HRM Functions: Major Functions of HRM

HRM in people centric industry is concerned with the ‘people’ dimensions of the organization. In order to achieve the objectives as stated above, HRM must perform certain functions. Generally, it is said that to achieve the organizational objectives, retailers must set up a proper correlation between the objectives and the functions. Usually a particular set of functions helps realize specific objectives.For example, personal objectives are thought to be realized through training & development, performance management and compensation & benefits functions, while on the other hand, organizational objectives are achieved through human resource planning, employees’ relations, recruitment, selection, training, compensation and managerial relations functions.

The common human resource functions

1.Job Analysis and Job Design

Job analysis is the process of describing the operations, duties and responsibilities of the job. In order to recruit retail employees on a scientific and rational basis, it becomes necessary to determine in advance a standard of personnel with which interested candidate can be compared. This standard must establish the minimum acceptable qualities necessary for the accomplishment of tasks by retail employees. Simple stated, the process through which these qualitative requirements (standards) are determined is known as Job analysis.

a) Job Analysis Process

The process provides information about what the job involves and what human features are essential to carry out these activities. This information becomes vital to decide what sort of people to recruit and hire. The data derived from job analysis process is beneficial for estimating the value and appropriate compensation for each job.

The reason behind this is the belief and practice that compensation generally depends on the job’s required skill and education level, safety hazards, degree of responsibility, and so on all these factors that are assessed through job analysis. This ultimately provides the base for determining the relative worth of each job so that each job should be properly classified.

 b) Job analysis - Steps

(i) Collection of factual materials

(ii) Completing job Description Blank

(iii) Preparation of Job Specification

(iv) Preparation of Report

(v) Approval of Report

2. Recruitment and selection of retail employees

The success of a retail organization largely depends upon the team of efficient store employees who are chosen out of a number of applicants for the job. Recruitment is a very first step in the employment process, which aim at obtaining and maintaining an efficient store staff (floor employees) as a means of achieving sales targets.

Recruiting employees basically involves three major sub-functions

(i) Recruitment,

(ii) Selection, and

(iii) Placement on the job

a) Recruitment 

Recruitment is the positive process of employment aiming at searching for the prospective employee and inspiring them to apply for jobs in the organization. In short, it increases the number of applicants and number of posts vacant and thus provides an opportunity to the management to select the suitable person.Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.

b) Selection 

Selection is the process by which qualified and suitable store employees are selected and placed on the jobs according to their capabilities and organization’s requirements. Thus, it is a tool in the hands of the management to differentiate the suitable and unsuitable applicants by applying various techniques such as group discussions, personal interviews, game tests etc.

3. Training and development

After selecting the most suitable and eligible candidates in the organization, the next step of HR department are to arrange for their training. All types of jobs require some type of training for their efficient performance and therefore, all employees, new or old should be trained or re-trained from time to time. Further, the way new and new retail formats are emerging, new developments are taking place throughout the globe, it becomes imperative for any retail organization to systematically plan for the training program aiming at increasing the knowledge, skills, abilities and aptitude of employees to perform the new competitive tasks.

4. Performance Management

After selected, training and motivation, the next task, a HR manager has to perform is to evaluate the personality and performance of each employee by quantitative factors (such as targets achieved). In actual, with the help of performance management, the management through HR department would like to find out how effective it has been hiring and placing employees. Performance management allows retailers gain access to the reliable, timely information that drives better decisions. The term ‘performance management’ and ‘performance appraisal’ are used synonymously by few authors and subject experts. But the retailers throughout the globe believe that performance management is a broader term that may include performance appraisal too.

A typical performance management system involves following actions:

(i) To develop job descriptions clearly.

(ii) Selecting right employees at right jobs with right selection process.

(iii) To negotiate requirements and accomplishment based performance standards, outcomes and measures as and when required.

(iv) To provide appropriate training, education and induction.

(v) To facilitate ongoing coaching and feedback.

(vi) To conduct quarterly/half yearly performance development discussions.

(vii) To design appropriate compensation and appraisal system that rewards employees for their outstanding contributions.

(viii) To provide career development opportunities for employees.

(ix) To assist with exit interviews to understand why loyal employees leave the organization.

5. Compensation and Benefits:

Compensation and benefits represent a substantial part of total cost in most of the organizations. Compensation is not only the concern of the organization but is equally important for the workers and employees to maintain their social image.

The main objective of such compensation and benefits are to control the costs, to establish a fair and equitable remuneration to all, to utilize the compensation and benefits device as an incentive for greater employee productivity and to establish a satisfactory public image.

Hence, it becomes imperative for the HR department of any retail business to have clear-cut policy guidelines regarding employees’ compensation and various benefits. For effective implementation of compensation plans, HR department should be aware about the benefits given to the employees in similar kind of organizations.

6. Labor Relations

In modern days, retailing is carried on a large scale where hundreds of employees work together. The HR manager is basically responsible for the control of labor (workers and employees) through human relation approaches. Employees differ in nature and therefore, it is but natural that due to any communication gap, labor relations may spoil within the organization. Therefore, the HR department should know the proper policies, rules and regulations with regard to labor relations.

Harmonial relationships are necessary for both retailers and employees. It not only results in industrial peace but also leads to better and higher sales targets. Most of the retail organizations these days besides having HR department also take the services of legal experts (practitioners) for consultation from time to time.

7. Managerial Relations

The employment relationship, irrespective of nature of organization, usually has two parts: labour relations and managerial relations. The former which covers the price of labour is more obvious. The labour relation is also known as ‘market relations’. The managerial relations on the other side are the relationships that define how the process takes place.

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