What Are the Functions of Human Resources Management?

In a company, HR has a wide variety of responsibilities. These include compensation, job analysis, and staffing. In addition, HR is responsible for developing employees’ skills and knowledge. Some countries even require organizations to set aside a budget for employee training and development. A human resources professional can help the organization meet these demands.

Job analysis

Job analysis is an important part of human resources management. The Society for Human Resource Management defines it as “a systematic process of determining the essential characteristics of a job.” A job analysis involves collecting information about the tasks performed by employees and the conditions under which they are performed. This data is then used to design an organizational chart.

A job analysis identifies the knowledge, skills, and abilities needed to perform a job. Then, it breaks down the role into smaller work units, such as duties, tasks, and activities. The analysis can be based on existing duties and requirements or job descriptions.

Staffing

Staffing is an integral part of human resource management and focuses on the processes involved in finding, interviewing, and promoting employees. It is a complex process that entails reviewing resumes and applications to find the right candidate for the job. The process varies depending on the type of enterprise, the size of its workforce, and the company’s structure.

The most important aspect of staffing is that it deals with human beings. This means that it has an inherent social responsibility. Therefore, managers must be impartial in their approach to this allied function.

Compensation

Compensation and benefits are a critical part of human resources management. An employee’s compensation reflects the monetary value of their work, including base pay, bonuses, and commissions. However, non-monetary benefits are also vital in attracting and retaining talented employees. In addition, compensation and benefits help an organization increase its shareholder value.

These benefits, also known as fringe benefits, account for about thirty percent of employee compensation. These benefits can include everything from free education to a company car. HR management professionals oversee the administration and evaluation of these programs. In some organizations, HR software automates these processes to eliminate much of the administrative work.

Performance management

Performance management is evaluating and measuring employees’ performance and potential. It should be based on simple principles that all employees should understand. This process should be transparent and consistent, and the results should be comparable. It should also identify weak areas and develop plans. In addition, the system should be easy to use and accommodate changes as needed. Finally, HR should be the one leading the development of the system and should ensure that it is consistent throughout the organization.

Performance management is a systematic and continuous approach that focuses on achieving organizational business goals. It builds an effective communication system between employees and managers and supports an organization’s strategic objectives. In addition, this practice helps create a positive working environment and improves employee morale.

Organizational culture

Human resources (HR) practices are vital in fostering organizational culture. These practices include creating continuous communication channels, ongoing training, and involving employees. They also help establish clear goals and reward systems. These practices encourage employees to be more creative and to challenge the status quo.

An effective organizational culture fosters behaviors necessary for the business to be successful. Research shows that companies with healthy cultures have 1.5 times higher revenue growth than those with unhealthy cultures. Additionally, companies with healthy cultures have a 2.5 times higher stock price growth over three years. Unfortunately, many companies do not develop an organizational culture that meets these standards.

Cost containment

Cost containment is a proactive process that aims to reduce costs by limiting growth to a constant level. This can lead to an increase in profitability. However, it requires a wide range of input from stakeholders, including frontline clinical staff. This engagement is an important way to build awareness of cost-containment strategies.

One way to contain costs is by making changes to the benefits package. For example, a company can choose not to offer certain benefits, like a 401(k) plan. However, a company will not be able to attract and retain the best employees without these benefits. As such, the HR manager must balance the benefits package with the bottom line.