Functions of Human Resource Management

Cite this article as: Palistha Maharjan, "Functions of Human Resource Management," in Businesstopia, January 18, 2018,

Human resource management (HRM) is a modern approach of managing people at workplace which deals with combining physical energies and their strengths with human competencies.It is the policy which ensures right quality and quantity of human resource at right time in the company.

HRM is concern of managers of all level and is related with all the activities that take place in the company. But, in general, HRM is known to have four basic functions, all of which are described here.

1. HR acquisition function

2. HR development function

3. HR utilization function

4. HR maintenance function

HR acquisition function

Two happy businessmen are shaking their hands.

This function is concerned with hiring competent workforce in the company. In simple words, it is related with posting quality employee at different jobs in the organization.It makes availability of right person in right number at right time at right job. Various tasks of the company come under this functions. These tasks are concisely described below.

Examining employment needs

HRM assesses its existing human resource in certain interval of time to make sure that all the posts are adequately filled. If not, it takes actions to balance the need of the company as a consequence.

Forecasting demand and supply of employee

After the employment need is recognized, HRM works upon predicting the human resource need in terms of quality and quantity. It also determines possible sources of employees.

Job analysis

Job analysis is the process of determining the tasks that make up a job. It is related with listing out nature of the job and skills, abilities and responsibilities that an individual require to perform that job.

Job design

Job design is a written record of overall summary which tells us about what kind of work should be done, how it should be done and where it should be done. It highlights on the contents of the job and methods of doing it. It clearly states the position of employee performing the job.

Human resource planning

Human resource planning involves forecasting human resource needs for the organization and planning the steps necessary to meet these needs.
– R.S. Schuler

Human resource planning is necessary to timely and properly manage the human resource to achieve the organizational needs.

Recruitment, interview and selection

Recruitment is the process of identifying the vacant posts and taking steps to fill such positions in the company.

Interview is a formal conversation between the employers and the candidates, set in order to extract as much information as possible from the candidates.

Selection is the process of picking up the best candidate from the pool of applicants. It is concerned with selecting the perfect match (with adequate qualification and skills) for the post.

Hiring and Socialization

Hiring is the act of enrolling the most suitable candidate in the company and handing over the concerned duty to him / her. The hired candidate should be made familiar with the environment and culture of the company and people working there. This process is commonly known as socialization and it is important to attain quality output from the employees.

HR development function

A man is working on his laptop.

Cite this article as: Palistha Maharjan, "Functions of Human Resource Management," in Businesstopia, January 18, 2018,

Hiring employee is not the only responsibility of HRM; developing them is also one. HR development function is related with upgrading human resource capability and skills in order to make them capable of performing challenging tasks. It is necessary for personal and career development of employees and for buildout of the company itself. Under this function, HRM performs various tasks which are described below.

Identifying correct weakness

Sometimes, employees may be unable to get satisfactory output despite their hard work. If it is due to employee’s inefficiency, HRM should identify the correct area in which employees are lacking skills and knowledge.

Imparting knowledge and skill

HRM should impart proper knowledge and skill to its employees to upgrade human resource capability and to deal with its challenges. It can be done through various ways such as counseling, on-site and off-site trainings, etc.

Managing development opportunities

It is a major duty of HRM to open ways for development of its existing employees. Counseling and training make employees mentally prepared for the challenge but it is not enough for actual development. Employees should be given chance to imply what they’ve learnt by handing over new and challenging tasks to them.

Changing attitudes of employee

Employees feel frustrated when they are unable to conduct their task properly because of which they might start hating their job. When necessary training and skills are provided, employees can easily accomplish their task which helps in developing positive attitude towards their job.

HR utilization function

Two happy businessmen are shaking their hands.

Not all companies with adequate human resources get to stay at the peak; staying on top of all requires high productivity, which is possible only when the human resources are fully utilized. HR utilization function is concerned with utilizing employees productively for higher performance and results in order to result in increased productivity and success of the company. In simple words, this function is concerned with motivating its employees. Tasks that are carried out under this function are described below.


Only training is not enough to extract high output from employees. To utilize human resources to the fullest, employee motivation is essential.

Performance appraisal

Performance appraisal is periodic assessment of employee’s performance and output in relation to pre-established criteria and objective of the organization.

Reward and punishment management

Reward and punishment should be arranged in accordance with the result of employee’s performance appraisal. Excellent performance should be rewarded and poor ones should be punished.

HR maintenance function

Disciplined people working in a healthy workplace.

Competent and committed employees are invaluable assets for any company. it is very much essential to retain such employees because they are capable of taking their company to the top in the market. HR maintenance function aims at earning honesty and loyalty from its employees in an attempt to retain them for a long term in the company. Under this function, HRM focuses on various sectors which are briefly described below.

Employee discipline

Disciplining employee is important to increase productivity of the company because disciplined employees are focused on achieving personal and organizational goal.

Labor relationship

HRM is concerned with maintaining good relationship between employers-employers, employers-employees and employees-employees in order to prevent grievances or conflicts in the workplace.

Good working climate

Good working climate is essential for physical and mental well-being of employees because they can not make good input in lack of healthy work space. It is also essential for retaining employees because people who continuously make poor output gets frustrated and might even leave the job.

Employee welfare activities

HRM should facilitate its employees with various fringe benefits such as transportation facility, health insurance, pension plans along with incentives to retain employees.