7 Key Functions of HRM (Human Resource Management)


What is HRM and Functions of HRM?

Define HRM-

HRM or Human resource management is the practice to manage employees and fulfill organizational requirements. Human resource management is an approach to meet one’s requirements and motivate them to perform at their best. Human resource management includes certain roles and responsibilities of HR.

What are the functions of HRM?

The HRM definition itself hints at the major functions of human resources. The prime function of HRM is to fulfill staff needs and employee experience along with monthly payroll. The functions of human resource management may read from hiring interns to the full and final settlement of people leaving the organization.

This blog will read out some popular HRM functions and actual benefits to a business. So, let’s dive into the intuitive functions of human resource management.

What are the functions and objectives of HRM?

Listed below are the 7 HRM functions:

  • Talent hiring
  • Onboarding
  • Training management
  • Performance appraisal
  • Workforce engagement
  • Payroll management
  • Compliance management

1. Talent hiring

Recruitment is no kid’s game when it comes to filling 15 vacancies within a month or two. Captivating, screening, scheduling interviews, following-up with rounds, etc. takes a huge of your efforts and time.

The role of the HR manager here is not just to fill in the desks, instead, talent acquisition is the need here. Talent hiring is one of the most important HR responsibilities. Before getting straight into the recruitment, functions of human resources involve proper plans and execution plan to not miss any candidate or round.

A dedicated solution like human resource management software can help you commit the hiring process easily and effectively. Easy template generation and ATS (Applicant tracking system) make it very easy and less time consuming to hire the best talent for the organization.

2. Onboarding

Once you conclude with hiring people, it is one of the very important functions of the human resource department to orient them to the organization. This ensures that the new joiners feel comfortable and blend in quickly with the culture.

Effective onboarding as an HR solution does ensure a smooth orientation process. Proper training management wherever necessary needs to be done. An employee must be well-aware of their responsibilities and resources. Onboarding and training are two crucial functions of HR as it decides the make and break of employee relations with management.

3. Training management

What are some major functions of human resource management? Training and development are definitely among them! As discussed earlier, an improper training program can be responsible to employees leaving the organization with 2 months of joining. No clear statements and work responsibilities can force them to quit.

Transparency at company goals and resources can help motivate employees to work at their best and deliver the needed. Educating effectively on company requirements and their contribution can help retain the employee. Company growth with clear communication is what helps the employees most.

4. Performance appraisal

Rewarding an employee is one best ways to recognize their hard work and dedication. Reviewing and rewarding is a good practice and one of the important functions of HR.

Regular recognition of hard work and good intuition towards business growth promotes growth in performance and improved productivity. An automated platform like human resource management software (HRMS) helps in accurate feedbacks and reviews to employees based on his/ her performance.

Degree feedback process for performance appraisal management becomes easy with the software with easy selection of reviewing groups like a manager, colleagues, client, etc. The process needs to be fair and transparent.

5. Workforce engagement

Managing employees is every HR’s big game. Keeping them acknowledged and satisfied with activities and HR strategies is important for the human resource department. After all, employees are the pillar of any organization. Managing the right way can win you improved productivity and less employee turnover.

The workforce engagement and management solutions help foster better employee relations at the base. It also promotes a better work environment. One most popular and effective employee engagement tip could be employee empowerment.

Useful tools like ESS (Employee self-service) portal helps your employees serve themselves and prevent HR intervention all the time. No more need to knock on HR’s door to ask mundane queries. The self-service portal lets them easily download salary slips through mobile phones. Also, leave requests made easy with the portal.

6. Payroll management

Here comes the toughest job in HR. Keeping up with compliances and tax amendment is not so easy. Performing payroll barehanded without software assistance could be an open invitation to penalties and huge errors.

With the ever-changing amendments and laws, committing to payroll becomes difficult for the HR department. Providing salaries keeping abide by tax rules and proper deductions like PTax, PF, LOP, etc. makes it very critical and error-prone to commit single handily.

Software assistance like payroll management software makes it a piece of cake for the human resource and payroll department. Keep the errors & IRS penalties at bay with a dedicated payroll solution. Keeping up with the right calculations is important for the right HR management.

7. Compliance management

Be it statutory compliances or keeping up with employment laws, compliance management & keeping organizations away from mistakes is your sole responsibility. An automated payroll system helps you stay away from unwanted situations.

Managing compliances is one of the most underestimated functions of human resource management. But it isn’t. Even a tiny miscalculation can owe you huge penalties & regret would be the only reaction.

Taking precautions and relying on an online payroll software can help you. The HR solution with an integrated payroll module lets you sit back and enjoy an error-free & timely payroll for employees. Informative reports and slips leave no second doubt at HR management.

Below are the managerial functions of HRM:

  • Planning
  • Organizing
  • Directing
  • Controlling

How to manage HR for small businesses and start-ups?

For SME owners and start-up owners – Commitment to human resource management may not be so easy when it comes to a small workforce and shortage of resources. Thinking of processing payroll may sink your organization in losses and inefficiencies.

Instead, economical monthly subscriptions can help you survive better. Be it an SMB or MNC, payroll can be equally challenging for both. Right measures can help!

Objectives of HRM

The organizational objectives of human resource management include:

  • Achieve organizational goals

One of the major objectives of HR management is to achieve organizational goals. The HRM organizational objectives include workforce handling, staffing, training and development, payroll management, and employee settlement. For successful HR management, the HR manager requires efficient planning and execution.

With resource management and proper execution, HR management is no difficult task.

  • Work culture

Work culture and employee relations play a major role in defining objectives for human resource management. Automated HR activities like cloud payroll, timesheet software, data manager, etc. make up a good HR management strategy for the developed work environment.

Employee empowerment and transparency can help you achieve employee trust and better human resource management.

  • Team integration

Team co-ordination and work integration amidst teams are some prime objectives of HR management. The HR professional must ensure smooth communication between departments. They must ensure resources are available to employees for achieving targets.

Successful team integration helps in achieving streamlined operations and bring data under one platform.

  • Training and Development

Effective employment and productivity of the workforce are highly dependent upon the training practices provided by HR and training officers. Providing opportunities to employees is one great step to ensure resource management.

There might be difficulties such as planning, scheduling, providing better training, and evaluation of each on-boards. To lessen the pain, solutions like training management software can help you create training templates, set schedules, reminders, etc. Automated training management makes your workforce the best fit for their roles.

  • Employee motivation

Employee motivation is an important objective to achieve for the HR managers. For keeping employees motivated and on the right path, they need to be attended to and kept engaged throughout.

Empower them. Let them contribute to the organization and make them involve in plans. Involve them in weekly meets and decisions. Also, do not forget to recognize their efforts and achievements. Employee performance management can be the best way to motivate employees and keep them focused.

  • Workforce empowerment

Employee self-service portal (ESS) allows employees to apply for approvals and track them through their mobile phones themselves.

Be it a leave request, generating payslip, checking PF account, on-duty request, upcoming holidays, manager details, or anything, HR intervention is eliminated. Workforce empowerment leads to employee retention.

  • Retention

As discussed earlier, employee retention and effective resource management is the prime objective of the HR department. If strategies planned well and executed, employee trust is no milestone.

Employee hiring, onboarding, and training the employees are some prime functions of HR. On the other hand, keeping the employees retained is another challenge. Well, strategies like empowerment, training, motivation, etc. make employees stay.

  • Data and compliance

HR compliance has been always the best concern of the HR manager. Defining compliances and laws will ensure the right employment and keep penalties away.

Data management and payroll management are areas where a human resource professional can contribute. IRS guidelines are very important to follow to adhere to the right employment practice. Whereas, cloud HRMS solutions can help you keep arrears and fines at bay with automated calculations.

What are the main functions of an HR manager?

The functions of an HR manager holds great significance to organizational growth and revenue. Let us quickly find out the main functions of an HR manager at an enterprise. Listed below are some:

  • Job ad publishing
  • Recruitment
  • Resource management
  • Managerial relations
  • Employee relations

Job ad design

Designing job descriptions and job ads on your portal are one of the foremost roles of your HR manager. Job design involves the process of describing duties, responsibilities, and compensation of the job. To hire the right employee, you need to first understand the candidate expectations, profile requirements, etc. This will help you determine the kind of candidate you want for the job.

Job designing involves describing the job requirements such as skills, qualifications, and work experience. Their daily duty and deliverables need to be identified and described in detail, as this will decide the recruitment strategy.


Recruitment is one of the most basic and equally important functions of the HR manager. HRM aims to select and retain qualified and performing employees to achieve their goals and objectives. All this starts with hiring the right employee from hundreds of applicants.

Human resource management also helps in sourcing and identifying ideal candidates for interview and selection. The applicants are then subjected to a designed screening process to filter out the most suitable candidates from the pool of interested applicants. The screened-in candidates are then taken through different interview rounds to test and analyze their skills, knowledge, and work experience required for the job position.

Once the main functions of HRM in staffing are achieved, and the candidate gets selected after their designed interviews, they are then provided the job offer and ready to join. This process is important because these selected employees will, after all, help the company realize its goals and objectives.

Resource management

Resource management at HR includes employee management and HR component handling. Components like service portal, desktop, connectivity, communication, mailer system, etc., which also makes work easy and feasible need to be considered well by HR. This will ensure the smooth functioning of employees at work.

Also, you need to see to it that no performing employees feel un-recognized. Employee motivation and performance management are the keys to effective employee handling. Employee benefits and compensation are some crucial contributing factors to human/ labor management.

Managerial relations

There are two types of relations at an organization that HR manager needs to consider and they include; managerial relations and labor relations.

Here, labor relations are mainly about the relationship between the workforce and the company, and managerial relations deals with the relationship between the various processes in an organization.

Managerial relations determine the amount of work to be done in a given day and how to mobilize the workforce to accomplish the objective. It is about giving the appropriate project to the right group of employees to ensure the efficient completion of the project. Managerial relations also entails managing the work schedules of employees to ensure growth and improved productivity. It is mandatory to handle organizational relations effectively to maintain the efficiency and productivity of the company.

Employee relations

As discussed earlier, relations are essential to maintain good work culture and relationships between employees at the workplace. At the workplace, many employees work hand-in-hand towards the same objective. Not a hidden truth – every employee has their own characteristics. Therefore, it is essential to handle such employees and relations proactively.

Toxic culture and reduced work productivity are results of unattended employee relationship management. Therefore, it is necessary for the HRM to provide proper rules, regulations, and policies about labor relations. This way employees gain a proper framework to work and deliver. Every employee will thereby be aware of the policies, which will create a satisfactory work environment and ethics at work.


HR management can be easier and daunting depending on the tools you rely upon. As discussed in the article, human intervention in all the functions of human resource management include can be critical at times. With technological advancements i.e. HR technology, there are a lot many solutions available like HRMS software.

Each function includes some set of policies and strategies in order to be effective at efforts. Let not your effort go vain. Get assisted with the right HR solution and excel in the area of human resource management.