7. Human Resource Management (HRM) Functions

Human Resource Management (HRM)

Managing people-related functions to support organizational goals and employee effectiveness.

Workforce Planning

Determining the organization’s current and future staffing needs.

Job Analysis

Gathering information about job tasks, responsibilities, and requirements to support HR decisions.

Recruitment

Attracting qualified applicants to fill job vacancies.

Selection

Assessing applicants and choosing individuals for employment.

Placement

Assigning employees to suitable positions based on job requirements and qualifications.

Compensation

The pay and other financial rewards employees receive in exchange for work.

Direct Compensation

Financial payments such as wages, salaries, commissions, and incentives.

Indirect Compensation

Benefits provided in addition to direct pay, such as insurance or paid leave.

Internal Pay Equity

Perceived fairness of pay differences among jobs or employees within the same organization.

External Pay Equity

The competitiveness and fairness of an organization’s pay compared with similar jobs in other organizations.

Job Evaluation

Determining the relative value of jobs to help establish a compensation structure.

Training

Helping employees acquire job-related knowledge and skills.

Employee Development

Activities that prepare employees for future responsibilities and growth.

Performance Management

Setting expectations, monitoring performance, providing feedback, and supporting improvement.

Performance Appraisal

Evaluating employee performance against established criteria.

Employee Retention

Keeping valued employees in the organization.

Employee Relations

Managing workplace relationships, employee concerns, and interactions between employees and management.

Human Resource Development (HRD)

Developing employees’ knowledge, skills, and capabilities through training and other developmental activities.

Legal Compliance in HRM

Ensuring HR practices follow applicable employment laws and regulations.

Equal Employment Opportunity

Providing fair employment opportunities without unlawful discrimination.

Employee Selection Systems

Procedures used to evaluate applicants and make consistent, job-related hiring decisions.

Compensation Strategy

The approach an organization uses to determine pay and benefits in support of its goals.

Pay Structure

The organization’s system for establishing and managing pay levels across jobs.

Performance-Based Compensation

Compensation linked to employee or organizational performance.

Training Evaluation

Determining whether training achieved its objectives and produced useful results.

HR Planning and Recruitment

Forecasting staffing needs and attracting suitable applicants to meet them.

HRM and Organizational Goals

HR functions should support the organization’s strategy while meeting employee and legal requirements.

HRM Function Sequence

Workforce planning identifies needs; recruitment attracts applicants; selection evaluates them; placement assigns employees; development and performance management support effectiveness and retention.