IGCSE BUSINESS STUDIES Topic : Functions of Human Resource Department

Functions of Human Resource Department

A typical Human Resource Department is carries out the following functions:

Manpower Planning

It involves the planning for the future and finding out how many employees will be needed in the future by the business and what types of skills should they possess.

It depends on the following factors

• The number of people leaving the job
• The projected growth in sales of the business
• Technological changes
• Productivity level of the workers

Job analysis and Job description

HR Department is also involved in designing the Job analysis and Job description for the prospective vacancies.

A job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.

Job descriptions are written statements that describe the:

• duties,
• responsibilities,
• most important contributions and outcomes needed from a position,
• required qualifications of candidates, and
• reporting relationship and co-workers of a particular job.

Determining wages and salaries

HR Department is also involved in conducting market surveys and determining the wages and salaries for different position in an organization. These decision may be taken in consultation with top management and the Finance department.

Recruitment and Selection

One of the most important jobs HR department is to recruit the best people for the organization. This is of crucial importance as the success of any organization depend on the quality of its workforce. Details regarding the recruitment and selection procedure can be found here.

Performance Apprasial

Once the employees are recruited , the HR Department has to review their performance on a regular basis through proper performance appraisals.

Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

On the basis of performance appraisal the HR Department will set up an action plan for each employee. If the employees needs any training then he provided that.

Training and Development

HR department is constantly keeping a watch over the employees of the organisation. In order to improve the efficiency level of the employees they have go undergo regular trainings and development programmes. All trainings and development needs are carried out by this department. Training might include on the job or off the job training. Find more information on training here.

Employee welfare and motivation

Happy employees mean a healthy organization. HR Department conducts various employee welfare activities which might include employees get together, annual staff parties etc. HR department also reviews organizational policies and its impact on the motivation of the employees.

Addressing employees grievances

HR department is the link between the workers and the management. Employees grievances related work environment are usually entertained and resolved by the HR Department.

Labour management relations

For the smooth operation of any organization, it is crucial to have good labour management relations. HR department has to ensure that these relations are cordial. In case of any labour-management conflict the HR Department will play a vital role in bringing both management parties to the negotiation table and resolving the issue.

Implementing organizational policies

HR Department has to coordinate with line manager and see that the organizational policies are being implemented in a proper manner. Disciplinary action can be initiated against employees who are not following organizational rules and regulations. All these actions are conceived and implemented by the HR department.

Dismissal and redundancy

HR Department has to take firm actions against employees who are not following the organizational code of conduct, rules and regulations. This can result in the dismissal of the employee.

Sometimes, an organization may no more require the services of an employee. The employee may be made redundant. HR Department has to see that organizational and government regulations are being followed in this process.