HEPL 3104: HUMAN RESOURCE MANAGEMENT (updated) course outline.

CONTACT HOURS 45

1.0 PURPOSE

To make the student understand the processes required to make the most effective use of the human
capital in the procurement function

2.0 PROGRAMME LEARNING OUTCOMES

At the end of this course students should be able to;

a) Discuss human resource planning and its relevance in the procurement function.
b) Explain important issues involved in staff acquisition and explain the concepts of
resource assignments, resource loading, and resource leveling.
c) Assist in team development with training, team-building activities, and reward systems.
d) Explain and apply several tools and techniques to help manage a team and summarize general
advice on managing teams.

3.0 COURSE-OUTLINE

1. Introduction to human resource management.

2. Principles and functions of human resource management.

3. Theories of human resource management. Human resource forecasting and planning.

4. Staff recruitment, departmentalisation; centralisation versus decentralisation.

5. Motivation,

6. Communication, management styles,

7. Discipline and termination retirement, redundancy and redeployment.

8. Employee training and development; designing and development of training programmes,

career management, job satisfaction and performance appraisal.

9. Wage and salary administration.

1
 10. Employee welfare, industrial and employee relations, grievance and dispute handling,
industrial courts.

11. Employment laws, trade disputes and trade unions, employment acts,

12. occupational health and safety.

4.0 TEACHING METHODOLOGIES

Lectures, Case Studies, Seminars, critiques, and Term Papers.

5.0 INSTRUCTIONAL MATERIALS/EQUIPMENT

Texts, audio and video DVD’s, computer software, case studies

6.0 COURSE ASSESSMENT

Coursework 40%

Final Written Examination 60%

Total 100 %

7.0 COURSE TEXTBOOKS

1. Armstrong, M. (2010).Human Resource Management Practice, (11th ed.), London: Kogan Page.
2. Hill, G. and Jones, G. (2009).Strategic Management Theory: An Integrated Approach, (9thed.)
New York: Cengage Learning.
3. Torrington, D., Hall, L., Taylor, S. (2008). Human Resource Management, (7thed), Harlow:Prentice
Hall
8.0 REFERENCE TEXTBOOKS
1. Amstrong, M. (2008).Strategic Human Resource Management, (4th ed.), London: Kogan Page.
2. Knicki, A. and Williams, B.K. (2008).Management A practical introduction, (3rd ed.).
Boston:McGraw.
3. Mintzberg, H., Lampel, J and Ahlstrand, B. (2008). Strategy Safari: A Guided Tour Through the
Wilds of Strategic Management, (2nd edition), New York: Simon & Schuster.
9.0 COURSE JOURNALS
1. Kenya Institute of Management - Management Journal
2. Personnel Review Journal

2
 3. Human Resource Management Journal
10.0 REFERENCE JOURNALS

1. Kenya College of Accountancy University – Journal of Business Management .

2. Central Bank of Kenya – African Journal on Business.
3. IHRM Journal

3
Topic 1 : INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

WHAT IS HRM?

Human Resource Management, or HRM, is the practice of managing people to

achieve better performance.

For example, if you hire people into a business, you are looking for people who fit
the company culture as they will be happier, stay longer (retention), and be more
productive than people who won’t fit into the company culture.

Another example is engagement. Engaged employees are more productive, deliver

higher quality work and make customers happier. This means that if we can find
ways to make employees more engaged, we help the company. Data-driven HR

The HR department provides the knowledge, tools, training, legal advice,

administration, and talent management, which is crucial to sustaining and
advancing a company.

The next question is, who are these Human Resources?

Human Resource Management was originally known as personnel or people management. In the
past, its role was quite limited. Within any company or organization, HRM is a formal way of
managing people. It is a fundamental part of any organization and its management.

The main responsibilities of the personnel department include hiring, evaluating, training, and
compensation of employees.

The human resources department deals with any issues facing the staff in their working
capacity within an organization. HR is concerned with specific work practices and how they
affect the organization’s performance.

Today, Human Resources Management deals with:

 Anything related to managing people within a company or organization. This

means decisions, strategies, principles, operations, practices, functions, activities, and
the methods used to manage employees.
 The type of relationships people have in their places of employment and anything
that affects those relationships in a positive or negative way.
 Ensuring that employees are satisfied with the conditions of their employment.
This leads to better services and production of goods and helps the company’s
success.

4
When we talk about human resources in a business situation it means the workforce, i.e., the
employees of a company and the skills and energy they bring.

This includes any ideas, creativity, knowledge, and talents that employees bring with them
and use to help the organization be successful. In other words, the resources a person has
or the knowledge and experience developed over the years.

HRM focuses on bringing in :

 Recruiting new employees with new talents for the company and managing employees.
Another function is
 To guide and help said employees by providing direction when necessary. In a large
organization, with a lot of people, it is important to have a department that specifically
focuses on staff issues such as (hiring, performance management, organizational
development, training, occupational health and safety, motivation incentives,
communication, workplace culture, and environment).

Human Resource Management is now a vital part of any organization. Every company or
organization is required to have this department. It helps with increasing the morale of workers
by working on relations between employees and their employers and constantly striving to make
them better. The HR department also provides any support employees need to assist them
improve their performance.

The HRM function extends to assessing the productivity and/or success of every department in
an organization or business.

It assists each department and helps them improve their work.

It also intervenes when necessary to help solve any problems that might arise with regards to
employees’ work. Getting better results from the company’s workers is another job of HRM.

When a business has valuable, rare, and/or unique human resources it will always have a
competitive advantage over other similar organizations.
Below are the criteria used in Human Resource Management – when using these effectively, a
company can make an impact in its particular field.

– Value Building: People who try hard to decrease costs and to provide a service or product
unique to customers, can increase their own value as employees and that of the company.
Organizations also use empowerment programs, quality initiatives, and strive for continual
improvement in order to increase the value that employees bring to the company.
– Rarity: When the skills, knowledge, and abilities of employees are not equally available to all
companies in the same field, the company that has these people, has a very strong advantage.
This is why top companies endeavor to hire and train the best and the brightest employees. This
way they gain advantage over their competitors. In some cases, companies will even go to court
to stop other organizations from taking away their valued employees. This proves that some
companies have clearly identified the value and the uniqueness of certain employees.
– Incomparability: Employees give their companies competitive advantage when their
capabilities and contributions cannot be reproduced by others. That is, the knowledge and skills

5
that they bring to the organization are unique and not easily found elsewhere. Certain
corporations such as Disney, Southwest Airlines, and Whole Foods have, over the years,
developed very distinctive cultures that get the most from employees. These cultures are difficult
for other organizations to imitate. Southwest Airlines, for example, rewards the employees who
perform well. It is also able to maintain employees’ loyalty through offering free airfares and
profit sharing in the company.
– Organized work force: People with unique talents can help a company achieve a competitive
advantage when they can easily be reassigned to work on new projects without much notice. In
order for this to happen teamwork and co-operation are needed and the creation of an organized
system.

The criteria above show the importance of people power and also the link between human
resources management and performance management. Many high-functioning organizations now
know that their success depends on the knowledge and skills of their employees, or, their human
capital. Human capital is aligned with the economic value of employees with the right
knowledge, skills, and abilities. Their knowledge and skills have economic value. Managing
human capital properly is imperative for any organization wanting to maintain a competitive
advantage. In some ways it is the most important part of an organization’s human resource
function.

The Objectives of HRM

The objectives of HRM are the goals of an organization. Individual or group activities are then
organized in such a way so as to achieve those objectives or goals.

Organizations and companies aim to secure and manage certain resources, including human
resources, to achieve the specified goals.

Human resources must therefore be managed in a way that uses their resources to achieve the
organizational objectives/goals.

OBJECTIVES OF HRM:
1. To establish and use a workforce that is able and motivated, in order to achieve
the goals of an organization.
2. To create the desirable organizational structure and working relationships among
all the members of the organization.
3. To integrate individuals and/or groups within the company by matching their
goals with those of the company.
4. To ensure individuals and groups have the right opportunities to develop and
grow with the organization.
5. To use what human resources a company has in the most effective way to achieve
organizational goals.
6. To ensure wages are fair and adequate and provide incentives and benefits thereby
satisfying both individuals and groups. Also, to ensure ways of allowing recognition
for challenging work, prestige, security and status.
7. To have continual high employee morale and good human relations by
establishing and improving conditions and facilities within the organization.

6
 8. To improve the human assets by providing appropriate training programs on a
continual basis.
9. To try to effect socio-economic change in areas such as unemployment, under-
employment and inequality by distributing income and wealth. This way society can
benefit. Added employment opportunities for women and the disadvantaged will
also be impacted in a positive way.
10. To offer opportunities for expression.
11. To ensure that the organizational leadership works in a fair, acceptable and
efficient manner.
12. To ensure a good working atmosphere and employment stability by having
proper facilities and working conditions.

Functions of Human Resource Management (HRM)

Human resource management must plan, develop, and administer policies and programs that can
make the best use of an organization’s human resources. This is the part of management’s role
which deals with people at work and their relationships within the organization. Its aims are:

1. To use human resources as effectively as possible;

2. To ensure the best possible working relationships among all members of the
organization; and
3. To assist individuals to reach their highest potential.

In Human Resource Management, there are four major areas:

1. Planning
2. Staffing
7
 3. Employee development, and
4. Employee maintenance.

These four areas and any associated functions share a common aim. That is to have enough
competent employees with the skills, abilities, knowledge, and experience needed to achieve
further organizational objectives. Each human resource function (above) can be appointed to one
of the four areas of personnel responsibility but there are also other functions that are designed
for different purposes. For example, performance evaluation processes provide a stimulus and
guide employee development. They are valuable for salary administration purposes also. The
purpose of the compensation function is as a stimulus to keep valuable employees and also to
attract potential employees.

7 Human Resource Management

Basics Every HR Professional
Should Know
You are here:
1. Home
2. General HR
3. 7 Human Resource Management Basics…
People are essential to the success of any business. The performance of
employees can be a liability or asset to a company. As an HR professional, you
will play a pivotal role in how successful your company is. Good Human
Resource Management (HRM) is essential for businesses of all sizes. In this
article, we will breakdown the fundamentals of Human Resource
Management.

We will start with a brief description of HRM and HR. Then we will dive into the
seven HR basics you have to know to have a good understanding of what HR does.
We will end with some information on technical terms, such as HRIS (Human
Resources Information System).R starts by creating and implementing a set of rtrics
that help you determine the efficiency and impact of the workforce and HR
department.
Download the FREE cheat sheet with 51 HR Metrics

What is a Human Resource?

8
People are human resources.

Human Resources are all the people that in one capacity or another work for or
contribute to an organization.

These people make up a company’s workforce. They can be regular employees, for
example, but also contractors. Especially with the rise of the gig economy, more
and more people are starting to work for an organization on a contract basis
without having a traditional labor contract.

These people include independent contractors, workers provided by contract firms,

on-call workers, and temporary help agency workers.

An independent contractor can be under contract for years at the same

organization, while an agency worker can work at 20 different companies
throughout one year. Because these people are all involved in the company to a
different extent, the way they are managed and involved in the organization should
also be different.

THE FUNDAMENTAL PRINCIPLES OF HR MANAGEMENT

are as follows:

1. Deal with people as complete individuals.

2. Make people feel worthwhile and related.
3. Treat all employees with justice.
4. Human resource management is not personal.
5. Rewards should be earned, not to be given.
6. Supply employees with relevant information.
7. Do not underestimate the intelligence of people.
8. Treat people with respect and dignity.
9. Provides opportunities for growth within the organization.
10. The predominance of group interest over individual interests.
11. Sell the HR program. It must be sold.

Deal with people as complete individuals.

9
Consider an employee as a whole person. For example, the family life of an employee may affect
his working life.

Make people feel worthwhile and related.

People are the most valuable asset of the organization.

Treat all employees with justice.

There should be no discrimination in terms of gender, color, race, and religion. For example, the
selection and placement process should be realized based on the equal opportunity principle.

Human resource management is not personal.

The individuality of the human resource must be recognized and cannot be treated like any other
resource. After all, people have feelings and emotions.

Rewards should be earned, not to be given.

Rewards may be monetary and nonmonetary (recognition, appreciation). If it is given, it
becomes a gift or donation. Students should earn a good grade through hard work.

Supply employees with relevant information.

Secrecy may create confusion and misunderstanding. Information should be shared with
employees.

Employees’ commitment to the organization is nurtured when the organization informs them of
important matters, such as the mission statement, the values it cherishes, and trading prospects.

Do not underestimate the intelligence of people.

People have a lot of positive potentials. The objective of the HR manager is to make the best use
of human talent. The employee should be empowered to utilize their talents.

But the reality is that many people in developing countries remain undervalued, underestimated,
and underutilized.

Treat people with respect and dignity.

People deserve to be treated differently from other factors of production (land, capital,
technology) because they are of higher order in the universe.
10
This will enhance people’s motivation and commitment to the organization.

Provides opportunities for growth within the organization.

According to Herzberg, employee growth is a motivational factor. All employees are
expected to enhance knowledge, skills, and competencies.

It is believed that development is an individual initiative, provides necessary resources and

supports the people.

The predominance of group interest over individual

interests.
According to Fayol, one of the basic principles of management is the subordination of
individual to group interest.

The HR manager must integrate the interests of different stakeholders of an organization. Plato
argues that all segments of society should work harmoniously to avoid social conflict.

Sell the HR program.

It must be sold. This follows because employees will learn by themselves or from others if
management does not teach them.

TYPICAL HUMAN RESOURCE FUNCTIONS:

1. Recruitment & selection.

2. Performance management.
3. Learning & development.
4. Succession planning.
5. Compensation and benefits.
6. Human Resources Information Systems.
7. HR data and analytics.

1.

11
1. Recruitment & selection
Recruitment and selection are arguably the most visible elements of HR. We all
remember our first interview, right?

Recruiting candidates and selecting the best ones to come and work for the
company is a key HR responsibility. People are the lifeblood of the organization and
finding the best fits is a key task.

The request for new hires usually starts when a new job is created or an existing
job opens up. The direct manager then sends the job description to HR and HR
starts recruiting candidates. In this process, HR can use different selection
instruments to find the best person to do the work. These include interviews,
different assessments, reference checks, and other recruitment methods.
Sometimes, when there are a lot of candidates, HR may deploy preselection tools.
These tools help to separate the wheat from the chaff when it comes to suitable

12
candidates. The successful candidates then continue to the next round, where they
are interviewed and receive a more in-depth assessment.

2. Performance management
Once employees are on board, performance management becomes important.
Performance management is the second HR basic. It involves helping people to
become their best selves at work, boosting the company’s bottom line.
Usually, employees have a defined set of responsibilities that they need to take care
of. Performance management is a structure that enables employees to get
feedback on their performance – to reach their best performance.

Examples are formal one-on-one performance reviews, 360-degree

feedback instruments that also take into account the evaluation of peers, clients,
and other relations, and more informal feedback.
Usually, companies work with an annual performance management cycle, which
involves planning, monitoring, reviewing, and rewarding employee performance.
The outcome of this process enables the categorization of employees in high vs.
low performers and high vs. low potentials.
Successful performance management is very much a shared responsibility between
HR and management, where usually the direct manager is in the lead and HR
supports. Good performance management is crucial. Employees who are
empowered to their full potential, improve the efficiency, sustainability, and profit
margin of a business. Employees which consistently underperform may not be a
good fit for their role, or the company culture. These employees may need to be let
go.

3. Learning & development

People are the product of life experiences, the country and era they grow up in, and
a range of cultural influences. Within HR, learning and development ensure that
employees adapt to changes in processes, technology, and societal or legal shifts.
Learning and development helps employees to reskill and upskill. Learning &
Development (L&D) is led by HR and good policies can be very helpful in advancing
the organization towards its long-term goals.

13
Many organizations have pre-defined budgets for L&D efforts. This budget is then
distributed amongst employees, with trainees, future leaders, and other high
potentials often receiving more training opportunities than others. Individuals may
arrive at a company with vastly different knowledge and experience. L&D provides
employees with a way in which to bridge skill gaps and develop into leaders. A well-
known framework that connects performance management with L&D activities is
the 9-Box grid. Based on people’s performance and potential ratings, HR
department together with managers can advise different development plans.

4. Succession planning
Succession planning is the process of planning contingencies in case of key
employees leaving the company. If, for example, a crucial senior manager quits
his/her job, having a replacement ready will guarantee continuity and can save the
company significant money.

Succession planning is often based on performance ratings and L&D efforts. This
results in the creation of a talent pipeline. This is a pool of candidates who are
qualified and ready to fill (senior) positions in case of someone leaving. Building
and nurturing this pipeline is key to good people management.

5. Compensation and benefits

Another one of the HR basics is compensation and benefits. Fair compensation is
key in motivating and retaining employees. One of the fundamentals of human
resource management concerning pay is ensuring equity and fairness.
Making the right offer of pay is a key part of attracting the best talent. This must be
balanced with the budget and profit margins of the company. HR should monitor
pay increases, and set standards of merit. HR may also carry out a pay audit on
occasions.

Compensation comprises primary compensation and secondary compensation.

Primary compensation involves directly paid money for work, which often is a
monthly salary and sometimes performance-based pay.

14
Secondary benefits are all non-monetary rewards. This can include extra holidays,
flexible working times, day-care, pensions, a company car and laptop, and much
more.

The goal here is to reward people in ways that motivate them.

6. Human Resource Information System

The last two HR basics are not HR practices but tools to do HR better. The first is
the Human Resource Information System, or HRIS. An HRIS supports all the
cornerstones we discussed above. For example, for recruitment and selection, HR
professionals often use an Applicant Tracking System, or ATS, to keep track of
applicants and hires.
For performance management, a performance management system is used to
keep track of individual goals and put in performance ratings.

In L&D, a Learning Management System (LMS) is used for the distribution of

content internally, and other HR systems are used to keep track of budgets and
training approvals.

Compensation specialists often use a payroll system, and there are also digital tools
that enable effective succession planning.

All these functionalities can often be done in one single system – the HRIS.
Sometimes, however, the management of these functionalities is split up into
different HR systems.

The bottom line here is that there is a significant digital element to working in HR
which is why the HRIS is the final element when we talk about the HR basics.

15
7. HR data and analytics
The last of the HR fundamentals revolves around data and analytics. In the last half-
decade, HR has made a major leap towards becoming more data-driven.

The Human Resource Information Systems we just discussed is essentially a data-

entry system. The data in these systems can be used to make better and more
informed decisions.

An easy way to keep track of critical data is through HR metrics or HR KPIs. These
are specific measurements that answer how a company is doing on a given
measurement. This is referred to as HR reporting.
This reporting focuses on the current and past state of the organization. Using HR
analytics, HR can also make predictions. Examples include workforce needs,
employee turnover intention, the impact of the (recruitment) candidate experience
on customer satisfaction, and many others.

By actively measuring and looking at this data, HR can make more data-driven
decisions. These decisions are often more objective, which makes it easier to find
management support for these decisions.

******************************************************

1.Human Resource Planning

The human resource planning function serves to determine the number and type of employees
needed to achieve the company’s goals. Research is performed in this function because planning
requires information to be collected and analyzed for the forecasting of human resource supplies
and the prediction of future human resource needs. Staffing and employee development are key
human resource planning strategies.

2. Job Analysis

Job analysis is deciding on the job description and the human requirements that are needed for
said job. The job description should include the skills and experience needed to perform the job.
A job description clearly sets out work duties and activities that employees will be expected to
perform. Job descriptions are essential because the information they provide to employees,
managers, and personnel people influences personnel programs and practices.

3.Staffing

16
Recruitment and selection of human resources (people) is what staffing is mostly concerned
with. Human resource planning and recruiting is done before selecting people for positions.
Recruiting is the personnel function of finding and hiring the best qualified applicants to fill job
vacancies.

The selection function is used to choose the most qualified applicants for hiring from those
attracted to the organization by the recruiting function. During the selection process, human
resource staff are involved in assisting managers to decide which applicants to select for the
given jobs and which ones to reject.

4.Orientation

Orientation is done in order to introduce a new employee to the new job and the employer. It is a
way for new employees to get to know more intimate aspects of their job, including pay and
benefits, working hours, and company policies and expectations.

5.Training and Development

Training and development is used as a means of providing employees with the skills and
knowledge to do their jobs well. It must be provided to all employees. In addition to providing
training for new or inexperienced employees, organizations often provide training for
experienced employees as well. This may be because their jobs are undergoing change or the
company needs them to work more effectively. Development programs are also done to equip
employees for higher level responsibilities. Training and development programs are ways of
making sure that employees can handle the stresses of their jobs and perform well.

6. Performance Appraisal

Performance appraisal is an evaluation of an employee and his/her performance to make sure that
said employee is working well and at acceptable levels. Human resource personnel are usually
responsible for developing appraisal systems. The actual assessment of employee performance is
done by supervisors and managers. Performance appraisal is necessary because the results of the
appraisal can be used to motivate and guide employees’ performance. It also provides a basis for
pay, promotions, and any disciplinary action if necessary.

7. Career Planning

Career planning is a process where an employee explores his/her interests and abilities and
strategically works towards job goals. It has come about partly because many employees’ feel
the need to grow in their jobs and to advance in their careers.

8.Compensation

It is the HR department that determines how much employees should be paid for certain jobs
using a system of assessment. Compensation costs companies a lot so it is something that needs
serious attention in the human resource planning stage. Compensation affects staffing because
people generally want to work for an organization that offers more pay in exchange for the work
done. It provides an important motivation for employees to achieve more in their jobs and reach
higher levels. As such, it is related to employee development.

17
9.Benefits

Work benefits are also referred to as fringe benefits. They are non-wage compensation that
employees get in addition to their usual wages. Benefits are legally required items but employers
can also more at their discretion. The cost of benefits is so high that they have become a huge
consideration in human

resources planning. Benefits are mostly related to the maintenance area because they provide for
many basic employee needs.

9. Labor Relations

Labor relations relates to the practice of managing employees who are members of a union.
Unions provide employees with strength in numbers and have representatives who can advocate
on their behalf if necessary, to deal with any discrepancies in pay, benefits, working conditions,
and other work aspects. HR personnel are responsible for negotiating with unions and resolving
any disputes.

10.Record-keeping

Record-keeping is essential and the most basic function of HR. Recording, maintaining and
retrieving employee information when needed is done by the HR personnel. The type of records
kept are related to the employees and include employment history, resumes, medical records,
promotions, transfers, working hours, and lateness, etc. Keeping records up-to-date is a vital HR
function. Employees today want to know what is in their personnel records and why certain
things are there or not there.

Personnel records provide the following:

a) Up-to-date information about employees.

b) Procedures for comparing employees and their work to other employees.

c) Procedures for recruiting new employees, e.g. by showing the rates of pay.

d) Record of previous action taken regarding employees.

e) Statistics which check and guide personnel policies.

f) Information regarding legal requirements and how to comply with them.

11.Personnel Research

Research activities are an essential function of HR personnel. Research is done with the aim of
obtaining personnel specific information in order to develop programs that work for an
organization. Planning and reviewing are vital. Areas, such as recruitment, employee turnover,
training, and terminations are all important areas to be researched. Employee opinions are also

18
very important and can be obtained through surveys about wages, promotions, welfare services,
conditions, job security and the like.

Even though research is so important, many companies neglect it because personnel people are
too busy dealing with other more immediate problems.

Research is not done to deal with problems but to prevent them from occurring in the first place.
The responsibility for research lies initially with the HR department but line supervisors and
executives at all levels of management should assist. Trade unions and other organizations can
give some assistance also and it should be made use of.

HR functions also include managing change, introducing new technology, innovation and
diversity. Regular social audits of HR functions are necessary because of the large role HR plays
within any organization. HR’s ultimate goal is to provide a link between the organization and the
employees because the organization needs employees’ commitment. Employees need to be made
aware of things like sales growth, restructuring plans, sharp price movements and any challenges
facing the country and their organization in particular. This can be done by videos, films, lectures
and booklets.

Main responsibilities of a human resource manager :

– To fully develop knowledge of corporate culture, plans and policies.

– To initiate change where necessary and act as a facilitator.

– To actively participate in formulating company strategy.

– To be a consultant to change.

– To ensure communication remains open between the HR department and individuals and
groups inside and outside the organization.

– To identify and advance HR strategies that match the company’s business strategy.
– To develop particular organizational teams and assist in the effective working relationships
between the teams and individuals.

– To ensure the organization’s goals are achieved by effective co-operation of employees.

– To identify any problems, particularly in the HR area, and to find effective solutions.

– To contribute to the co-ordination and support services for HRD programs.

– To assess the effectiveness of HRD programs and to do research in order to find out how the
HRD has affected (improved or otherwise) individual or organizational performance.

nine new roles of HR according to Pat McLagan an award-winning author, speaker and coach of
leadership development and management are as follows:

19
 1. To bring the issues and trends concerning an organization’s external and internal
people to the attention of decision-makers, and to recommend long-term strategies to
support organizational excellence and endurance.
2. To design and prepare HR systems and actions for implementation so that they
can produce maximum impact on organizational performance and development.
3. To facilitate the development and implementation of strategies for transforming
one’s own organization by pursuing values and visions.
4. To create the smoothest flow of products and services to customers; to ensure the
best and most flexible use of resources and competencies; and to create commitment
among the people who help us to meet customers’ needs whether those people work
directly for the organization or not.
5. To identify learning needs and then design and develop structured learning
programs and materials to help accelerate learning for individuals and groups.
6. To help individuals and groups work in new situations and to expand and change
their views so that people in power can participate in leadership.
7. To help people assess their competencies, values, and goals so that they can
identify, plan, and implement development actions.
8. To assist individuals to add value in the workplace and to focus on the
interventions and interpersonal skills for helping people change and sustain change.
9. To assess HRD practices and programs and their impact and to communicate
results so that the organization and its people accelerate their change and
development.

In recent years, Human Resource Management has received increasing attention. Its importance
has been recognized and its role has changed from the traditional personnel management role to
a more human resource management role.

Evolution Cycle of the HR Function

Every HR department develops along with the development and growth of the
organization. The HRM evolves through 3 distinct stages where it begins as a
Business Function, turns into a Business Partner and afterwards a Strategic Partner.

In every one of these cases, the job and responsibilities of the HR division evolve to
be more strategic. At more elevated levels of maturity, the HR department can
increase the value of the leadership potential, top talent, company goals, employee
retention rate and long haul manageability of the association.

20
At each stage, the credits and worth added by the Human Resources department
change and the mediums required for this will change . At any rate, HR in an
association should be liable for overseeing employee information, finance, time
management, and setting up organization strategies. The HR department handles the
effectiveness of human resource strategies and should be incorporated into every
decision making process in the organization.

As a business partner, HR’s job is to meet the “current business needs” with the goal
that the association can develop at a quantifiable rate. At this stage, HR moves to
competency-based recruitment, pay grades, sudden turn of events, correspondence and
organization plan.

HR helps in formalizing the organization hierarchy (who does what and reports to
whom). That done, it recognizes the skills essential for each work job. Further, it helps
in characterizing programs that are essential for building up these
abilities, recruitment strategies to assess the expertise levels and benchmarking the
abilities against industry norms and contenders etc.

All out salary (finance and advantages) likewise turns into a centre territory where the
HR assists the association with drawing in and holding talented employees by turning
into a pioneer in paying the employees.

Utilizing the expertise database and the company structure, the HR work develops pay
hikes, improves the preparation capacity and makes the recruitment work more
receptive to the abilities required by the association.

Organizations that see their HR as a strategic business partner have faith in giving the
full maturity of their HR work. Such organizations are centered around accomplishing
leadership roles instead of a year-on-year development.

So, let us find out more about each of these seven functions of HRM.

1. Job design and job analysis

One of the foremost functions of HRM is job design and job analysis. Job design
involves the process of describing duties, responsibilities and operations of the job. To
hire the right employees based on rationality and research, it is imperative to identify
the traits of an ideal candidate who would be suitable for the job. This can be
accomplished by describing the skills and character traits of your top-performing
employee. Doing so will help you determine the kind of candidate you want for the

21
job. You will be able to identify your key minimum requirements in the candidate to
qualify for the job.

Job analysis involves describing the job requirements, such as skills, qualification and
work experience. The vital day-to-day functions need to be identified and described in
detail, as they will decide the future course of action while recruiting.

2. Employee hiring and selection

Recruitment is one of the primary functions of human resource management. HRM

aims to obtain and retain qualified and efficient employees to achieve the goals and
objectives of the company. All this starts with hiring the right employees out of the
list of applicants and favourable candidates.

An HRM helps to source and identify the ideal candidates for interview and selection.
The candidates are then subjected to a comprehensive screening process to filter out
the most suitable candidates from the pool of applicants. The screened candidates are
then taken through different interview rounds to test and analyse their skills,
knowledge and work experience required for the job position.

Once the primary functions of HRM in recruitment are completed, and the candidate
gets selected after rounds of interviews, they are then provided with the job offer in
the respective job positions. This process is important because these selected
employees will, after all, help the company realise its goals and objectives.

3. Employee training & development

Imparting proper training and ensuring the right development of the selected
candidates is a crucial function of HR. After all, the success of the organisation
depends on how well the employees are trained for the job and what are their growth
and development opportunities within the organisation.

The role of HR should be to ensure that the new employees acquire the company-
specific knowledge and skills to perform their task efficiently. It boosts the overall
efficiency and productivity of the workforce, which ultimately results in better
business for the company.

HRM plays a very crucial role in preparing employees for bigger tasks and
responsibilities, which leads to the holistic development of employees at work. And
an organisation which provides ample growth and development opportunities to its
employees is considered to be a healthy organisation.

22
4. Compensation and Benefits

Benefits and compensation form the major crux of the total cost expenditure of an
organisation. It is a must to plug the expenses, and at the same time, it is also
necessary to pay the employees well. Therefore, the role of human resource
management is to formulate attractive yet efficient benefits and compensation
packages to attract more employees into the workplace without disturbing the finances
of the company.

The primary objective of the benefits and compensation is to establish equitable and
fair remuneration for everyone. Plus, HR can use benefits and compensation as a
leverage to boost employee productivity as well as establish a good public image of
the business.

Therefore, one of the core HR department functions is to lay down clear policies and
guidelines about employee compensation and their available benefits. One of the
functions of HR manager is to ensure the effective implementation of these policies
and guidelines. This creates equality and builds transparency among the employees
and the management within the organisation. After all, the level of employee
satisfaction at work is directly proportional to the compensation and benefits they
receive.

5. Employee performance management

The next activity on HR functions list is effective employee performance

management. Effective performance management ensures that the output of the
employees meets the goals and objective of the organisation. Performance
management doesn’t just focus on the performance of the employee. It also focuses on
the performance of the team, the department, and the organisation as a whole.

The list of HR functions for performance management includes:

 Developing a proper job description

 Initiating an appropriate selection process to hire the right candidates for the
job positions
 Providing the right training and education needed to enhance the performance
of the employees
 Enabling real-time feedback and coaching employees to boost efficiency
among them

23
  Conducting performance reviews monthly or quarterly to discuss the positives
and the improvement areas of employees
 Formulating a proper exit interview process to understand why experienced
employees choose to leave the company
 Designing a proper appraisal and compensation system that recognises and
rewards the workforce for their effort and hard work
6. Managerial relations

Relationships in employment are normally divided into two parts — managerial

relations and labour relations. While labour relations is mainly about the relationship
between the workforce and the company, managerial relations deals with the
relationship between the various processes in an organisation.

Managerial relations determine the amount of work that needs to be done in a given
day and how to mobilise the workforce to accomplish the objective. It is about giving
the appropriate project to the right group of employees to ensure efficient completion
of the project. At the same time, it also entails managing the work schedules of
employees to ensure continued productivity. It is essential that HR handles such
relations effectively to maintain the efficiency and productivity of the company.

7. Labour relations

Cordial labour relations are essential to maintain harmonious relationships between

employees at the workplace. At the workplace, many employees work together
towards a single objective. However, individually, everyone is different from the other
in characteristics. Hence, it is natural to observe a communication gap between two
employees. If left unattended, such behaviours can spoil labour relations in the
company.

Therefore, it is crucial for an HR to provide proper rules, regulations and policies

about labour relations. This way, the employees have a proper framework within
which they need to operate. Therefore, every employee will be aware of the policies
which will create a cordial and harmonious work environment.

Such a structured and calm work atmosphere also helps with improving performance
and aching higher targets.

8. Employee engagement and communication

24
Employee engagement is a crucial part of every organization. Higher levels of
engagement guarantee better productivity and greater employee satisfaction.
Efficiently managing employee engagement activities will help in improving the
employee retention rates too. HRM is the right agent who can manage the employee
engagement seamlessly. Proper communication and engagement will do wonders for
the employees as well as the organization. The more engaged the employees are, more
committed and motivated they will be.

Human resource teams know the ‘humans’ of the organization better than anyone else.
This gives them an upper hand in planning engagement activities. Although such
activities might not fall under the direct functions of HRM, they are indeed required
for the organizational welfare and employer branding.

9. Health and safety regulations

Every employer should mandatorily follow the health and safety regulations laid out
by the authorities. Our labour laws insist every employer to provide whatever training,
supplies, PPE, and essential information to ensure the safety and health of the
employees. Integrating the health and safety regulations with company procedures or
culture is the right way to ensure the safety of the employees. Making these safety
regulations part of the company activities is one of the important functions of HRM.

10. Personal support for employees

HRM assists employees when they run into personal problems which may interfere
with the workflow. Along with discharging administrative responsibilities, HR
departments also help employees in need. Since the pandemic, the need for employee
support and assistance has substantially increased.For example, many employees
needed extra time off and medical assistance during the peak period of the pandemic.
For those who reached out for help, whether it may be in the form of insurance
assistance or extra leaves, companies provided help through HR teams.

11. Succession Planning

Succession planning is a core function of HRMs. It aims at planning, monitoring, and

managing the growth path of the employees from within the organizations.

What usually happens is that promising and bright employees within the organization
who have excelled in their roles are handpicked by their supervisors and HRs, and
their growth paths are developed.

25
This, of course, becomes quintessential as those employees who recognize the fact
that the company is investing in their growth and development, and therefore, will
stay loyal in the long run. However, while developing such employees towards a
higher role, companies must keep in mind several aspects, such as improving
employee engagement, assigning challenging tasks and activities.

An employee leaving the organisation can prove to be disruptive and expensive.

Therefore, succession planning is a saviour of some sorts, as it helps identify the next
person who is just right to replace the outgoing individual.

12. Industrial Relations

It’s usually the production lines and manufacturing units where this HR function is
mostly used. You see, Unions exist in factories and manufacturing units. And their
responsibility is towards the goodwill about the workers — in fact, they’re always
vocal and upfront about.

Now, for a company, especially into manufacturing and production, the HRs must
have ongoing Industrial Relations practices. They must also continuously engage with
the Unions in a friendly and positive manner to maintain amicable relations.

The true motive of Industrial Relation touches on a lot of issues within the company.
For instance, Industrial Relations may be in place to meet wage standards, reduce
instances that call for strikes and protests, improve working and safety conditions for
employees, reduce resource wastage and production time and so on.

Industrial Relations is extremely important because, if handled properly, it can

circumvent protests, violence, walkouts, lawsuits, loss of funds and production time.
IR is a sensitive yet critical function of the HR department, naturally, it requires
personnel with vast experience.

HRM plays a major role in the smooth functioning of the organisation. The process
starts with formulating the right policies for the job requirements and ends with
ensuring a successful business growth of the company. Therefore, HRM works as an
invisible agent that binds together all the aspects of the organisation to ensure smooth
progress.

26