HRM Function in the Organization

The HRM Function in the organization plays the role of the unit taking care of the human capital. The
HRM Function is responsible for the processes, which allow the organization to stay competitive on
the external market and internally efficient.

Generally, the role and responsibilities of the HRM Function are defined well in theory, but the reality
can be different from the organization to the organization. The HRM Function plays a different role in
the manufacturing company and a completely different role it plays in the high tech IT Company. The
investments needed to keep the current staff and the competition on the market usually define the
playground for the HRM Function.

The HRM Function has to develop its role in the organization from the basis to the processes with
the value added to the organization. The common route is to begin with the perfect services in the
Personal Administration, Recruitment and Staffing and when the HRM Function is generally
recognized as a “reliable Business Partner” to continue with other processes as the Leadership
Development.

The value added HR Processes need a more recognized HRM Function in the organization or in the
company. The HRM Function without credibility has no chance to introduce functioning value added
processes and it needs to return to the basic processes to build its own credibility among the
management population to have a trust.

The HRM Function is about a trust. To build the trust among the management population takes time
and it cannot build over the night. The HRM Function has to work with a vision and this vision has to
be sold the line management slowly. The HRM Function has to recognize the time as it cannot
expect the perfect results immediately. To introduce efficient and working Performance Management
System takes usually about 3 years to get proper results. There is no reason to expect a quicker
implementation as the whole system is about employees and managers.

The HRM Function plays the role as the Finance Department plays in the organization. The HRM
Function is not for a direct management of the processes, the HRM Function develops processes,
procedures and tools for the top and line management to manage and conduct the processes in their
own departments.

The HRM Function has to develop the management staff (and this is a direct responsibility of Human
Resources and the top management) to work, manage and develop the employees in the
organization correctly to ensure the organization healthiness.

The HRM Function is responsible for the following areas in the organization or the business:

 Recruitment
 Compensation and Benefits
 Performance Management
 Training
 Reporting
 Leadership Development
  Personal Administration
 Legal Compliant Processes

The HRM Function can be a strong player in the organization with a significant impact on the overall
results of the organization. But also, in the organization its role and responsibility can be reduced on
the pure Personal Administration, just taking care of satisfying the needs of the top and line
management.