HRM Function : Core Functions of Human Resource Management

hrm functions

If an ordinary employee working anywhere is asked about the work of HR, the general reply would be, recruiting candidates or calculating salary. But really talking, HR operations comprise everything from hiring to retiring, including acquiring candidates, developing organization, managing queries, motivating employees, and gaining feedback. We’ll take all the major HRM functions one by one.

What is HRM and Its Important in Business?

Human Resource Management is the practice of management of employees right from their recruitment to retirement. HRM is the main foundation of any organization for planning, organizing, developing, and maintaining. Human resource ensures employee benefits for increasing their contribution towards the achievement of the organization’s goals. Human Resources sets up best practices to promote employee’s performance to make it aligned towards development.

Right from hiring to termination, human resources invest a lot amount of hard work and time in the management of various activities such as recruitment, onboarding, employee engagement, performance management, employee recognition & appraisal, benefits & salary administration, offboarding, and many more. Let us talk about each of these human resource management functions in a detailed form.

Functions of HRM

HRM Functions includes far more than just Hiring, Retiring and Payroll management. All the functions from hiring to retiring are encircled here in-depth for overall knowledge of HR functions.


An expanding organization needs a more significant number of employees to handle the work and reduce the cost of mistakes. Recruitment process is the process of entailing matching candidates with the right mix of skills and capabilities. There are numerous candidates out in the market, but identifying, screening, and acquiring worthy candidates is the main scope of this HRM function.

HR needs to plan how this process must work. He needs to scans the resume, call the corresponding candidate for the screening process, and schedules his/her interviews with the head person. The goal is to attract the skilled candidate, while the unskilled ones opt-out.

After a successful interview, HR must complete the bonding details, capture the candidate’s necessary information, etc. to make him/her a part of the organization. HR handover an appointment letter as a confirmation of employment.


After hiring, a proper orientation/induction program is arranged to provide throughout organization’s information to the employee.During orientation, the employee is made aware of the culture, working environment, policies, missions, and achievements of the organization.

HR provides the employee access to his required assets, needed throughout employment. Necessary documents like Adhaar card, PAN, passport, etc. are verified and saved.

Employee Engagement


Employee engagement or relations is a crucial entity that drives the overall progress of the business objectives. New employees are assured by solving their every essential requirement and ensured fruitful engagement throughout the workspace. HR should adopt methods that promote enjoyable working conditions. These methods can help with better relations and work influence.

Management can organize activities like sports day, festival celebration, and annual day to promote a healthy relationship amongst various employees and employees and employers. HR should devise a proper committee with proper judgemental skills to look after conflict resolution.

Performance Development & Training

How the employee submits particular assigned tasks within time, whether it meets the desired requirements and fulfills the organization’s set goal, whether employee upgrades from time to time, are all calculated underperformance development.

According to the employee’s position, his/her ongoing progress and mission, they are assigned with specific Key Performance Indicators (KPIs) based on which the performance is measured. These KPIs indicate employee growth based on which training and learning modules are arranged if needed.

Training is the systematic process of guiding employees with essential knowledge about their jobs. To provide training to the employees, HR needs to set the training schedule, type of training, and other details and inform the employee.

Talent Recognition & Appraisal

A company trusts its employee to work efficiently to achieve the target. To keep an employee motivated towards their goals, it becomes essential to appraise them every time they benefit the company. HR must ensure a routine talent recognition and appraisal program to be held to recognize an upgrading talent. The employee must be recognized amongst his/her team-mates to increase motivation.

Salary & Benefits Administration

Salary & Benefits Administration

Salary or payroll management is an essential function of HRM as it is most beneficial to the employee to make his/her livelihood better. HR must deploy a systematic process to keep the payroll intact. Generally, in an organization with numerous employees engaged, it becomes quite challenging to make salary calculation error-free and that to along with being statutory compliant. It becomes an HR responsibility to pay the employee with the correct amount and at a predefined time interval.

Furthermore, HR must inform about the benefits that an employee can avail, like health insurance, retirement benefits, vacations, travel reimbursements, and paid time off.


Offboarding or say FNF (Full and Final settlement) is the process when an employee resigns, retires, or gets terminated. In such cases, HR needs to finalize the offboarding checklist to make sure nothing lefts out. This checklist may include obtaining resignation letter, settling existing reimbursements and leave encashment, gathering of assets assigned to the employee like mobiles, access cards, etc., updating the database and exit interview for feedback.

Statistical Information On HRM For Businesses

  • The market for management tools for routine HR activities is increasing at a high rate, and it is expected to surpass $10 billion by the year 2022 and $38.17 billion by 2027.
  • Among the global HR executives, about ⅔ believes they are experiencing a massive digital transformation in the field, of which only 40% possess any actionable planning at hand.
  • 20% of the leaders in 2019 have believed that in the next one or two years, the major focus of HR will be on analytical insights. This is said to be the major driving force of any business.
  • More investments will be made in the next one to two years in areas of analytics (60%), artificial intelligence (47%), process automation (53%).
  • Investing in cloud solutions have benefited HR in increasing productivity (44%), attracting/retaining talent (34%), offering insights (42%), enhancing workforce experience (40%), reducing company costs (35%), and improving behavior (31%).

The Emergence of HRM

Emergence of HRM

With all the functions of human resource, we can assume that there’s a lot of strategic and operational tasks undergoing by the Human Resource Department.HRMS is an innovative tool for improving the productivity and efficiency of the business and increases the decision-making process of the HR department. It empowers the HR & employee to minimize paperwork, consolidate data, and streamline core HR processes to foster a motivated workforce.


It takes a lot of effort to plan, organize, and control business strategies. Thus for adopting an efficient method to carry out these functions is essential for easiness of an HR. And an HRMS software is something that can help an HR. With its modern technologies, automatic environment, fast and efficient work process, and paper-free module, HRM functions can be processed significantly.

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