Do you think hiring and onboarding employees is the only function of human resource management? If yes, then, you are not alone, the majority of people think that the job or function of a human resource manager is to create a job post and bring new people to the organization. However, the functions of human resource management do involve hiring and onboarding, but it doesn’t end there. Human resource management or HRM is a broad concept and is critical in enabling organizational goals and objectives. ?
Human resources play a critical part in the success of any business. Your organization could face talent shortages, unhappy employees, and other issues if you don’t have a solid human resource management strategy in place.
Organizations have become more employee-centric than ever before in this modern age, mainly because this approach pays off in terms of improved employee performance and decreased turnover rates. The functions of HRM are extremely important for an organization’s growth and overall success. However, before we can fully understand the functions of human resource management, we must first know more about what it is.
What Is Human Resource Management (HRM)?
According to Wikipedia, human resource management (HRM) is a strategic approach to efficiently managing employees in a company or organization. It helps employers in achieving their strategic goals by improving employee performance.
Simply put, the process of managing employees is called human resource management. The functions of human resource management intend to boost staff productivity and happiness while also helping the company meet its overall strategic objectives.
Organizations are now moving from traditional HRM to modern HRM, and therefore investing heavily in HR software. The HR software or Human Resource Management System (HRMS) automates all the repetitive, tedious tasks and reduces manual errors, and improves the efficiency of your HR department.
You can check out this blog that compiles a list of the top HR software in India to help you choose the right HR software for your organization.
Let’s now delve deeper into the top functions of human resource management.
What are the functions Of Human Resource Management?
This section will go through several important functions of Human Resource Management and their advantages. Let’s begin:
1. Recruitment as a Major Function of HRM
When it comes to hiring for over 15 jobs in a couple of weeks, recruitment is no easy task. Identifying, evaluating, conducting interviews, and following up with the candidates, among other things, require a significant amount of time and work.?
The HR manager’s job here isn’t only to fill up the open positions but to ensure retention in the organization. One of the most crucial HR duties is hiring top talent. Before starting the recruitment process, human resource duties include making suitable strategies and executing them so that no candidate or round is missed.
A specialized solution, such as applicant tracking system software, may make the recruitment process easier and more efficient.?
2. Employee Onboarding
Apart from recruiting people, one of the most crucial functions of human resource management is to introduce them to the company. This guarantees that newcomers feel at ease and quickly integrate into the company culture.
Employee onboarding and training are two critical HR responsibilities that determine whether or not an employee’s relationship with the organization will thrive.? Therefore, HR professionals must be prepared to offer a hassle-free onboarding experience to their employees.
If you wish to offer a seamless onboarding experience to your employees then go through this employee onboarding checklist.
3. Learning & Development HRM Function
Once new employees have been hired and are ready to work, they will require the appropriate skills. There are two approaches to training and development. Necessary training modules, such as sexual harassment training or cybersecurity training, are frequently referred to as employee training. All employees need this sort of training since they provide general details and protocols on how to behave professionally and ethically in the workplace.
The process of development is a little different. These initiatives aim to improve an employee’s current skill set and equip them to be more effective at work. Long-term development programs are also used by HR managers to promote internal talent including professional development opportunities and succession planning.
4. Compensation and Benefits
Identifying qualified candidates is only part of the battle when it comes to finding fresh talent. You may lose great employees to your competitors if you don’t offer a competitive pay and benefits package.
Therefore, offering competitive compensation and benefits is another major function of human resource management. HR managers keep an eye on the market, attempt to build attractive salary packages, and make sure that their employees have the finest benefits possible. This may seem insignificant, yet it affects every part of the employee experience, from recruiting fresh talent to retaining long-term employees.?
5. Performance Appraisals
One of the best ways to honor an employee’s hard work and loyalty is to reward them. ? Reviewing and rewarding employees is a good practice and one of the key duties of HR professionals. Regularly recognizing hard work and making sound decisions during performance appraisals leads to increased work performance. Today, organizations are relying heavily on performance management software or systems (PMS)that provide accurate performance reviews and feedback to employees.
Using a PMS, the feedback procedure for the performance appraisal process becomes simple, with an easy selection of reviewing groups such as managers, colleagues, clients, and others. Ensuring fairness and transparency in performance management is an important function of HRM.
6. Employee Engagement
Every HR department’s big game is employee engagement. They must keep employees engaged and satisfied with employee engagement initiatives and strategies. Employees are, after all, the foundation of any business. Managing employees effectively can result in increased productivity and lower employee turnover.
Employee engagement and management tools aid in the development of healthy workplace relations in the workplace. It also encourages a more pleasant working environment. Employee empowerment may be one of the most reliable and effective employee engagement strategies.
7. Payroll Management
It’s not easy to stay on top of statutory compliance and tax changes. Running payrolls manually without the aid of software is a recipe for penalties and costly mistakes.
Committing to payroll has become challenging for HR departments due to the ever-changing modifications and laws. Providing salaries while adhering to tax requirements and necessary deductions such as professional Tax, PF, LOP, and others makes it extremely difficult and error-prone to do it alone.
On the other hand, payroll management software makes it a piece of cake for the human resources and payroll departments. With a customized payroll solution, you can avoid errors and IRS penalties?
8. Corporate Policy
Human resource management, as stated previously, encompasses more than soft skills. The HR department of a firm is frequently tasked with developing and implementing corporate and HR policies. These policies can cover various topics, from the company dress code to defining acceptable workplace behavior.
Internal management initiatives like this are critical for ensuring that every employee knows what is expected of them. It also ensures that your company runs smoothly. It may not be the most attractive function of HRM, but it is highly significant.
9. Risk Management
Risk management is the final topic in our outline of functions of human resource management.
This is another professional role that requires a high level of hard skills. Before you make any decisions for your staff, you must understand the risks involved. This safeguards both your organization and your employees against potential legal penalties.
Everything you do must be risk-managed, whether it’s a new training program, a company team-building activity, or a new corporate policy. This safeguards your company against potential labor law infringement, corporate lawsuits, and even significant physical harm.
Importance of using functions of Human Resource Management:
There’s nothing HR doesn’t have a hand in. From being equipped in hard skills like legal expertise and accountancy to soft skills such as communication and problem-solving, it’s a job that covers the entire company and affects every department.
Your organization can prevent the following problems by neatly performing major functions of human resource management:?
- Hiring the wrong person for the job.
- Employee turnover and resignations.
- Employee disengagement.
- Disputes or litigation involving labor laws.
- Compliance issues
- Employees who are properly trained.
- Employees who are misbehaving or malicious.
As you can see from the list of responsibilities, the skills required for a position in human resources are extremely diverse. Human resource management specialists are an important part of your company’s overall structure because of their combination of hard and soft skills.
What are the objectives of Human Resource Management?
The organizational objectives of Human Resource Management will include:
1. Achieve Organizational Goals
The achievement of strategic goals specified by the employer is one of the main objectives of HR management. Workforce planning, recruitment, onboarding, training and development, payroll management, etc., are all HRM organizational objectives. Therefore, the HR managers must plan and execute them efficiently to succeed in their job and help the company grow. ?
2. Maintain Good Work Culture
Human resource management objectives are heavily influenced by workplace culture and employee engagement. A good HR management strategy for an advanced work environment includes automated HR activities such as cloud payroll, online timesheets, data management, etc. Employee accountability and satisfaction can help you build trust with your employees and improve your workplace culture as a whole.
3. Team Integration
The main objectives of HR management are team coordination and work integration within teams. The HR manager should ensure that departments communicate effectively. They must also make sure that employees have the resources they need to meet their goals. Successful team interaction allows for faster operations and accelerates the growth of your organization.
4. Training and Development
The training sessions given by HR have a significant impact on effective employee performance. Planning, scheduling, giving better training, and evaluating new hires may present challenges. Training management software can help you develop training modules, schedules, and reminders, among other things, to alleviate the pain. Automated training management ensures that your employees are well-prepared for their tasks.
5. Employee Motivation
Employee motivation is a key goal for HR managers to attain. Employees must be recognized and kept engaged throughout the process to motivate employees and keep them on track. Therefore, you must educate and empower your employees. Allow them to contribute to the organization and be a part of the planning process. Include them in weekly meetings and decision-making. Also, don’t forget to compliment them on their efforts and accomplishments. Employee performance management is one of the most effective ways to keep staff motivated and focused.
6. Employee Empowerment
The employee self-service portal (ESS) enables employees to request approvals and track them using their smartphones. HR intervention is no longer required for leave requests, pay slip generation, PF account monitoring, on-duty requests, upcoming holidays, manager details, or anything else.
7. Data and Compliance
Data compliance has long been a top priority for HR managers. Compliances and laws must be defined to assure proper employment and avoid penalties. A human resource management system can help with data management and payroll processing. It is critical to follow IRS regulations to maintain proper employment practices. On the other hand, Cloud HRMS solutions can assist you in avoiding arrears and fines by automating calculations.
What are the features of Human Resource Management?
Here are five unique features of Human Resource Management (HRM), along with a brief explanation for each:
1. Talent Acquisition and Management
HRM plays a vital role in attracting, selecting, and retaining the right talent for an organization. It involves designing effective recruitment strategies, conducting thorough candidate assessments, and implementing talent management programs to nurture and develop employees’ skills and competencies.
2. Employee Engagement and Motivation
HRM focuses on creating a positive work environment that fosters employee engagement and motivation. It involves implementing initiatives such as recognition programs, performance feedback systems, and employee development opportunities to enhance job satisfaction, productivity, and overall employee well-being.
3. HR Analytics and Data-Driven Decision Making
In today’s data-driven world, HRM leverages analytics to collect and analyze workforce data. By utilizing HR metrics and analytics, HRM professionals can make informed decisions regarding employee performance, turnover rates, training effectiveness, and organizational effectiveness, among other factors.
4. Change Management and Organizational Development
HRM helps organizations navigate change by supporting change management initiatives and facilitating organizational development. HRM professionals provide guidance on managing transitions, developing change communication strategies, and implementing training programs to ensure employees adapt successfully to organizational changes.
5. Compliance and Legal Responsibilities
HRM ensures organizations comply with labor laws, regulations, and ethical standards. HRM professionals are responsible for establishing and implementing policies and procedures that adhere to employment laws, promoting diversity and inclusion, and addressing workplace issues promptly and appropriately.
These five features showcase the diverse and critical role HRM plays in managing and developing an organization’s most valuable asset – its people.
The Bottom Line
Depending on the tools you choose, performing the functions of human resource management can be both simple and difficult. Human intervention in all aspects of human resource management can be crucial at times, as stated in the article. However, with technical breakthroughs, such as HR technology, HR professionals can easily conquer their battle with clunky HR administration.
Also Read: 7 Benefits of having HRMS on Cloud Technology
