Human Resource Management: Functions, Importance and Skills

Many think human resource roles and responsibilities end in managing the company’s Workforce. While this is true, HR management’s range of activities goes beyond hiring, training, developing, compensating, and evaluating employees. In fact, human resource management functions like diversity programs, upholding workplace safety standards, and legal HR compliance form the backbone of a high-octane organization. 

Strategic human resource management develops a productive and profitable workforce with different policies and programs. It creates a winning work environment where everyone (from diverse backgrounds) is aligned with the company’s vision and objectives. Employees feel confident, secure, and skilled in their responsibilities because human resource management values and rewards their contributions. 

Want to know how human resource management contributes to organizational effectiveness? Then you have come to the right place. 

This article covers the functions of human resource management and the importance of human resource management in a workplace in detail. 

What Is Human Resource Management?

The HR department manages the most vital company asset – its employees. HR executives work with managers from different departments to bring, train, and retain top talents in the organization. They are concerned with extracting the best performance from the employees in a productive work culture. 

The human resource roles and responsibilities include 

• recruiting, guiding, and rewarding employees 
• administering human resource solutions,
• handling legal paperwork 
• aligning employee contribution with company goals. 
• Employee skill development 

They often use an HRM system to systematize all functions of human resource management, which we have discussed below.

Functions of Human Resource Management

Recruiting Ideal Talents

Onboarding necessary professionals for open positions in the organization is one of the core HR roles and responsibilities. 

HR executives prepare a strategic hiring framework to identify employees with qualifications and faculties that the organization needs. This includes –

• Preparing detailed job descriptions
• Posting job offers on necessary portals
• Tracking incoming applications
• Performance background evaluations 
• Contacting candidates 
• Setting-up interviews 

The HRM management team collaborates with concerned managers throughout the hiring process. They also handle the paperwork, provide resources, and undertake orientations to transition recruits into their designated roles.

Performance Management

Performance management is among the vital functions of human resource management which happens throughout the year. This strategic HR management process covers responsibility allocation, feedback transfer, and performance evaluation to ensure the timely accomplishment of business targets. 

During performance appraisals, the human resource management team employs sophisticated HRM tools to gather performance data from employees and managers. The HR management team adopts evaluation frameworks that align with the organization’s unique workforce setup. They use the evaluation findings to eliminate unconscious bias and reward deserving individuals.

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Compensation And Benefits

Rewarding employees with monetary and non-monetary benefits is one of the core objectives of human resource management. 

Employee salary, bonuses, and wages come under compensation while benefits include paid time off, insurance, health care, bonuses, gym facilities, flexible work timings, retirement plans, and other additional employment perks.

HRM management teams in every organization perform real-time market analysis to build competitive compensation and benefit plans that attract interest from talented employees.

Compliance

Important human resources roles and responsibilities include upholding internal and external policies. 

An HRM management team enforces in-house employment, operation, and safety standards. They maintain updated employee recruitment, promotion, transfer, and leave records and ensure people receive benefits and compensation stipulated in their contracts.

The HR Management team also safeguards the organization legally by complying with in-house operations to the latest labor regulations and policies.

Training And Development In Human Resource Management

Training recruits and finding ways to upskill existing employee capabilities is a strategic human resource management function. Like any other HR role and responsibilities, this involves planning and conducting training and development programs that align with the candidate’s job skills. These programs include counseling, coaching, and mentoring sessions. 

Employees gain vital practical skills and strong decision-making and leadership qualities, throughout the training and development process.

Employee Retention

Human resource management executives take various employee retention steps to keep their most prized employees in the organization. Making employees feel appreciated for their contributions is a strategic human resource management skill. This includes offering employees 

• monetary and non-monetary compensation 
• Job security assurance 
• Paid training for new skills
• Transparent communication 
• Stock ownership options 
• Vocal performance appreciation

Diversity Promotion

The HRM management is responsible for creating a welcoming office culture for employees of different races, sexual orientations, genders, ages, social backgrounds, etc. They do it, with human resources solutions like diversity training programs that promote workplace inclusivity. This ensures every employee feels respected and gets equal opportunities for progress. A company reputed for an inclusive workplace also attracts the best talents.

Succession Procedures

Succession planning is a strategic human resource management move by the HR representative to allow in-house employees to occupy senior positions within the organization. This involves recognizing employees with remarkable performance records and putting them through training programs that prepare them for new responsibilities. 

Succession planning by the HR management eliminates the need to hire new employees, by seamlessly transitioning capable internal talents, between job profiles.

Safety, Security And Health Policies

Safeguarding the safety, security , and health of company’s employees is one of the main functions of human resource management. It is a vast HRM responsibility that covers employees 

• legal agreements 
• workplace experiences
• disaster management 
• medical obligations 

A company  HR Management team plans and executes protocols, like –

• Live disaster management drills
• Behaviour inspections
• Safety standard inspections
• Periodical fitness sessions 
• Periodical medical checkups
• Social security audits

To create a healthy workforce, minimize office accidents, and prevent legal risks. 

It is coordination between law, health, safety, security, and wellness branches, which positively impacts the employees, families, vendors, company premises, neighborhood, etc. 

Human Resource Information System (HRIS)

HR management activities generate a lot of data from multiple sources which needs a centralized database for tracking and analysis. This requirement is fulfilled by the Human Resource Information System (HRIS).

HRM management team use HRIS to automate human resources roles and responsibilities like –

• employee recruitment, training, and development
• policy implementation
• law compliance
• Performance appraisal
• Payroll management 

Successful HRIS use by HR executives reduces time and human errors while bringing faster data collection and analytical capabilities to company decision-makers.

Importance Of Human Resource Management In An Organization

HRM Management Creates Positive and Productive Work Culture

Human resources roles and responsibilities like policy compliance, employee training, stress management compensation and benefits,  performance management, diversity programs, etc, create an inclusive work environment that rewards productivity. Employees get assurance of promising careers which motivates them to give their all to achieve the company’s objectives.

HR Management Manages Budget

Human resource management maintains competitive ssalaries bonuses, paid time-off, insurance, and other extended monetary benefit records, for every job profile. HR management prevents overspending of company budgets, while matching the financial benefits of similar job profiles in other organizations, by using real-time market insights.

In-House Reputation Branding by Human Resource Management

A major part of what human resource management does is responsible for the company image, which elements outside the organization see. A formidable HR management team develops an upstanding work culture that goes beyond the financial perks. Especially, since, new-age talents look at non-monetary benefits like mentorship, growth opportunities, and flexible work timings before submitting their applications, 

Human Resource Management Resolves Conflicts

Human resource management is the first to step in whenever employee disagreements arise. HR executives approach the problem with a judicious attitude. They listen to all parties and prioritize quick conflict resolution within their best judgment.

HR Management Oversees Changes

Changes happen in a company all the time, from the introduction of new technologies, changes in leadership hierarchy, and shifts in workplace culture to spontaneous disaster response and updates to the legal framework. 

During such instances, the Human Resources team spearheads changes with proper procedures, without hindering employee and company operations.

Top Human Resource Management Skills

Communication

Human resource professionals have incredible verbal and non-verbal communication skills as they spend considerable time interacting with people. Whether it is discussing strategies with department managers, briefing new policies to staff, negotiating contracts, or interviewing future recruits, HR executives set a clear conversation tone, free from misunderstanding.

HR professionals can also demystify non-verbal cues like facial expressions, tone changes, and body postures, to read people, which is needed when dissolving conflicts or interviewing employees.

Organization

Human resource executives have multiple responsibilities from talent acquisition, policy formulation, and regulation compliance to performance appraisals, timely managerial reports, disciplinary actions, and much more. All these involve extensive communication and paperwork, between departments and leadership levels, which needs exceptional organizational skills. 

Organization by the Human Resources department can go from setting timelines for specific task completion, maintaining information in physical and digital copies, and creating schedule calendars for upcoming events.

Technology-Savvy

Technology plays a crucial role in human resource management in a fast-paced digital economy. Most organizations need HR professionals who know their way around management and analytic technologies.

A company’s human resource management employs many tech solutions in their everyday operations, from PowerPoints, excel spreadsheets, and databases to recruitment software, performance tracking tools, payroll management systems, etc.

Data-Driven 

The HR management deals with data every day. They use data management software to collect and update employee information like joining dates, paid time-offs, performance indicators, wages, monetary benefits, medical benefits, etc. They either utilize this information for new management policies or compile it into easily understandable presentations for other department heads. 

Strong Ethics

Human resource management has access to sensitive employee information like contact details, salary, bonuses, offer letters, bank details, and much more. Hence, HR executives often collaborate with the IT department, to give an additional security layer to employee data. Their strong ethics compel them to keep this information away from foreign eyes.

HR Management also takes an unbiased attitude to conflicts and provides solutions that are free from favoritism. 

Conclusion

HR specialists manage the human assets of the organization. They are responsible for filling vacant job roles with skilled recruits.

HR management is part of an employee’s life from their hiring to exit. It is the HR department that posts job vacancies, evaluates potential candidates, sets up interviews, and offers initial orientation. They are responsible for giving employees a safe and inclusive workplace. Human resource keeps employees on track with the company’s vision and rewards their efforts with compensation and growth opportunities.

Basically, HR management hires develops, and retains motivated employees who contribute to the company’s success. It would not be wrong to say that Human resource management is an important cog that keeps all the gears of the company’s grand machinery moving, without compromising on productivity or profitability.

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