Components/Functions of HRM

Each organization strives to realize a single vision. The HR department accomplishes this by
formulating and implementing specific initiatives. Various processes are at the foundation of this
strategy creation, and the effectiveness of the former is dependent on the thorough design of these
processes. But what exactly are these procedures, and what do they entail? Let's continue reading
and investigating.

The various HR functions are as follows:

Human resource planning

Performance Management
Employee Relations
Employee remuneration and Benefits Administration

Human Resource Planning:

Human Resource Planning is often defined as the practice of forecasting people. Correct, but
insufficient! It also includes the evaluation, promotion, and layoff processes.

Generally, it involves:

Recruitment: It is the process of attracting candidates that meet particular job requirements.

Selection: It is the next step in the filtration process. Shortlists individuals who are the closest match
for a specific job in terms of skills, expertise, and potential.

Hiring: Choosing the best candidate for the job.

Training and Development: These are the processes that focus on bringing a new employee onboard
in order to improve his or her skills and talents.

Benefits and Remuneration for Employees Administration: this process entails deciding on
salaries and compensation, as well as incentives, fringe benefits, and perks. Money is the primary
motivation in any profession, emphasizing the significance of this procedure—employees who do well
want raises, higher compensation, and incentives.

Performance Management:

Its purpose is to assist the firm in training, motivating, and rewarding employees. It's also supposed
to make sure that the organization's objectives are realized in a timely manner. Employees are not
the only ones involved in the process; it can also be for a department, product, service, or customer
procedure, all with the goal of improving or adding value to them.

Nowadays, an automated performance management system (PMS) stores all of the data that
managers need to analyze employee performance and assess their training and development needs.

Employee Relations:

Employee retention is a headache for businesses, especially in industries where competition is

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fierce. Though there are numerous factors that influence a person's decision to stay with or quit an
organization, only a handful are within our control

Employee relations encompass Labor Law and Relations, Working Environment, Employee Health
and Safety, Employee-Employee Conflict Management, Employee Wellness, and Assistance
Programs, Quality of Work Life, Workers Compensation, and Occupational Stress Counseling. Apart
from money, which is merely a hygiene element, all of these are crucial to employee retention.

All processes are critical to the survival and success of HR strategies. No one process can function in
isolation; there must be a high level of consistency and cohesion among them.

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