Five Functional Areas of Human Resource Management


Human Resource Management is a body of knowledge and a set of practices that define the nature of work and regulate the employment relations between the organization and the employee. Human resource management (HRM) mainly covers the following functional areas:


Sourcing and employing the right people who have the appropriate skills, knowledge and experience to fill in the job requirements of an organization.  Important staffing practices are resource planning, job analysis, recruitment and selection.


Before rewards are awarded to employees, first rewards must be designed and they must be accompanied by a documented reward system. Rewarding practices include job evaluation-(looking at the what the tasks the job requires, the skills or knowledge level required for the job, and how the job fits into the organization’s overall structure so that appropriate pay and other benefits can be determined for those who will do that job). Performance appraisal – (how well the employee is performing against the key performance indicators (KPIs) specified in the position he or she occupies. Whether the employee is developing and progressing in his or her task related responsibilities or lacks behind due to factors such as lack of training, motivation and etc.

And off course benefits. To make sure the employees are fairly compensated with salary and other benefits that matches their skills and knowledge and their contributions to the organization .

Employee Development.

Analysing training requirements to ensure that employees possess the knowledge and skills to perform satisfactorily in their jobs or to advance in the organization. Performance appraisal can identify the employee’s key skills and competencies. Developments in the ICT sector is changing structure of jobs in organizations and skills development and training are becoming everyday part of the organization to adapt to these changes.

Employee Maintenance

The administration and monitoring of workplace safety and welfare polices to retain a competent workforce that is in line with statutory standards and regulations. Employees as human beings have their own expectations and goals apart from the organization’s goals. Their welfare issues cannot be overestimated and they should not be viewed as another input resource to get things done. Having a high rate of employee turnover can be disastrous for an organization. Adherence to government regulations, workplace safety regulations and other welfare matters are important for retaining employees within an organization. This will help develop a trust and feeling that the organization does care for their welfare needs.

Employee Relations

Range of employee involvement or participation  in schemes such as industry unions and professional bodies. Depending on the nature and size of organization, employees have their right to complain, discuss matters that affect them and present them to management. Although, the organization pays them their benefits as employees, organizations are ethically and morally responsible to allow their employees to air their grievances and develop employee relations systems within the organization. Large organizations might divide the Human Resource Management among several managers; one specialist for recruitment and selection, one for employee training and development and another for negotiating and administering the collective agreements.

It is important to recognise that HRM functions within the organization at two levels. First level, HRM activities are concerned with recruiting motivating and developing competent employees. Hence selection procedures are designed to supply the organization with employee’s knowledge, abilities and skills related to their role within the organization.  HRM activities then motivate the workforce by providing employees with satisfactory pay, benefits and working conditions. HRM professionals also develop individuals to ensure that they posses the knowledge and skills necessary to be effective employees.

It is widely recognised by HRM experts that conflict between individual employees, within teams or between management and employees is inevitable and can enhance, rather than decrease performance.  As such, work conflicts, whether it is organized (eg planned strike)  or unorganized (eg individual absenteeism) must be managed. Most HRM managers deal with conflict management of some form in their normal daily duties.