Defining Human Resources

The term human resources is often bandied about, but what exactly does it mean? The term comes out of academic writing about political economy. One of the factors that led to production was labour and this came to be known as an organisation's human resources, in comparison to natural resources or capital. That usage is somewhat outdated and now the term is used to refer to a specific group of functions within a company. These functions have to do with managing the people within that company. Here are some of the things that are involved.

Many people think of human resources as writing job descriptions, hiring and firing, but there is much more to this essential function than that. When managing this key area the process starts by planning a strategy for getting the right staff for the company. This is a question of knowing where the company is going and what type of skills will be needed to help it grow. Recruitment is another key task, which involves advertising for key staff members and making the selection based on the criteria you have set out.

Sometimes you need to alter the skillset of new or existing employees through training. This also helps to keep employees committed to the company. Identifying suitable training and organising it are key HR tasks. An HR department also keeps tabs on how employees are doing, by organising a system for evaluating performance and make recommendations for training, bonuses or promotion. Although individual managers will appraise those in their teams, it is HR that will supply the necessary forms and guidance on how to use them.

HR is also about keeping employee records, and this can be quite involved. Every employee will have a file that includes correspondence related to hiring, training, benefits, promotion and other areas. An HR department will maintain this file, and it's quite a task. All aspects of pay and benefits must be covered, and there are additional tasks if companies need to make people redundant or dismiss them.

As you can see, HR encompasses a wide range of specialist functions, and many companies find that it is costly and time consuming to manage these themselves. That's why more and more companies are considering HR outsourcing, so that they can get professionals to manage these tasks in a cost effective way. With human resources handled outside the company, owners can carry on with making the company more successful.

 

Deminos are HR Outsourcing and employment law specialists. To find out more please call us on 0191 460 1111 or visit http://www.deminos.co.uk