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Functional Areas of HRM, Interrelationship with HRM Function & Changing World of the Chief HR Executive

Six Functional Areas of HRM

1. Human Resource Planning, Recruitment and Selection 2. Human Resource Development 3. Compensation and Benefits 4. Safety and Health 5. Employment and Labour Relations 6. Human Resource Research

1. Human Resource Planning, Recruitment and Selection

Human Resource Planning The process of systematically reviewing human resource requirements to ensure the required numbers of employees, with the required skills, are available when needed. Recruitment Recruitment is the process to apply for jobs with the organization Selection Selection is the process through which the organization chooses from a group of applicants, those individuals best suited both for open positions and for the company.
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2. Human Resource Development

Human Resource Development (HRD) Helps individual groups and the entire organization to become more effective. HRD Is needed because people, jobs, and organizations are always changing. Continuous improvement in processes is mandatory for the firm to remain competitive. Large Scale HRD Programmes Are referred to as organizational develop (OD). The purpose of OD is to alter the environment within the firm to help employees perform more productively. Career Planning Is a process of setting human resource goals and establish means to achieve them. Performance Appraisal Employees and teams are evaluated to determine how well they are performing the assigned tasks.

3. Compensation and Benefits Pay

The money a person receives for performing job Additional financial reward, other than basic pay include paid vacations, sick leave, holidays and medical insurance There are non-monetary rewards, such as enjoyment of work performed or a pleasant working environment


Non-Financial Rewards

4. Safety and Health Safety

Safety involves protecting employees from injuries caused by work related accidents Health refers to the employees freedom from illness and their general physical and mental being


5. Employment and Labour Relations

Business firm is required by law to recognize a union and bargain with it in good faith if the firm employees want the union to represent them.

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6. Human Resource Research

HRM development can contribute to better management decision through effective research Programmes. Most Human Research tries to answer simple questions that managers often face:1. Is our selection process identifying the best applicants? 2. Why are we loosing best people? 3. Is our new employee orientation programme better than the old one?

Interrelationship with HRM Function

Functional areas of HRM are not separate and distinct they are interrelated. Management must recognize decision in one area will affect other areas: Firm that recognizes recruitment and training of sales force while neglect to provide adequate compensation is wasting time, effort and money. Management concerned about employee welfare, ensure safe and healthy work environment.

Changing World of the Chief HR Executive

Job of Human Resource Professionals is continuously evolving. Yesterdays solution may not be sufficient for today's challenges Dramatic Changes in the Business Mobility Re-engineering Empowerment teams Telecommunicating Downsizing Restructuring Increased Global Competition Technological Advances.

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