There are five major human resource functions; performance management, planning, recruitment and selection, human resource development, compensation and benefits and labor laws and regulations. Performance management focuses of employee performance evaluation. Recruitment and selection ensures that only qualified candidates are employed. Human resource development improves employees’ skills through training. Compensation and benefits are a motivation to the employees. Labor laws and regulations govern how all the other organizational processes should be carried out. All these functions work together to ensure that the employees’ and the organizational output is optimum. Exclusion of any of the functions would lead to an incomplete and partially non-function human resource management system (Armstrong, 2006). This paper seeks to give an in-depth analysis of the five human resource management functions and how they interact to ensure success.
Performance management is a more complex function of Human Resource. It involves mutual goal setting, progress review, communication, feedback, training, employee development and rewards. The whole process of performance management begins when a new incumbent joins the system and ends with one employee quitting the organization. The performance system involves several actions (Lawler, 2003). First, performance management develops well-defined job depictions and employee operation strategies including performance indicators. Second, the system aids in negotiating the performance requirements and standard used to measure the result and overall employee productivity. Third, the performance system allows identification of training need by continuously measuring the productivity against the required standards which impacts implementation of more effective programs to heighten improvement among employees (Lawler, 2003). Fourth, the system holds performance development deliberations with the aim of evaluating the performance of the employees with regard to the organization’s performance plans. Fifth, the system provides support and assistance to the workforces in order to develop their careers (Lawler, 2003). Among other actions, the performance management system holds exit interviews with an objective of understanding the basis of employee dissatisfaction leading to exit from the organization. The system has a wide range of benefits to both the employees and the organization itself.
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The whole process of performance management sets a rewarding platform which aligns every employee’s achievements with the objectives and mission of the organization. The system sets standards and clear expectations to ensure that the employees are aware of what is expected from their jobs. Regular coaching and feedback provides an added advantage to the organization which is able to detect problems earlier and is able to correct them before they affect the performance and productivity of the employees. Performance management could be regarded as a pre-emptive system which manages the performance of the employees with the aim of achieving the organizational goals. It focuses on achieving a congruent alignment between the organizational goals and the employees to achieve excellence. Performance management closely relates to human resource planning, recruitment and selection.
Irrespective of the organizational size, the processes involved in planning, recruitment and selection in human resources are critical. The three processes determine the worth of employees who consequently influence how certain things are done (Armstrong, 2006). Planning in human resource encompasses appropriate decision making with respect to the available slots that should be filled in organization and the possible ways of filling them. Planning also involves determination of the human resource requirements of an organization in regard to the specified strategic plan (Armstrong, 2006). Planning performs an important role in establishing labor factors affecting supply and demand in addition to determining the problems associated with resolving these factors. The long term and short term developmental and operational needs of an organization influence planning (Armstrong, 2006). Additionally, the aspirations and the needs of the employees also perform a vital role in modeling the planning function of organizations. Planning determines how recruitment as a human resource function will be conducted.
Unlike planning, recruitment is a process that involves attracting and/or encouraging qualified persons to send their applications for various positions available in an organization. This process begins with generating a pool of eligible and appropriate individuals and is completed when the applications are received (Cascio, 2015). Recruitment is a crucial process which ensures that only qualified candidates are attracted and it discourages underqualified individuals from applying; essentially this is achieved when the correct job description and requirements are provided to the applicants. Recruitment also projects the image of an organization. After recruitment is done, selection of individuals is done.
Selection is a crucial human resource function which determines who gets the job and why. The main issue addressed in selection is matching the candidates with the slot or job described so that optimum performance is achieved. Tools such as referrals and interviews are used in the process of selection. Selection ensures that the best candidates in terms of working experience and skills are hired (Cascio, 2015). Correct selection is achieved by correctly matching the skills presented in the application documents with the required practical skills (Cascio, 2015). The main aim of the whole selection process is to come up with successful individuals who can help an organization get to the next level and to accomplish its vision and mission. After selection the organization should develop human resource development strategies.
Human resource development (HRD) is a critical function that determines the productivity of the selected workforce. HRD focuses on providing education, training or other types of career development to the organization’s employees. Training aims at making it easy for the onboarding employees and also to improve their performance (Noe et al., 2017). A HRD program is indispensable to retention of employees. Rather than seeking alternative employment, supported and/or trained employees will probably chose to remain in the organization. HRD is not only focused on excellence but also improvement which aids individuals in avoiding stagnation therefore making improved contributions to the organization. Additionally, HRD keeps the employees skills strong and up to date (Noe et al., 2017). Organizations that focus more on HRD are likely to see more rewards compared to organizations that do not. Rewards could be in terms of profits or other aspects. Training on the required skills improves output and motivates the employees who feel that the organization is part of their growth (Noe et al., 2017). Employees are open to changes when they are regularly involved in HRD activities; instead of feeling threatened, they are able to see more improvement chances that come with new practice (Noe et al., 2017). Efforts to offer development opportunities to the employees improve team work, and the work atmosphere. Marginal productivity also increases when training is properly provided. In addition to all these benefits, HRD activities improve customer service which is the main focus for any organization.
Compensation and benefits is a crucial human resource function. Compensation and benefits are used to refer to salaries, non-monetary or monetary benefits that an organization provides to the employees (Ensher, Crocitto, Renard, 2018). These benefits motivate the workforce and improve their functionality. Compensation and benefits are given on the basis of employee performance. There several ways in which benefits are given to the employees including fixed pay (basic salary that is not subject to changes), variable pay (additional compensation based on employee performance), equity pay (shares at a discounted price), and other benefits such as insurance policies, flats, cars or medical facilities (Ensher et al., 2018). The benefits offered attract various people to work for an organization in addition to maintain a good job profile and reputation for the organization. More benefits and compensation imply more loyalty, productivity and motivation. Compensation and benefits are both aimed at motivating the employees but there is a difference between the two (Ensher et al., 2018). While compensation is related to the amount of money paid to the employees, benefits are usually non-monetary and are given as incentives to the employees.
Employment and labor laws govern the workplace relationships. Local, state and federal employment laws and regulation apply to almost all organizations. These laws are incorporated in an organization to ensure that they maintain a productive working atmosphere based of equal chances and respect. Labor laws, in most cases, address issues such as employee rights, minimum wages, workplace safety, and classification of employees.
There are several laws aimed at protecting the employees in their places of work. These laws include Consolidated Omnibus Reconciliation Act which allows employees to continue enjoying their medical benefits even after termination or any qualifying events. According to the act, qualifying events may be as a result of divorce or reduction in the employees working hours which makes her ineligible for such benefits (McConnell, Brue, Macpherson, 2016). The second law is the Health Insurance Portability and Accountability Act which ensures that the employee’s medical information is treated with confidentiality in the workplace. The Civil Rights Act (1964) authorizes equal employee treatment irrespective of sex, religion, color and nationality (McConnell et al., 2016). The U.S. Occupational Safety and Health Administration ensure that the employees’ safety is prioritized. The act dictates specific procedures for handling hazardous substances or operating complex machinery (McConnell et al., 2016). The Fair Labor Standards Act (1938) regulates child labor, classification of employees, working hours of the employees and minimum wages (McConnell et al., 2016). These are just a few labor laws and regulation that are aimed at protecting the employees.
The performance management performs various functions in human resource some of which contribute to effective training and development. Performance management system involves identification of the training requirements of the employees. This ensures that the organization is able to track gaps in knowledge in comparison to the standard set. Training is then offered to the employees based on the gaps (Lawler, 2003). Such evaluation ensures that individuals are trained in their areas of weaknesses. The employees skills are therefore improved which leads to career development. Exit interview are also part of the performance management system and are used to determine to root cause of employee dissatisfaction. Analyzing these causes helps the organization to fully understand the employees training requirements. In some cases, employees exit organizations due to lack of teamwork or motivation (Lawler, 2003). The organization could do itself a favor by addressing these issues during training to ensure that the employees are retained. Quarterly discussions aimed at evaluating the performance of the employees with regard to the performance plans is also part of the performance management system (Lawler, 2003). Performance evaluation ensures that the employees are working according to the organization’s expectations and if not then they are trained on how they could improve their skills. Essentially, continuous coaching, identification of training needs, evaluation discussions and exit interviews greatly contribute successful training and development of the employees.
Effective performance management systems together with compensation and benefits attract, develop and retain talented employees. Compensation and benefits aims at motivating and also attracting talented and qualified employees (Ensher et al., 2018). When the benefits and compensation are high, more qualified persons are attracted to apply during recruitment. People are willing to work in organizations that provide more benefits and seem more concerned with the welfare of the employees. The performance management system on the other hand plays a great ole of developing the career of the employees. The system ensures that the employees are continuously coached and evaluated so as to assess their performance and productivity (Lawler, 2003). In cases the employees do not meet the standard performance requirement, they are effectively trained. Training ensures that the workforce skills are enhanced which leads to the overall development of the career lives of the employees. These two human resource functions (Benefits and performance management system) work in coordination to retain the attracted and developed employees. While training ensures that the employees are up to date with the job requirements, compensation and benefits are a motivation to them. Notably, compensation and benefits could motivate the employees but without continuous employee development it might be impossible to retain talented employees. Some people not only work for money but also for experience and skill development. The vice versa is also true, It is quite impossible to retain employees through training while you are offering very low compensation and almost no benefits. Employees might regard it a disgrace or even lack of appreciation of their efforts. It is therefore important to ensure that these two functions work together so that the right employees are attracted, developed and retained in the organization.
Labor laws affect (negatively or positively) all the Human Resource Management functions. All the organizations must continuously evaluate the performance of the employees (Performance management) in which case, certain laws and regulations have to be followed. Laws such the Civil Rights Act (1964) prohibit discrimination based on sex, nationality, color or religion (McConnell, 2016). Employers should therefore focus on evaluating the productivity rather than the characteristics. Certain laws also apply in the recruitment and selection function of Human resource. Selection is governed by the most laws including Americans with Disability Act which forbids discrimination of disabled people; it requires the employers to give them equal opportunities (McConnell, 2016). Immigration Reform and Control Act prohibits employment of all illegal immigrants and it requires organizations to ensure that applicants have a legal right to employment. Labor laws and regulations also compensation and benefits (McConnell, 2016). The Fair Labor Standards Act for example, impacts four employees’ provisions including equal pay, requirements in record keeping, minimum wages and overtime payment (McConnell, 2016). Human resource development is solely an organizational procedure that is not essentially governed by the government. However, when the safety of the employee is compromised, the law requires the employers to provide adequate training on machine operation and handling hazardous substances (McConnell, 2016). In general, labor laws and regulation affect all the functions of human resource management in various ways. Employers should strictly follow the laws to avoid legal trouble and to ensure their organization works effectively.
Human resource management functions interact in various ways in order to optimize employee and organizational behavior. Planning, recruitment and selection processes ensure that only the right and qualified candidates are employed. This is an assurance of high productivity. Performance management then ensures that the performance of the hired persons is continuously evaluated so that it is in line with the performance plans of the organization and also to identify gaps in knowledge (Cascio, 2015). Human resource development focuses on improving all the identified employee weaknesses through education and training. This ensures that growth of the employees’ skills and career development. Compensation and benefits are offered as a motivation to the employees to enhance their morale and hence productivity. It ensures that all the trained and talented employees are retained. Finally, laws and regulations bring all other functions together by determining how exactly they should be carried out. By ensuring compliance with the laws, organizations are able to maintain their reputation and attract more productive individuals. Clearly every human resource function plays a significant role in the organizational success and therefore none of them should be excluded from the system.
In conclusion, there are five major human resource functions; performance management, planning, recruitment and selection, human resource development, compensation and benefits and labor laws and regulations. Performance management focuses of employee performance evaluation. Recruitment and selection ensures that only qualified candidates are employed. Human resource development improves employees’ skills through training. Compensation and benefits aim at motivating the employees and rewarding work done. Labor laws and regulations govern how all the other organizational processes should be carried out. All these functions work together to ensure that the employees’ and the organizational output is optimum. Exclusion of any of the functions would lead to an incomplete and partially non-function human resource management system.
References
Armstrong, M. (2006). A handbook of human resource management practice . Kogan Page Publishers.
Cascio, W. F. (2015). Managing human resources . McGraw-Hill.
Ensher, E. A., Crocitto, M., & Renard, M. (2018). Compensation and benefits. In Teaching Human Resource Management . Edward Elgar Publishing.
Lawler, E. E. (2003). Reward practices and performance management system effectiveness. Organizational Dynamics , 32 (4), 396-404.
McConnell, C., Brue, S., & Macpherson, D. (2016). Contemporary labor economics . McGraw-Hill Education.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage . New York, NY: McGraw-Hill Education.
