The 8 Core Functions of Human Resource Management

Functions of Human Resource Management

The functions of human resource management are carried out by the human resources department to fulfill the goals and objectives of the organization. They perform various functions of the HRM concepts based on different requirements and situations. Let’s thoroughly discuss the various functions of HRM.

The Functions of Human Resource Management

In this article, you will learn the 8 core functions of human resource management which include the processes of hiring and developing workforce to create a more valuable organization. Human resource departments face various challenges ranging from changing workforce, government regulation, technology changes, and economic circumstances. Here are eight core functions that should be a part of active human resource management to accomplish these challenges

  1. HR planning is to identifying current and future employees of the company.  

2. Recruitment and selection are to recruiting and selecting the right range of employees with the right range of competencies in the right jobs and at the proper time to attain organizational goals.

3. Training and development are to identifying the competency gaps and fulfilling through various training programs.  

4. Compensation management includes rewards, direct and indirect financial reimbursement in addition to non-monetary compensation.

5. HR Administration include developing HR policies, procedures, communications and track them aligned with employment practices at the workplace

6. Performance management and appraisal, this human resource functions involves evaluating employee performance and appraise for further elevation

7. Career planning is to making internal career growth plan so that to retain employees

8. IR & Health and safety. To ensure the health and safety of employees and ensuring local labor laws are practiced in order to smooth functioning of an organization

The Functions of Human Resource Management

HR planning 

The HR planning function can be understood as a pre-hiring process of human resource management (HRM). The HR professional should know how to implement HR planning in an organization.

How to implement HR planning?

For instance, if you are an HR manager in a company, you should have precise data on how many employees are working at present in a different division of the organization. HR information system (HRIS) helps to identify these numbers. 

You should be aware of the current and upcoming projects and their manpower requirements. Also need to have an average attrition ratio for planning HR requirements for present and future needs.

Compiling these details, you will get an approximate figure to manage the HR requirements of the company. 

With these details, you will make HR budgeting and submit it for the management review. If in case, some process requires a new job profile the job analysis should be done for that. 

What is job analysis?

Job analysis is the process of identifying the job activities, qualifications, skills, and attributes to perform the work for a specific job role. The final shape of the job analysis is to document the two important features of the recruitment process. The Job Description and Job Specification are those two features and to be documented for further references of the job role.

Job description a statement containing items such as job title or position, job location, reporting to, working conditions, etc.

Job specification refers to the required qualification, experience, skills, role and responsibilities, and other attributes. 

Recruitment and selection 

Recruitment is one of the core functions of human resources management (HRM). Recruitment is the process of searching for prospective talents and stimulating them to utilize the job opportunities within the company. Recruitment is a linkage activity between employer and candidates for bringing people with skills those looking for jobs.

Finding the right people, for the right roles, at the right time is crucial for any business. To ensure its workforce has the skills and competencies required to achieve its aims for effectively meeting the needs and wants of its customers. 

Put simply, recruitment is the process of finding people to work for the business. The recruitment process starts with the company identifying the job vacancy itself. This commonly occurs when an employee leaves the company and they are simply looking to replace them, however, this is not the only reason why the company might identify a vacancy.

Job vacancies also occur for a variety of reasons, such as a restructure within which job roles are changed or created, growth of a business whereby new roles are added, and a change in either the nature of employees’ work or consumer demands.

Recruitment Functions of HRM

Selection Process

Selection is said to be the post-recruitment function of human resource management (HRM) to identify the right candidate from the pool of candidates who applied for the same position. In simple terms, hiring the most suitable candidates those who fit the job description and job specification.

The first stage in the selection process is to collect and review the application forms and CVs of anyone who has applied for the job vacancy. Essentially, the company is looking to narrow the applications down to a small number based on their suitability for the role against the job description. This process is called shortlisting. 

The reason the HR shortlists is due to the sheer volume of applications it may receive, making it impossible to interview every applicant as this would take up too-much time and cost too much money. Therefore, the best applicants are shortlisted and invited to an interview, which may also include a form of assessment. 

Interviews can be conducted with an applicant on an individual basis or in a group setting alongside other applicants and come in many formats, such as in person, over the phone, or in more recent times, businesses can opt to interview applicants via video call.  

Interviews provide the opportunity for the interviewer to ask the applicant a series of questions to assess their suitability for the role. They support the selection process by allowing the business to explore the applicant’s personality & provide the opportunity for additional questions if they are required. All these done, finally an appropriate candidate will be selected and the job is offered.

Difference between recruitment and selection

Recruitment is the method of locating applicants for the vacant position and encouraging them to apply for it. On other hand, selection is the way of deciding the satisfactory candidate from the pool of applicants and offering them suitable jobs.

Training and development

Let’s explore training and development. First by defining these two important terms. Training is delivering information people will use on their jobs, on the other hand, development refers to the experiences that people make better out of given training. 

The basics of the training and development functions in human resources management are to identify the employee’s knowledge, skills, and abilities needed to perform a particular job in an organization. We can utilize competency models to identify what types of training new employees or an existing employee or an employee internally changing job profile might need.

The development functions of HRM are to go through a process of identifying, providing the training, evaluating how well the employee has learned, and then assessing the training process. Development is primarily intended to be put to immediate use by the individual are being trained. So that employees can do their job better for the benefit of the organization

Career planning

Employees consistently mention career development as a serious concern to their fulfillment with an organization, and the lack of it is the main reason why they change jobs. So, career planning is one of the vital areas of human resource functions that has a higher impact on employee retention. HR has to play a key role in designing career development plans such as promotions and recognitions. 

Compensation management

Compensation management is pay provided by an employer to an employee in return for work. Rewards are a concept that describes all of the tools available to an employer that may be used to attract, motivate, engage and retain employees.

Compensation management comprises various key rewards planning 

  • Compensation: fixed and variable pay in return for work
  • Performance pays or performance incentives
  • Bonuses
  • Health and family benefits
  • Development opportunities
  • Retirement benefits

The goal of compensation management is to set up equitable and fair remuneration for all employees. HR can use salary as an influence to enhance employee productivity as well as set up an excellent public image of the business.

Therefore, compensation management is one of the core functions of human resources management to ensure the effective implementation of compensation policies and guidelines. 

HR Administration

To operate smooth human resources management functions, the HR department should have robust and feasible policies and procedures. And, everything must be properly documented and known to all employees. 

These procedures help to handle the events like promotions, performance improvement, illness, regulations, relocations, disciplinary actions, bullying, unwanted intimacies, and so on.

For each of these conditions, policies, and procedures need to be developed and accompanied to efficiently follow the requests, or overcome these demanding situations.

Performance management and appraisal

Performance management and appraisal system should be most carefully chosen and designed to meet the numerous requirements of HRM functions. The objective of the appraisal is to regulate the present state of competency of an employee in order to establish the concrete need for training and motivation.

It is one of the delicate functions of HRM to determine how effectively an employee is accomplishing in his job.

Performance appraisal is also important to training and development programs. It provides valuable information to the whole spectrum of HRM functions. It serves to specify the areas of weakness in employee performance so that actions for skill improvement and needed motivation may be taken to clear the situation. It can also offer significant evidence on the effectiveness of recruitment, selection, performance, and compensation systems.

Industrial Relations & Health and safety.

Which incorporates protecting personnel resulting from work-associated hazardous. The human resource management has to ensure health and safety functions are aligned as per regulations. 

HRM functions to ensure local labor law practices in order to smooth functioning of an organization. In countries where industries are required by law to diagnose the labor conditions and bargain with them. In good conviction, if the firm’s workforces want the Union to represent them. 

Frequently asked question in HRM

What are the two basic functions of human resource management?

HRM performs two sets of basic functions, namely managerial functions and operative functions. The managerial functions carry planning, organizing, staffing, directing, and controlling. On the other hand, Operative functions carry out, procurement, development, compensation, maintenance and motivation, integration, and industrial relations.

What is the most important function of HRM?

Every function of HRM is important in its role but among which, the effort where the HR professionals facing more challenges is the recruitment or talent acquisition. 

What is HR’s main focus?

HR’s main focus always revolves around hiring talents, developing and motivating, and retaining human resources in the organization

Job responsibilities of the HR managerSample

Managing Recruitment and Hiring Process

· Execute hiring of Human Resource employee team members with the appropriate skills, as needed.

· Establishes and sustains contact with outside recruitment sources.

Managing Employee Development

· Cares a departmental orientation program for workforces to receive suitable new hire training to successfully perform their job.

· Ensures teams are cross-trained to support positive daily operations.

· Uses all accessible on-the-job training tools for employees; oversees on-going training initiatives and conducts training, when suitable.

Maintaining Employee Relations

· Supports in keeping effective employee communication networks in the property 

· Reviews open-minded discipline documentation for correctness and consistency, and checks for supportive documentation, and is responsible for determining proper action.

Managing Legal and Compliance Practices

· Ensures employee files comprise required employment correspondence, proper performance management, and reward documentation, are properly maintained and protected for the required length of time.

· Ensures compliance with the process for accessing, revising, and auditing worker files and ensures agreement with the labor laws.


The roles of human resource management functions have developed over time into a very strategic because employees are the vital asset of any enterprise. Good HR practices need to be continually reviewed and altered to meet the changing needs of the cutting-edge and speedy business environment. Ultimately, the key objective of HRM functions is to motivate the workforce to perform their fullest towards the organization’s purposes.

Remember to win in the market-place, you must first win in the workplace!

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