Major Functions of HRM

Introduction:

These are 4 Major Functions of HRM:

Basically, Human Resource Management refers to the Responsibility of Dealing and Managing Labor Force in the Organization, it is a challenge for HR supervisors to manage labor force efficiently without creating any conflicts between Management and Labor Force or Labor Unions. Human Resource Management plays a vital role in the Success or Failure of any Organization, it has a life-line for any Organization, and huge responsibility lies on the head of the HRM department to manage Labor Force efficiently by making them realize that they are valuable for Organization and give some extra benefits and appreciation for motivation and getting high productivity (Armstrong2010).

Labor Force is a high-value Capital for any organization because it has great importance without Labor force no one organization is successful. This Human Capital has a High value for Organization whereas it is not adding in the Financial Statements as a Capital. The major role of Human Resource Management is to pick a right Employees from a larger pole of Candidates participating in the Recruitment Process, afterward selecting right candidate, the next step is to place at the right job to get the desired results. The HRM Concept based on many Functions which is called the Human Resource Management functions which played an important role to run HR department efficiently because of the smooth running of the HR department provides a structure and capability to meet the needs of the business through the management of Company’s Valuable Resource- it’s called Labor Force(Armstrong2010).

There are many HR Functions but mostly the Practitioners Perform main 4 Functions and to achieve the high level of productivity, but in small Organizations where the financial resources are not enough to develop an HR department, they can also achieve the same productivity by outsourcing the HR functions to the professional organizations.

Right People for the Right Job (Recruitment):First and Foremost,the important function of HRM is to Recruit the Right Candidates for jobs and the success of HR Specialists Measured through the number of the candidate they recruit and the positions they are filled through recruitment of Right People for Right Job. HR Functions also providing by some independent organizations and Many organizations outsource their HRM system to these Organizations and get the right candidates for right jobs and it is also time-saving and cost-saving procedure. These organizations advertise the jobs and give instructions to candidates how they apply for these jobs and how the process begins after submitting applications. After the applications are received then they screen the applications and shortlist those candidates who are meeting the criteria, conduct interviews initially for further shortlisting and HR managers are responsible for final Selection or hiring of right Candidates.

           

Compliance of Labor Laws:

The Critical Functons of HR is to Compliance the Labor Laws and Employment Laws. The Mismatch between Labor Laws and Employment Laws make the uncertainty situation in the Organization and create conflicts between Management and Labor force. It also brings the Biased and Unsafe Working Environment which leads to the Strikes and Hurdles in the way of Organizational Productivity and Shutting down the Processes. All these conflicts lead to the dissatisfaction of employees and decrease the productivity and profitability of the Organization. HRM department should be Alert and Aware of the Federal and State Government and Employment. These Laws Includes Title VII of the Civil Rights Act, the Fair Labor Standards Act, the National Labor Relations Act, and other important Laws & Regulations.

Employer-Employee Relations:The Relationship between Management and Employees should be Cooperative and Working relation is very important for the running of smooth business processes and it only possible with the help of HRM department and HR Specialists Handled these relations and trying to create a peaceful Working and Save Environment for the smooth running of the business.

The relationship between Employer and Employee is concerned with the HR department- its Discipline with creating a strong relationship between them by measuring some tool like Job Satisfaction, Employee Engagement, and Resolving issues at Workplace. Workforce Relations include Dealing with Labor Unions, Negotiating and bargaining on Conflicts and agreements, respond to the Campaigns against management and Labor Union contract issues Interpretation.

Maintaining a Safe Environment:Peaceful Working Environment is very important for the success of any business and also it shows the goodness of the HRM department. The safety of Workplace is very important and it is the requirement impose byOccupational Safety & Health Act 1970, this act imposes the restrictions on employers and responsibility to provide a safe environment to the labor force for working. This the main function of HRM is to provide a safe workplace for Employees working and train them for any emergency situations and injuries occurred in any cause to employees. HR Safety Specialist are working closely to the Compensation and Reward Management Specialist to manage the Labor force Compensation issues.

Is it important for Organizations to Overcome Workforce Diversity Trends?

Why Diversity is important? The Simple answer is that diverse teams and groups are working better and make better decisions and more creative and helps to achieve goals in a better way. According to McKinsey research, those businesses who adopt diversity are performing 35% better than other organizations who are not adopting diversity. 

Diversity basically refers to the difference in Age, Gender, Culture, Language and other aspects of Life among different people, it is called Diversity. The acceptance and Understanding of these differences also include in the definition of Diversity.

Today is a modern Era and it requiring Organization to build a diverse workforce to achieve the success and goals through innovation, so it is only possible when different culture, religion, age, gender, and other aspects employees are working together in the same environment. Today the survival of organizations in this Era is highly depended on diversity because of globalization of business, it means that businesses are operating throughout the world by sitting at one local place. Their products are available for other countries, cultures people, and most important is changing in the processes and concepts of working in the modern Era every single moment. So, it is very important to manage diversity because it brings a lot of innovation and creativity which helps to get a competitive advantage and success in any field of business (Dessler , 2014).

Success in Global business requires the Diverse workforce because every country has its own culture and needs and demands so the diverse employees are very helpful to make those products which the people of specific countries liked most and also help in expanding their businesses in other countries. HRM department has great importance in accordance with managing diversity and overcomes the drawbacks ore hurdles creating by different culture’s employees,  Diversity is beneficial and has great importance in so many ways for organizations who want to expand their businesses and also up to date working systems, but some hurdles or drawbacks which can’t be neglected by any organization and these drawbacks lead to the disturbance in working of any business.

Don’t follow the society Stereotypes or rituals:Mostly organization management is blame to the executives for lack of diversity, but the main reason is that we follow some stereotypes which may prevent the executives to hire a diverse workforce and it create hurdles in the way of hiring professional and competent employees. There is a common trend in our societies that they don’t like to hire females in that set-up where male dominant and in large number and vice versa, and also don’t hire minorities or females for executive posts. By overcoming these rituals organizations can manage easily workforce diversity in a better way and get the benefits.

  • Communicate Efficiently:Communication is necessary for the management of diversity because it is a challenge and difficult to manage different culture, gender, and some other attributes of employees. This is the responsibility of the HR department to deal with the workforce in an efficient way and make policies through which communication is done by the HR department and conversation is done ina polite manner. This tactic is very helpful for overcoming the conflicts due to diversity and prioritize one business language for all through which they communicate easily and understand each other like English is International Business Language.
  • Focus on each employee: Treating individually all employees can overcome the conflicts and bad effects of diversity in any organization. So, it is the need for any business to developa working environment in which people work easily in a safe site. All the labor force is judged and measured their performance equally on the base of performance not on any individual attributes.
  • Train Employees to work in a diverse environment: The motivation and taring of all employees is necessary for overcoming diversity affects and create a peaceful working environment, the consent for all employees is important and HR supervisor should take issues and doubts of all employees on bases and other work-related issues and resolve in an efficient manner to reduce the uncertainty of Diversity.
  • The standard for All: Managers should set standards and rules for all equally without any biases or favoritism and force all employees to follow these rules without creating any conflicts and make them realize that they are all have equal importance and value for the organization.

What are the Important Tactics to handle the Economic Recession Period?

The decrease in the gross domestic products (GDP) in the continuous time period is called Recession. The value of all goods and services produced within the territory in a specific time period is called GDP.

Recession in the economic activities impacts in so many ways, the increase in unemployment leads to low productivity and consumer spending, due to losses many companies lay off their workers. Many factors involved in any economic recession of an economy, The U.S is an example for us when there is a financial crisis occurs in the U.S the leading market, and some major causes of includes inflation, increased costs of products, increase in power costs and Debts. Recession affecting businesses in so many ways and the efficient and modern organizations responding in better ways to handle the situations. Mostly the Government intervenes by giving subsidies on taxes and many other reliefs to those businesses which may affect by most in economic recession and help them to face the recession period. But the government are not in a position to give reliefs and subsidies to all businesses so that few business owners decide to sell their businesses and going towards diversification in which sold out all the company’s assets and return back the money to interested parties. Some businesses lay off their workers and outsource their orders due to a shortage of financial resources and don’t bear all expenses incurred as a normal routine so that it is a huge crisis situation and all the systems are disturbed due to the recession.

Some businesses are going toward retrenchment and downsizing because it is only the way to tackle the recession and reduce costs on a global economic recession. Communication with employees also helpful for organizations to face recession period in a better way, in this option Managers arrange meetings with labor unions and employees and make asked all the situation occurred due to recession period and ask them to help out to deal in this situation,  employees give valuable suggestions and offer their services free of cost or at low cost for some time periods to overcome recession. Some are the tactics or tools through which organizations overcome recession problems:

  • All the business operations are Outsourced (That’s not strategic).
  • Leasing out your Assets.
  • Using other People Money for some time period.
  • Reinvesting their capital in other business.
  • Using Your Customer’s to expand sales of other products through some strategies (Adjacency Strategy, Extension Strategy, New Channel Strategy).

What are the ways of dealing with New Governmental Rules & Regulations?

This Business Era Changing rate is unprecedented and very fast. Industries are totally changed with new innovations occurred with every passage of time and markets falls and rise depends on the consumer’s behavior which also changes very fast.

Adopting Rules and Regulations of any country is necessary for any business to run their business smoothly without any hurdle because it is the requirement for any business operates in any country it should be registered under the government laws and it is responsible to comply with federal rules and regulations imposed by the government. Some restrictions are necessary for the quality and safety of people living in the society and also for consumers like alcohol is prohibited in Islam and Pakistan is an Islamic state so that this business is prohibited no one can start this type of business in Pakistan. Some are not beneficial for organizations just like an increase in taxes and impose duties on raw material import and exports of goods (Forbes,2019).

The HR department is responsible for compliance of Rules and Regulation followed by business and should make some policies through which they can deal with the Government laws changes day by day, it is the challenging situation for any business to run their business in that environment in which changes occur every second in-law. But HRM is working hard and efficient to deal with Laws and Rules imposed by Government. HR managers also face resistance within the organization’s employees are not accepting those changes which are not beneficial for them and supervisors should deal with that type of situations. Communication plays an important role and managers should communicate these changes occurs in the Government laws and encourage employees for adopting changes and make them realize that there is no bad impact on the Workforce benefits and rights.

Business Management and some representatives also contact with the government officials are they have any issues in changing of laws, so they should arrange a meeting with officials and asked their issues and concerns and appeals to make them easy for business entities.

Some extra responsibilities of HR implementing change are given below:

  • Give proper information to Employees.
  • Don’t wait for Changes.
  • Educate employees.
  • Readiness for change.
  • Understand the Impacts of changes.

Advantages and Disadvantages of Online Recruitment

E-Recruitment or Online Recruitment is a widely used method of recruiting people from a large poll, in this method companies used website, social media platforms for receiving their applications and conduct interviews for final selection. This is the easiest and accessible source of recruitment.

Advantages

  • Online Recruitment is the cheapest source of recruitment and companies save their financial resources by adopting this channel for recruitment.
  • This is the most reliable and time-saving method, companies posting jobs ads and applicants fill the required information and submit it while they are sitting at their home.
  • This method is very easy and understandable for all type of people because in this method only basic information is required for applying in any job.
  • This method is also much more flexible than others as you can control the process and applications received from applicants, also easy for shortlisting of candidates through a mechanism used by most companies.
  • It is very used and long-term source for companies, this method is used for many years without paying any cost.

Disadvantages

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  • The Drawback of Online method is hard to target their desired audience because job posting was seen by every people using social media so that why companies receive thousands of applications for few positions and tough to choose the best candidate.
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  1. It is time wasting method because companies received so many applications and difficult to screen all these applications with a short span of time.
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  • Sometimes it creates hurdles and difficult for users due to the errors occurred in the links given by companies.

Advantages & Disadvantages of Employee Referral System

This is the old method of recruitment as we know that a few decades ago companies ask their existing candidates to refer someone which is competent for this job and most people refer to their relatives and friends.

Advantages

  • This method is very fast and reliable because existing employees choose the right candidates for a specific position and they know the job requirements so it’s an easy and reliable source.
  • The rate of retention is also high because the employee knows that the specific candidate that is selected a referred for the job and they feel a responsibility to give a competent and reliable candidate.
  • This method is very cost effective and time-saving recruitment method to hire new people just on refer base.

Disadvantages

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  • The new and competent employees may not be selected for a job because most employees refer their relatives and friends for vacant positions.
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  • Creativity is less in referred employees as compared to selecting from large poll candidates.
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  • This method is not good for any organization as the employees refer to their relatives and then relations are creating problems for organizations.

 

Advantages and Disadvantages of Job Advertising Method

Job Advertisement method is also widely used a source of recruitment mostly companies give ads and job posts through electronic and print media sources to the targeted applicants and offers to apply for a specific job relating to their qualifications and interests. The specific time mentioned for these job advertisements.

Advantages

  • This method is suitable when organizations want to create a large pool of candidates and choose the best competent candidate so they use this method.
  • Variety of Audience is targeted at a time.
  • An easy and reliable source of recruitment, through which companies select the best candidates. This method is beneficial for both companies and also for applicants to access 24/7.
  •  Job Advertisement is also a very easy method, applicants easily use and understand this method.
  • Accessible from all around the world and a large number of applicants can apply.

Disadvantages

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  • The main drawback of this method is receiving so many applications, a large pool of applicants is applying for a few posts and their selection and shortlisting is very difficult.
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  1. It is an expensive method when jobs ads are given through print media so a minor cost incurred whereas other methods have no cost.
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  • Some Irrelevant people are also applying for these jobs due to access and easy to use, so it is difficult for recruiters to wasting time on these types of applications.

Advantages and Disadvantages of Private Employment Agency

Any company, firm, corporation or any individual, who performs a recruiter role for any company is called Employment Agency. This is the method of hiring people through outsourcing HR Recruitment and Selection function and these agencies charge some cost and earn profits through working as an agent and hiring people for specific jobs on behalf of any other company. These agencies also give information for employment through pamphlets, cards, etc.

Advantages

  • The main advantage of this method is that these people or organizations are Specialized and Experts in their field so that they recruit competent people, and the right people for the right job.
  • They act as an agent on behalf of any organization to recruit people and give them the best suitable candidates for the organization after performing the whole process. So, there is no doubt they choose the right people for the right job.
  • This reliable as they work for profit so there is no chance to make a mistake in any process.
  • This method is also beneficial for organizations as they bring a professional and competent face in their teams.

Disadvantages

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  • The main drawback of this method is lack of trust and credibility as they work on behalf of any other organization so that there is concern is only for profit not for quality work.
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  • Working only for profit this may cause a bad candidate’s selection and completing their job only no concern with the interest of the business.
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  • Biases and Favoritism is also the drawback of Private Employment Agency because they are working independently so maybe they select those candidates that are some close relations or asked for a bribe to the final selection.

References:

  1. Dessler, Gary  (2014). Human Resource Management. 14th ed. Upper Saddle River, NJ: Prentice Hall.
  2. Armstrong, M. (2010). Armstrong’s essential human resource management practice. London: Kogan Page.
  3. Boxall, P. and Purcell, J. (2003). Strategy and human resource management. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
  4. Fombrun, C., Tichy, N. and Devanna, M. (1984). Strategic human resource management. New York: Wiley.
  5. Guest, D. (1987). HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS [1]. J Management Studies, 24(5), pp.503-521.
  6. Legge, K. (1995). Human resource management. Basingstoke, England: Macmillan Business.
  7. Storey, J. (1992). Developments in the management of human resources. Oxford, UK: Blackwell.
  8. Alvesson, M. and Willmott, H. (1996). Making sense of management. London: Sage Publications.
  9. Documents.manchester.ac.uk. (2015). Equality and Diversity. [online] Available at: http://documents.manchester.ac.uk/display.aspx?DocID=8361 [Accessed11April. 2019].
  10. Heathfield, S. (2015). Beyond Hiring and Firing: What is HR Management?. [online] About.com Money. Available at: http://humanresources.about.com/od/glossaryh/f/hr_management.htm [Accessed 11April. 2019].

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