Let’s start with a brief definition. Human Resource Management, or HRM, is the practice of managing people to achieve better performance.
For example, if you hire people into a business, you are looking for people who fit the company culture as they will be happier, stay longer, and be more productive than people who won’t fit into the company culture.
Another example is engagement. Engaged employees are more productive, deliver higher quality work and make customers happier. This means that if we can find ways to make employees more engaged, we help the company.
The HR department provides the knowledge, tools, training, legal advice, administration, and talent management, which is crucial to sustaining and advancing a company.
This is what Human Resource Management boils down to optimizing company performance through better management of human resources. The next question is, who are these Human Resources? So what are you waiting for? If you decide to outsource an EOR Company can help you.
What is a Human Resource?
It may feel a bit weird to refer to people as ‘human resources’. Human Resources are all the people that in one capacity or another work for or contribute to an organization.
These people make up a company’s workforce. They can be regular employees, for example, but also contractors. Especially with the rise of the gig economy, more and more people are starting to work for an organization on a contract basis without having a traditional labor contract.
These people include independent contractors, workers provided by contract firms, on-call workers, and temporary help agency workers.
An independent contractor can be under contract for years at the same organization, while an agency worker can work at 20 different companies throughout one year. Because these people are all involved in the company to a different extent, the way they are managed and involved in the organization should also be different.
Also, there are increasingly non-humans at work at the company.
In this case, we’re talking about the increase in robotization. Robots are increasingly involved in day-to-day work and the interaction between man and machine is becoming increasingly essential to the success of the organization. Although these machines are not considered ‘human resources’, there is a case to be made that they should be included in some way as they are part of the workforce.
The seven HR basics
When we talk about Human Resource Management, several elements are considered cornerstones for effective HRM policies. These cornerstones are:
- Recruitment & Selection
- Time and Attendance Management
- Enterprise Learning Management
- Project Cost Tracking
- Expense Management
- Employee Self Service
- Project Timesheet Management
Recruitment & selection
Recruitment and selection are arguably the most visible elements of HR. We all remember our first interview, right?
Recruiting candidates and selecting the best ones to come and work for the company is a key HR responsibility. People are the lifeblood of the organization and finding the best fits is a key task.
The request for new hires usually starts when a new job is created or an existing job opens up. The direct manager then sends the job description to HR and HR starts recruiting candidates. In this process, HR can use different selection instruments to find the best person to do the work. These include interviews, different assessments, reference checks, and other recruitment methods.
Sometimes, when there are a lot of candidates, HR may deploy pre selection tools. These tools help to separate the wheat from the chaff when it comes to suitable candidates. The successful candidates then continue to the next round, where they are interviewed and receive a more in-depth assessment.
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