Every organisation benefits from an effective human resources management (HRM) strategy. It can be the distinguishing factor between actively engaged employees and those just getting through the day for many contemporary businesses. With this in mind, let’s discuss the fifteen primary functions of human resource management and how they affect your business for the near future.
While these are the traditional functions of human resources, they are not absolute. Instead, they can serve as HR responsibilities to help you better understand how HRM fits into your big picture.
So, this guide breaks down these 15 functions of HRM in the simplest possible way, grouping them into three categories: managerial, operative and advisory.
Want to find a specific feature? Each function is accompanied by relatable examples, written in as close to plain English as possible. Skim the entire blog in seconds.
Let’s begin.
Managerial Functions of Human Resource Management
These functions help HR drive strategy, build structure and ensure the organisation runs smoothly from the top down.
1. HR Planning
HR planning is like laying railway tracks before the train starts moving. It prepares your people strategy long before the business picks up speed.
Let’s understand with an example. A Bengaluru-based SaaS company mapped its hiring needs for the next 18 months so they wouldn’t scramble when opening a Pune office.
This human resource management function lets you plan team growth, predict skill gaps and avoid last-minute hiring panic.
2. HR Organising
HR organising sets the foundation for “who does what” inside the company.
Imagine a school without class divisions or a project team without responsibilities. It becomes confusing instantly.
HR helps create the organisation chart, reporting lines, job roles and workflows. This keeps work structured and prevents duplication or miscommunication, especially when teams are spread across locations.
3. HR Directing
Directing is the people-guidance function of HRM. It focuses on communication, teamwork, motivation and leadership.
Think of HR as the coach in a cricket team who keeps players aligned even when the match gets intense. Whether it is driving cultural initiatives or helping managers make decisions based on real data, directing makes sure everyone moves in the same direction.
4. HR Controlling
Controlling ensures everything that was planned actually happens. Audits, evaluations, attendance checks, compliance reviews and policy monitoring are some sub-functions.
For example, when a Gurugram team notices repeated attendance gaps, HR identifies the pattern to fix the policy. This is one of the most practical functions of human resource management because it maintains discipline without feeling rigid.
Operative Functions of Human Resource Management
These are the everyday, practical responsibilities HR manages, also known as the operative functions of human resource management.
5. Recruitment
Recruitment is the front door of the company. Here, HR ensures the right people come in, not just the available people.
Screening, interviews, shortlisting and offer management all fall in this function of HRM.
For example, a fast-growing agriculture startup filters candidates through screening, interviews, and skill tests to ensure culture fit.
“Recruitment shapes company performance long before the first day of work.”
6. Onboarding
The first impression is the last impression.
Following this principle, onboarding functions of human resource management make new employees feel welcomed and comfortable to build a lasting foundation between the employee and the company.
Think of it as the first chapter of their story with your company. When a new joinee in Hyderabad gets a warm introduction, a clear role brief and a smooth system setup, they become productive faster. So this function of HRMS goes for relationships along with productivity. A good onboarding experience improves retention more than most employers realise.
7. Training
Training keeps employees sharp. A team without training is like a smartphone without updates. You assign A task, but you get delivered B. This is a lack of training for new employees.
Eventually, things slow down. HR maps the training and resources to provide new employees so that they can understand what approach the company takes.
Along with that, training is not just for new employees only. It is a continued process. So this function of HRM adds one more sub-function for HR managers – to identify the skill gaps of every employee. After getting these gaps, you are responsible for running development programmes so the workforce stays relevant. Training is a must-do among the functions of human resource management that strengthens the entire organisation over time.
8. Performance
Now that you have provided proper training, it’s time to track employees’ performance. Performance management ensures employees know what is expected and how they are doing. It includes KPI setting, reviews, goal-setting, OKRs and feedback loops.
This step is necessary not just for performance tracking but also to recognise star performers and the employee who needs further training.
Along with that, performance evaluation equips you to put an employee on a Performance Improvement Plan (PIP) – something that all employees hate because of its negative connotation. But when you have data to back your decision, it ensures a dispute-free PIP decision that employees agree on too.
9. Compensation
Compensation covers salaries, increments, incentives, rewards, and arrears. People work better when they feel valued and well compensated.
This function of human resource management ensures that employee compensation is fair and competitive. This builds trust and reduces attrition.
10. Safety
Safety ensures employees work in a secure environment.
In industries like construction, logistics and manufacturing, and mining, this function of HRM is non-negotiable. As the saying goes, “Better safe than sorry.” HR ensures this stays true every day.
11. Employee Relations
Employee relations keep the workplace peaceful and productive. Handling conflicts, misunderstandings and policy issues are also the biggest functions of human resource management. This is because a minor misunderstanding may lead to legal implications.
HR becomes the bridge between management and employees. For example, when two teams disagree on workload sharing, HR resolves it before it becomes a bigger dispute. Because healthy employee relations build long-term trust.
12. Documentation and Records
Keeping everything documented in an organisation is a must-have function of human resource management. This documentation and these records cover attendance, leave, salary slips, documents, performance history and contracts.
HR maintains everything because one missing document can create legal or payroll issues later. This is one benefit, but another main benefit of accurate employee records is keeping operations smooth even during audits or compliance checks.
13. Compliance
Compliance ensures every rule, law and regulation is followed. From EPF to ESIC to gratuity, HR makes sure the company stays legally safe. This is one of the most risk-sensitive functions of human resource management, so you have to take care of this very seriously.
Advisory Functions of HRM
In the advisory context, HR acts as a consultant who offers guidance to managers and employees with proper data and clear communication.
14. Manager Advice
Managers often depend on HR for guidance on hiring, performance issues, promotions, team conflicts and policy decisions. This function of HRM makes HR like an experienced friend who has “seen it all before” and gives practical advice. This helps managers stay consistent and unbiased.
15. Employee Guidance
Employees approach HR for concerns related to careers, grievances, workplace stress, policies and personal challenges. HR ensures people feel heard. This creates a culture of trust where employees feel supported not just as workers, but as individuals.
HRMS Software Helps Automate These Functions of HRM
Managing the full list of functions of human resource management manually can overwhelm any HR team. That is where a modern HR tool like NYGGS HRMS Software changes everything. It centralises data, automates repetitive functions and gives HR the time to focus on people instead of paperwork.
Talking about NYGGS HR software, it is built for Indian businesses that want control over every function of HR. Without complications and with a few clicks, it automates core HR operations like hiring, attendance, payroll, leave, compliance, performance, onboarding and documents.
So whether you manage a site team in Pune or a remote workforce across Gurugram, this affordable HRM software keeps everything connected. No tension about paper-intensive tasks like keeping records or risk-intensive functions of HRM like compliance; NYGGS is there to help.
If you want to know how NYGGS can help with hire-to-retire workforce management, contact us to get a personalised demo!