The document discusses human resource management and the importance of HR functions for organizations. It defines HRM as planning, organizing, and managing human resources to achieve individual and organizational goals. Key HR functions include recruitment and staffing, compensation, training, employee relations, and compliance. Common organizational structures for HR departments include functional, flat, and matrix structures. The document also recommends readings on innovative HR practices and the structure of HR departments.

1. Business Function
Human Resources
By- Ms.Shivani Naik Devrukhkar, ASSISTANT
PROFESSOR, (MBA, MCOM, PGDHE, NET,
B.ED)

2. Edwin Flippo defines- Human Resource
Management as “planning, organizing,
directing, controlling of procurement,
development, compensation, integration ,
maintenance and separation of human
resources to the end that individual,
organizational and social objectives are
achieved.”

3. helps
management in
the preparation
adoption and
continuing
evolution of
personnel
programs and
policies
supplies
skilled
workers
through
scientific
selection
process
ensures
maximum
benefit out of
the
expenditure on
training
and
development
Works
towards
appreciation
of human
asset
prepares
workers
according to
the changing
needs of
industry and
environment
01 02 03 04 05
Importance of HRM for an organization
According to Peter F. Drucker, ―The proper or improper use of the different factors of production depend on
the wishes of the human resources. Hence, besides other resources human resources need more
development. Human resources can increase cooperation but it needs proper and efficient management to
guide it.

4. motivates
workers and
upgrades them
so as to enable
them
to accomplish
the organization
goals
helps in
reducing
costs and
helps in
increasing
Productivity
through
Innovation
contributes in
restoring the
industrial
harmony
Promotes
healthy
employer-
employee
relations
establishes
mechanism for
the
administration
of personnel
Services as
delegated
01 02 03 04 05

5. Recommended video for Basics of HRM in a nutshell
https://www.youtube.com/watch?v=9MWFkH4xb3U

6. Managerial Functions
Operative Functions
Advisory Functions
HRM
Functions
1
2
3
4
HRM Functions
Recommended Reading:
https://www.linkedin.com/pulse/innovative-hr-practices-
indian-companies-ashish-shashi/

8. Human Resource Structure
The structure of HR that includes functional
areas such as recruiting and staffing, benefits,
compensation, employee relations, HR
compliance, organizational design, training and
development, human resource information
systems (H.R.I.S.) and payroll.
Recommended Reading
https://workology.com/your-guide-to-the-hr-
organizational-chart-and-department-
structuresstructure-functions/

9. Why do you need to set up the HR Department?
1. Create
Resilience to
the Changing
Work
Environment
2. Attract
Better Talent
3. Retention of
Talent
4. Compliant to
Industry laws
5. Organization
design and
development
1. Refer HR Policy document

10. Types of Organizational Structures
1. Functional Organizational Structure
Functional organizational structure is the most common organizational structure With that in mind, here are
three examples of HR department team structures within an organization. The structure of HR that includes
functional areas such as recruiting and staffing, benefits, compensation, employee relations, HR compliance,
organizational design, training and development, human resource information systems (H.R.I.S.) and
payroll.

11. 2. Flat Organizational Structure
Opposite of the functional organizational structure, flat organizational structures often have few, or no, people in middle
management. It is literally flat meaning there are less managerial layers, so employees and managers all work on a level
playing field. One VP of HR might have seven direct reports each with an area of expertise like recruiting, benefits,
compensation payroll, HR business partner(s) and training and development. All of these individuals directly report to the VP of
HR, are the same level and have no direct reports themselves.
This model eliminates workplace politics and red tape to distributing responsibilities and power equally across the HR
department giving everyone a hand in the decision-making process. This is common in small companies and startups.

12. 3. Matrix Organizational Structure
Matrix organizational structure is a company structure in which the reporting relationships are set up as a
grid, or matrix, rather than in the traditional hierarchy. This structure is great for project management
because it offers more flexibility and collaboration. In HR, different teams work with each other. One
manager doesn’t oversee a single team but employees from different areas report to a functional manager.
For HR, this type of structure is common for field HR leaders where you are part of a project team.

13. Other Less Common Organizational Structure Types
While the above organization structures are most common there are others you can use to build out your
HR team or company organizational structure. Here are a handful of other less-common options:
– Divisional Organizational Structure. This is for large enterprises and is comm with a divisional
organizational structure.
– Network Organizational Structure. A network organizational structure involves two or more
independent organizations partnering together in some capacity for business purposes.
– Team Organizational Structure. A team, or team-based, organizational structure refers to the business
model that functions when groups of employees collaborate on teams towards a shared goal under the
direction of one supervisor.

15. Good HR practices examples
https://www.humanresourcesmba.net/worlds-30-innovative-corporate-human-resources-departments/
Unilever Case study
Video
https://www.youtube.com/watch?v=O5ID6OPbVLk