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Human Resource Management and Its Functions

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Organizations are increasingly understanding and accepting the need for functional human resource management (HRM) system. HRM which is also known as HR department is the practice of managing the employees of a company. The main responsibility of the HRM department is devising policies and procedures for maintaining a harmonious relationship between the employees and the organisation. The term Human resource management came into existence in the 1900s, but it became popular by 1960s. This is the practice of managing the employees by emphasising the professional wellbeing of employees by making them an asset for the company.

There are various functions of HRM, and they are taken into account by the HR professionals. Many big organizations make them as the sub-departments under HR department and have many employees taking care of distinctive functions whereas in small companies few people can manage all the functions. Here is a brief description of different functional areas of HRM:


Recruitment can be defined as creating a pool of applicants for a particular job. This is done with some ways such as posting the job opening online on the website or social media, by the employee referrals, college campuses or by taking help from the job consultancies and sites. Recruitment is the mean of contacting the applicants, and it is usually done with the help of applicant tracking systems.

Once the procedure of recruitment is completed, and the department gets enough applications, the next step is to select the best candidates. This selection process has a set of stepwise procedures which should be followed to get the desired result. The selection starts by scanning the CVs and resumes and continues until a suitable candidate has been hired. It includes analysis of bio-data, the educational qualifications, and work experience, the performance of the candidate in written tests, aptitude tests and in various interview rounds.


The next step once the suitable candidate is being hired is welcoming him/her onboard by completing all the paperwork. The HR executive will take the necessary documents from the person, and the details will be entered in the company’s database. These documents include certificates stating the candidate’s educational qualifications, the work experience certificate, forms related to statutory benefits, documents for identity and address confirmation etc. There are many more according to the distinctive policies of the particular organization.

When a person is new to the company, the HR department must introduce them to the mission, vision, culture and processes of the firm along with the people with whom they have to work with. This is done by designing orientation programs where they can learn about the company and its working.


Training is a mandatory process for the newly hired employees, but it is also important to train the old employees if there are changes in the trends and methods of procedures. Training is also a broader term, and there are many phases of conducting a suitable and fruitful training program for the company. The training session is the tip of the iceberg as there goes a lot of things before that to conduct a successful session such as training need analysis, strategising and designing the training programs, imparting it and evaluating at the end of the program.


The success of a company depends upon the dedication of its workforce. Therefore, it is the prime responsibility of the company to manage the talent of its employees and keep unleashing their potential.


Compensation management takes care of the optimising and paying the salaries and benefits and monetary or non-monetary rewards to the employees. The fundamental purpose of this HRM function is to ensure to retain the best talent of the organisation and also to attract the new talent.


The knowledge of all the labour laws is essential for human resource managers to tackle the grievances and other complaints of the workers. These laws are also called employment laws, and they mediate between the employing entity and the workers.


Every organisation requires evaluating and improving the effectiveness and productivity of its employees. Therefore the performance management system makes an essential function for the business entities. This is a process to monitor the performance of the individual associates, particular departments and the organisation as a whole.

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