Human resource management has become an essential part of every business today, especially in an economy where there is an abrupt increase in the service-based industry; human resource management has become an important feature for businesses everywhere, since it is the people who invariably drive a business. With this increase the importance of human resource management has not only amplified, but along with it, its functions have also grown in number. Though human resource management is prone to large organizations, where more employees are needed and monitored, however; it is also important for small organizations to adopt some of its characteristics, by making work policies, and manuals for employees, to ensure smooth working in the organization.

A common mistake made by people today is the difference between HRD (human resource development) and HRM (human resource management). It is necessary to understand that, HRD is a profession, whereas HRM is a process or a management activity. HRM focuses on managing the work force while HRD comprises a wider variety of activities to build up personnel inside an organization. For example, the development of careers, employee training and the development of the organization.

There are many functions of Human Resource Management; some of them are listed as follows.

1. Planning Manpower in the Organization

It is important for the human resource management of an organization, to determine the manpower needed, for the jobs that need to be done. This may seem easy, but it not as it may look. Many factors need to be taken into consideration while deciding on the number of people need to be hired. For example;
•Due to understaffing the business loses market share and specialization, considering the fact that there won’t be enough workers to complete orders, it will result in losing customers and profits.
•Overstaffing may result in, reducing the competitive competence of an organization. It is also wasteful and expensive for the company.

When planning staff levels the HRM department needs to analyze and assess the present and the future needs of the company and compare them with the present and future predicted resources. Employee details are to be taken into consideration, according to their work demographics and then adjusted to future predictive retirements, movements, promotions etc. suitable steps need to be taken to bring supply and demand of workforce into balance.

2. The Recruitment and Selection of Employees in an Organization

In this function the HRM recruits staff, based on the organizations needs and wants, during this, the HRM department needs to analyze the job that they are advertising for to better understand the kind of recruits they need to short list. This helps them to, determine what factors will be an advantage for the organization and what will prove to be as disadvantages. For instance, it would not be proper to short list a person with a degree in medical sciences for a business manager’s job, nor would it be accurate to hire a person who has an introvert personality trait for a supervisor’s job.

3. Motivating Employees

To maintain good staff, it is important to encourage them and motivate them in terms of rewards, either financial or psychological, for instance promotions with more responsibilities or just general appreciation for good work. If this reward system is made customary in the organization, it will empower workers to work harder and with more zest. Also, HRM should determine wage or salary packets, on fair and just basis, or else the employees will not be motivated.