Key functional areas of Human Resources Management

Specify the key functional areas of Human Resources Management 

There are five function of HRM as mention below.

1. Staffing 2. Human Resource Development 3.Compensation and Benefits4. Safety and Health, 5. Employee and Labor Relations.

Ø  Staffing:

Achieving organizational objectives requires having the proper number of employees with the appropriate skills.  Staffing accomplishes this objective through four tasks. The first task is job analysis, which examines specific job functions in determining the skills, duties and knowledge required for each position. The second task is ensuring that the required numbers of employees, with the appropriate skills, are available when needed organizations engage in Human Resource Planning.  The third task is recruitment, which is the process of attracting enough skilled people to apply for jobs in the organization. Fourth, the last step in the staffing process is selection. This involves choosing the best suited individuals to fill the open positions in the firm.

Ø  Human Resource Development:

Six functions, including training, development, career planning, career development, and organization development and performance appraisal, make up Human Resource Development.

Training: is a process designed to provide employees with the knowledge and skills needed for their present job. Focusing on long-term learning needs is development. The ongoing process of career planning sets career goals for employees and identifies the means to achieve them. Career development is a formal approach used by firms to ensure that people with the proper qualifications and experiences are available when needed.

Ø  Compensation and Benefits:

Compensation includes all rewards that individuals receive as a result of their employment. Pay is the money that a person receives for performing a job.  Additional financial rewards other than base pay include paid vacations, sick leave, holidays and medical insurance, and they are called benefits. Non-financial rewards are non-monetary rewards, such as enjoyment of the work performed or a pleasant working environment.

Ø  Safety and Health:

Employees who work in a healthy and safe environment are more likely to be productive.  Safety involves protecting employees from work-related accidents and injuries.  Health activities seek to prevent illness and provide for general physical and mental well being.

Ø  Employee and Labor Relations:

Business firms are required by law to recognize a union and bargain with it in good faith if the firm's employees want the union to represent them.Restructuring Trends:

The above five functions must be done by an organization to ensure satisfactory results, but many organizations are changing the way they approach it. While the traditional human resource manager may continue to be in place, organizations are turning to other methods, including.

Activities of HRM

JOB ANALYSIS: study and collection of information relating to the operations and responsibilities of a specific job. Collection of data, facts and ideas relating to various aspects of jobs including men machine and materials. Preparation of job description and employee specification w/c help in identifying the nature and levels of HR.

RECRUITMENT: process of searching prospective employees and stimulating them to apply jobs in an Organization. Identification of existing sources of applicants and developing them - Creation of new sources of application. Stimulating the candidates to apply for jobs in an Organization. Striking a balance between internal and external source.

SELECTION: process of ascertaining the qualifications, experiences, skills, knowledge skills of an applicant with a view to appraising her/his suitability to a job appraising

PLACEMENT: assigning the selected candidate with most suitable job in terms of requirements.

TRAINING: continues process in learning skills for improving, changing and developing skills, knowledge creative ability, aptitude, attitude and values of an employee. The aim is to improve the skills and performance of the employee.


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