Functions of HR

• The objective of this chapter is to:

• To discuss three important functions of HR.
• Make students aware of the micro and macro environment in
which HRM operates.
• To make them understand the one constant attribute of
today’s business life.
• To inform students how change impact on the various
aspects of work life.
Functions of HR
Human Resource Management functions can be classified in following three categories.

• Managerial Functions

• Operative Functions

• Advisory Functions

Managerial functions
1. Planning

Planning is necessary to determine the goals of the organization and lay down policies
and procedures to reach the goals.

It involves planning of human resources requirement, recruitment, selection, training

etc. It also involves forecasting of personnel needs, changing values attitude and
behavior of employees and their impact on organization.

2. Organizing

In an organization tasks are allocated among its members, relationships are identified,
and activities are integrated towards a common objective. Relationships are established
among the employees so that they can collectively contribute to the attainment of
organization goal.

3. Directing

The HR Manager can create plans, but implementing the plans smoothly depends on how
motivated the people are. The directing functions of HRM involve encouraging people to work
willingly and efficiently to achieve the goals of the organization.

In simpler words, the directing functions of HRM entail guiding and motivating people to
accomplish the personnel programs.

4. Controlling

Controlling is one of the important functions of HRM as it helps manager to evaluate and control
the performance of the department with respect to different operative functions.

The manager observes and subsequently compares the results with the set standards. Further,
he corrects any deviations that might occur.
 Operative Functions
The Operative Functions of Human Resource Management are as follows:

I. Recruitment and Selection:-

Hiring is a process which brings pool of prospective candidates who can help
organization achieve their goals and allows managements to select right candidates
from the given pool.

II. Job Analysis: It is the process of study and collection of information relating to
the operations and responsibilities of a specific job. Collection of data, information,
facts and ideas relating to various aspects of jobs including men, machines and
materials. Providing the guides, plans and basis for job design.

III. Performance Appraisal:

Checking and analyzing employee performance is another important function that

human resource management has to perform.

IV. Training and Development:

This function of human resource management helps the employees to acquire skills
and knowledge to perform their jobs effectively.

Training an development programs are organized for both new and existing
employees. Employees are prepared for higher level responsibilities through training
and development.
V. Wage and Salary Administration:

Human Resource Department also determines pays for different job types and
includes compensations, incentives, bonus, benefits etc. related with a job function.

VI. Employee Welfare - This function refers to various services, benefits, and facilities
that are provided to employees for their well being.

VII. Maintenance - Human resource is considered as asset for the organization.

Employee turnover is not considered good for the organization. Human resource
management always try to keep their best performing employees with the
organization.
VIII. Labor Relations: Labor relation is regards to the workforce who work within a trade
union. Employees in such domain form a union/group to voice their decisions
affectively to the higher management.
IX. Personal Research: Research is a vital part of human resource management. It is
performed to keep a check on employee opinion about wages, promotions, work
condition, welfare activities, leadership, employee satisfaction and other key issues.

X. Personal Record: This function involves recording, maintaining and retrieving

employee related information including employment history, work hours, earning
history etc.

Advisory Functions
Human Resource Management is expert in managing human resources and so can give
advice on matters related to human resources of the organization.

• Advised to Top Management

Personnel manager advises the top management in formulation and evaluation of

personnel programs, policies, and procedures

• Advised to Departmental Heads

Personnel manager advises the heads of various departments on matters such as

manpower planning, job analysis, job design, recruitment, selection, placement, training,
performance appraisal, etc.