Human Resource Management: Roles, Challenges and Compensation Analysis

This report provides a comprehensive overview of Human Resource Management (HRM), detailing its core functions such as recruitment and selection, performance management, and compensation and benefits. It explores the critical roles HR plays within an organization and examines the challenges faced, particularly those related to compensation and benefits, including issues exacerbated by the COVID-19 pandemic. The report analyzes the importance of fair compensation, employee recognition, and the impact of external factors on HR practices. It further discusses strategies to address these challenges, emphasizing the need for attractive compensation plans, benefits packages, and effective performance management systems. The conclusion highlights the importance of HRM in fostering organizational growth and development by attracting skilled candidates and ensuring employee satisfaction.

HR Roles Matrix and Data

Table of Contents
INTRODUCTION...........................................................................................................................1
Main functions of human resource that it perform in an organisation.........................................1
Challenge that human resource mostly face in an organisation. .................................................3
Elaboration to resolve challenge related with benefits and compensation..................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Human resource refers as management of people who is responsible for selecting,
recruiting and scanning desired candidates to an organisation and responsible to make overall
workforce. Human resources also plays may other useful functions that an organisation is needed
to efficiently run its operations. This report analyses various main functions of human resource
management in company and mainly focus on one key functions and explain more in detail.
Further, report explain about issues that HR face and lastly how company resolve will be
discussed more in detail.
Main functions of human resource that it performs in an organisation.
Human resource has abundance of main functions in company. These include training and
development, selection and recruitment and performance management etc. that is crucial in any
organisation for its functioning and productivity. Let's discuss more in detail about these
functions in detail:
Selection and Recruitment
It is considered an essential function of HRM that every company needed so that it develops
better workforce. In this function, human resource makes attraction of the best candidates so that
it works for company and then select potential candidates (Brewster, 2017). However, attraction
begins with company's brand value and has maximum advantages. For example, tobacco
company find it difficult to engage and attract more people in an organisation because of its
negative brand image. Selection and recruitment bring major importance that includes:
 An organisation is incomplete without its proper workforce; hence this function has
utmost importance.
 Human resource try to make selection of those candidates that are crucial for company's
productivity.
 After, process of recruitment completed then HR select those candidates in an
organisation who is a able to qualify all tests and procedures that HR conduct.
Performance Management
Performance management is crucial to make sure that selected staff members are thoroughly
engaged in company. An organisation who needs to maintain a well-balanced performance
management must consider following points that majorly includes effective leadership, concise
goal setting, accurate planning and open to feedback. It is basically a long process that take place
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in every industry and consider fruition affair (Onimole, 2017). It involves various other elements
from which company reduces group conflicts, develop job satisfaction, enhance profitability and
set clear accountabilities. Performance Management and its importance:
 Performance management is very vital for human resource as its main vision is to bring
maximum productivity within an organisation.
 Many companies also reviewed employees where its peers, managers and subordinates
provide feedback on their performance.
As per reinforcement theory, HRM department will be used this theory in order to measure the
performance of staff members. if a higher performance is followed by rewards, it can be
achieved desired behaviour that will likely occurs in future. If high performance is not followed
by reward, it is likely consider high performance that will occurs. This type of theory will be
used HRM to fix the wages of each and every staff members in organisation.
Recognition and Rewards
Every employee need to be recognized for their tasks or job they perform. Rewards or
recognition helps an organisation in which it able to acknowledge employees' effort. This
function is also a good method for motivation as employees fell secure and worthy for their job
role and this function can be determined as non-monetary and monetary. Rewards and
recognition bring so many advantages in an organisation for example, employees performance
can be improved, employees will be more engaged, better group work can be best conducted and
maximum standard of loyalty could be achieved.
Compensation and benefits
Benefits and Compensation is all about pay that company offer and basically a form of
expenditure for company. Therefore, it is important for an organisation to make expenses while
employees' salary is also crucial at the same time (Paz-Aparicio, Ricart and Bonache, 2017).
Hence, human resource department need to develop attractive compensation and benefits plans
so that an organisation able to lure maximum number of employees into its management and
without disturbing its funds. Human resource will be able to establish many advantages in an
organisation with the help of benefits and compensation like, it able to develop a fair and equal
pay to every employee. Moreover, HR can use this function to boost profitability and increase
brand value and reputation for business. Therefore, human resource has to be very careful while
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forming policies and frameworks for benefits and compensation of workers and all other
benefits.
Additionally, human resource makes sure to properly implement and execute policies and
guidelines related with benefits and compensation. If all these guidelines are executed properly
by human resource department then it will definitely bring transparency within workforce and all
employees will be treated fairly. To maximizes employee’s satisfaction id pre requisite and it is
directly link with benefits and compensation (Kianto, Sáenzand Aramburu, 2017). According to
equity theory, HR can use this theory to understand need of staff members because even if it
someone is being paid fairly, it will be easily compare their own pay scale on the basis of
organisation. The equity theory can be applied in the Compensation and benefits function of
HRM.
Challenge that human resource mostly faces in an organisation.
Human resource team has experience drastic change in landscape of industry and that
continue to revolve, hence their challenges also increases. Now, with different business structure,
company focuses on more on its Human resource department (Stachová and et.al, 2019). As
employees are considered as essential asset and has more power to make a huge impact on
growth and sustainability of business. From all above functions, human resource faces problems
related with compensation and benefits. Below paragraph provide more detail about this function
of HR and its related issue:
Challenged identified in the Benefits and compensation of HRM Function
HRM department has been provided the benefits, compensation of staff members on the basis
of their performance in organisation. But the challenge can be identified During COVID-19
Pandemic. It is very difficult to give an option of higher payment, increment. Companies are
already facing an issue of financial crisis which become difficult to provide benefit or advantage
by HR of their staff members.
Moreover, financial crisis challenge arise because of covid-19 so that it is directly
affecting on the benefit and compensation of HRM function in the organisation. Overall
expenses relate with recruitment like expenses of training, capital investment and taxes poses an
additional issue to company's growth and progress.
With number of benefits that compensation and benefit bring in organisation, workers have
difficulty in navigating this function on their own (Sahoo, Zhao and Kyprianidis, 2020). HR
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department is responsible for educating overall workforce and need to inform about different
benefits that are available to them and best options related with packages are most suitable so
that it avails benefits to workers and their families.
There are several organisations that struggle with suitable structure of employees'
compensation. Medium and small industries has to face competition of its same size of
industries, but also with industries with its same size. Human resource department of any field of
business must carry frameworks and policies with compensation so that provides to employees.
Hence, human resource must understand similar policies in particular organisation. Further,
benchmarking is as important as compensation and benefits (Mane and Arora, 2018). If HR do
not focus more on compensation and benefits, then it will discourage employees at middle or
lower level of management. Many retail industries provide now less amount of compensation
and benefits are also now that attractive for example, average salary for floor operations is
around $20-25. Therefore, after going through with various training processes and obtain many
soft skills related with communication and leadership, employees will find out about other job
that provide much better remunerations.
Elaboration to resolve challenge related with benefits and compensation.
Apart from providing compensation, it is also vital for organisations to offer various benefits
that includes perks and incentives, but company make sure that it will not face any trouble with
its investment during covid-19. HRM is able to do maximum investment for purpose of
providing benefits and compensation to their employees during pandemic. also ensure return on
investment in which it offers performance based elements to workers (Fauzi,and et.al 2019). It is
crucial for HR department make sure that it enhances retention rate and upgrades engagement of
employees through effective usage of compensation and benefits. Better recognition program
also serves as an excellent motivation and attract majority of employees. In smaller industries,
they can offer benefits that are related to strive healthcare issues like provide flexible timings,
recreational programs and conveyance benefits etc. could be a better initiative.
Apart from that companies use technology benefits so that it manages compensation
experience. Organisation also select partner that help them deliver good results not just monthly
basis by during whole year (Bajaj and Singh, 2020). Salary is important factor but it is not
always just the only factor that candidates consider. Hence, company can create system to
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provide rewards to employees for their task performance and good idea to make up for lower
level of salary.
CONCLUSION
To conclude, above report elaborated human resource management and its various functions
that plays vital role in every organisation. Various functions that are elaborated in this report are
training and development, selection and recruitment, health and safety etc. that increases firm’s
productivity. All these will bring organisational change so that company able to plan for its better
growth and development. Additionally, report elaborated about compensation and benefits and
how it causes issue in organisation. As without proper framework of salary and compensation,
company unable to attract skilled and desired candidates. Lastly, report discussed various
solutions so that company can resolve problem related with bonuses and compensation.
REFERENCES
Books and Journals
Brewster, C., 2017. The integration of human resource management and corporate
strategy. Policy and practice in European human resource management, pp.22-35.
Onimole, S.O., 2017. Introducing change in organization: Implication for human resource
development practitioners. IFE PsychologIA: An International Journal, 25(2), pp.383-
394.
Paz-Aparicio, C., Ricart, J.E. and Bonache, J., 2017. Understanding the decision to offshore
human resource activities: A coevolutionary perspective. International Journal of
Physical Distribution & Logistics Management.
Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource management
practices, intellectual capital and innovation. Journal of Business Research, 81, pp.11-
20.
Stachová, K., and et.al 2019. External partnerships in employee education and development as
the key to facing industry 4.0 challenges. Sustainability.11(2). p.345.
Mane, P. and Arora, C., 2018. Challenges of Expatriate Management with Special Reference to
Compensation. Journal of Commerce and Management Thought, 9(3), pp.377-386.
Sahoo, S., Zhao, X. and Kyprianidis, K., 2020. A review of concepts, benefits, and challenges for
future electrical propulsion-based aircraft. Aerospace. 7(4). p.44.
Fauzi, R.T., and et.al 2019. Exploring the current challenges and opportunities of life cycle
sustainability assessment. Sustainability. 11(3). p.636.
Bajaj, M. and Singh, A.K., 2020. Grid integrated renewable DG systems: a review of power
quality challenges and state‐of‐the‐art mitigation techniques. International Journal of
Energy Research. 44(1). pp.26-69.
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