7 Human Resource Management Basics Every HR professional should know

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Employees play a key role in building the organization.  According to their performance, employees can be both liabilities or assets for a company. An efficient HR department is absolute for organizations of all size. Before we start out, let us understand the fundamentals of human resource management. 

What is Human Resource?

In a company, the human resources department or HR deals with the hiring, administration, and training of staff. Human resources provide knowledge, tools, training, legal advice, administration, and talent management, which are necessary for the company’s survival and advancement.

What is Human Resource Management?

The Human Resource management process consists of recruiting, employing, deploying, and, most importantly, caring for the organization’s human assets. In other words, the practice of managing people to accomplish better performance.

Human Resource Management is largely responsible for enhancing the company’s performance through efficient management of human resources.

Human Resource management can be done within the company if you have an HR on board or you can outsource your HR management to an HR consultant like Prompt Personnel who can help you manage your human resources smoothly. 

An HR company can help you hire both contract staffing and permanent staffing.

Let’s explore 7 HR basics that will help you drive the best results

1. Recruiting & Selection

This is one of the most important duties of HR and most of us know about it. Do you remember your first interview? The HR function is responsible for recruiting and selecting the best individuals to work for the company. The HR receives the request from the manager when the existing job opens, or a new job opening is created. A job description for the same is given and the hiring process commences. In this process of hiring, HR uses different software like an applicant tracking system and different recruiting portals like Naukri, LinkedIn, etc. It includes interviews, different assessments, reference checks, and others. The candidates go through different levels of interviews before they are hired on board.

2. Performance Management

A performance management system is a structure that permits the employees to get feedback on their conduct and can they optimize and improve simultaneously. The performance can be measured on various parameters depending on your work profile. In the annual performance management cycle, companies plan, monitor, review, and reward employees based on their performance. The direct manager and HR are involved in analyzing and evaluating your performance. Depending on your performance the company decides whether you are a good fit for the organization or not.

3. Learning and development

Every human is shaped by their life experiences, the place and era they grow up in, and a range of cultural influences. Learning through training programs organized by HR will help employees adapt to changes in processes, and technology and thus upskill themselves. Organizations have fixed budgets for L&D efforts. Training provides employees with the opportunity to bridge skill gaps and become more effective leaders. HR managers along with the managers can collectively decide what kind of training will help employees enhance their skills.

4. Succession Planning

Planning for the eventuality that key employees leave a company is called succession planning. For instance, when a crucial senior manager leaves, having not just an appropriate replacement also planning for leadership roles by identifying potential people in the organization who can take on to these roles  and also ensure continuity, saving a great deal of money for the company.

5. Compensation and benefits

Compensation includes primary compensation and secondary compensation. Primary compensation is connected to directly paid money for work, which often is a monthly salary and sometimes performance/incentive-based pay. Secondary benefits are all non-monetary profits. There are many benefits available to employees, including a company car and laptop, extra holidays, flexibility in working times, daycare, pensions, and a lot more. The main objective here is to reward people in ways that motivate them.

6. Human Resource Information System (HRIS)

This is not practiced it is basically the tools and software that are used for smoothmaintenance of the HR processes. It includes an applicant tracking system, a performance management system, learning and development system, payroll management system and more. Ultimately, HR has a significant digital component, which is why the HRIS is the final element when we discuss HR basics.

7. HR data and analytics

The Human Resource Information Systems will track data which will help you make better decisions when it comes to workforce needs, employee turnover intention, the impact of the (recruitment) candidate experience on customer satisfaction, and many others. With technological advancement, even the HR sector has become more data-driven, and this is the reason HR data and analytics have been included under this section of HR fundamentals.

The above-mentioned HR management basics are fundamentally linked with each other, and they do not work in isolation. Consider these 7 basic building blocks as they collectively make the HR department in the organization to manage its workforce and help them perform to the best of their capabilities.


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