What is Human Resources ?
Human resources (HR) is the division of a business that is charged with finding, screening, recruiting, and training job applicants, as well as administering employee-benefit programs. HR plays a key role in helping companies deal with a fast-changing business environment and a greater demand for quality employees in the 21st century.
John R. Commons, an American institutional economist, first coined the term "human resource" in his book "The Distribution of Wealth," published in 1893. However, it was not until the 19th century that HR departments were formerly developed and tasked with addressing misunderstandings between employees and their employers.
KEY TAKEAWAYS
- Human resources (HR) is the division of a business that is charged with finding, screening, recruiting, and training job applicants, and administering employee-benefit programs.
- Additional human resources responsibilities include compensation and benefits, recruitment, firing, and keeping up to date with any laws that may affect the company and its employees.
- Many companies have moved away from traditional in-house human resources (HR) administrative duties and outsourced tasks like payroll and benefits to outside vendors.
Understanding Human Resources
The presence of an HR department is an essential component of any business, regardless of the organization's size. An HR department is tasked with maximizing employee productivity and protecting the company from any issues that may arise within the workforce. HR responsibilities include compensation and benefits, recruitment, firing, and keeping up to date with any laws that may affect the company and its employees.
Research conducted by The Conference Board, a member-driven economic think tank, has found six key people-related activities that HR must effectively do to add value to a company. These include:
- Managing and using people effectively
- Tying performance appraisal and compensation to competencies
- Developing competencies that enhance individual and organizational performance
- Increasing the innovation, creativity, and flexibility necessary to enhance competitiveness
- Applying new approaches to work process design, succession planning, career development, and inter-organizational mobility
