Human Resource Management

10 Functions of Human Resource Management

By on December 23, 2022

The functions of human resource management (HRM) teams range from HR planning to recruitment to workplace safety, training, learning and development initiatives, compensation, compliance with labor laws, enabling healthy managerial relations, and more. HR management enables employees and organizations to reach their full potential and brings teams and individuals closer to their targets. 

What is human resource management?

Human resource planning or management (HRM) is managing and directing an organization’s human resources, including recruiting, hiring, training, and developing employees and working on employee relations, performance, and compensation. HRM is concerned with maximizing the productivity and effectiveness of an organization’s employees to achieve its goals and objectives. Human resource management is critical for businesses to attract and retain top talent, align employee goals with business objectives, and create a positive and productive work environment.

10 Key Functions of Human Resource Management

Evaluation of human resource management functions involves many activities. Here are some critical human resource management functions:

Key Functions of Human Resource Management

1. Human resource planning

Is forecasting an organization’s future workforce needs and identifying strategies to meet those needs. It involves analyzing the current workforce, identifying gaps in skills and expertise, and developing plans to acquire or develop the necessary skills and talent. It helps organizations to align their workforce with their strategic goals and objectives and ensure they have the right people in the right roles to perform the right task at the right time. The planning process also reveals the strengths and weaknesses of the available human resources and improves planning based on upcoming requirements. .

2. Job analysis and design

Aims to define the characteristics of the work by collecting information about the organization’s functions. This process involves gathering and analyzing information about the job and the skills, knowledge, and abilities required to perform it effectively. The resulting job description and specifications are used to recruit, hire, and train employees and to evaluate their performance. Job analysis and design is an integral part of human resource planning and management, as it helps ensure that the right people are in the right roles and have the necessary skills and knowledge to perform their jobs effectively.

3. Recruitment and selection

Includes identifying, attracting, and selecting individuals for employment within the organization. The recruitment process involves advertising job vacancies, attracting potential candidates, and shortlisting applicants for further consideration. It consists of evaluating and assessing shortlisted candidates’ qualifications, skills, and experience to determine the most suitable candidate for the job. This process is critical to ensuring that organizations have the right people in the right roles and can support the achievement of their strategic goals and objectives, like:

  • Increasing qualified applications for jobs in the organization
  • Improving existing employee retention
  • Reducing training costs
  • Employing an optimal number of employees at a fair cost

4. Training management

In human resources involves identifying the training needs of employees, developing and delivering relevant training programs, and assessing the effectiveness of those programs in terms of improved performance and productivity. Training management is critical to ensuring that employees have the necessary skills and knowledge to perform their roles effectively and to support the achievement of organizational goals and objectives. This process also reveals information that can help managers lead their teams better by stepping in when necessary and coaching employees at relevant times.

5. Career development

Is supported by the human resource department which involves providing employees with the tools, resources, and opportunities to grow and advance in their careers. This can include providing access to training and education programs, mentorship and coaching, and support to employees pursuing career advancement opportunities. Career development support helps employees develop their skills and expertise and can help organizations retain top talent, and supports the achievement of their strategic goals and objectives.

6. Performance management

Evaluates and measures the output of employees in an organization and involves setting performance standards and expectations. HR teams should enable feedback sessions, develop coaching sessions, and conduct regular performance evaluations to assess whether employees are meeting or exceeding standards. Performance management is critical to ensuring that employees are aligned with the goals and objectives of the organization and that they are held accountable for their work. It can also help identify improvement opportunities and provide employees with the support they need to succeed in their roles.

7. General administration services

For human resource executives mean tasks and support services like maintaining employee records, processing payroll and benefits, managing employee training and development programs, and coordinating employee events and activities. HR general administration services help to ensure that employees have the support and resources they need to perform their jobs effectively and help to streamline and manage HR processes and activities within the organization. Using tools that can provide reliable and up-to-date data while making the management process dynamic.

8. Wage and salary administration

Involves developing, implementing policies & practices that determine and manage the wages and salaries of employees within the organization. This can include conducting salary surveys to determine market rates for different roles, developing pay scales and salary ranges, and implementing performance-based pay systems. Wage and salary administration is a critical component of human resource management. It helps ensure that employees are paid fair and competitive wages and that the organization’s compensation practices align with its strategic goals and objectives. Keeping a pulse on recent trends is also essential, as employees prefer ancillary benefits like working from home, increased PTO, or childcare concessions to straight pay raises.

9. Labor law compliance

Is critical to ensure that organizations operate fairly and ethically and avoid legal penalties and sanctions. Labor law compliance ensures that the organization’s policies, practices, and procedures are by relevant laws and regulations of the country or state where the organization operates. This can include the minimum wage, working hours, overtime pay, health and safety, and employee rights. With the advent of remote and hybrid work, the onus is on HR teams to ensure that their employee rights are covered even in places the company is not located.

10. Social development

Involves initiatives and programs designed to support employees’ overall well-being and social welfare. This can include providing access to mental health and wellness resources, supporting employees facing personal or financial challenges, and promoting a positive work-life balance. Social development programs can create a positive and supportive work environment, help organizations retain top talent, and support the achievement of their strategic goals and objectives.


HR policies and practices can create a positive work environment and improve employee satisfaction. This can lead to higher employee engagement, motivation, and commitment. Organizations can see enhanced productivity and performance, too. They promote increased flexibility and adaptability by enabling a diverse and inclusive workforce to work together in response to changing business needs and challenges. Human resource management also leads to better compliance with employment laws and regulations and improves organizational effectiveness and competitiveness. They align the workforce with strategic goals and objectives and support the achievement of business goals.

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