Main Functions of Human Resource Department in a Company

In the present world, an organization irrespective of smaller or bigger must require the effective roles of its human resources department.

Human resources department plays vital role in most of the arenas of an organization. This department act as a bridge between employees and the management.

Functions of Human Resource Department in a company are of manifolds. Many people think that HR department’s acts are limited to Recruitment & Selection Management, Performance Management, Payroll Management, Training & Development and Employee Relation management issues.

In reality, HR department is now directly involved with the operational activities of the company. That is why HR positions also called as strategic business partner of the company.

Let’s get detailed information about major functions of human resources department.

Key Functions of Human Resource Department

Out of the many function of HR department, I have listed the main functions which usually practiced by HR Professionals throughout the world.

Activities involved with the respective HR functions are also highlighted herein.

  • Manpower Planning
  • Recruitment & Selection
  • Policy Development
  • Employee Orientation
  • Attendance Management
  • Leave Management
  • Payroll Management
  • Human Resources Information System Management
  • Probation Evaluation & Job Confirmation
  • Performance Management
  • Employee Training & Development
  • Transfer, Promotion & Increment
  • Employee Grievance & Disciplinary Issues
  • Employee Exit Interview
  • Separation Management
  • Welfare Activities
  • HR Compliance Audit
  • HR Reporting
  • Participation in Job Fair
  • Arrange Internship Program
Key Functions of Human Resource Department
Key Functions of Human Resource Department

Manpower Planning in Human Resource Management

  • Study the total number of existing manpower of different departments/business units.
  • Prepare/update the organogram of different departments/business units of the company.
  • Conduct job analysis of employees and fix job specification against the position with the assistance of respective department heads.
  • Prepare job description against the position with the assistance of respective department heads.

Recruitment & Selection in HRM

  • Verify justification of manpower requisition received from different departments/ business units in line with the approved organogram.
  • Find out the sources of potential candidates against the requisition.
  • Prepare advertisement for publishing in the newspaper & online.
  • Receive applications for job in response to the advertisement.
  • Screen out the CVs and make short list of the candidates.
  • Interview the candidates by an interview board comprising hr representative, the concerned department head and other experts as required.
  • Obtain approval of the top management in favor of appointment.
  • Issue letter of appointment and get received by the selected candidate.
  • Ensure job exit verification of the selected employee from his/her immediate past employer.
  • Complete joining formalities of the newly recruited employee.
  • Expedite issuance of ID card to the newly joined employee in association with Admin department.
  • Circulate Letter of Introduction for the recruited employees.
  • Provide and collect employee Personal Information Form duly filled in by the newly joined employee.
  • Open Personal file in favor of the newly joined employee and retain all papers related to the employee under a safe custody.

Policy Development

  • Identify the areas where policies need to be introduced and accordingly develop policies and submit to the management for approval from time to time.
  • Review and update the existing service rules and submit suggestion to the management for necessary changes to be made.
  • Develop different forms and format.
  • Circulate different policies to concerned department heads for their information and for briefing the employees of their departments.
  • Follow up compliance of the policies by the employees on regular basis.

Employee Orientation Program

  • Develop & maintain a policy on how to conduct orientation program for the newly joined employees.
  • Prepare a written orientation program in consultation with different department heads for the newly joined employees.
  • Brief the employee about the company, its types of business, product range, departments and sister concerns.
  • Familiarize the newly appointed employee with the company’s existing rules, regulations, policies, procedures and system on different issues.

Attendance Management

  • Maintain software for proper recording of attendance of employees.
  • Inform employees and the respective department heads through circular about the procedures followed in case of late attendance and its consequences.
  • Monitor the attendance feedback on regular basis and initiate necessary disciplinary action in case of any violation of said procedures/systems.
  • Regularize the late attendance of the employees through the respective department heads on the ground of valid reason.
  • Generate report on employees attendance as and when required and initiate appropriate disciplinary action on the basis of facts and figure.

Leave Management

  • Maintain software for proper recording of employee leave.
  • Receive leave applications from the employees and provide status of leave balance for obtaining approval.
  • Receive approved leave application form and enter the approved leave in software.
  • File the leave application form for record.
  • Prepare a general leave status report at the end of the year.

Payroll Management

  • Receive up to date attendance statements for preparation of monthly salary.
  • Make deduction of Income Tax, P.F contribution and adjustments of loan/advance against P.F and salary.
  • Prepare monthly salary of all employees
  • Send salary statement to MIS for cross checking and obtain approval of Top Management.
  • Send advice to Bank for salary payment with attachment of salary statement.
  • Open Bank Account of employees for salary purpose and ensure delivery of ATM Card and cheque book to the respective employees.
  • Handle the procedures of various advances against salary, provident fund etc. and maintain an up to date record of the transaction for adjustment/reconciliation.

Human Resources Information System Management

  • Maintain up to date employee personal information & other important profile in a data based software.
  • Maintain information of Blood group of all employees in data based software so that at the time emergency employees having the required blood group can easily be identified.
  • Maintain information of date of birth of all management employees in data based software so that we can greet them accordingly.
  • Maintain information of existing and outgoing employees separately in the data based software.
  • Make necessary update in HRIS software by maintaining liaison with MIS department.
  • Maintain CV bank in the data based software.

Probation Evaluation & Job Confirmation

  • Maintain policy on Probation Evaluation and ensure periodical update.
  • Monitor the date of job confirmation of employees of different departments.
  • Initiate and send evaluation form to concerned supervisor of the employee well in advance.
  • Obtain job confirmation approval from top management on the basis of recommendation of the department heads.
  • Issue letter related to confirmation/extension of probation period/disengagement.

Performance Management Process in HRM

  • Review the existing performance evaluation forms and formats and make the forms user friendly.
  • Educate and assist the Supervisor regarding the performance evaluation method.
  • Initiate and complete annual performance appraisal and execute the management decision.

Employee Training & Development

  • Assess the training needs of the employees through annual performance appraisal and through queries in a prescribed manner.
  • On the basis of training needs prepare periodical training calendar, training budget and arrange training from time to time upon approval of the management.
  • Arrange training with different business units to make them aware about company policies, procedures, guidelines and systems.
  • Evaluate post training impact by obtaining feedback from the Supervisors of the trainee.
  • Maintain close liaison with different training institutions.
  • Maintain documents and records pertaining to the training.

Transfer, Promotion & Increment

  • Co-ordinate & process the issues of employee transfer, promotion and salary enhancement as and when raised by the department heads and advise management the justified action for the interest of the company.
  • Issue letters pertaining to transfer, promotion and increment after obtaining approval of the management.

Employee Grievance & Disciplinary Issues Management

  • Handle the grievance issues of the employees as and when arises professionally and promptly.
  • Suggest management on the employee related disciplinary issues and execute the disciplinary action as instructed by the management.

Employee Exit Interview

  • Conduct employee exit interview to find out the actual reason of their leaving.
  • Prepare suggestions for the management on how to address the found problems.
  • Find out ways to retain the potential and deserving personnel with the company on the basis of feedback received from exit interview.

Separation Management

  • Prepare acceptance letter of resignation upon approval of the management.
  • Prepare letter of termination & dismissal as and when directed by the management.
  • Obtain written clearance in favor of the separated employee from all concerned department of the company.
  • Prepare statement of final settlement upon receipt of clearance from concerned departments.
  • Obtain Management’s approval and forward the final settlement statement to Accounts department for payment.

Welfare Activities

  • Organize farewell for the outgoing employees as deemed necessary.
  • Take initiative to recommend the management for introduction of provident fund, gratuity scheme, group insurance, long service award etc. for the employees.
  • Upon approval of the management introduce a culture to greet the employees on the occasions of birthday, new year day and on different festivals.

HR Compliance Audit

  • Ensure uniform practice of HR policies, procedures and systems in different units of the company by conducting HR compliance audit from time to time as per directive of the management.

Participation in Job Fair

  • Participate in the job fair organized by different organizations for outsourcing potential candidate.
  • Receive CVs from the candidates on the spot.
  • Take interview of the potential candidates and place them in suitable positions, if any.
  • Retain the CVs for future reference & record.

Arrange Internship Program

  • Encourage the bright students of reputed universities for internship program with the company to attract and meet HR demand of the company.
  • Receive request from different universities for placement of students as a part of their academic requirement.
  • Interview the candidate and place him/her as an intern after obtaining approval of the management.
  • Receive written report from the intern at the end of his/her internship to assess the success of the program.
  • Issue certificate to the intern after successful completion of the internship program.

HR Reporting

  • Prepare & send reports on different HR related issues as desired by the top management.
  • Prepare and send manpower turnover report to top management as and when desired.
  • Send confidential reports directly to the top management regarding any irregularity in any work area of the company.

Final Words

In addition to the job areas defined above, the HR department is responsible to act on other internal & external issues pertaining to interest of the company as and when desired and directed by the top management.

Besides the core functions of human resource department, HR is working as a business partner for the company. Human Resource Management department plays advisory role for the management of the company and provides development plan for the organization on continual basis.

HR department plays the vital role to find out best candidates for different positions for the company. Through performance evaluation, training & development and rewarding process HR department retain the employees in the organization.

A satisfied group of employees improve the productivity of the company and thus company performs well in the competitive market and retain further growth.

So, I hope that, from the above write up you have obtained a detailed ideas about the functions of human resource department.

That’s all for today.

If you have any further query please send me a message.

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