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What is the Role of Human Resources in a Company?

Businesses have 3 different types of resources: physical resources, intellectual resources, and human resources. HR has to do with what is perhaps the most vital of them all — people. When the term 'Human Resources', or HR department, was first coined in 1893, the department sought to address misunderstandings between employees and employers. Since then, it has however evolved to be a complex department involved in managing human elements to maximize their potential. 


What is Human Resources (HR)?


Human Resources (HR) refers to a division in a commercial entity that directs, coordinates, and manages administrative functions. As such, it serves as a link between an organization's employers and employees. This way, the management team's goals, and objectives can be realized through the workforce. Human resource managers play a vital role in the success of an organization by finding, screening, recruiting, and training job applicants among many other key roles. 


Understanding Human Resources


No matter the size and type of business, human resources is an essential department. HR managers are in charge of all matters appertaining to the employees of an organization. That said, they maximize employee productivity while protecting a business from any negative factors stemming from the workforce. This is through recruitment, overseeing compensation and benefits, and firing incompetent personnel. Moreover, they stay updated on regulatory laws and standards that involve a company and its workforce. 


HR departments adopt Human Resource Management (HRM) strategies that set the direction for all key roles of the HR department. These include development, performance appraisal, hiring, and compensation. Such strategies help the department play a more active role in aligning human capital with an organization's goals and objectives. They include strategic approaches, processes, and business solutions to problems in the workforce. With that, here are the key roles of the HR division in a company:


The Role of Human Resources in a Company


Not all businesses have a human resource department. Since the start of the 20th century, technology has revolutionized approaches to HRM. As such, some companies prefer to outsource HR services from a remote company. This way, all transactional HR functions are managed by a different party, from safety inspection, dispute resolution, risk management, recruitment, employee benefits, and payroll administration. Regardless of the model adopted, the HR division is responsible for:


1. Employee Hiring and Selection


A company is only as good as its employees. For a company to achieve all its objectives and goals, it needs the right people to deliver the desired goals. Following this, it is the HR manager's responsibility to recruit and retain qualified and efficient employees. To do this, they have to source and assess from a pool of applicants. 


From here, they then have to narrow down the selection to the most competent ones. This could involve a series of tests, interviews, and rounds of analysis to analyze academic qualifications, experience, and level of skill. Afterward, the selected candidates are offered the job in their respective positions. Employee hiring and selection is therefore notably one of the primary functions of HR. 


2. Employee Training & Development


Even after selecting the right candidates, each company has different values and deliverables, even for job positions that a person may already be experienced in. As such, HR personnel trains their new employees with the exact specifications of their company. By imparting proper training, HR ensures that selected candidates develop exponentially. Their skills are also sharpened to be company-specific which boosts their overall efficiency in the organization. 


This skill is also vital in showing the new employees what their growth and development goals look like. They can therefore prepare for more responsibilities and harder tasks to come in the future. This contributes to a holistic mentality that boosts productivity and growth. A company realizes its goals faster, which is why HR is crucial. 


3. Job Description and Design


Even before hiring and training, HR managers have to know who does what in an organization. This rationalizes operations and identifies all vital responsibilities that are key in achieving the company's objectives. After this, they then move to look for the right person for the job as described before. Job descriptions describe the duties and responsibilities of all employees as well as the skills and character traits that are needed to achieve certain objectives. It is from these that HR managers find top-performing employees.


4. Employee Performance Assessment


HR functions cannot be complete without managing employees' performance. This keeps employees on track and ensures that a high standard of performance is maintained throughout the business year. Time and attendance tracking software can be used to monitor employees' productivity more accurately. From an individual level to a team, department, and the entire organization level, HR keeps everyone on track for overall business success.  


5. Managerial and Labor Relations


This was the initial reason for the formation of this department: managing relationships at the workplace. Human beings are subject to emotions, and behavioral change in their day to day lives. HR management, therefore, seeks to mobilize the relationship between various processes and departments in an organization (managerial). In this case, HR managers ensure work schedules are maintained. In managing labor relations, they maintain harmonious and beneficial relationships in the workplace by maintaining a calm environment at all times. 


6. Compensation and Benefits


Together with the financial department, the HR department comes up with sensible employee compensation and benefits. This way, they guarantee profitability while balancing the company's appeal to potential employers. They also ensure that payment is fair and equitable for all workers based on their job description. They also establish clear policies and guidelines about employee compensation and their available benefits. 


All Businesses Need HR Support


HRM ensures the smooth functioning of an organization no matter the size and type. It is, therefore, a vital department for the smooth running of all operations as well as the growth of an organization. Human Resources involves many other responsibilities depending on the business, but these are key in all organizations. That said, for your business to prosper, make sure your HR department is brilliant!

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