- April 15, 2024
Core Functions of Human Resource Management
Contents
HR functions are the tasks the human resources team performs to support the organization and its employees. From training and firing to performance management, learning and development, and administration—HR is involved in many essential organizational activities. These activities are also known as HR functions.
In this article, you will learn about The 12 most important functions of human resource management in an organization and how they impact and complement each other.
The 12 Key Functions of Human Resource Management
Imagine being the first HR hire for your organization. You know there is much work to be done, but where do you start, and how do you divide these tasks? Let’s have a look at each of the HR functions, starting with the very first one:
AI (Artificial Intelligence) Implementation
In today’s fast-paced business landscape, AI Implementation emerges as the linchpin of HR functions, revolutionizing how organizations manage their most valuable asset: their people. Its impact extends beyond operational efficiency, shaping a future where HR drives innovation, fosters diversity, and propels organizational success.
For example, HRM utilizes ClickUp for HR works by integrating its versatile project management features to efficiently streamline recruitment, performance evaluations, training, communication, and reporting processes.
In today’s world, the implementation of AI in HR stands out as paramount. Here’s why:
- Efficiency Boost: AI streamlines HR processes, from recruitment to onboarding, reducing manual effort and time consumption.
- Enhanced Decision-Making: AI-powered analytics offer invaluable insights into workforce trends, aiding in strategic decision-making for talent management.
- Bias Mitigation: By minimizing unconscious bias in hiring processes, AI promotes diversity and inclusion within the workplace.
- Personalized Development: AI-driven learning platforms provide tailored training programs, empowering employees to upskill and grow professionally.
Compliance Assurance: AI tools ensure adherence to ever-changing legal regulations, mitigating compliance risks for HR departments.
Hiring
Organizations cannot exist without people. So hiring is the first important step in your HR Journey.
Several components impact the hiring process:
- Employer Branding: This is how appealing your company appears to potential new hires. It’s like your company’s reputation in the job market. Factors such as Trustpilot reviews, your company’s LinkedIn page, and the careers section of your website contribute to your employer branding.
- Candidate Selection: This step involves finding and selecting the best candidates based on their skills, experience, and fit for the role and your company culture. It’s about choosing the right people to contribute positively to your team.
- Recruitment Tools: You can use these tools and resources to manage the hiring process efficiently. They can include applicant tracking systems (ATS), recruitment agencies, and your preferred Human Resource Information System (HRIS). These tools help streamline the process and make it easier to track candidates.
- Onboarding Plan: Once you’ve hired new team members, it’s crucial to have a solid onboarding plan in place. This is like the orientation program that helps new hires get acquainted with your company, its culture, and their role. A good onboarding plan ensures that new hires feel welcomed, informed, and prepared to hit the ground running from day one.
Performance Management
Once your new hire has been onboarded, you will need to plan their first performance review. For a long time, assessing performance and giving feedback were annual HR functions. However, in today’s world of work, we are moving towards a more continuous feedback process that involves employees, managers, colleagues, and sometimes even clients.
HR doesn’t usually participate in performance reviews, but they direct the Performance Management cycle by providing employees and managers with the necessary Frameworks and tools. This will allow them to have clear expectations and one unified review process
Learning and Development
While performance management allows you to assess work done, in the past, Learning and Development guaranteed that employees had the right skills to do their work in the future. In today’s world of work, where the skills gap is widening, training your employees is one of the crucial basic functions of human resource management to ensure workers have the skills they need to operate in a rapidly changing world.
you can rely on,
- External training companies (if your budget allows it)
- Organize in-house training
- Outsource to educational organizations
Together with HR and their manager, employees can create a personal development plan to develop the skills they need for the future. The best development plans combine individual development goals with the goals the organization is trying to achieve.
Career Planning
Employees who perform well and have mastered all the skills required for their role might want to advance to a more senior position. Career planning allows them to do just that.
Effective career planning helps to engage and retain employees by facilitating,
- Continuous upskilling
- Horizontal career moves
- Internal promotions to more senior roles
Another interesting option is job rotation, where employees can experience different departments without switching jobs. Succession planning is critical to career planning because it allows organizations to close vacancies internally.
Knowing who is next in line to fill senior positions and being able to mentor these people to become your company’s next generation of leaders are crucial to maintaining a competitive edge and team morale.
Total Rewards
Total Rewards are a combination of some elements provided by the organization to their employees in exchange for time, labor and skills. The elements are,
- compensation
- benefits
- perks
- incentives
- guidelines
- processes
- programs
- other types of rewards
An effective total rewards strategy sets an organization apart from its competition. It will also engage employees and align rewards with the organization’s goal. A total rewards strategy can help you:
- become an employer of choice
- motivate and retain employees
- boost business performance
A total reward model can help your employees in terms of monetary rewards, career development, and emotional rewards. You can divide the rewards into two categories. One is organizational rewards, and the other one is individualized rewards. Organizational rewards include:
- Compensation
- Benefits, and
- Career growth
On the flip side, there are individualized rewards, which include:
- Personal development
- Purpose and culture, and
- Holistic well-being
Taken together they form a unique and differentiated value proposition for the organization and its employees.
Employee Communication
So far, you have hired the right talent and ensured they have the right skills and compensation for Peak Performance. Now, you’ll need to maintain a positive relationship with your employees. This is where one of the core functions of human resource management, “employee communications,” comes in.
Employee communication refers to the process of sharing information between you and your employees. The information you will convey varies from company updates and policy changes to safety rules and procedures. Effective employee communication is essential for a transparent and productive work environment as it helps to build trust and Foster a culture of open communication.
Different channels can be used for employee communication, including:
- Social media
- Team meetings
- Newsletter
It is important to choose the right Channel and message for each situation and audience. Regular communication and feedback sessions help identify potential issues and improve employee engagement and satisfaction.
Health and Safety
Besides communicating health and safety regulations, HR also plays a vital role in creating them. Making employee safety part of the company culture is one of the main HR functions, and it can save lives.
Consider a scenario within a large-scale construction firm where a considerable workforce engages in inherently perilous tasks like operating heavy machinery and navigating expansive construction sites.
Despite best efforts, accidents inevitably occur. Therefore, implementing robust health and safety protocols remains imperative, serving to mitigate injuries and forestall catastrophic incidents.
Wellbeing
Your employees will need support to do their best work. Wellbeing has always been a central part of all HR functions. It has become paramount since the pandemic.
A total wellbeing strategy involves physical, emotional and mental health. A few examples can be,
- Extra mental health days off
- Mental wellbeing support through Employee assistance programs
- Ergonomic office equipment
- Healthy food options
- Stress management workshops
It is crucial to prioritize employee wellbeing to create a supportive and healthy work environment. Employees who feel valued and supported are more engaged, productive and loyal to their organization.
A total wellbeing strategy can reduce,
- Absenteeism
- Turnover
- Health care costs
Regular employee surveys and feedback sessions help identify areas for improvement and ensure that the wellbeing strategy meets employee’s needs.
Strategic Planning
HR strategic planning is the process of aligning HR initiatives with the organization’s overall business strategy. A well-defined HR strategy can help organizations achieve their goals by ensuring they have the right Talent, skills and culture.
To succeed, the HR strategic planning process involves,
- Analyzing the current workforce
- Identifying future Workforce needs and
- Developing a plan to bridge any gaps
It also involves developing HR policies and procedures that align with the organization’s Mission, Vision, and Values. A well-executed HR strategic plan can lead to:
- Improved organizational performance
- Increased Employee Engagement and retention
- A strong employee brand
- Help organizations stay competitive.
HR Operations
HR operations are the daily activities that support HR functions, including:
- Managing employee data in the company’s HRIS (Human Resource Information System).
- Administering payroll and benefits, and
- Ensuring compliance with labor laws.
Clear policies and procedures should be established, and technology should be leveraged to automate HR processes. Regularly reviewing and updating HR policies and procedures are crucial to ensuring compliance with changing laws and regulations.
Efficient and effective HR operations can:
- reduce costs
- minimize risks, and
- Improve employee experience and retention.
Industrial Relations
The last function on our list is industrial relations, which maintains and cultivates relationships with labor, unions, worker councils and other employee representation groups. HR professionals,
- Negotiate and Implement collective bargaining agreements
- Address grievances, and
- Ensure labor law compliance.
Positive industrial relations involve open communication training and a culture that values engagement. Complying with client’s labor laws and having timely dispute resolution is crucial. Successful industrial relations lead to:
- Increased employee satisfaction
- Improved productivity, and
- Positive employer brand.
Final Thought
These 12 key functions of human resource management form the backbone of organizational success. Each HR function plays a vital role in nurturing a productive and harmonious workplace environment.
By effectively managing these HR functions, HR professionals contribute to enhancing employee satisfaction, fostering talent development, and ultimately driving organizational growth. Moreover, their strategic approach ensures alignment between employee objectives and organizational goals, promoting a culture of excellence and innovation.
In essence, the comprehensive execution of these basic functions of human resource management empowers businesses to leverage their most valuable asset—their workforce—to achieve sustainable success in today’s dynamic and competitive landscape.