Human resources management is the utilization of an organization's human resources towards achieving the organizational goals.

Seven functional areas are associated with effective human resource management. These are human resource planning; recruitment and selection; training and development; compensation management; performance management; labor and employee relation and safety and health. 

You can think of these functional areas as being the seven menus of human resource management practice from which organization chooses the ones most appropriate for achieving their goal.

Let's discuss these function area.

1. Human resources or workforce planning: This is concerned with determining the number and qualifications of employees required to meet the organization's objectives.

Human resource planning entails determining the total number of employees and skills that would be needed to achieve a specific/general goal of the organization.

An important step in human resource planning is job analysis.

Job analysis is a systematic process of determining the skills, duties, and knowledge required to perform a specific job in an organization.

The end product of job analysis is the job description, which is the spelling out of an employee's work duties.

Human resource planning inform and alerts the organization on the kind of employees it will need in the short, medium, and long term.

2. Recruitment and selection: Once job analysis has been done, it will be of little or no use if employees are not recruited. 

The process through which an organization produces a pool of suitable applicants for possible employment is known as recruitment.

Selection, on the other hand, is the process of choosing applicants with the necessary knowledge, skills, abilities needed to fill jobs in an organization.

The recruitment and selection process is very vital if the organization is to accomplish its goals. After all, no business can succeed without the right people.

3. Training and development: Employees can be taught a variety of skills through training and development. Training is a planned program aimed at improving the job-related performance of the employee.

Training increases job performance by ensuring that employees acquire the knowledge, skills, and behaviors required to do their jobs effectively and effectively

Development is a systematic process designed to improve the employee's ability to tackle any new or old challenges of his/her job.

The fast-changing technology in our world today has now made it imperative for organizations to train and develop their worker. Therefore, companies should train and develop their workers regularly to get the maximum productivity possible.

4. Compensation management: As everyone knows, the compensation system is an important factor in employee contracts.

Compensation management is concerned with ensuring that the organization's compensation system provides employees with adequate rewards while achieving the company goal.

Well-thought compensation management is necessary if the organization is to achieve its goals. This is because companies with a relatively high level of pay or benefits are more likely to attract and/or retain high-quality employees than their counterparts with low pay or benefit

5. Performance management: You can think of performance management as a  kind of compass that is used to indicate an employee's direction, as well as his or her desired direction.

More appropriately, performance management is the means through which managers ensure that employee's activities and actions are in line with the organization's goal.

6. Labor and employee relations: From 1983 to 2019, union members fell from 20.1 percent to 10.3 percent. This indicates the union membership is decreasing.

Even so, organizations should be able to bargain with employees whether they are unionized or not.

Human resources managers should, therefore, have a thorough understanding of the system of laws, conventions, and regulations related to the behavior of unions. Otherwise, the organization would not achieve its short, medium, and long-term goals.

7. Safety and Health: Due to the increasing awareness of worker protection, the organization is now required to ensure the safety and health of workers.

Safety, in the HRM context, involves protecting employees from injuries that may arise during discharging their jobs. Health implies that is free from physical and mental illness. 

Safety and health are important for two reasons: First, workers are more likely to be productive if they work in a safe and healthy environment.

Secondly, it protects employers from lawsuits that could have to happen if workers are unsafe and sick.


All the human resources explained above are interrelated.  For instance, a firm that emphasizes a high level of payments and benefits but neglects to provide a safe and healthy environment would certainly be wasting its time and money because no worker in his right sense would work in an unsafe place.

Therefore, human resources managers must recognize that decisions in one functional area also affect other functional areas.

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