What Are The Function Of Human Resources Management – People are essential to the success of any business. The performance of employees can be a liability or asset of a company. As an HR professional, you play an important role in how successful your company is. Good Human Resource Management (HRM) is essential for businesses of all sizes. In this article, we will break down the basics of Human Resource Management.

We will start with a brief description of HRM and HR. Then we’ll dive into seven HR basics you need to know to have a good understanding of what HR does. We will finish with some information in technical terms, such as HRIS (Human Resources Information System).

What Are The Function Of Human Resources Management

Let’s start with a brief definition. Human Resource Management, or HRM, is the practice of managing people to achieve better performance.

Functions Of Hrm Stock Illustration. Illustration Of Human

For example, when you’re hiring people for a business, you’re looking for people who fit the company culture because they’re happier, stay longer, and more productive than people who don’t fit the company culture. .

Another example is engagement. Engaged employees are more productive, provide higher quality work and make customers happier. This means that if we can find ways to make employees more engaged, we will help the company.

The HR department provides the knowledge, tools, training, legal advice, administration, and talent management, which are essential to the sustainability and development of a company.

This is the focus of Human Resource Management to optimize the performance of the company through better management of human resources. The next question is, who are these Human Resources?

Major Functions Of Human Resource Management Functions Structure Pdf

It might sound a little strange to call people ‘human resources’. Human Resources are all people who in one capacity or another work or contribute to an organization.

These people make up the workforce of a company. They can be regular employees, for example, but also contractors. Especially with the development of the gig economy, more and more people are starting to work for an organization on a contract basis without a traditional labor contract.

An independent contractor can be contracted for many years by the same organization, while an agency worker can work for 20 different companies throughout a year. Since these people are all involved in the company to a different extent, the way they manage and participate in the organization should also be different.

In this case, we are talking about the rise of robotization. Robots are increasingly involved in daily work and the interaction between man and machine is becoming increasingly important to organizational success. Although these machines are not considered ‘human resources’, there is a case to be made that they should be included in some way because they are part of the workforce.

Características De La Gestión De Recursos Humanos

Check out our Learning Bite to learn everything you need to know about the 7 fundamentals of HR Management!

When we talk about Human Resource Management, many elements are considered fundamental for effective HRM policies. These cornerstones are:

Recruitment and selection are the most visible elements of HR. We all remember our first interview, right?

Recruiting candidates and selecting the best to come and work for the company is an important responsibility of HR. People are the lifeblood of the organization and finding the best fit is an important task.

Functions Of Human Resources: How The Department Works

The request for new employees usually starts when a new job is created or an existing job opens. The direct manager then sends the job description to HR and HR starts recruiting candidates. In this process, HR can use various selection instruments to find the best person to do the job. This includes interviews, various assessments, reference checks, and other recruitment methods.

Sometimes, when there are many candidates, HR can deploy preselection tools. These tools help separate the wheat from the chaff when it comes to suitable candidates. Successful candidates will proceed to the next round, where they will be interviewed and receive a more in-depth assessment.

Once employees are on board, performance management becomes essential. Performance management is the second pillar of HR. This includes helping people be their best selves at work, improving the company’s bottom line.

Usually, employees have a specific set of responsibilities that they have to take care of. Performance management is a structure that enables employees to get feedback on their performance – to reach their best performance.

What Is The Harvard Model Of Hrm?

Examples are formal one-on-one performance reviews, 360-degree feedback instruments that also consider the evaluation of peers, clients, and other relationships, and more informal feedback. .

Typically, companies work on an annual performance management cycle, which includes planning, monitoring, reviewing, and rewarding employee performance. The result of this process can categorize employees into high vs. low performers and high vs. low potential.

Successful performance management is a shared responsibility between HR and management, where often the direct manager is the HR lead and support. Good performance management is essential. Employees who are empowered to their full potential, improve the efficiency, sustainability, and profit margin of a business. Employees who consistently underperform may not be a good fit for their role, or company culture. These employees may need to be let go.

People are the product of life experiences, the country and time in which they grew up, and a variety of cultural influences. Within HR, learning and development ensures that employees adapt to changes in processes, technology, and social or legal transitions.

Components Of Human Resource Management

Learning and development help employees reskill and upskill. Learning and Development (L&D) is led by HR and good policies go a long way in moving the organization towards its long-term goals. One of the HR trends for 2023 is to bring learning to daily work and help employees develop soft and hard skills that are consistent with the organization’s goals.

Many organizations have predetermined budgets for L&D efforts. This budget is then distributed among employees, with trainees, future leaders, and other high potentials often receiving more training opportunities than others. Individuals can come to a company with very different knowledge and experience. L&D gives employees a way to bridge skill gaps and become leaders. A well-known framework that connects performance management with L&D activities is the 9-Box grid. Based on people’s performance and potential ratings, the HR department, together with managers, can advise different development plans.

Succession planning is the process of planning for contingencies when key employees leave the company. If, for example, an important senior manager quits his job, preparing a replacement can guarantee continuity and save the company a lot of money.

Succession planning is often based on performance ratings and L&D efforts. This results in the creation of a pipeline of talent. This is a pool of candidates who are qualified and ready to fill (senior) positions when someone leaves. Building and nurturing this pipeline is the key to good people management.

Functions Of Human Resource Manangement

Another one of the fundamentals of HR is compensation and benefits. Fair compensation is key to motivating and retaining employees. One of the fundamentals of human resource management regarding salaries is to ensure equity and fairness.

Making the right compensation offer is an important part of attracting the best talent. It must balance the company’s budget and profit margins. HR should monitor salary increases, and set merit standards. HR may also conduct a salary audit from time to time.

The compensation consists of primary compensation and secondary compensation. Primary compensation includes direct cash payment for work, which is usually a monthly salary and sometimes performance-based pay.

Secondary benefits are all non-monetary rewards. This can include extra holidays, flexible working hours, day care, pensions, a company car and laptop, and more.

Operative Functions Of Hrm

The last two fundamentals of HR are not HR practices but tools to do HR better. The first is the Human Resource Information System, or HRIS. An HRIS supports all the basics we mentioned above. For example, for recruitment and selection, HR professionals often use an Applicant Tracking System, or ATS, to track applicants and hires.

For performance management, a performance management system is used to track individual goals and set performance ratings.

In L&D, a Learning Management System (LMS) is used for content distribution, and other HR systems are used to track budgets and approve training.

Compensation specialists often use a payroll system, and also have digital tools that enable effective succession planning.

Human Resource Management (hrm) Definition Meaning

All these functions are usually performed in one system – the HRIS. Sometimes, however, the management of these functions is divided into different HR systems.

The point here is that there is a significant digital element to HR work, so we must mention HRIS when talking about HR basics.

The last of the fundamentals of HR revolves around data and analytics. Over the last half decade, HR has taken a giant leap towards becoming more data-driven.

The Human Resource Information System we just discussed is a data entry system. The data in these systems can be used to make better and more informed decisions.

Enterprise Resource Planning (erp): Meaning, Components, And Examples

An easy way to track critical data is through HR metrics or HR KPIs. These are specific measurements that address how a company is performing on a given measurement. This is called HR reporting.

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