Strategic Human Resource Management plays a vital role in the modern business environment. And it can be considered as a bridge between the management or employer and the working individuals or employees of an organization.
After end of this article you will exactly know what is Human Resource management and its functions and roles in the modern business organization.
What is Human Resource management?
Human Resource Management is concerned with the creation of harmonious working relationships among its participants and bringing about their utmost individual development that ultimately contributed towards the over all growth of the organization.
Human Resource management team responsible for manpower planning, recruitment, training and development, performance appraisal, governing various HR policies, compliance management, payroll management, employees welfare and so on.
What are the Strategic Functions of Human Resource management?
The strategic functions of Human Resource Management is divided into two parts. These are:
- Managerial Functions.
- Operative Functions.
Managerial Functions
The managerial functions consist of planning, organizing, directing, controlling and co-ordination which we are going to discuss in short:
Planning
Effective HR managers realize that a substantial portion of their time should be devoted to planning. For, HR managers planning means determining in advance of a personnel program that will contribute to the organization goal.
Organizing
After a course of action has been determined, and planned to be done in next step the HR manager organizes the relative aspects by designing the structure relationships among jobs, personnel and physical factors. So, that exact planning can be implemented within predetermined time frame.
Directing
The next logical function after completing planning and organizing is the execution of the plan. The basic functions of personnel management at any level is motivating, commanding, leading and activating people. Effective directing ensures the willing and effective co-operation of employees for the attainment of organizational goal.
Controlling
Some degree of control is necessary over the subordinates to evaluate their performance. Controlling is the managerial function concerned with regulating activities in accordance with the personnel plan, which in turn was formulated on the basis of an analysis of fundamental organizational goal.
Co-ordination
The function of co- ordination is the orderly arrangement of the group effort to provide unity of action in pursuit of the common purpose. HR department has to co- ordinate the task of developing, interpreting, and reviewing personnel policies, practices and programmes.
Operative Functions: Strategic Functions of Human Resource Management
The operative functions of Human Resource Management are related to specific objective of personnel management viz employment, development compensation and human relations. These functions are to be performed in conjunction with managerial functions.
Procurement
This first objective function is concerned with obtaining proper kind and number of personnel necessary to accomplish the organizational goal. It deals specifically with such subjects as determination of Human resources requirement and their recruitment, selection and placement.
- Job Analysis: It is the process of study and collecting information related to the operations and responsibilities of a specific job. Under job analysis relevant data is collected in respect of men, machines and materials and then job description is prepared and determined that which qualities or qualification required to performed the specific job.
- Human Resource Planning: It is the process of determining and assuring that the organization will have and adequate number of qualified person available at proper time, performing job which would meet the need of the organization and which would provide satisfaction for the individual involved.
- Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. It include resume hunting, creation of new source of application and striking a balance between internal and external sources.
- Selection: It is the process of assessing the qualification, experience, skill and knowledge of the applicant with a view of appraising the suitability for a job. It includes creating and developing testing techniques, formulating interviewing techniques, checking reference, line manager decision, setting of fitness examination as per job role, raising offer letter, offering appointment after acceptance of the offer and employing of selected candidates.
- Placement: It is the process of assigning the selected candidates to the most suitable job. It is matching the employee specifications with job requirement. It includes counselling the functional managers regarding placement, determining employee adjustment in the job profile and correcting misplacement if any.
- Induction and Orientation: Induction and orientation is the techniques by which a new employee is rehabilitated in the change surrounding and introduces to the practices, policies, purposes and people etc. of the organization.
Development
After new joiner have been oriented they must required some of their degree developed. Development has to do with the increase of skill through training that is necessary of proper job performance. These includes:
- Performance Appraisal: It is a systematic evaluation of individuals with respect to their performance on the job and their potential development using relevant tools.
- Training: It is the process of imparting employees the technique and operating skills and knowledge. It includes identifying the training need, developing training program, and evaluating the effectiveness of the training.
- Management Development: It is the process of designing the conducting suitable executive development programs so as to develop the managerial and human relations skills of employees.
- Career planning and Development: Career planning and development is related to the employee’s career by means of education, training, job research and acquisition of work experiences. It further includes internal and external mobility. Internal mobility may consist of transfer of departments, promotion to higher position and demotion due to low performance in the job. Whereas external mobility may include change of entire location of job or complete change on the job profile for better future prospects.
- Organizational Development: It in an organization’s planned effort managed from top to bottom with a goal of increasing organizational performance through planned intervention. It looks in depth at the human side of the organization. It seeks to change in attitudes, values, organization structure and managerial practices in an effort to improve overall growth.
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Compensation Management
It is the process of providing adequate, equitable and fare wages to the employees for their contribution to the organization objectives. It includes job evaluation, wages and salary administration, incentives, bonuses social security measures etc.
- Job Evaluation: It is the process of determining the relative worth of job. It is concerned with selecting suitable job evaluation techniques, classifying jobs to various categories and determining relative value of jobs in various categories.
- Wages and Salary Administration: It is the process of developing and operating suitable wages and salary management program. It covers conducting wages and salary survey, providing fair wages in accordance with job profile and skill category of the employee in compliance with the state specific minimum wages and more.
- Incentives: It is the process of formulating and administering the scheme of financial incentives in addition to regular payment of wages and salary. It include framing incentive payment scheme, evaluation of the eligibility of the employees under the incentives scheme etc.
- Social Security: Management need to perform its function to provide various social security benefit to its employees like leave facilities, provident fund, medical benefits, gratuity, retirement benefits, dependent benefits and so on.
Human Relations
It is the process of interaction along human beings. Human relation is an area of management practice in integrating people in to work situation in a way that motivates them to work together productively, co- operatively with economic, psychological and social satisfaction. It further includes motivation to employees, boosting up employee morale, developing the leadership skill, redressal of grievances, handling disciplinary procedure, counselling employees various problems and improving the quality of work life etc.
Human Resource Management is relatively a new approach and the business organizations started to adopt the practices of HR management for smooth running of the organizational work. The role and function of HR managements from strategic point of view I have pointed out in this article. If you have any query please do comment in the below comments section.
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