STUDY MODULE 2

The Importance of Human Resource Management

Contents:
Study Session 2.1: Functions of Human Resource Management in an Organisation
Study Session 2.2: Role of HRM in achieving Corporation Objectives

Study Session 2.1

Functions of Human Resource Management
Section and Subsection Headings:

Introduction
1.0 Learning Outcomes
2.0 Main Content
2.1 Job Analysis and Job Design
2.2 Recruitment and Selection
2.3 Training and Development
2.4 Performance Management
2.5 Compensation and benefits
2.6 Employee Relations
2.7 HR Planning and Forecasting
2.8 Employee Engagement and Retention
2.9 Workplace health and safety
3.0 Study Session Summary and Conclusion.
4.0 Self-Assessment Questions.
5.0 Additional Activities (Videos, Animations & Out of Class activities).
6.0 References/Further Readings.

Introduction
In any organization, the success and growth depend heavily on its human resources. The functions
of Human Resource Management (HRM) play a pivotal role in managing an organisation’s most
valuable asset: its people. HRM encompasses a wide range of responsibilities that are essential for
attracting, developing, and retaining a talented and motivated workforce. In this discussion, we
will delve into the key functions of HRM, exploring how they contribute to organizational success,
employee well-being, and the overall dynamics of the modern workplace.

From recruitment and training to performance management and strategic alignment, HRM
functions are at the heart of effective people management in today’s dynamic business
environment.

1.0 Learning Outcomes

After studying this session, I expect you to be able to:

1. Discuss Job Analysis and Job Design
2. Explain Recruitment and Selection.
3. Discuss Training and Development
4. Explain Performance Management
5. Explain Compensation and benefits
6. Explain HR Planning and Forecasting
7. Discuss Employee Engagement and Retention.
8. Explain Workplace health and safety

2.0 Main Content

2.1 Job Analysis and Job Design

One of HRM’s main function is to deal with job analysis and design aspect. Job analysis is the
process of examining a job to identify its component tasks and skills requirement. It is a
systematic process of gathering and analyzing information about a job to develop a
comprehensive understanding of the tasks, duties, and responsibilities it entails.
Job design, on the other hand, is the process of structuring and organizing work to ensure its
efficient and effective completion. Job design incorporates job analysis results to create new
jobs in a way that meets the organisation’s objectives. Job design involves several aspects.
Some of them are describing duties to employees, taking them through the responsibilities, and
of course, educating them about the operations of the job. The aim of job design is to match
workers’ skills, abilities, and interests to the tasks and responsibilities of the job.
2.2 Recruitment and Selection

This involves attracting and selecting the right people to fill the organisation’s role. It’s
essential to find people who have the skills and abilities that the organization needs, and who
will be a good fit for the company culture. Once people are hired, it’s important to onboard
them properly, so they can start contributing to the organization as quickly as possible.
I think recruitment and selection is often underestimated as a function of HRM, but it’s really
critical to the success of the organization. The right people can make all the difference in terms
of productivity and innovation. It’s also worth mentioning that recruitment is not just about
filing open positions. It’s also about succession planning and building a talent pipeline for the
future. Without effective recruitment and selection, the organization can be at a competitive
disadvantage.
2.3 Training and Development

This involves providing employees with the skills and knowledge they need to do their jobs
effectively. It’s also about developing the organization’s talent for the future. By investing in
the employee’s development, organisations can ensure that they have the right people in the
right place for the future.
Training is not just one-time thing. It’s an ongoing process that should be part of the
organisation’s overall strategy. It’s important to assess employees’ skills and competencies
regularly and to provide them with opportunities to grow and develop. This can be done
through formal training programs, on-the-job training, or mentoring.

Career planning is an important aspect of training and development. This is about helping
employees to map out their career paths within the organization. It’s important to help
employees identify their goals and to provide them with the resources they need to achieve
those goals. When employees feel like they have a future with the organization, they’re more
likely to be engaged and productive.

2.3 Performance Management

This involves setting clear goals and expectations for employees, measuring their performance,
and providing feedback and coaching. It’s important to make sure that performance
management is a two-way process, with both employees and managers contributing to the
process. If you hire the right people but how do you ensure if those right people are performing
the right way? Performance Management is the answer to this question. It is important to
identify the top performers and reward them accordingly. Also, insights into performance
management can help to identify the strengths and weaknesses of your team. This information
can help improve your overall performance.

2.4 Compensation and Benefits

This involves designing and implementing compensation and benefit programs that are fair,
competitive, and aligned with the organization’s goals. It’s also important to communicate
these programs to employees and to ensure that they are understood and appreciated.

Compensation and benefits are often seen as purely transactional, but they can also be a
powerful way to engage and motivate employees. They can also help employees feel like they
are being fairly compensated for their work and that the organization cares about their well-
being. By offering competitive compensation and benefits, organisations can make it less
likely that employees will leave for a higher salary elsewhere. They can also make it more
likely that employees will recommend the organization to others as a great place to work.
When employees feel appreciated and valued, they are more likely to be loyal to the
organization and to stay for a long term. Some of the best benefits that you can offer your
employee include salary advances, insurance, personal loans, investment options etc.

2.5 Employee Relations.

This involves building and maintaining positive relationships between employees and the
organization. This can involve a variety of activities, such as resolving workplace conflict,
promoting employee well-being, and managing change. It is also important for HR to be able
 to communicate effectively with the employees and address any concerns they may have. This
can be a challenging aspect of HRM, but it’s essential for creating a positive work
environment.

One of the most common activities in employee relations is grievance handling. This involves
addressing any complaint or concerns that employees have, such as disputes with co-workers
or managers, or problems with their working condition. It is important for HR to have a clear
process for handling these grievances, and to be able to resolve them in a fair and effective
way. Another important activity is facilitating communication between employees and
management. This can involve things like regular staff meetings, employee survey, and an
open-door policy. This helps to ensure that employees feel heard and that their concerns are
being addressed. It also helps to build trust and a positive relationship between employees
and the organisation.

2.6 HR Planning and Forecasting

HRM conducts workforce planning and forecasting to ensure that the organization has the
right number of employees with the required skills and competencies to meet its objectives.
This includes analyzing future personnel needs, succession planning, and workforce
development strategies
2.7 Employee Engagement and Retention

Engagement refers to how emotionally invested and committed employees are to their work
and the company while employee retention is all about keeping employees in the company
for as long as possible.
HRM focuses on keeping employees engaged and motivated to reduce turnover. This
involves implementing employee engagement initiatives, conducting satisfaction surveys,
and creating programs to enhance employee morale and job satisfaction.
2.8 Workplace and Health Safety

This is an important function of HRM, as it focuses on preventing injuries and illness in the
workplace. This can involve things like developing and enforcing safety policies, conducting
risk assessments, and providing safety training. It is also important to have a plan in place for
dealing with emergencies, such as fires or natural disasters.

It is not only important from a moral perspective, but also because it can have a big impact
on the bottom line. Work place injuries and illnesses can be very costly, both in terms of lost
productivity and direct costs such as medical bills and workers’ compensation. That is why
it’s important for HR to take a proactive approach to workplace health and safety.

3 Study Session Summary and Conclusion

The functions of HRM in an organization are wide-ranging and play an important role in the
success of the organization. They include activities such as recruitment and selection, training and
development, employee relations, and workplace health and safety. All these functions work
together to create a productive work environment, which is essential for organization success.

The functions of Human Resource Management are not static. They are constantly evolving, as
new technologies, laws, and best practices emerge. HR professionals need to stay up-to-date with
the latest developments in order to do their job effectively.
In conclusion, the functions of HRM are the foundations of effective people management,
contributing to an organisation’s competitiveness, growth, and sustainability. By addressing the
diverse needs of employees and aligning them with the organization’s strategic direction, HRM
functions are vital in shaping the present and future of work.

4 Self-Assessment Questions.
(a) List 6 functions of HRM.
(b) Explain 3 of the listed HRM functions.
(c) Which of the listed functions is seen as purely transactional?

5 Additional Activities (Videos, Animation & out of class activities)

6.0 References/Further Readings

Gary Dessler (2019): ‘Human Resource Management: Functions, Applications and Skill
Development’: Pearson.
Paul M. Muchinsky and Scott A. Tannenbaum (2018): ‘Human Resource Management: Essential
Perspectives’: Cengage
Paul A. Danyluk and Susan G. Jack (2019): ‘Human Resource Management in Canada’: Nelson
Education