The Functions Of Human Resource Management, What They Are And How To Perform Them

Human resources are essential to any business, and managing them requires a specialized set of skills. In this article, we’ll take a look at the different functions of human resource management, the duties associated with each role, and how to effectively manage your business’s human resources. Read on to learn more about the important role of HRM in today’s competitive world.


Human resource management is the process of managing people in organizations. In order to be effective, human resource managers must understand the functions of human resource management and how to perform them.

The functions of human resource management can be divided into three categories: strategic, operational, and administrative.

Strategic functions are those that contribute to the overall direction and strategy of the organization. They include workforce planning, talent management, and organizational development.

Operational functions are those that support the day-to-day operations of the organization. They include employee relations, benefits administration, and payroll.

Administrative functions are those that maintain the records and documentation for the organization. They include record keeping, benefits administration, and compliance with laws and regulations.

The Function of HRM:

The Human Resource Management (HRM) function within an organization is responsible for attracting, developing, and retaining employees. HRM’s main goal is to create a positive work environment that allows employees to be productive and engaged. To do this, HRM performs a variety of functions, which can be grouped into four main categories:

1. Recruitment and Selection: The HRM function is responsible for sourcing and recruiting talented employees that fit the organization’s culture and values. This includes conducting job interviews, reference checks, and creating offer letters.

2. Training and Development: Once an employee is hired, the HRM function provides training on the organization’s policies and procedures as well as job-specific skills. HRM also develops career paths for employees and provides opportunities for professional development.

3. Compensation and Benefits: The HRM function designs and administers compensation packages that are competitive and fair. This includes salary negotiations, performance bonuses, and company-sponsored benefits such as health insurance.

4. Employee Relations: The HRM function fosters positive relationships between employees and management through effective communication, conflict resolution, and team-building initiatives. This helps to create a work environment where employees feel valued and motivated to do their best work.

Human Resource Management Planning Process:

The human resources planning process is a key part of any organization’s strategy. It ensures that the right people are in the right roles at the right time to support the organization’s goals.

There are four steps in the HR planning process:

1. Assessing organizational needs: This step involves assessing the current and future needs of the organization in terms of human resources. This includes considering factors such as business growth plans, changes in technology, and shifts in market demand.

2. Developing a human resources plan: This step involves developing a plan that details how the organization will meet its human resources needs. The plan should consider both short-term and long-term needs and identify any risks or challenges that could impact its implementation.

3. Implementing the human resources plan: This step involves putting the human resources plan into action. This includes recruiting and hiring staff, onboarding new employees, and providing training and development opportunities.

4. Evaluating the human resources plan: This step involves evaluating the effectiveness of the human resources plan and making necessary adjustments. This helps to ensure that the organization is able to meet its current and future human resources needs effectively.

Functions of Human Resource Management in Recruitment:

A company’s recruitment process is the system it uses to identify, screen, and select job candidates. The goal of the recruitment process is to find and hire the best-qualified candidate for the job.

There are a number of different ways to go about conducting a recruitment process, but most companies use some combination of advertising, employee referrals, and third-party recruiters. The first step in any recruitment process is typically to identify the skills and qualifications that are required for the job. Once these have been established, the next step is to develop a plan for reaching out to potential candidates.

Advertising can be done through online job boards, print ads, or even television or radio commercials. Employee referrals are another common method of finding candidates; many companies offer referral bonuses to employees who refer someone who ends up being hired. Third-party recruiters are professional firms that specialize in finding candidates for specific types of jobs; they may charge a fee for their services.

Once potential candidates have been identified, the next step is usually to screen them through some combination of interviews, aptitude tests, and background checks. The goal of screening is to narrow down the pool of candidates to those who are most qualified for the job. After screening has been completed, the final step in the process is usually making an offer to the candidate who has been selected as the best fit for the position.

Functions of Human Resource Management in the Selection Process:

The human resources selection process is the series of steps an organization takes to identify, screen, and select the best candidates for open positions. The goal of the selection process is to find candidates who have the skills, experience, and qualifications necessary to perform the job successfully.

The first step in the selection process is to identify the qualifications and skills that are required for the position. The organization will then develop a job posting that includes these qualifications and skills. Once the job posting is created, it will be posted on the organization’s website and/or other job boards.

Candidates who meet the qualifications and skills required for the position will then be screened. The screening process typically includes a resume review and/or an initial phone interview. Candidates who pass the screening process will then be interviewed by members of the organization’s human resources team.

After all, interviews have been conducted, the organization will make a decision on which candidate is best suited for the position. An offer of employment may then be extended to the selected candidate.

Functions of Human Resource Management in the Development Process:

In order to achieve success, it is important for organizations to manage their human resources in an effective and efficient manner. There are a number of different functions that are carried out by the human resources department, which contribute to the overall management of employees within a company. The main functions of human resource management are as follows:

Recruitment and selection: This involves attracting, screening, and selecting suitable candidates for vacancies within an organization. It is important to ensure that the right people are recruited for the job in order to maximize productivity and minimize staff turnover.

Training and development: Once employees have been recruited, it is important to provide them with adequate training so that they can perform their roles effectively. This may include induction training, as well as ongoing development programs.

Performance management: This function includes setting objectives and targets for employees, assessing their performance against these targets, and providing feedback and support where necessary. It is important to manage employee performance effectively in order to ensure that they remain motivated and productive.

Employee relations: This function deals with managing the relationship between employers and employees, ensuring that both parties are happy with the arrangement. It can involve resolving disputes, negotiating contracts, and handling grievances.

Reward systems: This refers to designing and implementing systems that recognize and reward employees for their good performance. A well-designed reward system can help to motivate staff and improve retention rates.

Human Resource planning process infographic

Functions of Human Resources in Performance Management:

The performance management process is a continuous cycle that begins with setting objectives and ends with review and feedback. The process should be tailored to the needs of the individual and the organization and should be flexible enough to adapt to changing circumstances.

The first step in the performance management process is setting objectives. Objectives should be SMART: specific, measurable, achievable, relevant, and time-bound. They should also be aligned with the organization’s strategic goals. Once objectives have been set, it is important to establish a plan for how they will be achieved. This may involve developing new skills or knowledge, or redesigning processes or systems.

The next step is to monitor progress toward the objectives. This includes tracking metrics and milestones and providing regular feedback to employees. Feedback should be constructive and focus on what can be improved. If an objective is not being met, it may need to be revised.

The final step in the performance management process is review and assessment. This is typically done at regular intervals (e.g., quarterly or annually) and involves evaluating whether objectives were met and what could be done better in the future. It is important to involve employees in this step so that they can provide input on their own performance and development needs.

Reward Processes:

There are myriad ways to design a rewards program, but all should have certain key components. First, rewards should be linked to organizational goals and objectives. This ensures that the money being spent on rewards is actually furthering the company’s bottom line. Second, the program should be tailored to the company’s culture. What works at one company might not work at another, so it’s important to consider what will resonate with employees before designing a program. Third, programs should be flexible enough to change as the needs of the organization change. Finally, communication is critical for any successful rewards program. Employees need to understand how they can earn rewards and what those rewards will be.

With these factors in mind, let’s take a look at some common types of reward programs:

1. Bonuses: Bonuses are perhaps the most common type of reward given to employees. They are typically given out based on performance or reaching specific goals. For example, a company might give out bonuses quarterly to employees who meet or exceed sales targets.

2. Commission: Like bonuses, the commission is often linked to performance; however, the commission is typically given on a per-sale basis rather than being awarded periodically like bonuses are.

3. Salary increases: Another way to reward good performance is through salary increases. This can be done on an individual basis or across the board for everyone who meets certain criteria (e.g., everyone who achieves certain sales goals).


Human resource management is an integral part of any successful organization. By understanding the functions of human resource management and how to perform them, organizations can ensure that their employees are being managed effectively and efficiently. HRM plays a vital role in recruitment, training and development, performance management, rewards systems, labor relations, and other important processes within the organization. With proper implementation of these functions, it is possible for companies to achieve great success through improved productivity and employee satisfaction.

Author: Thamizharasu Gopalsamy
Author/ Reviewer: Thamizharasu is a renowned business coach committed to empowering entrepreneurs towards accelerated growth and success. His expertise spans business growth, sales, marketing, and human resource development. An avid reader and fitness enthusiast, he combines a holistic approach to personal well-being with professional growth. Thamizharasu aims to assist one million entrepreneurs in realizing their dreams faster than ever imagined. His insights blend innovative strategies with practical wisdom, making complex concepts accessible for business owners and aspiring entrepreneurs. Learn more about his journey and Reach him: [email protected]

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