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What’s it: The human resource department or HR department is the division responsible for and dealing with managing individuals within the company. It handles human resource planning, recruitment, training, appraisals, dismissals and resignations, promotions, occupational safety and health, and industrial relations. It is a major business function apart from operations, marketing, and finance.
This department exists to help a company to create more value. It doesn’t just ensure the company has adequately qualified individuals to achieve its goals. But, it also ensures they enjoy working for the company and bring out the best for the company.
What human resource managers do
Human Resource (HR) managers wear many hats. They lead the HR department, reporting to the HR director or the Chief Human Resources Officer (CHRO). Their core function is to plan, coordinate, and oversee all administrative tasks within HR. But their role goes beyond paperwork. Here’s a closer look at what HR managers do:
- Bridging the gap: HR managers act as liaisons between top management and employees. They consult with executives on strategic HR planning, ensuring the company has the right talent to achieve its goals. They also address employee concerns and communicate management decisions effectively.
- Building the dream team: Recruitment is a key responsibility. HR managers oversee the entire hiring process, from identifying job needs and attracting qualified candidates to screening resumes and conducting interviews. They ensure the company finds the best fit for each role.
- Investing in people: HR managers don’t just hire employees; they develop them too. They oversee training and development programs, equipping staff with the skills and knowledge they need to excel in their roles. This not only benefits employees but also boosts overall company performance.
- Performance check-ups: HR managers play a crucial role in employee performance appraisals. They establish evaluation criteria and conduct reviews to assess employee performance. Based on these evaluations, they can recommend promotions, bonuses, or areas for improvement.
- Compensation & recognition: HR managers design and implement compensation structures, including salaries and benefits packages. They ensure these programs are competitive, fair, and compliant with labor laws. They also recommend promotions and
career development opportunities.
In short, HR managers are the strategists behind a company’s workforce. They orchestrate everything from finding the right talent to keeping them motivated and engaged, ensuring a happy and productive work environment for all.
How does the human resource department work?
The human resource department develops a human resource plan to determine the number of employees and qualifications needed to meet company goals, including the steps to be taken. The plan also aims to anticipate both current and future staff needs. The process begins with a workforce audit.
The audit examines the existing human resources within the organization, including those related to positions, salaries, working hours, skills, and qualifications. It also includes examining existing or implemented human resource management policies, procedures, and activities. It aims to identify areas for improvement to align with company objectives and comply with applicable regulations.
The human resource department then identifies gaps and considers ways to address them, including how many employees are needed, by considering aspects such as years of service, turnover rate, workload, qualifications, and budget. In addition, this department also plans matters such as recruitment, training and development, assessment, and promotion.
The roles and functions of the human resource department
The human resource department takes on several key roles in planning business needs for human resources, from hiring and training to firing. It also plays a role in maintaining interpersonal and employee-company relationships and establishing a positive work environment.
Recruitment
The HR department is responsible for identifying, finding, and hiring the right individuals according to the company’s needs. Recruitment involves several processes, such as:
- Identify the company’s need for new employees – how many are needed, in what positions, and what qualifications are required. This involves analyzing the job and creating a job description to outline the job title, duties, responsibilities, hours worked, salary, and required qualifications or skills.
- Specify the applicant’s qualities, skills, and qualifications. This will later be used to prepare job advertisements and screen employees.
- Attract suitable candidates – how to inform about job vacancies in the company. It may require a company’s intranet or bulletin board for internal recruitment. Meanwhile, external recruitment can be through advertisements in newspapers or the internet.
- Screening applicants and selecting the bestโwho is the most appropriate to hireโinvolves preliminary screening based on application forms, selection tests, interviews, and negotiations.
Training and development
Training is essential to address employee skills or knowledge gaps with what is required in their current job. After attending the training, employees can work more effectively in their current roles. Development is similar to training, but it usually prepares employees for higher positions.
Although it costs money, some companies consider this an investment. This is because it doesn’t just contribute to increased productivity. But, it is also a way to increase employee satisfaction and morale. As a result, they are more motivated and give their best for the company.
Training can take various forms, including:
- Induction training to help new staff adapt quickly and efficiently to their new roles.
- Cognitive training to improve abilities such as reasoning and information processing.
- Behavioral training to improve skills such as negotiation, conflict management, and communication skills.
Performance appraisal
Employee appraisal is related to monitoring progress and evaluating employee performance and effectiveness. This role involves an active role between HR management and the department where the employee is assigned.
Employees are assessed based on predetermined criteria and compared with predetermined targets. The output is used for determining salary increases, bonuses or promotions. It is also used to identify barriers in a particular job, thus becoming an important component in designing training and development programs.
Compensation and promotion
While the actual issuance of paychecks might fall under the accounting department, the human resource department plays a critical role in designing and managing a company’s compensation and promotion programs. These programs are essential for not only attracting and retaining top talent but also for motivating employees to perform at their best.
Designing compensation structures: The human resource department develops and implements compensation structures that go beyond just salaries. This includes crafting attractive benefits packages that cater to employee needs and expectations.
The human resource department analyzes market data and considers factors like position, experience, and performance to ensure salaries are competitive and fair. Competitive compensation packages not only attract qualified candidates but also boost employee satisfaction and motivation.
Promotions and
Linking compensation to performance: The human resource department often designs compensation structures that tie rewards to performance. These can include bonuses, stock options, or other incentives linked to achieving specific goals or exceeding expectations. By directly linking compensation to performance, this department motivates employees to take ownership of their work, go the extra mile, and contribute to the company’s overall success.
Dismissal and resignation
The HR department handles recruitment and establishes policies and procedures related to dismissals, resignations, and retirements. For example, an employee is not immediately fired when deemed incompetent. Instead, the HR department may issue a warning letter and provide counseling for improvement. If there is no improvement, dismissal is an unavoidable consequence.
These policies and procedures must consider the applicable regulations. Companies can not arbitrarily fire employees. They have to comply with government regulations, not just internal policies. Failure to comply could lead to prosecution in the future for unfair dismissal. It can also demotivate those who are still working.
Occupational health and safety
The human resource department plays a critical role in ensuring occupational health and safety (OHS) for employees. This is crucial for several reasons:
- Regulations and legal compliance: Government regulations mandate specific safety standards in many workplaces. The HR department proactively develops and implements safety programs to comply with these regulations and minimize the risk of legal repercussions for the company.
- Employee morale and well-being: A safe and healthy work environment directly impacts employee morale and well-being. When employees feel secure and cared for, they are more likely to be engaged, productive, and less prone to accidents.
- Reduced costs: Workplace accidents and illnesses can be costly for businesses. HR departments implement preventive measures to minimize these, leading to lower healthcare costs, insurance premiums, and absenteeism.
For high-risk jobs that carry a greater chance of physical harm, injury, illness, or even workplace violence, the human resource department takes extra steps. They work collaboratively with other departments to identify and assess potential hazards. They then develop and implement safety protocols and training programs and provide personal protective equipment (PPE) to mitigate these risks.
The goal is to create a work environment where employees feel comfortable raising safety concerns and have the tools and knowledge they need to perform their jobs safely and efficiently.
Employee relations
The human resource department plays a key role in fostering positive relationships within the organization, encompassing both employee relations and industrial relations.
Employee relations: The human resource department focuses on creating a work environment that promotes mutual respect, trust, and open communication among employees. This includes establishing policies that ensure fair compensation and benefits packages, promote a healthy work-life balance, and maintain reasonable working hours. The human resource department also develops procedures for addressing employee concerns, handling disciplinary actions for violations, and resolving workplace conflicts effectively.
Industrial relations: The human resource department also plays a vital role in maintaining a harmonious relationship between the company and its workforce. This is particularly important in workplaces with unions. The human resource department acts as a liaison, facilitating communication and negotiation between employer representatives and employee representatives (such as union officials). Their goal is to find common ground and resolve any disputes or conflicts that may arise, ensuring a collaborative and productive working environment for all.
