c. Compensation
d. Labor relation
e. Employee security and safety
In line with Dessler, Mondy and Noe 2005: 3 also state five functional areas of HRM, they are:
a. Human resource planning, recruitment and selection b. Human Resource Development
c. Compensation and benefits d. Safety and health
e. Employee and labor relation
In general, Mondy and Noe’s classification of HRM has represented all the lists stated above. The classification of HRM can be listed as follows: 1 Human
resource planning, recruitment and selection, 2 Human Resource Development 3 Compensation and benefits, 4 Safety and health, and 5 Employee and labor
relation. These are the explanation of each component.
a. Human Resource Planning, Recruitment and Selection
Human resource planning, recruitment and selection is the area of HRM in recruiting and selecting new employees. Human resource
planning is the process of systematically reviewing human resource requirements to ensure that the required numbers of employees, with the
required skills are available when needed. In short, it is applied in determining the skills, duties and knowledge required for performing jobs
in an organization. In selection, the organization chooses and determines the jobs which are suitable with the employees. So, the process of
recruitment and selection is the main activities in this section.
b. Human Resource Development
HRD is the part of HRM which help the employees individuals or groups become more effective. It is important, because people,
technology, jobs and organizations are always changing. Therefore, it is vital to give training program for the employees to develop their skill and
ability. Training is also important to develop the productivity of work. The training and development process should begin when individual join the
organization and continue their careers. Beside that, HRM also evaluate the strength and the weakness of
the employees through performance appraisal. Performance appraisal is a part of career development. It is defined as a regular review of employee
performance in organization. According to Heathfield, the purpose of doing performance appraisal are:
1 Give feedback on performance to employee;
2 Identify employee training needs;
3 Document criteria used to allocate organizational rewards;
4 Form a basis for personnel decisions: salary increases,
promotions, disciplinary actions, etc; 5
Provide the opportunity for organizational diagnosis and development;
6 Facilitate communication between employee and administrator
7 Validate selection techniques and human resource policies to
meet federal requirements.
c. Compensation and Benefits
