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Functions of HRM

Introduction

Human Resource Management (HRM) is the process of managing people in

organizations in a structured and thorough manner. It is responsible for managing and developing

the human capital of a company. HRM plays a crucial role in helping an organization to achieve

its short-term and long-term objectives by providing the necessary resources and guidance

(Popescu & Kyriakopoulos, 2021). The main functions of HRM include recruitment and

selection, training and development, performance management, compensation and benefits,

employee relations, and labor relations. Recruitment and selection involve identifying and

attracting qualified candidates to fill vacant positions. Training and development focus on

improving employee skills and knowledge to enable them to reach their full potential.

Performance management evaluates the performance of employees and provides feedback to

ensure they are meeting their targets (Popescu & Kyriakopoulos, 2021). Compensation and

benefits provide employees with fair and adequate pay and benefits packages that support the

organization's objectives. Employee relations involve managing employee grievances and

resolving disputes promptly and constructively. Finally, labor relations involve negotiating

collective bargaining agreements and working with unions to ensure employee rights are

respected. HRM areas and functions increase the effectiveness and contribution of employees in

attaining organizational goals and objectives

HRM Areas

Performance Management:

Performance management involves assessing, monitoring, and developing employees'

performance to maximize effectiveness. It involves setting performance goals, providing

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feedback, coaching, and conducting performance reviews (Ojo et al., 2020). This helps to ensure

that employees are consistently meeting or exceeding performance standards and identify areas

for improvement. Performance management also helps ensure that employees align with the

organization's goals and objectives. By effectively managing performance, companies can ensure

they get the most value from their employees. Therefore, performance management entails

assessing, monitoring, and developing employees to attain the highest value.

Human Resources Planning, Recruitment, and Selection:

Human resources planning ensures that the organization has the right people in the right

place at the right time. This includes analyzing the organization's current and future personnel

needs and identifying and developing strategies to ensure that those needs can be met.

Recruitment involves identifying the best sources for finding and attracting qualified candidates

for open positions, while selection involves assessing, evaluating, and selecting the best

candidate for the job (Ozkeser, 2019). By strategically managing the organization's human

resources, companies can ensure they have the necessary personnel to achieve their goals.

Therefore, human resource planning, recruitment, and selection are practices tailored toward

achieving quality personnel who will help the company achieve its goals.

Human Resources Development

Human Resources Development (HRD) is a holistic approach to developing and

enhancing an organization's employees' skills, knowledge, abilities, and attitudes. It is an

essential component of organizational effectiveness and facilitates achieving organizational

goals. HRD activities can include training, coaching, mentoring, performance management,

career planning, and succession planning (Moustaghfir et al., 2020). HRD activities are designed

to achieve individual and organizational objectives, such as increased productivity, improved

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performance, and increased job satisfaction. HRD can also help to improve employee morale, job

satisfaction, and work-life balance. Hence, performance management is a function of developing

and enhancing employee skills, knowledge, and attitudes.

Compensation and Benefits

Compensation and Benefits is an area of Human Resources (HR) that focuses on

exchanging monetary and non-monetary rewards for an employee's work. This includes salary

and wages, bonuses, health and welfare benefits, paid time off, company-paid vacations,

retirement plans, and other monetary and non-monetary rewards (Olvera & Avellaneda, 2023).

The goal of Compensation and Benefits is to ensure fair, equitable, and competitive

compensation and benefits that motivate employees, attract and retain talent, and align with

organizational objectives. Thus, benefits and compensation are employees' financial and non-

financial rewards for work done.

Employment and Labor Laws and Regulations

Employment and labor laws and regulations are laws and regulations that govern the

employer-employee relationship. These laws and regulations cover hiring and firing, wages and

hours, leave, safety, and anti-discrimination (Nilsen et al., 2022). For example, the Fair Labor

Standards Act (FLSA) sets employees' minimum wage, overtime pay, and age and hours

requirements. Employment and labor laws and regulations provide a framework for employers to

ensure fair and equitable treatment of employees and to protect the rights of employees. It is

essential for employers to be aware of the laws and regulations that apply to their businesses and

to ensure that they are compliant with the applicable laws and regulations (Nilsen et al., 2022).

Complying with employment and labor laws and regulations can result in fines, penalties, and

other legal action. Employment laws and regulations govern hiring, firing, and wages.
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HR Functions that Contribute to Effective Training and Development

Performance Appraisal, Coaching and Mentoring, and Talent Development are essential

tools for HR to ensure that employees receive the training and development they need to

succeed. Performance appraisals allow HR to assess employee performance and identify areas of

improvement (Tlaiss, 2020). For example, if an employee's performance is not meeting

expectations, HR can use the performance appraisal to identify areas where additional training or

development is needed. Coaching and mentoring can give employees the guidance and support

they need to reach their goals. For example, HR can provide mentoring opportunities to help

employees gain additional skills or knowledge. Additionally, HR should create a talent

development plan that identifies the skills and competencies needed for the organization. This

helps to ensure that employees receive the training they need to be successful. For example, HR

can use the talent development plan to identify the skills and competencies needed for a new job

and create a training program to help employees acquire those skills (Tlaiss, 2020). By using

these HR functions within a performance management system, organizations can ensure that

their employees have the necessary skills and competencies to be successful. Therefore,

performance appraisal, coaching, mentoring, and talent development enable an organization to

train and develop employees effectively.

Also, Learning and Development Programs and rewards and recognition are an essential

part of any performance management system. HR should create and implement learning and

development programs tailored to the organization's needs (Whysall et al., 2019). This could

include specialized training in new technology or industry-specific knowledge, soft skills

training such as communication and problem-solving, or leadership development for high-

potential employees. Recognition and rewards are also crucial for practical training and
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development. HR should create a system that recognizes and rewards employees for their efforts

and achievements, such as providing bonuses or other incentives for employees who exceed their

goals or complete a certain number of training hours (Saeed et al., 2018). By offering tailored

learning and development opportunities and recognizing employees' efforts and achievements,

HR can ensure that employees have the skills necessary to succeed in their roles and are

motivated to continue developing their skills. Therefore, learning and development systems with

reward and recognition ensure employees have suitable skills for achieving organizational goals.

How An Effective Performance Management System, Along With Compensation

and Benefits, Can Attract, Develop, and Retain Talented Employees

An effective performance management system can be used to attract, develop, and retain

talented employees by providing a clear understanding of expectations and objectives. Setting

expectations and objectives allow employees to understand what is expected of them and gives

them a goal to strive towards (Younas & Bari, 2020). This understanding can help attract

talented employees, as they know what the company expects of them and what they can expect

in return. The performance management system can also provide feedback and recognition for

good performance. This can be in the form of financial rewards or other forms of recognition. By

providing recognition for good performance, employees can be motivated to continue to strive

for excellence. Additionally, a performance management system can help identify areas where

employees need to improve and provide support and guidance to help them (Younas & Bari,

2020). This can involve providing additional training, mentoring, or other assistance. By helping

employees reach their goals, they can develop their skills and abilities, and become more

effective and valuable team members. Finally, an effective performance management system can

be used in conjunction with a competitive compensation and benefits package to attract and
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retain talented employees. A competitive compensation and benefits package can provide

employees with financial security, and can be an important factor in attracting and retaining

talented employees. Therefore, effective performance management systems attract talent,

develop and retain through giving clear understanding of objectives and expectations.

A competitive compensation and benefits package can provide employees with financial

security and can be an important factor in attracting and retaining talented employees. A

comprehensive compensation package should include a competitive salary, bonuses, stock

options, and other forms of compensation (Madhani, 2019). Benefits packages should include

health, dental, vision, and life insurance, as well as retirement plans. Employers should also

consider offering additional perks and incentives such as flexible working hours and

telecommuting options, as these can be attractive to talented employees. Compensation and

benefits packages can help to demonstrate an employer’s commitment to their employees and

show that they are willing to invest in them (Madhani, 2019). Employees who feel valued and

appreciated are more likely to remain with an organization and those who are compensated fairly

are more likely to be motivated to perform at a higher level. By offering a comprehensive

compensation and benefits package, employers can create an environment that is attractive to

talented employees. Thus, competitive compensation attracts and retains talent through creating

an environment where employees feel valued.

Labor Laws and Regulations That Impact Areas of HRM

labor laws and regulations that impact HRM are Title VII of the Civil Rights Act,

Discrimination, and Labor Laws pertaining to minimum wage .Title VII of the Civil Rights Act

prohibits employers from discriminating against individuals in employment decisions on the

basis of race, color, religion, sex, or national origin (Szalados, 2021). This applies to all aspects
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of HRM, including performance management, recruitment and selection, personnel development,

and compensation and benefits. An example of this would be if an employer created a policy that

only hires people of a certain race, or if the employer provided benefits to one group of

employees but not another based on a protected characteristi (Szalados, 2021) c. Also,

discrimination laws protect employees from unfair treatment based on their sex, age, disability,

race, religion, national origin, and other protected characteristics. These laws apply to all areas of

HRM, from the hiring process to performance management and compensation (Islam, 2021). An

example of this would be if an employer refused to hire someone because of their race or gender,

or if an employer gave raises or bonuses to one group of employees but not another based on a

protected characteristic. Lastly, labor Laws pertaining to minimum wage and working conditions

ensure that employees are paid a fair wage and are provided with safe and healthy working

conditions (Islam, 2021). These laws apply to all areas of HRM, such as recruitment and

selection, personnel development, and compensation and benefits. An example of this would be

if an employer was not providing overtime pay or if the employer was not providing a safe work

environment. Thus, HRM laws include Title VII of the Civil Rights Act, Discrimination, and

Labor Laws pertaining to minimum wage.

HRM Functions That Optimize Organizational and Employee Behavior

HRM functions work together to optimize organizational and employee behavior by

aligning the organization’s goals and objectives with the individual employee’s goals and

objectives. This starts with developing job descriptions that accurately describe the duties and

responsibilities of each job (Salas‐Vallina et al., 2020). This helps to ensure that each employee

is clear on what is expected of them and allows HRM to measure their performance. HRM can

then utilize performance management systems to assess employee performance against their job
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description. This can include performance reviews, 360-degree feedback, and goal-setting.

Through these activities, HRM can ensure that employees are motivated and engaged in the

workplace. Additionally, HRM can provide employees with training and development

opportunities to help them improve their skills and abilities, which can directly benefit the

organization (Salas‐Vallina et al., 2020). HRM can also create a positive work environment by

designing and implementing employee benefit packages and policies that are tailored to the

needs of the organization and its employees. This can include healthcare, retirement, and

vacation packages that are designed to meet the needs of both the organization and its

employees. Finally, HRM can provide effective communication and feedback to ensure that

employees are receiving the support and guidance they need to perform their jobs efficiently and

effectively (Budhwar et al., 2022). This can include regular meetings and feedback sessions, as

well as providing employees with resources such as job aids and training materials that can help

them better understand their job and the organization’s goals. Thus, HRM function optimizes

organization and employee behavior by aligning organization and employees goals and

objectives.

Conclusion

The management of human resource is an essential component of any business that

places an emphasis on maximizing the efficiency with which personnel contribute to the

accomplishment of corporate goals and objectives. The main functions of HRM include

recruitment and selection, training and development, performance management, compensation

and benefits, employee relations, and labor relations. These functions work together to optimize

organizational and employee behavior by aligning the organization’s goals and objectives with

the individual employee’s goals and objectives. Additionally, an effective performance

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management system, along with compensation and benefits, can attract, develop, and retain

talented employees. Furthermore, labor laws and regulations that impact HRM include Title VII

of the Civil Rights Act, discrimination, and labor laws pertaining to minimum wage. HRM is an

essential component of organizational effectiveness, and by effectively managing the human

resources of an organization, companies can ensure they have the personnel they need to achieve

their goals.
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