Q. What do you mean by Human Resource Management? Describe its functions.
Ans. MEANING OF HUMAN RESOURCE MANAGEMENT: Human Resource Management is that branch of management which is concerned with the recruitment, selection, development and the optimum use of the employees. It ensures that every employee makes his maximum contribution to the achievement of business goals.
For complete meaning refer:
FUNCTIONS OF HRM: HRM is concerned with managing resources to effectively and efficiently achieve objectives of the organisation. The major functions of human resource management are:
● (A) Managerial Functions: Human resource manager is supposed to perform basic managerial functions i.e. Planning, Organising, Staffing, Directing and Controlling in relation to his department. These functions are:
(1) Planning: Planning is the first and foremost function of every manager. It is the most essential function for the success of the organisation. Planning implies preparing a blueprint of future programs to achieve the organisation goal. A good plan is necessary for proper utilization of human and physical resources to achieve organisational objectives.
Human resource planning is one of the most important functions of HR manger. He has to constantly monitor human resource requirements according to the changing needs of the organisation, anticipate vacancies, anticipate demand and supply of work force for various job categories in the market, determine shortage and surplus of personnels, and develop plan to eliminate shortage of staff and separation plan of the surplus staff. He should determime human resource policies and programs. Besides, human resource planning, human resource research has also become a specialized function of HR department. Recruitment, selection, promotion, transfer, absenteeism, labour turnover etc. are subject of human resource research.
(2) Organising: Every organisation has three important constituents — Work which is to be done, Employees by whom it should be done, and Physical resources which are to be used to get it done. Organising therefore refers to establishing proper relationship among work, employees and physical resources. Need of Organising is felt to achieve desired goals. Process of organising involves the following stages– determination of activities, grouping of activities and assignment of these activities to individuals, delegation of authority and fixation of responsibility. HR department and other departments in the organisation have complex relationship. HR manger provides them proper consultancy services in respect of administration of the employees.
(3) Staffing: Success or failure of an organisation depends on the capability of the workforce working in the organisation. If an organisation lacks suitable and capable employees, it cannot achieve its goals. By way of staffing process, suitable and competent persons are employed at different levels of organisation’s structure. Staffing proces includes the following three aspects:
(a) To forecast the need of human resources.
(b) To determine the qualifications of the persons to be selected.
(c) To recruit and select the employees and to impart training to them.
Thus, staffing function includes forecasting of human resource planning, recruitment of employees, selection, trainimg and development.
(4) Directing: To motivate and lead the employees in order to achieve the goals of the organisation is called directing. The main components of this process are:
(a) To direct and command subordinates.
(b) To guide and educate the subordinates.
(c) To supervise the work of the subordinates so as to ensure that everything is going on as per the plan.
(d) To encourage the subordinates to achieve higher productivity.
In an organisation, HR manager performs the function of providing leadership, guiding, supervising and inspiring the workforce. Directing is essential to attain the goals of the organization and to secure the willing and effective co-operation of the employees. Under this function, besides securing the co-operation of the employees, good industrial and human relations are also established. HR manger should make proper coordination among managers of the different departments in the organisation.
(5) Controlling: Final function of a manager is controlling. Under this function, manager ensures whether the work is executed in accordance with the pre-determined plan, or not. Actual work being done is compared with pre-determined standards or work. Deviations are traced and remedial measures are taken. Controlling is an important activity in the field of human resource management whether or not HR policies, objectives and programs are being enforced strictly according to pre-determined plan. If not, shortcomings are looked into and corrective actions are taken to remove the same. This is what is implied under human resource controlling. HR management determines job standards for employees at different levels. Actual work done by them is compared with pre-determined standards. Shortcomings are enquired into and suggestions are given to remove them. Auditing of human resource development programs, analysis of employees turnover records, directing of morale survey, interviewing new employees on schedule date, and comparing organisation’s human resource management programs with the programs of other organizations etc. are used as a means of controlling.
● (B) Operative Functions: These are also called service functions or staff functions. HR manger is required to have special knowledge of human relations. In this category, main functions of HR manger are:
(1) Procurement of Employees: It is the duty of HR manger to provide for adequate number of employees. It is on the basis of this that manpower forecasting is made and manpower planning is undertaken. Manpower planning is a process on the basis of which the quantity and quality of personnel required are determined and employees requisition prepared accordingly. Manager can proceed ahead to initiate the process of recruitment and selection. Recruitment refers to looking for the prospective employees for the organisation and to motivate them to apply for the vacant posts. It aims at increasing the selection ratio for each job. Selection is a negative process. Under this process, applications of the job-seekers are scrutinized, then the best among the suitable candidates are selected.
Placement of newly selected employees in the organisation and giving them full information about the policies, programmes, objectives of the organisation and also about other employees etc. are the functions performed by the HR manager.
(2) Development of Personnel: After selection of the employees, there remains a special need for training and development so that they may perform their jobs in a better way. HR manager makes necessary arrangement for training and development of employees of all the departments. In this category of development, following functions are covered:
(a) Performance Appraisal: HR manager makes provisions for the performance appraisal of the employees. On its basis, he decides who deserves promotion, who needs training, who are to be transferred. He also takes decision regarding promotion of competent employees and punishment for incompetent one.
(b) Training: It is a short-term process. It concerns with adding to the knowledge and skill of non-managerial employees so as to enable them to perform specific functions efficiently. On the basis of work performance, it is found out so as to which employees need training. Accordingly, proper training programmes are conducted and the end-result of different training programmes are assessed.
(c) Development: It is a long-term process. Theoretical knowledge is imparted to the managers to enable them to achieve the objectives of the organisation. It includes fixation of work standards, comparing actual work with standard work, finding areas of managerial development, explaining development programmes, knowing the effect of different managerial development works, making provisions of educational facilities, holding of seminars and symposiums etc. All these help to develop human resources.
(3) Compensation Function: HR manager makes adequate provisions for adequate wages and salary for the workers and employees serving the organisation. It includes job evaluation, wage and salary survey, determination of wage rate, determination of mode of wage payment, incentive payment plans, bonus, benefits and services etc.
(4) Integration: Besides activities to work, the employees must also have willingness to work. Willingness to work is influenced by the extent to which interests of the management have been integrated with the interests of the employees. In case, the interests and objectives of the employees are not served, then the goals of the organisation cannot be achieved. Integration of interests of management and that of the employees is the main function of HR manager.
(5) Maintenance functions: Another important function of HR manager is to maintain the employees in the organisation. HR manager is required to obtain the best employees and having obtained them, it must look after them in such a way that they would like to stay in the organisation and accomplish their work in the best possible manner.
(6) Separation Functions: If the primary function of HR manager is to procure the services of human resources, its final function is to separate them. The latter function is opposite to the former or primary function. It include the following:
(a) Retirement
(b) lay-off
(c) Termination
(d) Discharge
(e) Suspension.
(7) Career Planning and Development: HR manager plans to one’s career and implementation of careers plan by means of education, training, jobs search and acquisition of work experiences. It includes internal and external mobility.
(8) Organisation Development: OD is an organisation’s well planned effort, managed from the top, with a goal of increasing organisational performance through planned interventions. It helps to change attitudes, values, organisation structures and managerial practices in an effort to improve organisational performance.
So, the main functions of HR manager is to develop a human resources philosophy in the entire organisation. He also influences personnel policies by providing the necessary inputs to the top management. He also plans and design new HR methods. He also inspires the line managers who are primarily responsible for the implementation of HR methods provided to them by the HR department.
