Human Resource Management: Functions, Roles, and Importance

This article discusses the functions, roles, and importance of Human Resource Management (HRM) in organizations. It explains how HRM has evolved into a strategic partner and business collaborator, and explores different models of change management that can be used to manage and adapt to changes in the environment.

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Contents
Answer to questions...................................................................................................................3
Answer one.)..............................................................................................................................3
Answer 2)...................................................................................................................................5
Answer 3-...................................................................................................................................7
Answer 4.)................................................................................................................................10
Answer 5).................................................................................................................................12
References................................................................................................................................17

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Answer to questions
Answer 1.)
Human resources is used to align, collaborate, and coordinate people of the company and
department that is responsible to manage resources related to employees. The values of HR
was related to motivation, selection assessments, and organisational behaviour. Earlier HRM
focused on areas such as recruitment, selection, training, development, compensation
benefits, and organisation development. By increasing and growing business complex
situations and environment, organisations had to focus more on developing it as strategic
HRM (Human resource management, 2018). Today, HR team that is responsible for adding
value to the strategic utilisation of employees and ensure that employee program affect the
business in a measurable way. The members should have strategic capabilities in
understanding the strategic requirements of an enterprise. With all capabilities in building
organisation, HR plays an important role in organisational performance, staffing objectives;
contribute in adapting organisation change and promoting good employee relations.
Moreover, the role of HR is emerging in the contemporary world as a strategic partner and
business collaborating. Apart from achieving organisation goals in a strategic manner, it is
important to consider and manage ethical concerns while achieving objectives (Jansson, and
Rozenbachs, 2016).
In the contemporary world, HR is a proactive in processing the strategic planning and
developing the organisation. It`s main function is to integrate best suiting people to ensure
workforce efficiency. The main functions are strategic management, human resource
development, total rewards, risk management, and total rewards (CIPD, 2018). Workforce
planning includes recruitment, orientation, exit process, and selection. Managers can
collaborate with HR that determine staffing needs and fill the job vacancies with most

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appropriate people within the given time. The HR team can strategically recruit and select the
best candidate for the organisation to ensure workforce efficiency in order to accomplish
objective goals (Donata, 2018).
Organisations use computerised system to keep the employees in the track. The employee
relation seeks to manage the employee`s needs and rights. The issues that hamper the union,
non-union issues, sexual harassment, and discrimination issues which handled by labour
relation department. In order to manage compliance and laws, employees are taught about
ethical manners to coordinate employee relation and how they should be treated fairly to
resolve workplace problems (Conway et al., 2016). The three-legged model of the
organisation of the HR function emerged divides these functions into some important parts
such as centre for expertise, strategic partners for business, and shared serviced centres.
Strategic business partners work with the line managers to assist them to approach to the goal
by effective strategic formulation and its execution. The concept of strategic planning
considers HR as more consumer driven, more professional and more accessible. The quality
of services should be improved in bettering the processes, delivering to specify the time and
budget, incorporating the good practises, and finally achieving greater consistency and
accuracy. Moreover, strategic business partners should support and reposition HR that can
purely move from operational deeds to more operational roles. The role of strategic partner
for the business can lead to evolution of HR department. Administrative services support
people, policies, and implementing regulations for the organisation. HR strives operate
various business units by managing its business model. For example- when a particular has
the responsibility of implementing the Asset business unit to support for learning and growth.
The function of HR is beyond hiring, effective staffing includes assessing the environmental
needs, training, scheduling, and assisting a constructive criticism. The function of HR for

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staffing is to ensure that the department hire adequately trained workforce that can help to
operate and grow small enterprises.
New emerging interest in the human resources aspect is at strategic level and has been
economically significant effect on organisation`s bottom or floor line. Integrating strategic
decision making and relying on how human capital is becoming pivotal to organisational
effectiveness. The case of strategic partner can become stronger. To become successful in
maintaining a long-term and sustainable competitive advantage for the dynamic conditions of
the business environment. HR plays an important role in planning, developing, and
administrating the policies and programs that are designed to make effective use of
organisation`s human capital. Staffing is a primary function and role of HR that hires the
managers to ensure equal employment facilities and opportunities without any discrimination
on the basis of caste, creed, race, religion, and sex. Moreover, it has become constitutionally
mandatory for countries like USA, India, and UK. The organisational change might have
focused efforts on certain areas such as defining and aligning organisational purpose,
recruiting the best talent through marketing, selling and creating EVP (Employee Value
Proposition). Organisation should take every possible effort to understand which candidates
and employees keep into their roles. A HR prepares its people to create a set of aligning
activities, build a sustainable and successful in order to finally measure the things accordingly
(Wong et al., 2015).
Answer 2).
While delivering the HR objectives to an organisation, two different ways can be used-
Employee satisfaction in the internal environment- it is one of the most important objective of
a HR executive. In order to achieve HR objectives, a HR executive conduct meetings so that
problem arisen can be solved within the meetings rather than dragging its effect on the

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operations. Apart from these, HR can conduct sessions and group discussions that will allow
a two-way communication. Sometimes unrealistic expectations are imposed to be
accomplished due to forceful stress of increasing the productivity. Currently, work is taking
away the personal life and ultimately it affects the alignment of work activities that can reach
to accomplish the organisational goal. Therefore, honest and frank meetings will enable to
create two-way communication process successful. It is very important to rewards and
recognise employee. According to Maslow`s needs of hierarchy, rewards and recognition is
place in the esteem needs because it motivates and inspires the employee to work hard
(SHRM, 2018).
Recruiting and staffing in the organisation- other important activity that a HR executive
undertake to accomplish the HR objectives. HR plays an important role in recruiting,
selecting, and providing training of new employees. New blood can encourage creativity and
innovation in the organisation. During the accomplishment process, HR also undertakes
recruitment of right person and influencing them in such a way that it can reduce the labour
turnover (Human resource, 2018). HR executive communicate to consultancy agencies in
order to find fresh talent. It often approach different colleges for campus placements. The
savvy recruiter can focus on talent than the candidates.
The staffing and HR functioning depends on the size of the business and its operating scope.
The bigger is the operational level; the scope of recruiting new employees becomes important
part (Albrecht et al., 2015). As the organisation grow, it`s operation becomes complex and
diverse needs that demand for change to allow valuable communication. As the organisation
grow in size, the complexity, product market coverage, and marketing strategies of the
organisation and also had taken a huge form (Boehm, Kunze, and Bruch, 2014). The nature
of operating the complexities of can influence the organisational structure and accordingly it
enforce them to increase their workforce. For example- with the increasing product offering,

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computer technology and automatic system have not affected the production techniques but it
has affected social condition of work and the structure of the organisation (Marín, Cerdán,
and Hernández, 2017). Currently the number of middle managers are reducing because of
introduction of new information systems and other computer technology due to structure of
organisation. Another example can be when organisation interact outside business
environment while inputs to provide output. Every organisation faces changes in government
policies for foreign equity. In several countries, it has been made compulsory to reduce the
foreign stake in one`s country and promote it into more national (Hamad, and Al-Kwifi,
2015). The two main ways to achieve different HR objectives and it can be employing human
resources to maximise the productivity. The contingencies variables in an organisation and
several management practises shows that every company has unique structure in staffing role.
Sometimes the managers combines the role and responsibilities of employees as a mode to
reduce the wage bill and cost of the organisation. Organisation create departments that are
unique to the production and other service delivery program. HR has also evolved as strategic
contributor to organisational success with these firms are customising the function to suit
their needs. Companies that are in retail sector that will differ from manufacturing from the
time as the former includes high level of interaction with customers. In case of manufacturing
and producing company, only the product and not the employees speaks on the behalf of the
company. Large firms have good hierarchical structure. HR manager oversees line manager
below them. On the other side, small organisation do not have such classification of work nor
have they varied array of personnel. The owner manage to become and act an HR manager,
any professional, and interviewer. Organisation structure itself according to sector and
industry it operate (Yoo, and Park, 2015).

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Answer 3-
Change is only a constant process or characteristic reality of life. Managing the change and
adapting it is an learning process that takes time, efforts, energy and training. This is because
learned individuals have introduced structured and defined model to manage and adapt
change. Change management model have effectively provided tools and models to apply to
business and industry with an objective to deal with transition. It provides an overview of
change management and main approaches related to change management. Change
management is used to transform and change people, companies, projects, and groups from
one state to another. Change management includes the application of structured methods and
pre-planned framework to steer business from its current situation to desirable condition. The
benefit of applying change management is to increase the probability of business staying and
relying on budget and schedule, which in turn lead to higher ROI and realisation of benefits.
Due to emerging and increasing competition, it is important for any organisation to move
ahead and constantly bring useful and structured changes and adapt to changes to meet the
customer requirement. HR department plays an important role in convincing, adopting the
policies, and teaching employees to overcome the change problems and take it as a new
opportunity to develop oneself. One of the common model to manage the changes in the
environment is Lewin`s Change Management model. One effective approach make possible
those actions that can convince employees to understand structural change. The model has
three stages are Unfreeze, change, and refreeze (Gabriel et al., 2016). The stage of unfreeze
includes the process of change is preparing the employees to adopt changes. Organisation
prepare themselves for adopting change and reveal the fact that change is most needed. This
phase of processing change is important because many people resist change even the top
managers. The main objective of this stage is to explain why existing work process of need
changes and how change can benefit the organisation. The step involves the organisation to

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look into the core and re-examine it. The second stage is change where real change and
transition is required and it takes place. Good leadership and motivation plays an important
role in assuring that the aspect not only lead to steer forward in the right way but also to make
process easy for staff or individuals that are involved in the process. Effective communication
is the way to execute change and to take place appropriately. The third stage involves
refreezing that involves acceptance, embracement, and implementation by people and
organisation that begin to become stable again. This is the stage where staff processes begin
refreezing. The regular and normal procedures of organisation should be changed and it
requires the help of the people to make sure that people adopt changes and use it all the time
to implement even when the objective has been achieved.
Another model that can be used as a change management model can be McKinsey 7 S Model.
McKinsey and company developed the model. The model has seven stages to manage
change. The seven “S” are strategy, structure, system, staff, style, and skills. The integration
and combination of all these seven elements and stages can lead to successful change.
Strategy is a plan, which is created to stand in the competition and reach the objectives. This
is the first stage of change as per this model and framework that involves the development of
step-by-step and systematic procedures to execute the future plan. This is a stage where
Structure or attribute of this model relates to the way of how and when organisation is
divided and which structure follows. In the stage of system, in order to get the work done, the
way that day-to-day procedures and activities are performed and what stage is related to do
the task. Shared values involves the core and main values of any organisation to which the
work runs because the organisation has to consider ethical concerns regarding how task
should be executed. The style follows another way to adopt changes such as a leader plays an
important role in adopting and implementing the change, which is most relevant. The staff
includes the workforce and their working abilities who have competencies and other skills

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that are possessed by employees working for the employees. This approach integrates both
emotional, practical components, which is important for, bring change, and on the same side
it is important to create a way to enable employees to deal with the changes. The model
considers all the parts as important and equally worth addressing that does not leave any
aspect, which is still important. The model offers directional factors to contribute in
organisational change. More change management theories include kotter`s change model that
have different traits such as increased urgency, building of the team, communication issues,
focusing on the short term goals and at last incorporate change. Briefly, this model is a
systematic procedure and no step should be skipped to reach. The whole process described in
this model and it is time consuming.
Answer 4.)
According to Albrecht, Bakker, Gruman, Macey and Saks, (2015), employment engagement,
competitive advantage and human resource practises is an integrated approach. The article
has argued that how four main human resource management practises support or focus on
engagement influencing organisation environment, job resources, psychological experiences,
employee engagement, performance leading to competitive advantages. The review focused
on interrelationship between job factors, employee psychological, several motivational
factors, organisation outcomes and employee outcomes that lead to competitive advantage to
the organisation. A functional HR department always remained a competitive advantage for
the organisation and it is assured that continuous development of the human capital has direct
relation between performance and high-performing working system of the organisation.
Understanding the functional department has become vital to achieve and sustain a
competitive advantage. In the challenging business environment, challenging economic
environment is facing problem due to scare resources (Eldor, and Harpaz, 2016). The advice
and recommendation to many companies is just to improve the output of its staff or

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workforce to get a competitive advantage. High performing employees is targeted at
stimulating employee`s involvement to ensure that it is to ensure that it avails efficient return
on capital. Open line for communication, ethical behaviour, transparency increases the
probability of high performance of the organisation. The four HRM practises are strategically
focused on how organisational climate directly or indirectly affect the demand and resources
that is being experienced by employees at their workplaces (Alagaraja, and Shuck, 2015).
Engagement is an academic domain that fulfils work-related state of mind that represents
dedication, absorption and vigour. It is broadly described as harnessing the people to invest in
physical, emotional and cognitive resources in the roles. Engaging in work is seen as energy
manifestation, involvement, and focusing towards achieving the organisational goals. In the
contemporary world, the approach of employee engagement has shifted to customer
experiences. With the increasing influence of “Y” generation people and increasing
transparency due to digitalised age. Employees have expected from the company that it
would provide them a more comfortable environment for work. Employee experiences
integrates three main dimensions culture, performance management, and engagement
(Cameron et al., 2018). HR continuously experiment with the technology in the external
business environment such as employees’ wellness apps, plus feedback tools, and modern
communication that can help and facilitate understanding and developing of employee
experiences. Another key HRM practise can be entering as an organisational structures from
just people analytics. Many organisation have evolved from just functioning as an analytical
functions with challenges of giving importance to numerous data requests and merging these
files accordingly with different organisational objectives and tension centralising the
analytical functions of business intelligence. Integration of engagement and achieving the
competitive advantage is necessary (Yoo, and Park, 2015). For example- sustainable
differences among different organisations is at the top quartile of some averaged employees

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especially from those who are in bottom quartile in relation to return on assets, its market
value and its profitability. Socialisation in between employees and employing new employees
is an exciting part of the organisation. In order to decrease tension in the organisation, the
company should not hire people and are suffering from newcomer engagement with anxious
and angry people. This is an process of values, appreciation, and socialisation that is being
defend as either enthusiasm or appreciation of values, anxiety, abilities, important
organisational goals for maintaining into organisation members (Mishra, Boynton, and
Mishra, 2014).
The article has found that HRM practitioners have to move beyond the traditional approaches
and the routine administration to embed survey`s observation while forming several HRM
policies and practises for personnel selection, socialisation, training, performance
management, and development after training. Human Resources (HR) department’s
effectiveness plays a crucial part in how well the entire organization functions. So HR
evaluation is a highly important process for organizations to perform. Evaluations if done
right, will reward company as well as the employees. Evaluation of HRM can provide the
managers on practices and programs in continuation and on the same hand the deficiencies
and problems regarding the same. Evaluation can also open the team towards improvement in
existing programs and schemes.
Answer 5)
Human Resource Management plays an important role in organizations to manage and
organize people in such a way that they can effectively perform their work activities. The role
requires visualizing and interpreting people as human assets, not as a liability to the
organization. The human resources team suggests that the management team to manage the
employees as business resources strategically. This strategy imbibes in it the recruitment of

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employees and suggesting their development strategies and training programs. Therefore, HR
team acts as consultant rather than being. The function of HR is to advise managers on many
issues related to employees that can help to achieve its goals for organization
(Whatishumanresources, 2018).
It is important to select the evaluation method according to the suitability to the organization.
The most used methods are audit and examination basis such as analytical approach, audit
approach, qualitative and quantitative approach, balanced scorecard perspective, and
benchmarking (Mostafa, and Williams, 2014).
ANALYTICAL APPROACH
This approach depends on cost-benefit analysis, to known the level of utility analysis. This
approach is evaluated in economic terms that can be more useful for decision makers. Several
actions such as appraisal systems, training, employee hiring, and turnover have been taken in
action with help of these analysis. The process is difficult and the amount of available
resources and effort required for analysis limits and it`s utilization to specific situations
(Kooij et al., 2014).
AUDIT APPROACH
HRM audit is also a means to evaluate the HR effectiveness. It facilitates evaluation of HR
performance, compliance with procedures, laws, policies, and regulations. HR audit may be
partial or total. The approaches for the solving and evaluation the problem are comparative,
outside, statistical and compliance approach (Kuvaas, Dysvik, and Buch, 2014).

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During the comparative approach, the one who audits and identifies another company as
model and the results of organization is then compared with the model company. Auditors
may sometime use standards set by outside. This approach elaborated here is outside
authority approach. In the statistical approach, performance is measured statistically based on
company’s existing information. In addition to this compliance approach, the past activities
are reviewed whether they comply with necessary legal requirements and company’s
procedures and policies (Baruah, 2015).
QUALITATIVE AND QUANTITATIVE INDICES
Number indices are available to regulate the effectiveness of HR. For example, while
calculating turnover cost, absenteeism cost, lead-time to fill vacancies, costing per hire and
training costs. These and other indicators when are compared with other organizations will
give a true picture of certain HR effectiveness (Arnaboldi, Lapsley, and Steccolini, 2015).
Balance scorecard
The analytical approach to measure the company`s performance the balance scorecard is
developed by David Norton. This scorecard evaluates HRM effectiveness. It has four
dimensions named as customer service, internal processes of business, capacity to learn and
achieve the objective, and financial performance. With these four areas, manager identify
KPIs (Key performance indicators) track the organisational situations. Financial dimensions
is concerned with how organisational activities can contribute to improve short-term, long-
term, and sustainable financial performance (Tan, Zhang, and Khodaverdi, 2017). Customer
service perspective is concerned with how customer see and look at the organisation
performing activities to satisfy the customers in such a way that it can lead to retention and

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customer satisfaction. Several business process factors and indicators focus on operating
statistics, production concerns and other order fulfilling at cost per data. The ultimate
component is related to human resource and its potential to grow and learn. The perspective
is expected to grow and learn and how well the human resources and human capital is being
managed of the company`s benefits (Valmohammadi, and Sofiyabadi, 2015). This scorecard
provides a balance overview of current performance as future performance triggers the
current actions. Scorecard helps the organisational managers to align the several business
units with financial, human, and physical resources and affirming the overall strategy for the
firm. What is needed to be emphasised is that HR evaluation should not confirm to only
people dimension of scorecard but the professional can be judged on all the basis of other
traits and dimensions of scorecard (Bhattacharya et al., 2014). HR executives have a tendency
to believe that the success should be evaluated on the basis of employee needs and their
performance. As the scorecards indicate, commitment towards employees is one important
criterion for effective HR performance. Where HR professionals can be held accountable for
dimensions as other managers (Anitha, 2014).
Benchmarking
It is one of the key performance indicator that involves employee adopting and learning the
so called “best practises by evaluating and comparing the human resource practises with
other those more successful organisation. Most importantly, benchmarking involves the
employees when study the practises followed by competing firms and evaluate own practises.
Apart from evaluation of HR practices, benchmarking enable the managers to learn from
other organisations and adopt new effective HR strategies (Mone, and London, 2018). In
addition to this, benchmarking helps to initiate the necessities for change because it discovers
how an organisation should perform to improve the related HR strategy in MNCs. The KPIs

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of benchmarking follows a particular sequential steps such as identifying the HR practises for
benchmarking. Critical practises from certain organisation`s perspective is identified for
benchmarking. After this, it constitute core and project team to control and handle
benchmarking process. Finally, a comprehensive report that is based on data analysis and
interpretation and develop the action plan accordingly to improve the HR strategies.
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