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Managerial Functions of Human Resource Management

Last updated date: 23rd Apr 2024
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Functions of Human Resource Management

Quality managers really discover how to master the five basic functions: planning, organizing, staffing, leading, controlling. And this step literally fits into other various departments of an organization. Human Resource like for example too follows the similar steps to execute their functions.    

In this article, we will discuss managerial functions of human resource management i.e. planning, organizing, staffing, directing, coordinating, controlling in addition to reporting and budgeting in detail.


Define of Human Resource

The term “manpower” is highly associated with this definition of Human Resource. Manpower means the human power (workforce) present in an organization. 


Human resources are the combined set of the people who together form the workforce of a particular organization. Hyman capital is embodied as a narrower concept merely meaning the knowledge possessed by the individual working, while Human Resource is a much-widened concept. Similar terms are manpower, labour, personnel, associates or simply people all are related to the term Human Resource. 


A human-resources department of an organization functions with the Human Resource Management. The department checks various aspects of employment, such as working in compliance with the labour law and following the employment standards, taking care of the benefits of the employees and other aspects of recruitment and employee off boarding.


Define Human Resource Management

Human Resource management defines the process of recruiting, selecting, induction processing, orientation conducting, training and development process assuring, appraising the employees, deciding their pay scale, ensuring the safety of the employees, healthy relations with the employees, motivating the workforce, complying with all the standards, also maintain good terms with the trade unions are all included here in the definition.


Human Resource Management also involves the five basic management functions, further we sum up the role in the following points- 

1.  This involves procurement, development and all maintenance of human resource

2.    HRM helps to achieve the individual, organizational and other social objectives

3. Human Resource Management is a multidisciplinary facet and thus includes the study of management, psychology.

4.    The department also involves team spirit and teamwork.

5.    HRM is a continuous process.

Functions of Human Resource Management

The functions of HRM are heavy role, the whole organization is somewhat dependent on this department as they connect with the workforce, the lifeblood of the business. 

  1. Recruitment and Selection

Recruitment is the process of inviting, screening, and selecting the required, potential and qualified candidates based on the job vacancy.  

  1. Orientation

Orientation is the fundamental step to guide a new employee to adjust himself to the work environment of the business. Here an employee is introduced with objectives and goals of the organization and how he can serve to achieve the long-term and short-term goals of the organization.

  1. Maintaining Good Working Conditions

Human resource management provides good and healthy working conditions for the employee so that they are inclined to like the workplace and the environment. 

  1. Managing Employee Relations

Employees are the supporting pillars of any successful organization hence their relationship is a crucial function of human resource management. 

  1. Training and Development

Training always goes hand in hand with development, they are the indispensable functions of human resource management. They attempt to improve the current and future performance of an employee by enhancing their skills.

Importance of Human Resource Management 

HR management bridges the gap between the employees’ performance and the organisation’s strategic objectives, whether long or short term. Human resource management contributes to the remarkable success of an organisation. Thus, human resource management has emerged as a popular course to study. The importance is summed down as under -

  • Strategy management development

  • Benefits analysis done

  • Training and development conducted

  • Interactivity within the employees

  • Conflict management

  • Establish a healthy work culture

Evolution of Human Resource Management

Human resource management was foremostly evolved for the Personnel management which was the former management system that was used to manage the working of the employees. Great psychologists on human behaviour and their receptive power were analyzed and experimented with by a famous psychologist Elton Mayo, he did many experiments on human behaviour in varied situations in the year 1924. His belief is based on work-life balance for improving the productivity of workers and this emphasis on human relations, that influences the productivity of the workers. He was regarded as the father of Human resources management.

Human Resource Management- Functions

Human resource management is the process of selecting, hiring and managing the employees of an organisation. It is abbreviated as HRM or is referred to as Human Resources or HR. The department of HR of an organisation or firm is responsible for creating and supervising the policies that govern the employees and also oversees the relationship of the firm with the workers working in the firm. The HR term was used for the first time in the 1900s. It became more widely used during the 1960s and was used to describe the workers of an organisation or firm. Human resources management emphasises the workers and the business. In this field, the workers are sometimes called human capital and are called the company’s assets. The aim is to make effective use of the workers, less risk and have maximum return on investment or ROI. A new term called human capital management or HCM has become more frequent in use currently. The HRM conducts orientation programs, has training and development of the employees, decides the pay scale or salary and also ensures the safety of the workers. They aim to build healthy relations between the company and its employees and also motivate the workforce.

They have 5 basic roles which are stated as follows:

  1. Procuring, developing and maintaining the human resources

  2. HRM aims to help the individual objectives as well the organisational objectives.

  3. It is a multidisciplinary area and has the involvement of psychology and management studies.

  4. This area of the company involves teamwork and motivation.

  5. The area is a continuous process.

FAQs on Managerial Functions of Human Resource Management

1. Who is an HR in a Company?

Human resources (HR) is the manager of a business who is in charge of finding, screening, recruiting, and training the job applicants, he also administers the employee-benefit programs.

2. Why is HR Needed?

HR develops and fosters an engaged workforce. From hiring activities to identifying the right people for each role, he selects the employees. HR collaborates and communicates the HR department which supports employee morale and welfare.  They are born in the mind of the employees to develop a deeper commitment to the company and its goals.

3. What is Human Capital?

Human Capital refers to the skills, presence of knowledge, and experience owned by an individual or population, and these inputs are valued in terms of cost to an organization or a country.

4. What is the importance of Human Resource or Human Resource Management?

HRM is one of the most important parts of the company or firm. This part aims to work for the organisation’s goals. The HR managers help in the recruitment of new professionals who are skilled and can help in achieving the goals of the company and also help in the training and development of the current workers to meet the company’s objectives. HRM is important for the management, maintenance and improvement of the business. Furthermore, HR can monitor the job market to see the competition and keep the company updated.

5.  How does Human Resource Management work?

HRM works with the help of Human Resources Professionals who work on the functions that are required for HR. HR comprises a whole department in the company or organisation. It may vary in size, nature of the positions and structure. For smaller companies, there aren’t many HR generalists and there is only a narrow range of HR functions. However, in larger organisations, there are more specialized roles and more individuals assigned to different positions such as pay scale, recruitment, immigration, management of talent and so on.

6. What are the objectives of Human Resource Management?

The objectives of the HRM can be broadly divided into 4 parts. They are as follows:

  1. Societal: These objectives are in response to the ethical and social needs or methods of the company and the workers. This can include legal issues like equal salary for equal work or equal opportunities.

  2. Organisational: These objectives help to achieve the goals of the organisation and increase its efficiency. This can be things like training, hiring professionals for a task and maintaining a higher retention rate of employees.

  3. Functional: These are the objectives or guidelines which are required for the proper functioning of the HR department of a company or firm.

  4. Personal: These are the objectives or resources required for an employee’s personal goals. This can be an offering for education or a career development program.  

7. What are the responsibilities of HR?

The areas where the HR oversees are:

  • Recruitment of employees

  • Management of talent and the workforce

  • Assignment of job role

  • Career development

  • Overseeing the pay scale  and benefits

  • Management of performance

  • Providing training to the employees

  • Team building

Skills that add value to the HRM are as follows:

  • Relations with employees

  • Recruitment and sourcing

  • Interpersonal relations and conflict management

  • HR software and experience

  • Management of performance

  • Customer services

  • Management of project

8. What is HR software?

The HRM department has sophisticated software which automates various degrees of the processes related to HR and also provides analytics. This can be explained with an example. When a job candidate is recruited, it has seen massive growth in the number of software platforms and systems that are helpful for job seekers and employers to match organisations and candidates electronically with each other. This also helps manage interviews, hiring and employment of potential employees. An HRM software system starts on premises in all areas of HR tech, especially in the HCM systems.