Human Resource is the most integral part of any organization. And the HR department works for employees’ welfare by developing a strong company culture. They are responsible for considering the interests of both employers and employees.
As per Armstrong (1997), Human resource management is defined as “a strategic approach to acquiring, developing, managing, motivating and gaining the commitment of the organization’s key resource – the people who work in and for it.”
In modern days, organizational success largely depends on the successful integration of HRM and business strategy. It is a tough task to coordinate between the development and control systems. But the coordination gives a competitive advantage for the enterprise.
In this write-up, we will elaborately describe the integration function of HRM inside an organization.
What Is the Integration Function of HRM?
The integration function of HRM is the process of reconciling organizational goals. It combines all the activities related to managing employees within a company so they work willingly and effectively for the best results.
Integration involves motivating employees through financial and non-financial incentives. Develop a company culture that ensures work-life balance, management with no fear of harsh criticism, and flexibility for holidays and paid time off.
Marchington and Wilkinson claim in their famous book Human Resource Management at Work (edition: 4th ISBN: 9781843982005) that a well-established HRM system is the differentiator of the enterprise’s success and failure. HRM is more important today than technology and finance.
What Are the Main Functions of Human Resource Management?
An HR manager performs various functions to ensure the best working atmosphere. Typically HR management functions can be classified into the following three categories:
- Managerial Functions
- Operative Functions
- Strategic & Advisory Functions
Let’s see how these functions help in an organization –
1. Managerial Functions
Managerial functions refer to the core activities within an organization that help in planning, organizing, directing, and controlling personnel. Managerial functions are broadly divided into 4 functions –
Planning
This function of HRM is meant to identify the number and type of employees/skills. Research is an important part of this function. It helps management collect, analyze, and recognize the present and future requirements of human resources. Also, you can forecast the changing values and behavior of employees and how it will impact your business.
In a nutshell, the determination of personnel programs that contribute to the goals of the organization is a part of planning. Such as anticipating job openings, and requirements, designing job descriptions, defining sources of requirements, etc.
Organizing
Once planning is done, a Human Resource Manager must design and develop an organizational structure. A proper organizational structure outlines how certain activities should be performed to carry out the final goal of the company. These activities can include rules, roles, and responsibilities. HR manager allocates tasks to everyone depending on their skill and experience.
The organizational structure also defines how information will flow between levels within the company. It is used to perform various day-to-day and long-term operations. Collectively these activities are integrated towards the company goal.
Directing
In this stage, your execution plan should be ready. But how smoothly you can implement this plan largely depends on the motivation of people. The direction function involves activating employees at different levels. Also, the personnel department ensures people’s stimulation. They can work spontaneously to accomplish the company goal.
Some effective ways to inspire your employees could be career planning, salary administration, ensuring employee morale, developing cordial relationships, etc.
A good HR manager must have the ability to understand the needs of employees and the means and methods to satisfy those needs. Needless to say, employees put their maximum effort into their allocated tasks when they are satisfied.
Controlling
Controlling completes the cycle and leads back to planning. This ensures employees are performing in an organized way to achieve a common goal. The HR department should observe their performance and compare the results with the standard. This helps management understand what is happening in their business. Either everything is going smoothly, or there needs any modification. All these activities come under the controlling function.
In short, if you achieve your desired objectives, the process ends here. If not, revise the old plan and bring the required changes to the old plan. Finally, start the entire process from the beginning.
2. Operative Functions
The operative function refers to those organizational tasks that a company entrusts to the personnel department. These activities include employment, development, compensation, integration, and maintenance of the organizational personnel.
Now, let’s discuss briefly about the operative integration function of HRM:
Recruitment and Selection
Recruitment of candidates is the prior function of selection. HR managers perform this task for all the departments of any company. It forms a pool of prospective candidates for the company so the management can easily select the right person.
Job Analysis and Design
Job analysis is the process of describing the job in detail. It narrates employee requirements like job qualifications, required skills, work experience, salary range, etc. On the other hand, job design involves outlining and organizing tasks, and distributing duties into a single unit of work.
Performance Appraisal
HR professionals should check employee performance regularly. So they can provide feedback and essential support to employees regarding their performance and related status. It helps to evaluate the potential present in a person for further growth and development.
Training and Development
This function of HRM allows employees to enhance their workplace skills. An effective training program can boost their confidence and strengthen the skills they need to improve. HR managers should arrange this kind of program for both new and exciting employees. However, it largely depends upon the requirements of the project.
Compensation
This function defines the pay scale and other allowances for different types of jobs. It includes wage & salary administration, incentives, bonuses, fringe benefits, and others. As an HR manager, it’s one of your core responsibilities to establish and maintain a fair pay system within the company. Employee satisfaction and stability mostly depend on this function and the company’s reputation.
Employee Welfare
Loyal employees contribute the most to accomplish the company goal. So, each employee should be treated with respect. Ensure a positive working ambiance to comfort your employees inside office premises. Besides, executing a reward scheme for the employees is an effective way to appraise your workforce. Such as performance-based incentives, bonuses, profit-sharing, and flexible working schedules.
A good HR manager takes good care of his/her employees in terms of both physical and mental health. Moreover, in any crisis moment, such as the world is now going through the COVID-19 pandemic, the responsibility of the HR department becomes double.
Maintenance
Skilled employees are the assets of a company. So, employee turnover is not good for the growth of a company. Management should try to keep their best-performing employees in the company for a long duration. Another key goal for the HR team is to minimize ROI within the HR department.
Labor Relations
This function refers to the interaction of the HR department with the employees who represent a trade union body. Employees come together and form a union. So they can make their points in decisions like wages, benefits, work conditions, etc.
Personnel Research
HR managers carry out this function to collect employees’ opinions about wages, promotions, workplace facilities, working conditions, welfare activities, leadership, and so forth. It gives a clear view of many important factors. Such as the level of employee satisfaction, reasons for employee turnover, and others.
Personnel Record
The HR department manages the records of the employees working in that company. It keeps a full record of their personal details. Such as employment history, training, achievements, transfer, promotion, etc. Under this function, managers also store data relating to the behavior of employees like absenteeism and labor turnover. Also, maintain personnel programs and policies of the organization.
3. Strategic and Advisory Functions
The personnel manager is qualified to manage employees. S/he has specialized education and training in this area. So, they can provide expert opinions on matters relating to human resources. HR managers offer:
Advice to Top Management
The HR manager guides the top management in the planning and execution of personnel programs, policies, and procedures. He also gives advice in terms of maintaining good human relations and high employee morale.
Advice to Departmental Heads
The personnel manager offers advice to the leads from the different departments on diverse topics. Such as team planning, time management, recruitment and selection, placement, employee turnover, training, performance appraisal, etc.
Integration of the HRM Function and the Strategic Business Planning Process
The integration level of the human resource function determines the success of the company’s strategic management. It means that HR professionals need to be integrated into this process along with the team for strategic planning.
A newer concept comes in the late twentieth century, after understanding the secret of success which is the relation of Strategic goals and HRM. It is named strategic human resource management (SHRM).
SHRM improves the performance of the team and fosters innovativeness and comfort. This helps to develop HR policies that largely contribute to the achievement of company goals and vision. In turn, organizations can observe positive changes in team performance.
Generally, business innovation includes branding, client satisfaction, job satisfaction, cost-effectiveness, etc. Adoption of innovation creates a positive change in an organizational environment. In this fast-moving world, no business can survive without innovation. The future of a company now largely depends on how effective its innovations are.
WP ERP HR- A One-in-All Integrated HR System
An HRM system typically integrates a number of applications to automate a business from one platform. It ensures the fastest growth of your business. You can also integrate a complete solution like WP ERP HR to operate all HR functions right from your dashboard.
Most amazingly, you can enjoy all the basic functions completely free. Free features of WP ERP HR Manager include:
- Complete overview of employees
- Quick access to company information
- List of departments & designations
- Employee profiles with editing privilege
- Share options for announcements & email notification
- Easy leave management or more
In any crisis moment, it empowers your team allowing them to work remotely. Moreover, you can supercharge your growing business by unlocking premium extensions. Such as Reimbursement, Payroll, Recruitment, Asset Manager, and others.
Challenges of the Integration Function of HRM
There are several challenges that may hinder the integration function of HRM. While dealing with HRM, you need to keep these challenges in mind. This forewarning can save you from many unwanted dangers. Let’s take a look at some major challenges:
Alignment of Goals
To ensure the goals of the HR department align with the broader strategic objectives, you must maintain continuous communication and collaboration between the HR and other departments. Otherwise, confusion and distraction may take place in between.
Cultural Differences
Each organization has its unique set of values, beliefs, and moral standards. But when a firm undergoes mergers and acquisitions, its employees may face cultural dilemmas. So, the merger should be executed between the firms that maintain a cohesive culture.
Resistance to Change
The management body may want to change the organizational culture to accommodate the new trends over time. But there will always be some employees who are unwilling to accept this change. You must plan ahead to accommodate them.
Resource Constraints
Before implementing the new plan, you must have sufficient resources, like employees, finance, tools & equipment, etc. Otherwise, you may mess up the workplace.
Final Words on Integration Function of HRM
The HR department is the center point of any organization. It ties all the departments on one common platform. The core responsibility of the professionals from the HR department is to ensure smooth communication among all the teams. So they can collaboratively work to achieve a goal that satisfies the company’s key objectives.
Nowadays integrating HR functions and strategic planning is fundamental to achieving business excellence. It determines how to manage employees in favor of business or corporate strategies.
Are you using any tool to manage all your HR functions? Share your experience with us in the comment section below!
