Functions Of Human Resources Management In An Organization – HR performs many important functions in an organization. These include recruiting, performance management, training and development, and more. There are a total of 12 key functions of human resource management.

If we want to understand the functions of HR department, we need to understand what human resource management (HRM) is.

Functions Of Human Resources Management In An Organization

According to Storey (1995), human resource management is a specific approach to employment management that aims to achieve competitive advantage through the strategic deployment of a committed and capable workforce using an integrated set of cultural, structural and personnel practices.

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In this article, we’ll look at 12 HR functions and explain how they help move an organization forward. These functions:

The first function of HR is related to knowing the future needs of the organization. What kind of people does the organization need and how many? Knowing this will guide recruitment, selection, performance management, training and development, and all other HR functions.

In short, human resource planning is a continuous, data-driven process to ensure that an organization has the right people in the right place at the right time to achieve its strategic goals.

Attracting people usually starts with an employer brand. In fact, companies with a great employer brand receive 50% more qualified candidates. Obviously, being an attractive employer has many benefits – and vice versa. A good example of the latter is the tobacco industry, which struggles to attract talent due to its damaged reputation.

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With a strong employer brand and the right sourcing strategy in place, you’re already halfway there. Once candidates have applied, the selection process becomes a human resources management tool to select the most qualified and most promising candidates. It is vital to build an effective recruitment process as poor recruitment can cause productivity to drop by up to 36%.

Technological developments in the recruitment industry are moving at a rapid pace and as a result, there are different types of recruitment tools for each part of the recruitment funnel. 3. Performance management

Performance management is essential to ensuring employees remain productive and engaged. Good performance management involves strong leadership, clear goal setting and open feedback.

While (bi)annual performance reviews, in which a manager evaluates an employee, are still common, 69% of HR professionals believe that performance management will become more frequent and include natural conversations in the near future.

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360-degree feedback is also gaining popularity as a performance management tool. This type of feedback allows peers, managers, subordinates, and sometimes even clients to evaluate the employee’s performance, which can be very helpful in identifying areas of potential improvement.

Performance management is also a tool for bridging the gap between the workforce you have today and the one you want tomorrow, helping employees develop skills and competencies that are ready for the future. 4. Training and development

Providing employees with the opportunity to develop the skills they need in the future is an important HR responsibility. This is also related to the first function of HR that we have listed, human resource planning, in which HR bridges the gap between the workforce of today and the workforce required in the near future.

Traditionally, organizations have a specific budget for training and development. This budget is then distributed among his employees. In some countries these expenses are mandatory. For example, companies with an annual payroll of more than £3 million in the UK pay a mandatory rate of 0.5%, intended for the vocational training of their employees.

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In other countries, such as Belgium and the Netherlands, the responsibility for caring for its employees lies with the employer. In the third group of countries, such as the United States, this is a virtually unregulated territory.

Despite differences in regulations, almost all employers understand the value of investing in the (future) skills of their employees. It is the HR department’s job to steer these efforts in the right direction. Moreover, HR is playing an increasingly important role in upskilling leaders and managers, which is also one of the key HR trends for 2023.

According to Janice Burns, chief human resources officer at Degreed, while organizations must balance economic factors and prioritize based on value creation opportunities, investing in employee skills is essential to retaining and ultimately maintaining value for the organization.

“Creating a space where employees can develop their skills not only provides holistic benefits, but also meets human needs. Employees, now more than ever, are looking for ways to improve their professional futures. Employers who provide training and development resources to develop skills create an atmosphere of motivation and invest in their employees, giving them opportunities for future endeavors,” Burns explained. 5. Career planning

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The fifth function of human resource management is career planning, guidance and development of employees, which together is also called career development.

Showing employees how their ambitions can fit into the future of the company helps attract and retain them. For the organization, this provides the benefits of better succession planning, higher productivity and a stronger employer brand.

“Organizations often prefer to find talent internally, promoting existing employees whenever possible,” said Ben Schwenke, a business psychologist at Test Partnership.

“However, this approach only works when your staff have the opportunity to progress through their careers by demonstrating the required abilities, skills and knowledge. By considering likely career trajectories, HR professionals can ensure that their employees are well prepared for career growth, eliminating the need to source talent externally,” Schwenke said.

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Functional evaluation is a technical aspect of HR. It involves comparing different parts of the overall work of the HR department. This may include the quality and availability of workers, location of the job, working hours, economic situation, job responsibilities and how much value the job adds to your organization. The idea behind job evaluation is that similar jobs should be rewarded equally.

Functional assessment helps HR ensure the company’s success both at a strategic level and in service delivery and support. In this way, the company can provide the required level of service while acting strategically.

Rewarding employees for their work is another important function of HR. Compensation and benefits are an integral part of attracting the right candidate to the job and the company. These will vary across different areas, countries and cultures. In some countries, such as the US, health insurance is often part of a job offer. However, in countries like the UK, where the public health system provides the majority of medical care, this is not as common.

The overall reward system shows that rewards are more than just money and other monetary benefits. They can also be relational and psychological outcomes.

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Rewards include salary as well as opportunities for growth and advancement, status, recognition, good organizational culture and a satisfactory work-life balance. For example, great colleagues and meaningful work also reward employees. The monetary reward for a job consists of financial rewards and other (secondary) benefits.

An employee value proposition (EVP) summarizes all these aspects. The executive vice president of your company is different from the external image and brand. This is the image that a company creates among its employees. Thus, reward is more than just financial. Here is a partial overview of the overall awards:

75% of organizations expect compensation to become more complex in the near future, and only 53% are fairly or very confident in their overall compensation package. HR and compensation and benefits teams will have to develop an overall compensation strategy that works for their employees and the business.

All functions 1 to 7 fall under the scope of so-called talent management; they aim to attract, develop, motivate and retain (high-performing) employees. 8. Industrial relations

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Another function of HR is maintaining and developing relations with trade unions and other groups and their members.

Unionization is still widespread in Europe, although it is generally declining. The most recent data shows that 92.2% of employees in Iceland were union members, and 67% of employees in Denmark. However, in the UK and Estonia they were only 23.5% and 6% of employees respectively. In the US, union membership is low: 10.1% are union members.

Maintaining good relationships with unions will help quickly identify and resolve potential conflicts, and will also be useful in more difficult economic times when layoffs or other actions are required. 9. Employee participation and communication

According to Dave Ulrich, one of HR’s key roles is to be a trusted advocate for employees. Employees need to be informed and heard on various topics that concern them. Communication is about disseminating information that is relevant to employees.

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Being an advocate for people is one of the four core HR competencies that we at the company have identified for the future of HR professionals. Advocacy involves building culture, working with people, and being a workplace advocate and communications expert.

Linda Schaffer, Checkr’s director of human resources and operations, emphasizes the importance of HR’s communications function.

HR plays an important role in creating and implementing health and safety regulations. Making these rules part of the company culture is one of the core functions of HR.

A well-known example is the energy and petrochemical company Shell, where it is forbidden to walk on stairs without holding on to the railing – also at the company’s headquarters. This is part of Shell’s Goal Zero.

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