HRM to search for highly qualified candidates for a job opening from among a pool of talent. Staffing which refers to the process of approaching, employing, training, rewarding, and retaining the organisation’s employees, is a major role of the HRM. Building up communication and supporting the employees through communication is an essential aspect of HRM.

Development of Workplace Policies

Every organisation has policies to ensure fairness and continuity within the organisation. One of the roles of HRM is to develop workplace policies. In the development of policies, HRM is involved in the process. The HRM professional recognises the need for a policy or a change of policy, seeks opinions on the policy, writes the policy, and then communicates that policy to employees.

Determination of Compensation

Compensation is a tool used by management as the most appropriate compensation plan for any business. It should be reasonably viewed in terms of equity and fairness within the same organisation of similar jobs. It’s not an easy job, but it is essential because employee morale is at stake when the topic is compensation. HRM is responsible for developing pay scale and structure, keeping competitive pay rates current, ensuring that payroll complies with state laws, overseeing pay distribution to employees, working with managers to develop employee promotion and retention strategies, overseeing compensation and developing and monitoring a department budget.

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Retention of Employees

When an employee resigns, it is the responsibility of the HRM to know the root cause of the decision. HR must sit with the employee and discuss the various issues face to face, emphasising retaining the employees. They must try solving the problem because finding a fit candidate for a role is a tedious task. For this, they must conduct motivational activities at workplaces and motivate the top performers with incentive schemes.

Training and Development of Employees

Training and development is an essential responsibility of the HRM in any organisation. The aim of training in HRM is to improve the required skills of the employee, and the development objective is to improve the overall personality of the employee. When done regularly, it enhances employees’ skills and work quality.

Worker Protection and Awareness About the Laws Affecting Employment

Laws affecting employment helps in preventing employee dissatisfaction. This is done by outlining agreements and guidelines which can be used to resolve issues effectively, with minimal conflict. Organisations that treat employees justly and equally and appreciate them for their efforts are more likely to stay within the company. HRM, therefore, has the responsibility of overseeing if these laws are implemented and correctly followed. The HRM must create policies and procedures to maintain a safe, healthy workplace where the full scope of employment law protects employees.

Functions of Human Resource Management (HRM)

The functions of HRM are mainly planning, directing, managing, and organising, comprising the entire Human resource management in an organisation. Given below are certain functions of HRM.

Managerial Functions

  • Planning 

The primary function of HRM is to be aware of the company’s future needs, i.e., what kind of talent is required. Understanding the needs of the company helps shape the organisation’s hiring needs, planning job requirements, descriptions, and determining the sources of recruitment, among others.

  • Organising

After establishing and developing the plan, the HRM needs to create and design the organisation’s structure. It includes gathering the workforce and distributing them the planned work to achieve the organisational goals. The authority is delegated according to the roles and responsibilities and the task assigned.  

  • Staffing 

Staffing is another primary function of HRM. It involves employee recruitment, screening, and selecting the best candidate among a pool of talents. 

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  • Directing 

This function of HRM involves encouraging people to work efficiently to achieve the organisation’s goals. It entails guiding and motivating employees to accomplish personnel programs. To achieve this, the employee must identify the needs of the employees and the means to satisfy them. 

  • Controlling 

Controlling is one of the essential functions of HRM as it helps in evaluating and managing the department’s performance concerning different operative functions. It also involves appraisals, audits, statistics, etc. It is based on the objectives of the organisation and subsequently compares the results with the set standards.

Operative Functions

  • Procurement 

Procurement, a significant function of HRM, involves finding the most suitable person at the right time and an economical rate. Acquiring the right human resources is the responsibility of the HRM, and the quality and prestige of the organisation is dependant on this employee workforce. It deals with workforce requirements, recruitment, selection, induction, and placement.

  • Development

This operational process or HRM focuses on improving, changing skills, knowledge, aptitude, creative ability, values, aptitude, commitment, etc., based on the requirement of the organisations and job roles for both present and future. It also includes performance incentives, training, and development, promotion, organisational development, etc.

  • Compensation

Compensation is another function of HRM that determines the pay scale and other grants for the employees. The HRM needs to establish and maintain a proper pay system in any organisation.  

  • Maintenance

The maintenance function of HRM includes retaining efficient and skilled professionals in the organisations. It is necessary to ensure that the employee has occupational safety, a positive working environment, recreational activities, etc.

  • Motivation

To ensure that the employees continue to work efficiently, it is the role of the HRM to manage the performance system of employees and design incentives based on performance, extra working hours, etc. HRM should motivate the workers with both financial and non-financial incentives.

  • Integration

The integration function of HRM is the process of reconciling organisational goals. It is a combination of all the activities. It involves motivating employees through various incentives, providing satisfaction, handling employees grievances through formal grievance, etc.

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