Reading Time: 3 minutes

In an ever-changing work scenario today. The importance of effectively managing people has never been more emphasized. It is here that HRM functions (Human Resource Management functions) come into play. Anything and everything that touches the life of an employee is dealt with by HRM. 

The blog will take you through the main HRM functions as they differ from the traditional ones.  

What Is HRM?

It is a strategic process that leads the management of people in an organization. The objective? 

In other words, HRM is about recruiting the right people. Enabling growth in them and ensuring that they remain happy and productive.

8 Functions of HRM You Should Know

The key HRM functions need to be in place to promote the growth and success of any company.

1. Human Resource Planning

This is really about workforce planning. HR looks into how many people are needed, in what positions, for the future. The result is that an organization usually ends up neither overstaffed. Nor short of potential talent.

2. Recruitment and Selection

If you will seek, hire, and employ candidates for the right talents. HR prepares job descriptions, shortlists candidates for interviews, and hires the right candidate.

3. Training and Development

Training keeps employees in tune with the advancement of standards in a company. Human Resources coordinates skill development programs.

4. Performance Management

Continuous appraisals ensure that employees are on their feet and improve.

5. Compensation and Benefits

They pay variable pay, basic pay, bonuses & all considered to make employees loyal. To the company.

6. Employee Relations

HR oversees conflict resolution within the workplace, employee feedback, and fun team-building activities. All these foster a conducive, good working atmosphere.

7. Compliance with the Law

HR stats on the law. The law concerning working hours, wage policy, benefits, and so on. That keeps it from losing money in penalties and gaining employee trust.

8. Health and Safety

Employee health is cared for. HR’s actions are seen in placing safety regulations. Wellness and mental health programs for a conducive work culture.

HRM Functions and Traditional People Management

 

Feature	Traditional Approach	Modern HRM Functions
Emphasis	Administrative tasks	Strategic people management
Recruitment	Internal referrals only	Multiple recruitment platforms
Training	One-time onboarding	Continuous learning & development
Performance Review	Only an Annual Review	Regular Feedback and KPIs
Employee Role	Replaceable	Value asset
Using Technology	Minimal	Huge- HR Tech Tools, AI

 

Example of Real Life: How HRM Functions Increase Startup Growth

A tech startup thus hired an HR manager to ensure effective HRM practices. And within 6 months:

• Employee turnover reduced by 30%.

• Targeted training improved productivity by 40%.

• Effect of HRM on direct business growth.

Pros and Cons of an HRM Function

Pros

• Creates strong teams

• Enhances employee satisfaction 

• Provides legal protection 

• Develops Company Culture 

Cons

• Can draw vast resources

• Need constant refreshing with law & tech

• Might be met with some resistance when changes are initiated.

FAQs

1. What are the five most important HR functions? 

• Recruitment
• Training
• Performance management
• Employee relations
• Compensation

2. How is modern HRM different compared to older practices? 

In contrast to traditional methods that focused on merely performing tasks. Whereas modern HRM is strategic and employee-centric.

3. Why is training considered crucial in HRM? 

As HRM functions upgrade employee skills & they also prepare him/her for future challenges.

4. Is legal compliance a part of HRM? 

Certainly. HR ensures that the policies line up with the government laws so that there can be no legal issues.

Conclusion

HRM functions, which include planning and hiring. Training and retention constitute the basic framework of the company’s workforce. Therefore, companies that choose to invest in sound HR practices increase their performance management software. Job satisfaction and opportunities for workplace problems. 

In short, HRM is really not just about people; it is about development.

Reading Time: 3 minutes

In an organization, the gratuity has a lot of intricacies with respect to the amount. With so many vital factors such as salary, period of service, etc., to be considered. It is here that the Gratuity Calculator provides an easy and accurate solution.

It is a time and effort saver for an HR professional and the employee alike.

What is Gratuity?

The payment made to an employee upon termination. It is usually paid upon cessation of work by the employee. Either by retirement or resignation, or in some cases. By the death of the employee. Belongs to the Payment of Gratuity Act, 1972. 

Gratuity Calculator: Why Use it?

Calculating gratuity manually can be very challenging. Especially when dealing with the eligibility criteria and formula. A Gratuity calculator, on the other hand, ensures accurate calculations. Such as salary reimbursements or tax estimations. Follows the standardized formula. So, your degree of estimation is accurate and replicates the latest gravity.

Benefits of a Gratuity Calculator

Let’s get on with the discussion of why this tool is becoming a necessity. In today’s work environment:

• Time-saving and no errors in calculations

• Helps one in financial planning for retirement. 

• Helps clarify the policies of the companies.

• Useful to HR professionals while processing full and final settlements.

Working in the HR domain with other areas like employee benefits & payroll management. It can make sure that there is increased efficiency and accuracy in its use.

Gratuity Calculator: A How-to Guide

This tool is as easy as it sounds. Here’s how it works.

• In the first box, enter your last basic salary + DA.

• In the second box, enter the total number of years you worked in the company.

• Finally, hit Calculate and see what your gratuity is estimated to be.

Some calculators also offer the option to customise gratuity payments. 

Eligibility for Gratuity

You are eligible if:

• You are resigning, retiring, and tragically, your family may lay claim after your death.

Some companies also offer gratuity voluntarily even before the completion of five years. So it is good to check your HR policies.

Gratuity to Contract Employees and Private Sector Workers

Many wonder if contract employees and private-sector workers have a claim on gratuity. In a way, yes. And if his tenure with the organization meets the minimum required cutoff period.

As for private-sector employees, the same kind of rule applies. Gratuity remains a right under the Act. To avoid legal ambiguities in the future. A contract of employment and HR policy must clearly set out the gratuity provisions.

Mistakes That Should Be Avoided in the Calculation of Gratuity

Miscalculations usually happen due to inaccuracies in inputs. Also, if you wish to know how many years he/she has worked in the organization. It would be applicable for rounding down to a whole year. Nearest unless there is a company policy on counting in the fraction of a year. Keep abreast of the latest legal amendments. These errors can also be avoided by HR teams. 

Conclusion

A Gratuity Calculator is not just a number-crunching machine. It simplifies the process for greater clarity and compliance with the law requirements. Be it planning your future or ending your current one, this is going to be your go-to resource.

FAQs

1. Is gratuity taxable?

Yes, it is taxable if it exceeds ₹20 lakh during your lifetime. For private sector type employees not covered by the Gratuity Act. 

2. Can I get gratuity if I resign before 5 years?

Generally, no, unless there are specific policies in place at your company. Or you qualify for special cases, such as a disability or death.

3. What happens if the employer doesn’t pay gratuity?

The employee can complain to the Labour Commissioner or reach to the court. The employer is also liable to pay the interest as well hrms software.