Functions and

Activities of
HRM
Prepared by:
Jakir Hussain K

Human Resource management is

the body of knowledge and a
set of practices that define
the nature of work and
regulate the employment
relationship. HRM is the
function within an organization
that focuses on recruitment,
management and providing
direction for the people who
work in the Organization.

Five Functional Areas:

3.1 Staffing

deals with obtaining people with

appropriate
skills,
abilities,
knowledge and experience to fill
jobs in the work organization.

JOB ANALYSIS > study and collection of

information relating to the operations and
responsibilities of a specific job.
- Collection of data, facts and ideas relating to
various aspects of jobs including men machine
and materials.
- Preparation of job description and employee
specification w/c help in identifying the nature
and levels of HR.
- Providing guides, plans and basis for job design
and for all operative function of HRM.

RECRUITMENT > process of searching

prospective employees and stimulating them to
apply jobs in an Organization
- Identification of existing sources of applicants
and developing them
- Creation of new sources of application
- Stimulating the candidates to apply for jobs in
an Organization.
- Striking a balance between internal and
external source.

3.2 Rewards
Involves the design and administration of
reward systems to encourage employee
cooperation and commitment. Practices
include job evaluation, performance
appraisal, and benefits.
Compensation- process which inspires
people to give their best to the Org. through
the intrinsic and extrinsic rewards.

 Training

> continues process in

learning skills for improving,
changing and developing skills,
knowledge creative ability,
aptitude, attitude and values of
an employee. The aim is to
improve the skills and
performance of the employee.

3.4

Employee Maintenance

Is the administration and

monitoring of workplace,
safety, health and welfare
policies to retain a competent
workforce and comply with
statutory standards and
regulations.

3. Identify areas that suffer lack of knowledge

and insufficient training, and accordingly
provide remedial measures in the form of
workshops and seminars.
4. Generate a rostrum for all employees to
express their goals and provide the necessary
resources to accomplish professional and
personal agendas, essentially in that order.
5. Innovate new operating practices to minimize
risk and generate an overall sense of belonging
and accountability.

6.

Recruiting the required workforce

and making provisions for
expressed and promised payroll and
benefits.
7. Implementing resource strategies
to subsequently create and sustain
competitive advantage.
8. Empowerment of the organization,
to successfully meet strategic
goals by managing staff effectively.

9. The human resource

department also maintains an
open demeanor to employee
grievances. Employees are free
to approach the human resource
team for any conceived query or
any form of on-the-job stress
that is bothering them.

11. Promotions, transfers or expulsion of

services provided by the employee are
some duties that are enforced by the
human resource department. Promotions
are conducted and are predominantly
based on the overall performance of the
individual, accompanied by the span or
tenure he has served the organization.

HRM activities
-Recruitment Management
-Workforce Planning
-Induction Management
-Training Management
-Performance Management
-Compensation & Benefits
-Attendance Management
-Leave Management
-Benefits Management

These activities may vary

from one workplace to another.
Large workplaces are more likely
to employ at least one
HRM/personnel. Large org. might
divide HRM activities among
several managers; one specialist
for recruitment and selection,
and one for employee trainings
and development.

HRM functions and

activities are the heart of the
organization. Getting the right
people to do the right job and
in the right places will go a
long way to ensure the overall
achievement of the goals of
the organization. Therefore,
the functions must be well
towards excellence.

1. Statutory Compliance
Meaning-:
Statutory means "of or related to statutes," or what we normally call laws or regulations. Compliance just means to comply with or adhere to. So statutory compliance means you
are following the laws on a given issue.
3. Provident Fund
PF and Miscellaneous Provisions Act, provides for compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early
death
It extends to the whole of India except the State of J&K
Every factory engaged in any industry specified in Schedule 1 in which
20 or more persons are employed
Every other establishment employing 20 or more persons or class of such establishments which the Central Govt. may notify and any other establishment so notified by the
Central Government even if employingless than 20 persons
PF is contributed from both the sides @12% of the basic salary. Contribution for the purpose of Employees' pension Scheme is8.33% of (12% of employers contribution towards
PF) or Rs.540/- whichever is less, will be transferred to Employees pension scheme and the balance amount will go towards Employee PF.
4. Employee State Insurance Act ESI
Was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing
10 or more persons and non-power using factories employing 20 or more persons All the employees in the factories or establishments to which the Act applies shall be insured
under this ActThe contribution comprise of employers contribution and employee's contribution at a specified rate
Contribution rate : 1.75% - employees 4.75% - employers The ceiling 10,000/- gross salary. After reaching the ceiling one will be exempted. (with effect from
1.10.2006)Employer is liable to contribute & deduct specified rate of amount and submitit to the Corporation within 21 days. Two contribution periods each of six months:
1st April to 30th Sept 1st Oct. to 31st MarchTwo corresponding benefit periods of six months :
1st January to 30th June 1st July to 31st December
5. Professional Tax
Professional tax or employment tax is a state-based tax. It is allowed as a
deduction from the gross income before computing the tax.
Duration of deduction is half year-1st day of April to 30th September1st day of October to the 31stMarch of a year.
PT is deducted slab wise-1 to 2500-nil2500 to 3500 -Rs 603501 to 5000 - Rs 1205001 to 10000- Rs 175
and above 10000 Rs 200 per month except Rs 300 in the month of February.
Each and every employee receiving pay from the revenue of the
Central Government or any State Government is entitled to pay profession tax.
Any organization whether incorporated or not, which is owned or controlled by the Central Government or any State Government is eligibleto pay PT
6. Gratuity
Gratuity is an amount given to employees by employerwhen they leave the job after completing five years orminimum 240 days per year or after retirement. The numberof year
may differ from company to company
Gratuity is payable under the payment of wages act.
Gratuity shall be payable to an employee on the termination
of his employment after he has rendered continuous service
for not less than five years.(a) on his superannuation, or(b) on his retirement or resignation, or(c) on his death or disablement due to accident or disease
Gratuity is calculated as Basic + DA divided by 26 * No of
years of service *15
7. The Minimum Wages Act 1948
(iii) Travelling allowance / Travelling concession(iv) Gratuity
The appropriate government may fix-:A minimum rate of wages for time work ("a minimum time rate").A minimum rates of wages for piece work ("a minimum piece rate").A
minimum rate of wages on a time work basis ("a guaranteed time rate")A minimum rate of overtime work done (a overtime rate")
Penalty:The inspectorate staff of the Labor Department takes action on complaints received
from workmen/Unions.
The penalty for violation of is fine of R.500/- or imprisonment up to a period of six
months or both.
If a worker gets less payment, he can also file a claim before the Competent Authority appointed under the Act, which are Deputy Labor Commissioners for the respective
districts.
The authority can impose penalty up to 10 times the difference in minimum wages that

2.
ESI
Provident Fund(EPFO)
Professional Tax
Gratuity
The Minimum Wages Act
The Maternity Benefit Act
The Payment Of Bonus Act
The Payment Of Wages Act