What are the Functions of Human Resource Management (HRM)?

Human Resource Management or HRM is the planning, organizing, directing and controlling of procurement, development, compensations, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished – Flippo. It involves management of employees from recruitment to retirement

Managerial Functions

1. Planning
   • Identification of number and types of people needed for the organization.
   • Information is collected and analysed to identify current and future human resource needs and to forecast changing values, attitude and behaviour of employees and their impact on organization.
2.  Organising
   • Tasks are allocated, relationships are identified and activities are integrated towards a common objective. 
   • Relationships are established among the workforce so that they can collectively contribute to the attainment of organisational goals. 
3. Directing
   • Activating employees at different levels and making them contribute maximum to the organisation is possible through proper direction and motivation. 
   • Taping the maximum potential. 
4.  Controlling
   • Actual performance of employees is checked, verified and compared with the plans.
   • For deviations, control measures are to be taken. 

Operative Functions:

1. Procurement
   • Most challenging task.
   • A lot of elements go into this function – developing a job description, publishing the job posting, sourcing the prospective candidates, interviewing, salary negotiations and making the job offer. 
2. Development
   • Attempt to improve the current and future performance of an employee by increasing the ability of an employee through educating and increasing one’s skills or knowledge in the particular subject.
   • Employees are prepared for higher levels of responsibilities through training and development.  
3.  Compensation
   • Determination of adequate remuneration of the employees.
   • Includes: salary, incentives, bonuses, other benefits etc. 
4. Integration
   • Reconciling the goals of the organization with those of the employees.
   • Involves motivating employees through various financial and non-financial incentives, job satisfaction, handling grievances through formal unbiased procedures, collective bargaining, workers participation in management, conflict resolution, developing sound human relations, counseling, improving quality of worklife etc.
   • Aims at ensuring good relations between the management and the employees. 
5. Maintenance – working conditions and welfare
   • To keep the best performing employees with the organisation.
   • Providing good working conditions so that employees like the work, get motivated and improve/maintain efficiency. 
   • Measures taken for health, safety and comfort at the workplace. 
   • Other measures for physical and social well being – cafeteria, restrooms, counseling, health insurance, education for children of employees, recreational facilities etc. 
6. Separation
   • Separation and return of that person to the society in good shape. 
   • Release of retirement/separation benefits.

Advisory Functions

1. Advice to top management
   • Formulation and evaluation of personnel programs, policies and procedures.
2.  Advice to departmental heads
   • Manpower planning, job analysis, job design, recruitment, selection, placement, training, performance appraisal etc.