What is Human Resource Management and How It Works? 2022 Insights

by Hiration

What are human resources?

Human Resource is an important department in any organization. But what does HR mean?

Human Resources or the HR department focuses on a company’s employees, the assets of the company. It ensures that the employees feel satisfied and have all the resources to perform as expected.

HR is responsible for managing the employees’ life cycle. They look after recruiting, hiring, onboarding, training, administering compensation & benefits, and firing. It maintains government regulations and legal compliance of employees within the company. It often moderates and helps resolve conflicts arising between employees.

The scope of human resource management is rewarding both personally and professionally. HR Managers earn $82,521/year on average .

If you are looking for human resources management jobs, you are at the right place! Here, we discuss human resources in detail and FAQs around it.

What is Human Resource Management?


It is an organizational function that manages people and their associated issues. It is a holistic approach to managing people, workplace culture, and office environment.
The employees are the assets of the business, referred to as human capital. The goal is to make effective use of available resources so that employees work at their best potential.

If done well, it enables employees to contribute effectively and productively to the organizations’ goals and objectives.

Importance of Human Resource Management


HRM practices help in managing the people within a workplace to achieve the organization's mission and reinforce the culture. HR managers help recruit new professionals having suitable skills to reach the company's goals. They aid with the training and development of current employees to meet business objectives.

HRM is a crucial part of maintaining and improving the health of a business. HR managers monitor the job market to help the organization stay competitive with the latest market trends.

Also Read: How to draft an HR Resume?

Human Resource Management Process


Typically, human resources management is an essential department in an organization comprising dedicated HR professionals. The department could vary in structure and size. Smaller organizations do not have a handful of HR generalists.

Larger organizations have more specialized roles with recruiting, talent management, benefits, etc., treated as separate tasks. For instance, Amazon is an example of a large company with many types of specialized HR positions.

HRM is now moving away from traditional roles. HRs are expected to add value to the ongoing processes that impact the employees’ productivity. For instance, they are expected to assess the employee programs to measure their impact on business.

How Do You Become an HR Professional?


Gaining a degree in Human Resources can open doorways for you. Get an associate’s degree to get into entry-level positions. A bachelor’s degree or an MBA would open gates to more specialized opportunities within the HR domain.

You could also continue education by doing certificates from institutions such as the Human Resource Certification Institute to take your career to the next level.

Key Functions of Human Resources


The HR Department serves many roles and purposes. Here are the most important functions they oversee:

Recruitment and Staffing


HR plays a significant role in deciding an organization's staffing needs and recruiting employees, which includes:

  • Identifying qualifications and requirements for each position
  • Writing job descriptions and placing job postings
  • Evaluating resumes
  • Conducting interviews
  • Completing background checks
  • Working with department managers to select ideal candidates

Onboarding New Hires


The HR staff is responsible for developing an onboarding plan to help new hires integrate into the workforce. They guide recruits through their first days or weeks at the organization.

The onboarding process ensures that recruits are familiar with the work culture. It provides recruits access to company resources. The company resources help them navigate their employment journey.

Training and Development


Employees need capacity building and career development opportunities to continue being productive. It is the HR department’s responsibility to plan and execute training.

Training includes courses on new technology, employee relations, or leadership training for superiors. As an HR, you can conduct training online or offline in a group setting or in a one-on-one meeting.

Compensation and Benefits


The HR Department and the executive leadership determine the company’s compensation policy. They conduct market research to find competitive pay rates. They work with insurance providers to select health and welfare benefits.

Employee Well-being


An organization's work culture and the associated work-life quality are important for - employees. The HR Department supports and improves the work-life quality of the organization.

They run and oversee programs such as health and wellness initiatives, paid time off, and other efforts to keep employees happy and motivated.

Employee Relations


Human resources act as a mediator between employees and the upper management. When employees face issues at work, they should feel comfortable approaching human resource professionals for guidance or advice.

This helps resolve potential conflicts and disputes at the workplace quickly. If the workforce is unionized, the department acts as an interface between employer and labor union.

Performance Reviews and Promotions


The HR Department facilitates periodic performance evaluations for all employees. It allows them to check in with employees to discuss performance, define performance criteria, and set expectations & goals aligned with business objectives.

A performance review might lead to a salary hike if the objectives are met. Generally, HR works with senior leadership to determine rewards for the best-performing employees.

Key Skills required for HRM


Human resource management is a fairly competitive field and requires a solid grip on people skills. If you are looking for a career in human resource management, a winning resume is a must-have.

Also Read: HR Resume for different roles

Human Resource Managers help people succeed. Here are a few of the skills and strengths necessary to excel in an HR career:

Communication Skills


Individuals who work in the HR department need excellent customer service and communication skills for interactions over the phone, email, and in person. Good communication also includes being an active listener and listening to employees’ grievances and needs.

Interpersonal Skills


HR professionals act as mediators between employees, management, and employer & labor unions. HR professionals need to have effective interpersonal skills to address the situation tactfully. They must be able to resolve conflicts within the organization.

Adapt to New Technology


HR professionals must be comfortable using technology and Human Resources Information Software to manage payroll and other processes. They have to perform data analysis and projections.

Public Speaking


Some HR professionals are required to speak in front of large groups on topics ranging from benefits packages to company policies.

Organization and Project Management


HR professionals must be able to multitask and prioritize tasks effectively. They should have good scheduling skills.

Also Read: How to prepare for your HR interview?

Key Takeaways

  • Employees are an organization's asset. If managed well, they work towards achieving the goals and vision of the company.
  • The Human Resources department manages the employees, looks after their well-being and assists them during their life cycle at the company.
  • The HR department could vary in size and structure from organization to organization. Larger organizations have more specialized roles for HRs.
  • It plays a significant role in ensuring the company’s staffing needs are met, the onboarding of recruits is smooth, compensation and benefits are fair and competitive, and employee well-being and relations are looked after.
  • Being an HR requires a person to have key skills such as communication skills, interpersonal skills, public speaking, managing projects, and adapting to new technology.

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