Chapter – 2

HRM Functions
 FAQs
• Explain different HR functions.
• Explain operative HR functions.
• Explain HR managerial functions.

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 FUNCTIONS OF HRM
• MANAGERIAL FUNCTIONS :

Managerial

Planning Organizing Staffing Directing Controlling

 FUNCTIONS OF HRM
MANAGERIAL FUNCTIONS :
• Planning : personnel manager is expected to determine the personnel
programme regarding recruitment, selection and training of
employees.
• Organizing : is concerned with proper grouping of personnel
activities, assigning different group of activities to different
individuals and delegation of authority.
• Staffing : It is filling the position with qualified people and keeping
it filled . Recruiting hiring training evaluating transferring are the
specific activity of this function.
• Directing : it involves supervising and guiding the personnel.
Personnel manager must be an effective leader who can create
winning teams taking into consideration the expectation of
employees at different level.
• Controlling : it comprises of measuring the employees performance
providing them feedback on their performance weaving path for
their further development.
• OPERATIVE FUNCTIONS :
2. HR Development
• Performance Appraisal: Performance Appraisal is the systematic
evaluation of the performance of employees and to understand the
abilities of a person for further growth and development.
• Training : is a continuous process by which employees learn skills,
knowledge to achieve further individual as well as organizational
goals.
• Executive development: process of developing managerial skills and
capabilities through appropriate programs.
• Career planning and development: it is concerned with the task of
planning employees career plans by the means of education, training
etc.
• Human resource development: it aims at development of total
organization. It creates working environment where employees are
required to update their knowledge at regular interval of time to
attain organization as well as individual goals.
3. Compensation
• Job Evaluation: is the process of analyzing and assessing various
jobs systematically to ascertain their relative worth in an
organization.
• Wage & Salary administration : Salary and wage administration is
the process of compensating an organization's employees in
accordance with accepted policy and procedures
• Incentive: A monetary gift provided to an employee based
on performance, which is thought of as one way to entice the
employee to continue delivering positive results. Incentive pay may
come in the form of a bonus, profit-sharing, or commission.
• Bonus : Bonus pay is compensation over and above the amount of
pay specified as a base salaryor hourly rate of pay.
• Fringe Benefits: Fringe benefits are forms of compensation you
provide to employees outside of a stated wage or salary. Common
examples of fringe benefits include medical and dental insurance,
use of a company car, housing allowance, educational
assistance, vacation pay, sick pay, meals and employee discounts.
4. Employee Relations
The term 'employee relations' refers to a company's
efforts to manage relationships between employers and
employees. An organization with a good employee
relations program provides fair and consistent
treatment to all employees so they will be committed to
their jobs and loyal to the company. Such programs
also aim to prevent and resolve problems arising from
situations at work.
Integration function
1. Grievance redressal
2. Discipline
3. Teams and teamwork
4. Collective bargaining
5. Employee participation and
empowerment
6. Trade unions and employees
association
7. Industrial relation
Emerging issues
1.Personal records
2. Human resource audit
3. Human resource research
4. Human resource
accounting
5. Human resource
information
system
6. Stress and counseling
7. International human
resource
management
• Integration function:
• Grievance redressal : it is concern with addressing problems
related to wages, hours or condition and of employment. It
focuses on sorting issues between trade union and
management.
• Discipline : it abides the employees to follow rules and
regulation set by organization to monitor and control the
activities of workforce.
• Team and team work: it focuses creating teams, groups in
the organization and coordinate their activities towards
organization task accomplishment.
• Collective bargaining: it take place in organization to get
collective consent of management as well as employees on
certain terms and conditions. Agreement is mostly based on
issues related to wages, hours of work, promotion etc.
• Employee participation and empowerment: refers decentralized
system of decision making in the organization. It enhances
employees performance as employees get feeling of belonging
towards organization.
• Trade unions and employees association: it is an association of
employees or employers. It is permanent body working in the
organization to protect interest of employees in company.
• Industrial relations : it main object is to maintain harmony
between employees and management.
• Emerging issues:
• Personal records : refers to maintaining records of various
events that take place in organization. Maintained data will
serve as reference for future use.
• Human resource audit: refers to examination and evaluation of
policies, procedures and practices to determine the
effectiveness of HRM in company.
• Human resource research: evaluating the effectiveness of
existing HR policies.
• Human resource accounting: measurement of cost and value of
human resource to the organization.
• Human resource information system: it is designed to maintain
HR information as serves as reference to top management to
obtain employee detail.
• International human resource management: it give an brief
overview global competition in differences in organizational
environment across nations.
 Sources
Rao, V.S.P., Human Resource Management: Text and
cases, Excel Books, New Delhi.
Aswathappa, K., Human Resource Management, Tata
McGraw-Hill, New Delhi.
http://www.whatishumanresource.com/Human-Resource-
Management-functions

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THANK YOU