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Commerce · Ch 9 — Fundamentals of HRM

Functions of HRM

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Functions of HRM

The functions of HRM are traditionally grouped into two broad categories — managerial functions (the same four/five functions every manager performs, applied specifically to the human resource) and operative functions (the specific, HR-specific activities that put those managerial functions into practice).

CategoryFunctionBrief description
ManagerialPlanningForecasting future manpower needs and deciding HR policies and programmes in advance to meet them.
ManagerialOrganisingDesigning the structure of relationships among jobs, personnel, and physical resources in the HR area, so that HR-related work is properly divided and coordinated.
ManagerialDirectingMotivating, guiding, and leading employees so that they willingly cooperate to achieve the objectives set for them.
ManagerialControllingObserving and comparing actual HR-related performance (attendance, output, discipline) with the standards set, and correcting deviations.
OperativeProcurementObtaining the right number and kind of people needed — human resource planning, recruitment, and selection.
OperativeDevelopmentIncreasing the skill and capability of employees through training, executive development, and career planning.
OperativeCompensationDetermining adequate and equitable pay, incentives, and benefits for the work performed.
OperativeIntegrationReconciling individual, group, and organisational interests so that employees cooperate willingly rather than under compulsion — includes motivation, participation, and grievance handling.
OperativeMaintenanceSustaining and improving the conditions that have been established — covers employee health, safety, and welfare facilities.