UNIT II

FUNCTIONS AND STRUCTURE OF HUMAN RESOURCE MANAGEMENT

Functions of HRM
Human Resources management has an important role to play in equipping organizations to meet the
challenges of an expanding and increasingly competitive sector. Increase in staff numbers, contractual
diversification and changes in demographic profile which compel the HR managers to reconfigure the
role and significance of human resources management.
Human Resource or Personnel Department is established in most of the organisations, under the
charge of an executive known as Human Resource/Personnel Manager. This department plays an
important role in the efficient management of human resources.
Some of the major functions of human resource management are as follows:
⮚ Managerial Functions
⮚ Operative Function
⮚ Advisory Function

I. MANAGERIAL FUNCTION
Managerial function includes
a) Planning:- It is pre-determined course of action. Planning pertain to formulating strategies of
personnel programmes & changes in advance that will contribute to the organisational goals.
In other words it involves planning of HR, requirements, selection, training etc.
b) Organising:- an organisation is a means to an end. It is essential to carry out the determined
course of action. Acc. to J.C Massie, an organisation is a structure & a process by which a co-
operative group of human beings allocates its task among its members, identifies relationship
& integrates its activities towards a common objective.
c) Directing:- activating employees at different level & making them contribute maximum to
the organisation is possible through proper direction & motivation. Taping the maximum
potentialities of the employees is possible through motivation & command.
d) Controlling:- after planning, organizing, & directing the actual performance of employees is
checked, verified & compared with the plans. It the actual performance is found deviated
from the plan, control measures are required to be taken.
II. OPERATIVE FUNCTIONS
The operative functions of HRM are related to specific activities like
1. Employment:- It is concerned with securing & employing the people possessing the required
kind & level of human resources necessary to achieve the organisational objectives. It
includes
a. Job Analysis:- it is the process of study & collection of information relating to the
Role & Responsibilities of a specific job.
b. HR Planning:- it is a process for determination & assuring that the organisation will
have an adequate number of qualified persons, available at proper times, performing
jobs, which would meet the needs of the organisation & which would provide
satisfaction for the individuals involved.
c. Recruitment:- it is the process of searching for prospective employees & stimulating
them to apply for jobs in an organisation.
d. Selection:- it is the process of ascertaining the qualifications, experiences, skills,
knowledge etc of an applicant with a view to appraising his/her suitability to a job.
 e. Placement:- it is the process of assigning the selected candidate with the most
suitable job in terms of job requirements. It is matching employee specifications with
job requirements.
f. Induction & Orientation:- Induction & orientation are the techniques by which a
new employee is rehabilitated in the changed surrounding & introduced to the
practices, policies, purposes & people of the organisation.
2. Human Resource Development:- It is the process of improving, moulding & changing the
skills, knowledge, creative ability, aptitude, values, commitment etc based on present &
future job organisational requirements. It includes.
a. Performance Appraisal:- it is the systematic evaluation of individuals with respect
to their performance on the job & their potential for development.
b. Training:- it is the process of imparting to the employees technical & operating skills
& knowledge.
c. Managerial Development:- it is the process of designing & conducting suitable
executive development programmes so as to develop the managerial & human
relations skill of employees.
d. Career Planning & Development:- it is the planning of one’s career &
implementation career plans by means of education, training, job search & acquisition
of work experience. It includes internal mobility & external mobility.
e. Transfer:- it is process of placing employees in the same level jobs where they can
be utilised more effectively in consistence with their potentialities & needs of the
employees & the organisation.
f. Promotion:- it deals with upward reassignment given to an employee in the
organisation occupy higher position which commands better status or pay keeping in
view in human resources of the employees & the job requirements.
g. Demotion:- it deals with downward reassignment to an employee in the organisation.
h. Retention Management:- employers prefer to retain more talented employees while
they retrench less talented employees. Employers modify existing human resource
strategies & craft new strategies in order to pay more salaries, provide more benefits
& create high quality of work life to retain the best employees.
3. Compensation: - It is the process of providing adequate, equitable & fair remuneration to the
employees. It includes
a. Wage & salary Administration:- it is the process of developing & operating a
suitable wage & salary programme
b. Incentives:- it is the process of formulating administrating & reviewing the schemes
of financial incentives in addition to regular payment of wages & salary.
c. Fringe Benefits:- these are the various benefits at the fringe of the wage.
Management provides these benefits to motivate the employees & to meet their life’s
contingencies. Ex:- housing facilities, canteen facilities, medical facilities,
disablement benefits etc.
d. Social Security Measures:- management provide social security to their employees
in addition to the fringe benefits. These includes worker men compensation,
maternity benefits for women, medical benefits , retirement benefits lie PF, pension,
gratuity etc.
4. Human Relations:- It is the process of interaction among human beings. A human relation is
an area of management in integrating people into work situation in a way that motivates them
to work together productively cooperatively & with economic, psychological & social
satisfaction.
5. Industrial relations:- It refers to the study of relations among employee, employer,
government & trade unions. It includes Trade union, collective bargaining, Quality circles etc,
III. ADVISORY FUNCTIONS:
Human resource manager has specialised education and training in managing human resources. He is
an expert in his area and so can give advice on matters relating to human resources of the
organisation. He offers his advice to:
 1. Advised to Top Management: Personnel manager advises the top management in
formulation and evaluation of personnel programs, policies and procedures. He also gives
advice for achieving and maintaining good human relations and high employee morale.
2. Advised to Departmental Heads: Personnel manager offers advice to the heads of various
departments on matters such as manpower planning, job analysis and design, recruitment and
selection, placement, training, performance appraisal, etc.

ORGANIZATIONAL STRUCTURE OF HRM DEPARTMENT

Managing Director
Fig 1 – Organisational
Structure of HRM Dept

Director Human Resource

Personnel Manager

Employment HRD Compensation Industrial Employee Manager

Manager Manager Manager Relations Welfare Common
Manager Services

HR Planning Orientation Job Industrial Welfare Security

Evaluation relations
Recruitment Training Counselling Central
Salary Labour laws Estate
Placement Appraisal Survey Community
Development Personnel
Career Fringe Records
Planning Benefits
Personnel
Incentive Audit and
Payment Research
Role of HR Manager
Human Resource Manager is one of the most important key to open a lock hanging on the door of
success in an organisation. If a Human Resource Manager is efficient enough to handle and to take
out best from his team members any organisation, it can achieve more from his target goals. Human
Resource manager plays a very important role in hierarchy and also in between the higher
management and low level employees. Stated below are major roles of Human Resource Manager:-

HR Manager

Administration HRD Manager Personnel IR Manager

Manager Manager

Training and Counselling Appraisal Safety Welfare Grievance

Development and
Health

Performance Potential
Appraisal Appraisal

Canteen Medical Transport Public Legal

relations

HRP Recruitment Job Compensation Orientation and

and Selection analysis Placement
and job
design

Fig. 2 Roles of Human Resource Manager