INTERNATIONAL UNIVERSITY TRAVNIK OF TRAVNIK

FACULTY OF ECONOMICS TRAVNIK OF TRAVNIK

HUMAN RESOURCES
SEMINAR PAPER

Subject: English language

Professor: Murat Dizdarević Student:IvanaRužičić, E33/20

Assistant: MedihaDervišić

Travnik, 2020.
 Abstract

In this paper, we will get acquainted with the human resources management staff, explain its
purpose, functions and the importance of its existence in all organizations. We will explain to what
extent the human resources management staff is in charge of recruiting and selecting employees. It
is very important that before hiring we thoroughly examine and consider whether a candidate meets
the conditions that the organization has provided for future employees. The selection process shows
which stages candidates must go through before starting work or before getting a job at all. What
human resources management staff plays a big role in is the training and development of
employees, both the training of employees who have just started work, and the proper orientation
and professional development of current employees who nowadays actually form the pillar and
support of the organization.

Key words: development, employee, function, organization, recruitment, selection,

training;

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Content

Abstract ................................................................................................................................. 2
Key words ............................................................................................................................. 2
1. Introduction ....................................................................................................................... 4
2. Function of human resource management ........................................................................ 4
3. Human resource planning ................................................................................................. 7
4. Recruitment and selection ................................................................................................. 9
5. Selection process ............................................................................................................... 9
6. Training and development............................................................................................... 10
7. Conclusion....................................................................................................................... 11
8. References ....................................................................................................................... 12

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1. Introduction
Human resource management (HRM) is the third function of management that is in charge of
filling the organizational structure. This is an important sector in every organization that is in
charge of hiring, training, promotion but also dismissal of employees. Any serious organization
should have human resource management staff, which can be economists, lawyers or
psychologists. Human resource management is a set of management activities aimed at attracting,
developing and maintaining effective staff in the organization.

2. Function of human resource management

The function of human resources management is treated as a management activity that combines a
variety of processes, jobs and tasks such as: planning and employment, employee development,
rewarding and protection, rewarding employees, etc.
The main functions of human resource management are classified in two categories:
 Managerial Functions
 Operative Functions

2.1 Managerial Functions

 Planning
A manager must plan ahead in order to get things done by his subordinates. It is also important to
plan in order to give the organization its goals. Also, planning helps establish the best procedures to
reach the goals. Further, some effective managers devote a substantial part of their time to
planning. With respect to the human resource department, planning involves determining the
personnel programs that can contribute to achieving the organization’s goals. These programs
include anticipating the hiring needs of the organization, planning job requirements, descriptions,
and determining the sources of recruitment.
 Organizing
After the human resource manager establishes the objectives and develops plans and programs to
achieve them, he needs to design and develop the organization’s structure to carry out the different
operations. Developing the organization’s structure includes:
1. Grouping of personnel activity into functions or positions
2. Assigning different groups of activities to different individuals
3. Delegating authority according to the tasks assigned and responsibilities involved
4. Coordinating activities of different employees
 Directing

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The HR Manager can create plans, but implementing the plans smoothly depends on how
motivated the people are. The directing functions of HRM involve encouraging people to work
willingly and efficiently to achieve the goals of the organization. In simpler words, the directing
functions of HRM entail guiding and motivating people to accomplish the personnel programs. The
HRM can motivate the employees through career planning and salary administration by boosting
the employee’s morale, developing relationships, providing safety requirements, and looking after
the welfare of employees. In order to do this effectively, the HRM must identify the needs of the
employees and the means and methods to satisfy them. Motivation is a continuous process as
employees have new needs and expectations when the old ones are satisfied.
 Controlling
Controlling is all about regulating activities in accordance with the plans formulated based on the
objectives of the organization. This is the fourth function of the HRM and it completes the cycle.
Through this, the manager observes and subsequently compares the results with the set standards.
Furthermore, he corrects any deviations that might occur. Controlling is one of the important
functions of HRM as it helps them evaluate and control the performance of the department with
respect to different operative functions. It also involves appraisals, audit, statistics, etc.1

2.2 Operative Functions

The operative functions are those tasks or duties which are specifically entrusted to the human
resource or personnel department. These are concerned with employment, development,
compensation, integration and maintenance of personnel of the organization.
 Employment
The first operative function of the human resource of personnel department is the employment of
proper kind and number of persons necessary to achieve the objectives of the organization. This
involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower requirements both in
terms of number and quality of the personnel. Recruitment and selection cover the sources of
supply of labor and the devices designed to select the right type of people for various jobs.
Induction and placement of personnel for their better performance also come under the
employment or procurement function.
 Development
Training and development of personnel is a follow up of the employment function. It is a duty of
management to train each employee property to develop technical skills for the job for which he
has been employed and also to develop him for the higher jobs in the organization. Proper

1
Toppr. Managerial Functions of HR Manager. Retrieved from:
https://www.toppr.com/guides/business-management-and-entrepreneurship/human-resource-
management/managerial-functions-of-hr-manager/ [Accessed 27 Dec 2020]

5
development of personnel is necessary to increase their skills in doing their jobs and in satisfying
their growth need.
For this purpose, the personnel departments will device appropriate training programs. There are
several on- the-job and off-the-job methods available for training purposes. A good training
program should include a mixture of both types of methods. It is important to point out that
personnel department arranges for training not only of new employees but also of old employees to
update their knowledge in the use of latest techniques.
 Compensation
This function is concerned with the determination of adequate and equitable remuneration of the
employees in the organization of their contribution to the organizational goals. The personnel can
be compensated both in terms of monetary as well as non-monetary rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are their basic
needs, requirements of jobs, legal provisions regarding minimum wages, capacity of the
organization to pay, wage level afforded by competitors etc. For fixing the wage levels, the
personnel department can make use of certain techniques like job evaluation and performance
appraisal.
 Maintenance
Merely appointment and training of people is not sufficient; they must be provided with good
working conditions so that they may like their work and workplace and maintain their efficiency.
Working conditions certainly influence the motivation and morale of the employees.
These include measures taken for health, safety, and comfort of the workforce. The personnel
department also provides for various welfare services which relate to the physical and social well-
being of the employees. These may include provision of cafeteria, rest rooms, counseling, group
insurance, education for children of employees, recreational facilities, etc.
 Motivation
Employees work in the organization for the satisfaction of their needs. In many of the cases, it is
found that they do not contribute towards the organizational goals as much as they can. This
happens because employees are not adequately motivated. The human resource manager helps the
various departmental managers to design a system of financial and non-financial rewards to
motivate the employees.
 Personal records
The human resource or personnel department maintains the records of the employees working in
the enterprise. It keeps full records of their training, achievements, transfer, promotion, etc. It also
preserves many other records relating to the behavior of personnel like absenteeism and labor
turnover and the personnel programs and policies of the organization.
 Industrial relations

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These days, the responsibility of maintaining good industrial relations is mainly discharged by the
human resource manager. The human resource manager can help in collective bargaining, joint
consultation and settlement of disputes, if the need arises. This is because of the fact that he is in
possession of full information relating to personnel and has the working knowledge of various
labor enactments. The human resource manager can do a great deal in maintaining industrial peace
in the organization as he is deeply associated with various committees on discipline, labor welfare,
safety, grievance, etc. He helps in laying down the grievance procedure to redress the grievances of
the employees. He also gives authentic information to the trade union leaders and conveys their
views on various labor problems to the top management.2

Figure 1

3. Human resource planning

Human Resource Planning is concerned with the planning of the future manpower requirements in
the organization. Human Resource Manager ensures that the company has the right type of people
in the right number at the right time and place, who are trained and motivated to do the right kind
of work at the right time. Primarily it makes appropriate projections for the future manpower needs
of the organization envisages plan for developing manpower to suit the changing needs of the
organization from time to time, and forces how to monitor and evaluate the future performance.
Human resource planning is the process by which a management determines how an organization
should move from its current position to its desired position.
For a success of an enterprise, human resource planning is a very important function.

2
Smriti Chand (2020). Human Resource Management Functions: Managerial, Operative, and
Advisory Function. Retrieved from: https://www.yourarticlelibrary.com/hrm/human-resource-management-
functions-managerial-operative-and-advisory-function/27995 [Accessed 29 Dec 2020]

7
3.1 Steps of human resource planning
1. Analyzing Organizational Objectives:
The objective to be achieved in future in various fields such as production, marketing, finance,
expansion and sales gives the idea about the work to be done in the organization.
2. Inventory of Present Human Resources:
From the updated human resource information storage sys-tem, the current number of employees,
their capacity, perfor-mance and potential can be analyzed. To fill the various job requirements, the
internal sources (i.e., employees from within the organization) and external sources (i.e., candidates
from various placement agencies) can be estimated.
3. Forecasting Demand and Supply of Human Resource:
The human resources required at different positions according to their job profile are to be
estimated. The available internal and external sources to fulfill those requirements are also
measured. There should be proper matching of job description and job specification of one
particular work, and the pro-file of the person should be suitable to it.
4. Estimating Manpower Gaps:
Comparison of human resource demand and human resource supply will provide with the surplus
or deficit of human resource. Deficit represents the number of people to be employed, whereas
surplus represents termination. Extensive use of proper training and development program can be
done to upgrade the skills of employees.
5. Formulating the Human Resource Action Plan:
The human resource plan depends on whether there is deficit or surplus in the organization.
Accord-ingly, the plan may be finalized either for new recruitment, training, interdepartmental
transfer in case of deficit of termination, or voluntary retirement schemes and redeployment in case
of surplus.
6. Monitoring, Control and Feedback:
It mainly involves implementation of the human resource action plan. Human resources are
allocated according to the requirements, and inventories are updated over a period. The plan is
monitored strictly to identify the deficiencies and remove it. Comparison between the human
resource plan and its actual implementation is done to ensure the appropriate action and the
availability of the required number of employees for various jobs.3

3
Smriti Chand (2020). Steps in Human Resource Planning. Retrieved from:
https://www.yourarticlelibrary.com/human-resources/steps-in-human-resource-planning-explained-with-
diagram/32358 [Accessed 29 Dec 2020]

8
4. Recruitment and selection

One of the basic tasks of human resource management staff is the recruitment and selection of
employees. Recruitment is the process of finding, attracting and encouraging candidates to apply
for vacancies, provided they meet the requirements. Recruitment acts as a link between those who
offer vacancies and those who seek the same. After potential candidates apply, selection follows.
And one of the most important areas of human resource management is the selection of capable,
quality, ambitious people.
 Recruitment
In simple words Recruitment process indicates hiring of a person or group for a particular position,
it can also be said as activity that creates a link between employer and job seeker. Generally HR
department team in the company looks to evaluate the logical, analytical, critical, commitment and
responsibilities when searching for the candidates in the candidates while selection. Recruitment
process can also be identified as bringing together the applications from the job seekers and
selecting the best candidate for the role of the job identified. Actually it can be said the process of
hiring employees. It can also be said as performing action of seeking fresh employees or members
within the organization. Recruitment plays an important role for any organization to continue its
efforts to make the organization the finest organization.4
 Selection
The selection predicts which job candidate will do the job according to the criteria that the
organization applies when selecting employees.
Selection means selecting the right person for the right kind of a job according to the company
demand and person’s ability. It is the process of opting within the scores of job seekers with
necessary qualification as well as competence to fill the position in the organization. Few of the
selection process could be applied within the organization as a part of promoting and transferring.
In selection criteria the candidates are cautiously picked up as per their ability.5

5. Selection process

The selection process begins with the job specification. The more dearly and precisely it is done the
less there would be the number of qualified applicants. Managers use different ways and

4
UKEssays. (November 2018). Human Resource Management For Recruitment And Selection
Process. Retrieved from https://www.ukessays.com/essays/business/hrm-for-recruitment-and-selection-
process-business-essay.php?vref=1 [Accessed 30 Dec 2020]
5
UKEssays. (November 2018). Human Resource Management For Recruitment And Selection
Process. Retrieved from https://www.ukessays.com/essays/business/hrm-for-recruitment-and-selection-
process-business-essay.php?vref=1 [Accessed 30 Dec 2020]

9
methodologies of selection, and the most common ways are: filling out forms, written tests,
examinations about previous work, interviews, etc.

The selection process is a series of specific steps used to decide whichcandidates should be hired.
The process starts with an evaluation of applicationforms and ends with the selection decision
and/or a job offer. Each step in theselection process seeks to expand the organization's knowledge
about thecandidates' background, abilities, and motivation, and it increases the informationfrom
which HR managers/specialists can make their predictions and final choice. Although the sequence
of steps may vary from organization to organization andfrom one job opening to another, the
selection process could determine thecandidates who are likely to be successful and eliminate those
likely to fail.6

Figure 2
6. Training and development

The best way to a higher level of work of the organization is the professional development and
education of employees, and they should later be the support and pillar of the organization.
Training and development is one of the activities HR practitioners engage in managing human
resources in organizations. Also, this activity is extended to the management of international

6
Hsu Yu-Ru (1999). Recruitment and Selection and Human Resource Management in the
Taiwanese Cultural Context. Plymouth: University of Plymouth.

10
employees, having selected the expatriates to be posted to the host country; it is therefore essential
providing training programs that will assist in developing their skills so as to increase job
performance. Often expatriates are engaged in various capacities either on short-term or long-term;
amongst which include acquisition of knowledge, managing subsidiary, intermediary between
subsidiary and the headquarters, transferring knowledge, etc.7
Once we have spent the time to hire new employees, we want to make sure they not only are
trained to do the job but also continue to grow and develop new skills in their job. This results in
higher productivity for the organization. Training is also a key component in employee motivation.
Employees who feel they are developing their skills tend to be happier in their jobs, which results
in increased employee retention. Examples of training programs might include the following:
 Job skills training, such as how to run a particular computer program
 Training on communication
 Team-building activities
 Policy and legal training, such as sexual harassment training and ethics training8

7. Conclusion

This paper showed that human resource management staff is of pivotal importance in the
recruitment process as well as further training of existing staff. An organization is as strong as its
weakest link and the human resource management staff is responsible for strengthening that link.
No matter whether economists, lawyers, or psychologists the human resource management staff
aims to give its organization a competitive advantage in the world of business. Through both
managerial and operative functions the HRM motivates and develops the personnel so they can
reach their full potential and thereby meet new business needs as they arise. In addition, constant
training satisfies the organizations' growth needs. The HRM is also responsible for giving praise
where praise is due through monetary or non-monetary rewards. However, its paramount role is in
selecting and recruiting new personnel. The paper has shown all the steps of such a complex
process and how finding the right fit can make a great difference for an organization and thus
maintain a high level of satisfaction among the staff. All in all, HRM's aim is to lead the
organization from its current position to its desired position or help it maintain its current
satisfactory position.

7
Osibanjo O.A. & Adeniji A. (2012). Human Resource Management: Theory and Practice. Covenant
University: Pumark Nigeria Limited.
8
The Open University of Hong Kong. Human Resource Management. Retrieved from:
http://www.opentextbooks.org.hk/system/files/export/32/32088/pdf/Human_Resource_Management_32
088.pdf [Accessed 28 Dec 2020]

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8. References

 Hsu Yu-Ru (1999). Recruitment and Selection and Human Resource Management in the
Taiwanese Cultural Context. Plymouth: University of Plymouth.
 Osibanjo O.A. & Adeniji A. (2012). Human Resource Management: Theory and Practice.
Covenant University: Pumark Nigeria Limited.
 Smriti Chand (2020). Human Resource Management Functions: Managerial, Operative,
and Advisory Function. Retrieved from: https://www.yourarticlelibrary.com/hrm/human-
resource-management-functions-managerial-operative-and-advisory-function/27995
[Accessed 29 Dec 2020]
 Smriti Chand (2020). Steps in Human Resource Planning. Retrieved from:
https://www.yourarticlelibrary.com/human-resources/steps-in-human-resource-planning-
explained-with-diagram/32358 [Accessed 29 Dec 2020]
 The Open University of Hong Kong. Human Resource Management. Retrieved from:
http://www.opentextbooks.org.hk/system/files/export/32/32088/pdf/Human_Resource_Ma
nagement_32088.pdf [Accessed 28 Dec 2020]
 Toppr. Managerial Functions of HR Manager. Retrieved from:
https://www.toppr.com/guides/business-management-and-entrepreneurship/human-
resource-management/managerial-functions-of-hr-manager/ [Accessed 27 Dec 2020]
 UKEssays. (November 2018). Human Resource Management For Recruitment And
Selection Process. Retrieved from https://www.ukessays.com/essays/business/hrm-for-
recruitment-and-selection-process-business-essay.php?vref=1 [Accessed 30 Dec 2020]

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