Human Resource Management Functions

Why This Matters

Human Resource Management (HRM) sits at the intersection of organizational strategy and workforce execution—and that's exactly where exam questions love to probe. You're being tested on your understanding of how talent acquisition, development, retention, and compliance work together as an integrated system. The functions aren't isolated activities; they're interconnected levers that managers pull to align human capital with strategic objectives.

Think of HRM as the engine that converts organizational goals into workforce action. Whether you're analyzing a case study about turnover problems or answering an FRQ on compensation strategy, you need to understand why each function exists and how they influence employee behavior and organizational outcomes. Don't just memorize the list of functions—know what management principle each one demonstrates and when you'd apply it in a real scenario.

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Acquiring the Right Talent

Before you can manage employees, you need to find them. These functions focus on identifying, attracting, and securing human capital that matches organizational needs—the foundation of everything else in HRM.

Recruitment and Selection

• Job analysis drives the process—effective recruitment starts with clear job descriptions and specifications that define required skills, responsibilities, and qualifications
• Multi-channel sourcing expands the talent pool through online job boards, social media, employee referrals, and professional networking
• Structured interviews reduce bias—standardized questions and scoring rubrics ensure candidates are evaluated fairly and consistently against job-relevant criteria

Workforce Planning

• Strategic alignment connects current workforce capabilities to future organizational needs through systematic analysis and forecasting
• Gap analysis identifies where skills, headcount, or expertise fall short, informing decisions about hiring, training, or succession planning
• Data-driven decisions leverage workforce analytics to optimize talent allocation and anticipate demographic or market shifts

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Developing Employee Capabilities

Once talent is in place, these functions ensure employees grow their skills and perform at expected levels. Development is an investment in human capital that yields returns through productivity and innovation.

Training and Development

• Alignment with strategy ensures training programs support both organizational objectives and individual career aspirations
• Multiple delivery methods—on-the-job training, workshops, e-learning, and mentoring—accommodate different learning styles and content types
• Continuous improvement through evaluation of training effectiveness using feedback, assessments, and performance metrics

Performance Management

• Goal-setting creates accountability—clear, measurable expectations tied to organizational objectives give employees direction and purpose
• Regular feedback cycles through formal reviews and informal check-ins recognize achievements and address performance gaps early
• Performance improvement plans (PIPs) provide structured support for underperforming employees, documenting efforts before any termination decisions

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Rewarding and Retaining Employees

These functions address the fundamental question: why should talented people stay? Compensation, benefits, and engagement strategies directly impact turnover, productivity, and organizational culture.

Compensation and Benefits

• Total rewards strategy combines base pay, bonuses, health insurance, retirement plans, and paid time off to attract and retain talent
• Market competitiveness requires regular benchmarking against industry standards and adjusting pay structures to remain attractive
• Pay transparency builds trust and perceived equity—employees who understand compensation decisions are more likely to view them as fair

Employee Engagement and Retention

• Measurement drives action—engagement surveys and feedback mechanisms identify what's working and what needs improvement
• Retention levers include work-life balance initiatives, recognition programs, and clear career development pathways
• Exit interviews capture insights from departing employees to diagnose turnover causes and refine retention strategies

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Building a Positive Workplace Culture

Culture doesn't happen by accident. These functions shape how employees experience work and whether they feel valued, safe, and included.

Employee Relations

• Open communication channels enable early conflict resolution and prevent small issues from escalating into grievances or lawsuits
• Fair treatment policies establish consistent procedures for addressing complaints, disciplinary actions, and workplace disputes
• Participative management involves employees in decision-making, boosting engagement and creating buy-in for organizational changes

Diversity and Inclusion

• Inclusive recruitment expands candidate pools by reaching underrepresented groups through targeted outreach and bias-reduced screening
• Cultural competency training addresses unconscious bias and builds awareness of how diversity strengthens team performance
• Measurable goals with regular progress assessments ensure accountability and demonstrate organizational commitment to inclusion

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Protecting Employees and the Organization

These functions manage risk—both to employee well-being and organizational liability. Compliance isn't optional; it's the baseline for ethical and legal operation.

Health and Safety

• OSHA compliance requires establishing and enforcing policies that protect employees from workplace hazards
• Proactive training ensures employees understand safety protocols, emergency procedures, and their role in maintaining a safe environment
• Safety culture empowers employees to report concerns without fear of retaliation, catching hazards before they cause injuries

Compliance with Labor Laws and Regulations

• Legal knowledge is essential—HR must stay current on wage and hour laws, anti-discrimination statutes, FMLA, ADA, and other regulations
• Policy implementation translates legal requirements into workplace practices through training, handbooks, and clear procedures
• Documentation and audits demonstrate compliance during inspections and protect the organization in disputes or litigation

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Quick Reference Table

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Self-Check Questions

1. Which two HRM functions most directly address the question "why should talented employees stay with our organization"? What distinguishes their approaches?

2. A company discovers through exit interviews that employees leave due to unclear expectations and lack of feedback. Which HRM function should they strengthen, and what specific practices would you recommend?

3. Compare and contrast workforce planning and recruitment—when would an organization prioritize one over the other?

4. An FRQ describes a company facing a discrimination lawsuit despite having a diverse workforce. Which HRM functions failed, and how are they different from diversity and inclusion efforts?

5. How do training and development and performance management work together as a system? Provide an example of how weakness in one function undermines the other.