Operative Functions of HRM

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Resource, Organisational behaviour, Principles of
Managementon Mar 13th, 2014 | 0 comments
Operative Functions of HRM

Staffing
Staffing is one of the managerial functions. But this function
is normally performed by the HR managers for all the
departments of the firm.

In most organizations, the HR department establishes

personnel policies and coordinates the HR functions of all
the departments.

This function is also called the operative function or HRM

function. It includes, amongst others, the processes
of hiring, training, compensating, appraising and retaining
employees, and attending to their labour relations, health
and safety, and equality concerns.
Procurement
Procurement refers to a string of activities undertaken by
the HR managers for filling the present and future vacancies
of the organization.

The activities include job analysis and designing, HR

planning, recruitment and, finally, the selection of suitable
employees.

Here, job analysis refers to both the determination of

specific tasks and responsibilities connected to a job and
identifying the skills, knowledge and abilities required for
the job holder.

HR planning involves choosing and placing the

right person at the right job and at the right time.
Recruitment involves gathering a pool of
applicants from which suitable employees may be
selected.

Lastly, selection involves screening, testing, interviewing

and hiring the most suitable employees for the organization.

SCOPE AND CHARACTERISTICS OF HRM

Development
Development here refers to both employees’ training
and management development. HR managers are
accountable for conducting and supervising training and
development programmes for employees.

The very purpose of a training and development

programme is to increase the employees’
competencies in their job by improving their
knowledge, skills and abilities.

Training and development is widely accepted as a method

for enhancing the employee skills, increasing the individual
and organizational performance, improving the employee
morale, and achieving the business growth and success.

Compensation
Compensation refers to the determination of the pay scale
and other benefits for the employees. Establishing and
maintaining the pay system of an organization is one of the
principal jobs of the HR managers.

They must devise ways to ensure fair and equitable pay

rates. In addition, HR managers should regularly manage
the performance evaluation system of the organization, and
continuously design reward systems such as performance-
linked incentive plans and bonus and flexible work
schedules.
Maintenance
The maintenance function aims at retaining efficient and
experienced employees in the organization. This calls for
creativeHR practices.

In this regard, HR managers are responsible for offering a

wide range of HR programmes covering occupational
safety, health promotion and physical fitness, canteen
facilities, recreation activities, transportation
programmes, employee suggestion schemes, career
counselling and growth for creating a positive work
environment.

OBJECTIVES AND FUNCTIONS OF HRM

Integration
It consists mainly of industrial relations and aims at
ensuring good relations between the management and the
employees.

HR managers have to implement industrial relations

programmes that would ensure ethical and fair treatment in
disciplinary action, grievance redressal, and career
management processes.

They should also counsel the employees and the

management to prevent and, when necessary, resolve
disputes over labour agreements or other labour relation
issues.

It is to be understood here that the functions of

HRM can vary widely from one organization to
another, depending upon its nature, size, and
objectives.

For instance, a smaller organization may follow a shorter

HRM process with a greater emphasis on functions like
procurement and compensation and little or no priority for
activities like training and development and industrial
relations maintenance.

On the contrary, large organizations may pursue a longer

and more comprehensive HRM process to meet the
requirements of both the management and the workforce.

WANNA TAKE A HR QUIZ N CHECK YOUR HR IQ?

1. The development and application of employees’ skills and
energies to accomplish the goals and objectives of the
organization is called:

a. human resource management.

b. human resource planning.
c. selection.
d. recruiting.

2. The first step in the human resource planning process is:

a. preparing a job analysis.

b. forecasting future human resource needs.
c. assessing future demand.
d. assessing future supply.

3. Human resource planning techniques include the use of

some or all of the following:
a. human resource inventories.
b. action plans.
c. control and evaluation.
d. all of the above.

4. Which term describes the process of gathering, analyzing

and synthesizing information about the jobs that are being
done and any new jobs that are envisaged?

a. job description.
b. job analysis.
c. job specification.
d. human resource inventory.

5. The first step in a typical job analysis is to examine the

overall organization. The next step is

a. collect data on jobs.

b. prepare job description.
c. prepare job specification.
d. select jobs to be analyzed.

Answers:

1. The development and application of employees’ skills and

energies to accomplish the goals and objectives of the
organization is called:

a. human resource management.

b. human resource planning.
c. selection.
d. recruiting.

2. The first step in the human resource planning process is:

a. preparing a job analysis.

b. forecasting future human resource needs.
c. assessing future demand.
d. assessing future supply.

3. Human resource planning techniques include the use of

some or all of the following:

a. human resource inventories.

b. action plans.
c. control and evaluation.
d. all of the above.

4. Which term describes the process of gathering, analyzing

and synthesizing information about the jobs that are being
done and any new jobs that are envisaged?

a. job description.
b. job analysis.
c. job specification.
d. human resource inventory.

5. The first step in a typical job analysis is to examine the

overall organization. The next step is

a. collect data on jobs.

b. prepare job description.
c. prepare job specification.
d. select jobs to be analyzed.

Functions of Human Resource Management

Human Resource Management functions can be classified into the following three
categories.

 Managerial Functions,
 Operative Functions, and
 Advisory Functions.

The Managerial Functions of Human Resource

Management are as follows:
1. Human Resource Planning - In this function of HRM, the number and type of
employees needed to accomplish organizational goals are determined. Research is an
important part of this function, information is collected and analyzed to identify
current and future human resource needs and to forecast changing values, attitudes,
and behavior of employees and their impact on the 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 the organization's goal.

3. Directing - Activating employees at different levels and making them contribute

maximum to the organization is possible through proper direction and motivation.
Taping the maximum potential of the employees is possible through motivation and
command.

4. Controlling - After planning, organizing, and directing, employees' actual

performance is checked, verified, and compared with the plans. If the actual
performance is found to deviate from the plan, control measures are required to be
taken.

The Operative Functions of Human Resource

Management are as follows:

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1. Recruitment and Selection - Recruitment of candidates is the function preceding

the selection, which brings the pool of prospective candidates for the organization so
that the management can select the right candidate from this pool.

2. Job Analysis and Design - Job analysis is the process of describing the nature of a
job and specifying the human requirements like qualifications, skills, and work
experience to perform that job. Job design aims at outlining and organizing tasks,
duties, and responsibilities into a single unit of work for the achievement of certain
objectives.

3. Performance Appraisal - Human resource professionals are required to perform

this function to ensure that the performance of employees is at an acceptable level.

4. Training and Development - This function of human resource management helps

employees acquire skills and knowledge to perform their jobs effectively. Training and
development programs are organized for both new and existing employees.
Employees are prepared for higher-level responsibilities through training and
development.

5. Wage and Salary Administration - Human resource management determines

what is to be paid for different types of jobs. Human resource management decides
employee compensation which includes - wage administration, salary administration,
incentives, bonuses, fringe benefits, etc,.

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

7. Maintenance - Human resources is considered an asset for the organization.

Employee turnover is not considered good for the organization. Human resource
management always tries to keep their best-performing employees with the
organization.

8. Labour Relations - This function refers to human resource management

interaction with employees represented by a trade union. Employees come together
and form a union to obtain more voice in decisions affecting wages, benefits, working
conditions, etc,.

9. Personnel Research - Personnel research is done by human resource

management to gather employees' opinions on wages and salaries, promotions,
working conditions, welfare activities, leadership, etc,. Such researches help in
understanding employee satisfaction, employee turnover, employee termination, etc,.

10. Personnel Record - This function involves recording, maintaining, and retrieving
employee-related information like - application forms, employment history, working
hours, earnings, employee absents and presents, employee turnover, and other data
related to employees.
The Advisory Functions of Human Resource
Management are as follows:
Human Resource Management is expert in managing human resources and so can
give advice on matters related to human resources of the organization. Human
Resource Management can offer advice to:

1. Advised to Top Management

The personnel manager advises the top management in the formulation and
evaluation of personnel programs, policies, and procedures.

2. Advised to Departmental Heads

The 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..

Operative Functions
1. Procurement function: The first operative function of
personnel management is procurement. It is concerned with procuring and
employing people who possess necessary skill, knowledge and aptitude.
Under its purview you have job analysis, manpower planning, recruitment,
selection, placement, induction and internal mobility.

2. Development: It is the process of improving, moulding, changing and

developing the skills, knowledge, creative ability, aptitude, attitude, values and
commitment based on present and future requirements both at the individual’s and
organisation’s level.

3. Motivation and compensation: It is a process which

inspires people to give their best to the organisation through the use of
intrinsic (achievement, recognition, responsibility) and extrinsic (job design,
work scheduling, appraisal based incentives) rewards.

4. Maintenance: It aims at protecting and preserving the physical and

psychological health of employees through various welfare measures.

5. Integration function: This tries to integrate the goals of an

organisation with employee aspirations through various employee-oriented
programmes, like redressing grievances promptly, instituting proper
disciplinary measures, empowering people to decide things independently,
encouraging a participative culture, offering constructive help to trade unions
etc.

6. Emerging issues: Effective management of human resources

depends on refining HRM practices to changing conditions. Hence the need to
look at other important issues that can motivate people to give their best in a
dynamic and ever-changing environment.
18 Key Functions of Human
Resource Management
(HRM)
Human resource management is the backbone of the corporate world. Do you
know how many responsibilities they undertake?

Read this article to find out the functions of human resource management in any
organization.

Table of Content
 Functions Of Human Resource Management
 Operative Functions of HRM
 Advisory Functions
 Objectives of HRM
 Is HR Important For An Organisation?
 How Can Lio Help?
 How Lio Automation Can Help You Business Process
 Conclusion
 Frequently Asked Questions (FAQs)

Functions Of Human Resource Management

1. Planning
To get tasks completed by his juniors and subordinates, a manager has to plan
ahead. It is, therefore, necessary to strategize in order to continue providing the
organization with its determined targets.

Planning additionally serves to devise the most effective strategies for meeting
the goals. In fact, some successful managers dedicate a significant portion of their
time to planning.

Planning in the human resource department includes defining the personnel plans
that can support the corporation in attaining its objectives.

Estimating the organization’s future staffing needs, defining job criteria,

descriptions, and choosing ways to automate the recruitment process are all part
of these programs.

2. Organizing
HR is all about harnessing an employee’s potential to the fullest in order to
achieve the organization’s goals.

The function of human resource management in an organizational setup is vital in

selecting the best course of action.

An organization is a system in which a team of cooperative human beings assigns

responsibilities to employees, establishes connections, and coordinates their
efforts toward a shared objective.

As one of the managerial functions of HRMS Software in Kerala is to systematize

the flow of work from the top to the bottom and provide counsel, it also
establishes intricate relationships between specialized departments and general
departments.

This leads to employees actively contributing to the company’s ultimate agenda

that also yields their personal benefits.

3. Directing
The cornerstone of the management process is regarded to be directing.

The direction function, which is the performance of the plan, is the next function
of human resource management after planning and organizing.

Employee motivation, direction, commanding, and empowering employees and

recruits at every stage is the core responsibility of human resource management.

Excellent employee cooperation is widely sought after because it upholds

organizational goals, and this can only be done by receiving the right direction
under HR managers. Motivation and command are the two ways to get the most
out of a workforce.

Another important purpose of HRM is coordination, which is accomplished by

combining efforts to ensure that objectives are accomplished.

4. Controlling
The managerial function of controlling is an umbrella role that encompasses
planning, staffing, organizing, implementing, and directing. After these five slabs
of duties are completed and reported, the HR department takes up the role of
controlling.
Controlling entails evaluating performance to ensure that personnel management
tasks are carried out in accordance with an organization’s policies and goals.

It also includes evaluating and verifying the results, equating the results with the
expectations, detecting discrepancies, and setting the standard through controls.

Controlling the personnel’s management duties might include reviewing labor

turnover data, monitoring training programs, directing morale surveys, and
conducting individual interviews with each employee.

https://www.youtube.com/watch?v=9MWFkH4xb3U

Operative Functions of HRM

The human resource or personnel department is entrusted with the operative
duties, which are tasks, duties, or activities that a corporation assigns to them.

These operative functions of HRM are independent of managerial functions as

they do not form a part of the core management tasks such as planning,
organizing, staffing, directing, and controlling.

1. Development
Human resource acquisition is unquestionably the most vital department in every
organization. However, we must understand that the world is transforming at a
great speed, requiring organizations to adjust as well. They need improved staff in
order to keep pace with the evolving economy.

Due to a number of downsides as a direct consequence, a corporation cannot

simply retrench the existing workforce and employ a new one every time.

The only way to deal with the ever-changing work environment is by providing
Training and Development to the employees to improve them and sharpen their
skills. This way businesses can cope better and adjust quickly.

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and eBusiness
2. Compensation
Everyone seeks employment and wants to work to gain benefits of various sorts.
People usually work in exchange for a monetary reward. Compensation is simply
the remuneration for the labor performed by any organization’s employees.

The aspect of equitable remuneration for the same quantity and quality of labor
for different employees should be recognized by HR professionals. This duty is
responsible for determining fair and equitable compensation for employees.

3. Employment
Human resources are the most valuable asset in every business since they are the
ones that spin other resources into finished products or output.

However, this does not imply that the company begins employing thousands of
people without first estimating its necessities. In fact, the HR managers’
preliminary operative function is to assess the organization’s staffing
requirements.
They do it by examining the workforce and workload. Concludingly, in this
function, the HR department recruits the appropriate amount of people and
appoints them to appropriate departments or duties in order to achieve the
company objectives.

It covers human resource recruitment, selection, and placement, among other

things.

4. Welfare and working conditions

Training and development only improve employees’ abilities to generate
productivity and work efficiently, but it does not guarantee high output or
completion of targets. It is because there are other aspects that are just as
essential.

These factors involve the workplace environment, employment conditions, and so

on. This function is responsible for maintaining the workplace and creating an
environment that allows employees to operate effectively and efficiently.

5. Motivation
People are productive only to a certain level, their work bears only a general
degree of efficiency. They require fresh incentives to put in effort for, after a
period of time. This is where the idea of motivation comes into play.

The function of motivation under operative functions of HRM necessitates the

employment of financial and non-monetary incentives to motivate the staff to
work better and contribute more.

6. Human Resource Record Keeping

Under this responsibility, an HR manager maintains track of employees operating
in various departments under various headings.

They also keep track of their progress and efforts. This documentation helps them
in devising strategies for motivation, staffing functions, and so forth.
7. Industrial Relations
For every organization, the relationship between all of the employees in the
business is of great importance.

HR managers in the organization are now in charge of this task. They assist with
collective bargaining, joint consultation, and conflict resolution.

It is because they have a solid understanding of different labour laws.

8. Separation
While the first responsibility of human resource management is to hire
employees, it only makes sense that the last responsibility should be to separate
and reintegrate that worker into society. The majority of people do not perish on
the job.

The organization is obligated to adhere to specific separation process criteria as

well as to ensure that the returned individual is in the best shape possible.

The HR manager must oversee that retirement benefits are delivered to retiring
employees in a timely fashion.

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Spreadsheets: What HRs Should Use and Why

Advisory Functions
Human resource managers have received specialized instruction and training in
human resource management.

They are experts in their field and can provide guidance on issues pertaining to
the organization’s human resources.

1. Advisor To The Top Management

The HR manager assists senior management in the development and assessment
of personnel policies, processes, and programs.

He/She also serves as a guide on how to establish and maintain positive

connections with people and strong employee morale.

2. Advisor to Departmental Heads

HR executives advise department heads on subjects such as workforce planning,
job analysis, and design, recruiting and selection, placement, training, and
performance evaluation, among other things.

Some Key Skills Your HR Department Must Have

https://www.youtube.com/watch?v=XPqkU6Vnqaw

Objectives of HRM

1. Designing Organizational Structure and Increasing Productivity

Human Resource Management’s core focus is on achieving company objectives. It
must help organizations by defining and attaining clearly defined goals.

It defines the primary problems to be addressed and regulates rules and

urgencies, in addition to accomplishing the goals.

Recruiting competent people, educating them, and efficiently retaining them,

fosters organizational efficacy.

2. Increasing Organizational Departmental Coordination

Human Resource Management is in charge of coordinating and harmonizing
operations within and across divisions.

The resources are configured to meet the company’s goals. It must also be
ensured that human resources are fully utilized and cultivated to their full
potential.

3. Extending Employee Satisfaction

Hiring and training suitable personnel is an unquestionable responsibility of
Human Resource Management. It should be maintained that everyone in the
company is treated with respect, and that individual needs are met.

HR strategies, policies, and approaches for personal development must be aligned

with the organization’s overall objectives.

It should satisfy employees’ own aspirations so that personal and corporate goals
may be synchronized, allowing for optimal productivity and competitive
advantage.

4. Adherence to Societal and Ethical Models

Human resource management is responsible for ensuring that legal, ethical, and
social-environmental challenges are appropriately addressed.
It should ensure that human capital is dealt with in a formal and compliant
manner and that their needs are acknowledged and met. It should also take into
account societal ethics and social responsibility.

It must also strive to improve the company’s competitive advantage via social
approaches, such as ethically responding to societal needs and issues. Fair
opportunity and equal pay are two legal concerns that should be addressed as
part of societal goals.

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Is HR Important For An Organisation?

The importance of HRM in an organization is unsurmountable. It is the coal-and-
ice of better and smooth working in a typical corporate setting. It would be foolish
to ignore HRM when starting up a business.

https://www.youtube.com/watch?v=L7ZaK8DlPRo
Human resource management guarantees that the optimum amount and quality
of staff are a part of the workforce. It provides room and chance for individuals
and groups of employees to develop and improve their careers.

Employees that are driven to work hard to achieve their personal professional
goals have a direct impact on the organization’s efficiency. Productivity is defined
as minimizing costs and maximizing profits.

It is essential since it serves a variety of functions, one being employee training

and development. Employees are kept updated with the skills they need to adapt
to changes in the organizational framework, structure, and technology through
training and development programs.

HRM examines existing personnel at regular intervals to determine if the

organization has a sufficient quantity of employees.

When an organization’s human resources are insufficient, human resource

management undertakes actions such as recruiting and selection to meet the
need. In the same manner, if the company has too many employees, it can fire
unproductive workers.

Human resource management is concerned with making the most of human

resources and keeping them in the organization for a long time.

HRM conducts activities such as giving fringe benefits, salaries, and incentives to
eligible employees. These efforts not only assist in retaining workers but also
efficiently attaining the organization’s goals.