7 Key Functions of Human Resource Management

7 Key Functions of Human Resource Management

Employees in a company are managed through human resource management (HRM). Human resource management, or HRM, is the process by which a company plans, organizes, directs, and controls its human resources with the aim of achieving its goals and objectives.  Human resource management is important for companies because it aids them:

  • Attract & retain qualified and skilled employees!
  • Enhance the performance & productivity of employees in the workplace.
  • Develop the skills & capabilities of employees.
  • Foster a positive & stress-free work culture.
  • Comply with the legal & ethical standards of employment in company.
  • Adapt to the everchanging needs & demands of the business

HRM has seven key functions that help the company and its employees carry out these tasks effectively. In this article, we’ll go over seven key HRM responsibilities and explain how they all play a role in the success of any given business.

7 Key Functions of Human Resources:

Here are 7 key functions of HR and some tools and resources associated with it.

HR Planning

Setting goals for the company’s future and employees is known as HR planning. Organizations can better align their workforce requirements with their overall mission with the help of HR planning.

  • Analyzing and understanding the current &  future demand and supply of human resources in company.
  • Identifying the gaps & surpluses of human resources in workplace.
  • Developing effective strategies to fill the gaps & utilize the surpluses of Human Resources
  • Evaluating & structuring the HR plans as per company’s changing conditions

Other HR responsibilities that are influenced by HR planning include employment and recruiting, performance management, and succession planning. Thanks to well-thought-out HR strategies, we always have sufficient manpower of the appropriate type and caliber accessible when we need them.

Some of the tools & methods used for HR planning are:

  • SWOT analysis: SWOT analysis is a method used to evaluate a company’s relative strengths, weaknesses, chances, and threats.
  • PESTLE analysis: a way of analyzing the external influences on a company, including political, economic, social, technological, legal, and environmental factors.
  • Forecasting: a technique for predicting future human resource needs based on past data, trends, forecasts, and assumptions
  • Budgeting: a approach to distributing funds for HR-related endeavors

Talent Recruitment and Selection

In order to fill open positions in a company, talent recruitment and selection must be performed. Recruitment and selection of talent contributes to a robust and varied workforce by

  • Defining the job requirements & specifications
  • Advertising and channeling the job openings through various platforms.
  • Screening & shortlisting the applicants based on their qualifications and fit for a particular role.
  • Conducting interviews & assessments to evaluate the applicants’ skills and capabilities.
  • Making the hiring decisions and extending the job offers
  • Onboarding & orienting the new hires.

Developing a strong workplace brand and strengthening the company’s competitive edge are both directly tied to the recruitment and selection of top talent. Employee retention, productivity, and happiness are all influenced by the recruitment and choosing of top talent.

Some of the techniques and best practices used for talent recruitment & selection are:

  • Job analysis: a method of determining what it takes to do a task successfully by gathering and analyzing relevant data.
  • Job description: a formal document outlining the essentials of a position, including its designation, function, tasks, responsibilities, requirements, and
  • Job posting: a approach to reaching prospective employees, such as posting ads in newspapers, online job boards, and social media.
  • Applicant tracking system (ATS): a software that facilitates the administration of the recruiting procedure; for example, by storing resumes, screening applicants, scheduling interviews, etc.
  • Behavioral interview: a form of interview in which potential employees are probed about their prior performance via detailed questions about “case studies.”
  • Assessment center: a technique of evaluating applicants’ skills & abilities through various tasks, such as group discussions, case studies, role plays, etc.

Performance Management

In business, performance management refers to the process of analyzing and enhancing the efficiency of both individual workers and the company as a whole. The following are some of the ways in which performance management aids in accomplishing corporate aims:

  • Implementing a clear and SMART (specific, measurable, achievable, relevant and time-bound) goals for employees & teams
  • Providing daily feedback & training to employees on their progress and performance
  • Conducting performance appraisals & reviews to evaluate the achievements and challenges faced by employees in workplace.
  • Recognizing & rewarding the employee of the month.
  • Identifying &  addressing the performance issues and gaps of employees in a workplace.
  • Developing & implementing performance improvement strategies for employees

Employees’ motivation and engagement are boosted by performance management, while their skill sets are expanded and a mindset of lifelong learning is encouraged. High-potential and high-performing workers can be easily identified through performance management, which aids in succession planning and further professional development opportunities for those individuals.

Some of the tools & methods used for performance management are:

  • Key performance indicators (KPIs): a set of measurable & quantifiable metrics that points out the progress and success of an employee, team or company.
  • Balanced scorecard: a method for evaluating a company’s success that takes into account financial, customer, internal procedure, and development and learning factors.
  • 360-degree feedback: the process of gathering opinions on an employee’s work from a wide variety of stakeholders, including superiors, peers, subordinates, customers, etc.
  • Performance appraisal: a procedure by which an employee’s work is evaluated against established standards (e.g., goals, competencies, behaviors, etc.).
  • Performance rating: a procedure whereby an employee’s work is evaluated using a scale or rubric to generate a numerical or descriptive score.
  • Performance bonus: incentive pay is a form of compensation given to workers who reach or surpass predetermined performance goals.

Learning and Development

Providing and facilitating employees’ and the company’s access to learning and development chances is the responsibility of the learning and development function. The following are some of the ways in which workers’ knowledge, skills, and abilities can be increased through learning and development:

  • Analysis of training requirements is carried out to determine where there are knowledge gaps and what training is most important for the company and its employees.
  • The process of creating and providing a variety of training programs, including but not limited to in-class training, on-the-job training, virtual training, etc.
  • Assessing how well training initiatives have improved employee performance and organizational outcomes
  • Providing workers with mentorship, coaching, counseling, etc. to aid in their professional growth and advancement.
  • Fostering an environment where workers are actively encouraged to seek knowledge from both within the company and outside it

Employee quality and output improves, employee engagement and retention rise, and the workforce is better equipped to handle new challenges and seize new chances because of learning and development. Organizational innovation and inventiveness are also aided by training and development programs.

Some of the methods and best practices used for learning and development are:

  • ADDIE model: an approach to designing & producing training programs that includes 5 stages: analysis, design, development, implementation, and evaluation
  • Kirkpatrick model: An evaluation of training programs across four stages: initial response, retention, application, and outcome.
  • Bloom’s taxonomy: a taxonomy that divides cognitive learning goals into six categories: foundational, intermediate, advanced, and extended.
  • 70-20-10 rule: concept that formal schooling only accounts for 10% of total learning, while experience and social interaction each contribute 20%.
  • Microlearning: a strategy for making learning material available on-demand and in small, focused chunks.

Compensation and Benefits

The purpose of the compensation and benefits factor is to provide & administer monetary and in-kind benefits to workers. Pay and compensations play a role in attracting and retaining talented and driven workers by

  • Designing & implementing a salary plan that is in line with the organization’s values and objectives.
  • Finding out what jobs and positions are paying and what perks they’re offering by researching the market and comparing results to similar positions.
  • Payroll management, including assuring conformity with applicable laws and regulations..
  • Creating & providing a selection of perks like medical coverage, a pension, paid time off, and more.
  • Informing workers of their perks & salary structures and answering their questions

Employees’ dedication, productivity, and happiness, as well as their devotion and commitment to the company, are all boosted by competitive pay and benefits packages. The quality of an employer’s compensation and benefits package can also have a significant impact on the image and name of the business in the marketplace.

Some of the tools and techniques used for compensation and benefits are:

  • Job evaluation: the method whereby a position’s worth is calculated by analyzing its associated tasks, requirements, and abilities
  • Pay structure: a method by which an organization’s various positions and positions within those positions are paid.
  • Pay-for-performance: a method of compensating workers based on their output, as in the form of merit raises, bonuses, fees, etc.
  • Total rewards: a technique that refers to the sum of a worker’s monetary and non-monetary advantages from their job.
  • Employee value proposition (EVP): the unique perks that employees receive in return for their hard work and dedication, as stated by the company.

Employee Relations

Relationship building and upkeep between a company and its staff is the responsibility of employee relations. Workplace harmony and efficiency are outcomes of good employee interactions, which accomplish these goals by:

  • Creating and enforcing rules and regulations that define the relationship between the company and its workers.
  • Integrating differences between workers and management through open dialogue and discussion
  • Increasing workers’ sense of loyalty and belonging to the company through the administration of questionnaires, polls, events, activities, etc.
  • Creating an environment where all workers feel valued is key to a successful business.
  • Assuring that all applicable employment rules & regulations are followed, including those pertaining to health and safety in the workplace, equal employment opportunity, etc.

Employee morale, retention, performance, and efficiency can all benefit from good employee relations. Legal disputes and lawsuits can be avoided or at least reduced with good employee relations.

Some of the methods and best practices used for employee relations are:

  • Employee handbook: a written statement of the goals, values, policies, procedures, rules, etc. of a group.
  • Employee feedback: process of surveying and analyzing workers’ mindsets and opinions on a range of workplace factors (including their level of satisfaction, engagement, motivation, etc.).
  • Employee recognition: a means of acknowledging and appreciating the achievements and contributions of workers, such as through awards, certificates, gifts, etc.
  • Employee assistance program (EAP): a program for workers who are experiencing emotional distress due to work-related issues or other factors.
  • Labor union: an organization of workers who have united to form an official entity that can negotiate on their behalf for better working conditions, pay, and other perks with their employer.

Health and Safety

The purpose of health and safety in the workplace is to protect and enhance the bodily and psychological well-being of all individuals associated with the business. Accidents, illnesses, and other hazards can be avoided or their effects mitigated with the aid of health and safety measures.

  • Reducing the likelihood of job injuries by conducting risk assessments and audits to pinpoint and remove hazards
  • Creating & enforcing rules and processes that adhere to health and safety laws and guidelines
  • Teaching workers how to take care of themselves and the company’s assets.
  • Personal protective equipment (PPE), first aid kits, fire extinguishers, and other safety supplies should be made available to workers.
  • Workplace accidents and occurrences are investigated, reported, and corrective measures are taken.

Employee retention is boosted along with general quality of life when health and safety concerns are properly addressed. Maintaining a secure & healthy workplace is good for business in more ways than one.

Some of the tools and techniques used for health and safety are:

  • Occupational Safety and Health Administration (OSHA): a government department responsible for establishing and enforcing national occupational safety and health guidelines in the United States
  • Hazard identification: a process of evaluation of all feasible job hazards, including those of a physical, chemical, biological, ergonomic, psychological, and other nature.
  • Risk management: a method of identifying, mitigating, and inspecting potential threats at work
  • Safety culture: a shared commitment to and practice of norms concerning staff and customer safety
  • Wellness program: fitness programs, health screenings, counseling, and other services are all part of what make up an employee wellness program.


Hiring and firing workers are only one aspect of human resource management. Human resource management (HRM) is a critical business function that covers a wide range of responsibilities related to overseeing employees and making sure they are happy and productive in their roles. The planning, recruiting, choosing, teaching, developing, compensating, rewarding, appraising, retaining, motivating, communicating, and complying are the core responsibilities of human resource management. HR managers’ contributions to the organization’s success can be measured in their ability to fulfill these roles and improve employee satisfaction, productivity, and retention.

We’re glad you stopped by to check out this post and hope you picked up some useful information about HR key responsibilities. Feel free to ask questions or leave feedback in the comment section. To top it all off, If you are looking for a affordable and effective HR consultancy, then look no further than Yunic Solution. Contact us Today!

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