Human Resource Management functions can be classified into the following three categories.
Six important people-related actions that HR must effectively undertake to give value to a company have been identified by a member-driven economic think tank. These include:
• successfully managing and utilising people – Since, resources are limited, it is important that their utilization is efficient.
• Performance evaluation and compensation are linked to competencies – Compensations can be in kind or monetary benefits given to the employees.
• Individual and organisational performance can be improved through developing competencies – Diversity, for instance, is one of the most important factors that organizations consider today.
• Increasing the essential levels of innovation, creativity, and flexibility to boost competitiveness – A competitive spirit helps the company in differentiating their products and services from those of its competitors.
• New methods to work process design, succession planning, career development, and inter-organizational mobility are being implemented – A company should keep itself up to date in an ever changing and dynamic environment.