Definition and Functions of HRM

Definition of Human Resource Management

Human resource management is the art of planning , organizing , directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resource to the end that individual, organizational and social objectives are accomplished.”__According to Flippo

It can be defined as a strategic approach to acquiring, developing, managing, motivating and gaining the commitment of the organisation’s key resource – the people who work in and for it.__According to b.
HRM is a process of hiring, motivating, and maintaining workforce in an organisation. Human resource management deals with issues related to employees such as hiring, training, development, compensation, motivation, communication, and administration. Human resource management ensures satisfaction of employees and maximum contribution of employees to the achievement of organisational objectives.

Functions of Human Resource Management

HRM functions can be classified in following three categories.
  • Managerial Functions
  • Operative Functions
  • Advisory Functions

Human Resource Management functions

1. Managerial Functions

1. Planning – In this function of HRM, the number and type of employees needed to accomplish organisational goals is determined. Research is an important part of this function, 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 organisation.

2. Organizing – In an organisation tasks are allocated among its members, relationships are identified, and activities are integrated towards a common objective. Relationships are established among the employees so that they can collectively contribute to the attainment of organisation goal.

3. Directing – Activating employees at different level and making them contribute maximum to the organisation is possible through proper direction and motivation. Taping the maximum potentialities of the employees is possible through motivation and command.

4.  Controlling – After planning, organizing, and directing, the actual performance of employees is checked, verified, and compared with the plans. If the actual performance is found deviated from the plan, control measures are required to be taken.

2. Operative Functions

1. Recruitment and Selection – Recruitment of candidates is the function preceding the selection, which brings the pool of prospective candidates for the organisation so that the management can select the right candidate from this pool.

2. Job Analysis and Design – Job analysis is the process of describing the nature of a job and specifying the human requirements like qualification, skills, and work experience to perform that job. Job design aims at outlining and organizing tasks, duties, and responsibilities into a single unit of work for the achievement of  certain objectives.
3. Performance Appraisal – Human resource professionals are required to perform this function to ensure that the performance of employee is at acceptable level.

4Training and Development – This function of human resource management helps the employees to acquire skills and knowledge to perform their jobs effectively. Training an development programs are organised for both new and existing employees. Employees are prepared for higher level responsibilities through training and development.

5. Wage and Salary Administration – Human resource management determines what is to be paid for different type of jobs. Human resource management decides employees compensation which includes –  wage administration, salary administration, incentives, bonuses, fringe benefits, and etc,.

6. Employee Welfare – This function refers to various services, benefits, and facilities that are provided to employees for their well being.

7. Maintenance – Human resource is considered as asset for the organisation. Employee turnover is not considered good for the organisation. Human resource management always try to keep their best performing employees with the organisation.

8. Labour Relations – This function refers to the interaction of human resource management with employees who are represented by a trade union. Employees comes together and forms an union to obtain more voice in decisions affecting wage, benefits, working condition, etc,.

3. Advisory Functions

1. Advised to Top Management -Personnel manager advises the top management in formulation and evaluation of personnel programs, policies, and procedures.

2. Advised to Departmental Heads – Personnel manager advises the the heads of various departments on matters such as manpower planning, job analysis, job design, recruitment, selection, placement, training, performance appraisal, etc.