Six Functions of Human Resource Management Explained

Introduction

The first organized employment structures were formed during the Industrial Revolution, as mechanized work was introduced and the need for factory labor increased. From that point on, a massive process of urbanization commenced, and through it, people moved from rural to urban areas in search of better lives. What they found, however, was not as fruitful as initially hoped. The first employment structures exploited individuals by having them work long hours in risky conditions for miserable pay; by forcing women and children to do men's work and then underpaying them. Gradually, the first unions were formed and the rights of employees began to take shape. Today, the organizational staff member in developed countries is respected and valued for the ability to generate additional value for the organization — value created not only through the ability to operate machines and serve customers, but also through the intellectual capital possessed by employees.

In order to best put this technical and intellectual capital to work, organizational leaders develop and implement a wide range of human resource strategies. The basic aim of these strategies is to stimulate employees to take a more active role in the accomplishment of organizational goals by increasing their performance, commitment, and loyalty to the firm. At the technical level, six distinctive dimensions of human resource management are identified, and a question is posed regarding the interactions between them in support of the primary HRM function. As this question is answered, several important lessons are learned.

In order to attain pre-established goals and stimulate employees to better support organizational objectives, the managerial team develops and implements HRM strategies across six directions:

The Six Functions of Human Resource Management

Affirmative action and equal employment opportunities were traditionally perceived as components of the emancipation movement, through which women and other racial groups advocated for the same employment rights as white males. At a more specific level, ensuring equal employment opportunities is built on the following principles:

Human resources planning refers mainly to the assessment of an organization's staffing needs at both the overall company level and the level of specific departments. The process is complex, as it incorporates elements such as past trends, future expectations, market conditions, and the technical requirements of positions. The importance of adequate recruitment and selection is underscored by the disadvantages generated when it is done poorly. "Recruiting people who are wrong for the organization can lead to increased labor turnover, increased costs for the organization, and lowering of morale in the existing workforce" (ACAS).

In its most straightforward formulation, human resource development refers to processes by which the skills and professional abilities of employees are enhanced, with the ultimate purpose of enabling them to better support the accomplishment of organizational goals. Techniques through which human resource development is implemented include training programs, mentoring, coaching, tuition assistance, and employee career development (Heathfield).

Compensation is generally understood as the monetary sum through which the efforts of an employee are remunerated. Beyond the actual salary, a meaningful difference in employee commitment to organizational goals can be generated by benefits such as retirement plans, insurance (typically life, health, and disability), vacation time, flexible working schedules, and employee stock ownership plans (McNamara).

Unlike the previous functions, workplace safety and health are more deeply regulated in the sense that organizations must comply with a range of legal requirements (HRM Guide, 2007).

Labor relations refer to the totality of interactions between an employer and staff members. Productive labor relations include elements such as integrating employees with disabilities, promoting communication within the organization (both between employer and employees and among employees themselves), providing guidance, and adequately implementing employment policies.

The Interrelations Between the Six Functions in Reaching the HRM Objective

The focus on human resource motivation is not merely an activity that occurs within the HRM department; it is, in fact, a business model in which emphasis on employee job satisfaction and motivation is promoted across all organizational departments. In essence, it is integrated into the overall organizational culture. As a result, human resource strategies cannot be regarded as isolated dimensions of staff management — they are combined and unified to implement all six functions at every organizational level. In order to better understand these relationships, the following connections should be noted:

First, equal employment opportunities are implemented with respect to the assessment of staffing needs, the recruiting of candidates, and the selection and hiring of future staff members. Organizations do not discriminate against any candidate on the basis of gender, race, age, religious affiliation, political views, or similar criteria. Furthermore, equal employment rights are also promoted in the areas of employee development, compensation, benefits, health, and labor relations. While it might traditionally be assumed that such strategies are implemented primarily within for-profit entities, they are equally present in public agencies. Government documents note that "total integration of equal employment opportunity (EEO) into every aspect of human resource management policy and practice in the selection, placement, training, and advancement of civilian employees of the federal government is vital to creating and maintaining a federal workforce that is truly reflective of our nation's diverse citizenry" (UNT Libraries).

Second, the process of selecting and hiring the most suitable staff members relates not only to the technical skills of the candidate but also to personal characteristics, such as the ability to follow directions or to integrate into a group and work as part of a unified team. When an organization is unable to hire such individuals, a range of problems may arise across the HRM dimensions of development, safety and health, and labor relations.

Third, the human resources development function is probably the one that reveals the most obvious connection to the accomplishment of organizational goals. Through its various techniques, HRD enhances the skills and abilities of employees, which in turn leads to increased organizational productivity and subsequently increased company revenues. Beyond this functional role, employee development also motivates staff by supporting their professional growth. More specifically, when an employee is well-skilled and trained, they have a greater sense of security in finding alternative employment should their current position become unavailable. This sense of security increases the employee's commitment, performance, and loyalty to the organization, and translates into greater support for the achievement of overall company goals.

Fourth, the combination of financial and non-financial incentives — represented by compensation and benefits, safety and health, and employee and labor relations — collectively stimulates employee satisfaction and increases motivation, and thereby commitment to supporting the company in reaching its overall objectives.