Introduction to Human Resource Management's Core Functions

1. Introduction to Human Resource Management (HRM)

This Human Resource Management (HRM) class will give you a clear understanding of the basic legal and social issues involved in hiring and managing people to get the best performance and achieve the goals of the organization. In this course, you’ll learn how to plan, hire, pay, develop, and engage employees using real-world examples and hands-on activities. You’ll also learn about important topics like unions, employee safety, corporate social responsibility, and global HRM. A glossary of terms will help you understand common acronyms and terminology used in HRM.

HRM is valuable to an organization because it manages the entire employment experience, from hiring and onboarding to performance management and talent development, and even job changes, promotions, retirement, and exits. Employees and their skills are a competitive advantage for companies, and those who use their human resources effectively will benefit greatly.

Human resource management involves leading and managing the following key areas:

• Following HR laws and regulations
• Selecting, hiring, and onboarding employees
• Managing employee performance
• Providing compensation, rewards, and benefits
• Developing talent and planning for future leadership

key concept

HRM, the management of people within the organization, optimizes performance to achieve organizational goals, while the HR function or department handles daily employee-related tasks within the company. HRM encompasses a range of activities with the goal of effectively utilizing personnel, developing human potential, and creating a work environment that promotes employee satisfaction and productivity.

terms to know

Human Resource Management (HRM)

The management of people within an organization to maximize performance and achieve the organization’s strategic objectives.

Performance Management

The process of evaluating and improving employee performance through feedback, goals, and regular reviews.

Human Resources (HR)

The department or function within an organization that is responsible for overseeing employment practices and managing workforce issues. The term human resources can also refer to the actual personnel within that organization.

2. The Core Functions of Human Resources

HR is a complex field with many connected tasks. It aims to improve how employees perform and their well-being in order to align with the organization’s goals. HR professionals handle hiring, managing performance, pay, safety, and planning for the workforce. Their varied responsibilities are crucial for the success of modern organizations.

These tasks can be divided into four main functions:

• Staffing
• Training and Development
• Compensation and Benefits
• Administration and Compliance

2a. Staffing

The staffing function of HR involves planning to predict staffing needs, attracting qualified candidates through various recruitment methods, and assessing their fit for roles through thorough selection processes. HR also identifies and nurtures talent within the organization, offering promotions to reward employee contributions and support career growth.

By combining these processes, HR ensures the organization has a skilled and motivated workforce that meets its goals. Through proactive HR planning, including predicting skill gaps and changes in the business environment, organizations can effectively meet staffing needs. Recruitment efforts, such as job postings, referrals, and online platforms, aim to attract top talent with the necessary skills.

Selection processes, including interviews and assessments, ensure candidates match job requirements and fit the company culture. Promotions recognize employee achievements and provide growth opportunities, boosting engagement and retention. Overall, the staffing function of HR is crucial for acquiring, developing, and keeping the talent needed for organizational success.

term to know

Staffing Function

The process of putting the right people in the right jobs within an organization. It includes recruitment, selection, and ensuring efficient use of human resources.

2b. Training and Development

The training and development function in HR is important for improving employee skills, performance, and overall effectiveness of the organization. It includes various activities to give employees the knowledge, skills, and abilities they need to do well in their jobs and help the organization reach its goals. These activities include onboarding programs for new employees, leadership development to create strong leaders, and ongoing performance management to provide feedback and support for employee growth.

Training and development also offer different learning opportunities like workshops, seminars, online courses, and hands-on training sessions tailored to individual needs. By investing in employee development, organizations create a culture of continuous learning, increase engagement, keep talented employees, and succeed in today’s competitive business world.

did you know

Employers are now focusing on skills-based hiring, where candidates are judged based on specific skills and experiences that match the job. Since it can be hard to find candidates with these exact skills, more companies are investing in upskilling and reskilling. Upskilling means improving an employee’s current skills, while reskilling means learning new skills.

terms to know

Training and Development Function

Helping employees gain skills and knowledge to improve job performance, advance their careers, and support organizational goal

Upskilling

Improving current skills to perform better in a job.

2c. Compensation and Benefits

Another key responsibility of HR is managing compensation and benefits function. This involves overseeing the financial rewards and perks that employees receive. Compensation includes both monetary rewards, such as salaries and bonuses, and non-monetary perks, like health insurance and retirement plans. The goal is to attract, retain, and motivate employees while aligning with the company’s objectives.

Compensation refers to the financial rewards employees earn for their work, including salaries, bonuses, and incentives. The aim is to ensure fair pay practices, retain top talent, and drive high performance across the organization.

Benefits are the non-monetary perks, such as health insurance, retirement plans, and flexible work arrangements. These perks enhance employees’ overall well-being and satisfaction. Providing comprehensive benefits can improve employee morale, retention rates, and the company’s reputation as an employer.

Managing compensation and benefits involves evaluating job roles, comparing salaries with industry standards, and analyzing benefits packages to ensure competitiveness. HR also communicates these policies to employees, handles administrative tasks like payroll processing, and ensures compliance with legal regulations.

reflect

Have you ever considered nonmonetary benefits and how they affect an employee’s overall income? These benefits might include healthcare, dental, or vision insurance. They could also cover tuition reimbursement, paid time off, or holidays. Have you thought about your compensation beyond just your salary or take-home pay? Would you prefer a job that pays a bit less but includes health insurance? Or one that offers more time off? It’s important to think about our compensation as a whole.

terms to know

Compensation and Benefits Function

Management of employee pay, bonuses, and benefits to attract, retain, and motivate staff while ensuring fairness and compliance with regulations.

Perks

Non-cash benefits that enhance employee satisfaction.

2d. Administration and Compliance

HR handles a variety of administrative functions essential for maintaining efficiency and employee well-being. One key responsibility is ensuring workplace health and safety. Though some organizations have a separate department managing safety, often, HR implements and enforces safety protocols, conducts risk assessments, and provides training to prevent workplace accidents and promote employee well-being.

HR also plays a crucial role in managing risks that could affect the organization’s operations or reputation. This includes identifying potential threats, such as legal issues or cybersecurity risks, and developing strategies to mitigate them, safeguarding the organization’s interests.

Another important duty of HR is record keeping and personnel file management. HR maintains accurate records of employee information, including personal details, employment history, and performance evaluations. These records help comply with legal requirements and ensure the confidentiality and security of employee data.

In a unionized organization, HR is responsible for managing labor relations and addressing grievances within the workplace. HR professionals facilitate communication between management and employees, mediate disputes, and ensure fair treatment and resolution of issues. By fostering positive relationships and resolving conflicts, HR contributes to a harmonious work environment that promotes productivity and employee satisfaction.

Additionally, HR ensures organizational compliance with a wide range of laws and regulations. This involves staying updated on labor laws, employment standards, and industry regulations. HR develops and enforces policies that align with legal requirements, conducts audits to ensure compliance, and provides training to employees on relevant laws and regulations. By doing so, HR helps protect the organization from legal issues and promotes a fair and lawful workplace. This comprehensive approach to compliance ensures that the organization operates within the bounds of the law, maintains its reputation, and fosters a culture of integrity and accountability.

did you know

Did you know that there are 21 states that have specific laws that govern how personnel files must be managed? (Access to Personnel Files, 2024) These laws might give employees rights to access their files, oversee what can be included in personnel files, or define the retention period of the files. What might seem like a simple activity, maintaining personnel files, can be complicated as HR professionals work to meet all the laws and regulations surrounding them.

terms to know

Administration Functions

Management of employee records, payroll, compliance, and other essential tasks to ensure smooth HR operations and support the workforce efficiently.

Workplace Health and Safety

Ensuring a safe, healthy work environment to protect employees’ well-being.

Personnel File

A record of employee information, including personal and work details.

Unionized Organization

A workplace where employees are represented by a labor union which is an organization that represents workers’ interests and negotiates with employers.

Organizational Compliance

Ensuring the organization follows laws, regulations, and policies to ensure a company operates legally and ethically.

REFERENCES

Na. (2024, February 16). Personnel Files: 50 State Laws. The HR Specialist www.thehrspecialist.com/14541/access-to-personnel-files-50-state-laws