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In this article, we will go over the basics of Human Resource Management. The 7 HR Basics. Conclusion FAQ. Data-driven HR starts by creating and implementing a set of relevant HR metrics that help you determine the efficiency and impact of the workforce and HR department.
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. 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? Human Resources are all the people that in one capacity or another work for or contribute to an organization.
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. In addition, there are increasingly non-humans at work at the company. 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.
When we talk about Human Resource Management, there are a number of elements that are considered cornerstones for effective HRM policies.
These cornerstones are:. In the following section, we will cover these HR basics one by one. 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 preselection tools.
These tools help to separate the wheat from the chaff when it comes to suitable candidates. The candidates that are successful then continue to the next round, where they are interviewed and receive a more in-depth assessment. Once employees are on board, performance management becomes important. Performance management is the second HR basic.
It involves helping people to perform better in their jobs. Usually, employees have a defined set of responsibilities that they need to take care of. Performance management is a structure that enables employees to get feedback on their performance — with the goal to reach a better performance.
Examples are formal one-on-one performance reviews, degree feedback instruments that also takes into account the evaluation of peers, clients, and other relations, and more informal feedback. Usually, companies work with an annual performance management cycle, which involves planning, monitoring, reviewing, and rewarding employee performance.
The outcome of this process enables the categorization of employees in high vs. Successful performance management is very much a shared responsibility between HR and management, where usually the direct manager is in the lead and HR supports. This is also one of the basic responsibilities of HR.
If employees struggle to perform well in certain areas, learning and development can help to improve their performance. This budget is then distributed amongst employees, with trainees, future leaders, and other high potentials often receiving more training opportunities than others. Develop a skill-set that delivers strategic impact.
Learn everything from consulting and data literacy skills to basic finance. Succession planning is the process of planning contingencies in case of key employees leaving the company. This results in the creation of a talent pipeline.
This is a pool of candidates who are qualified and ready to fill senior positions in case of someone leaving. Building and nurturing this pipeline is key to good people management. Another one of the HR basics is compensation and benefits. Fair compensation is key in motivating and retaining employees. Compensation can be split up in primary compensation and secondary compensation.
Primary compensation involves directly paid money for work, which often is a monthly salary and sometimes performance-based pay.
Secondary benefits are all non-monetary rewards. This can include extra holidays, flexible working times, day-care, pensions, a company car and laptop, and much more.
An HRIS supports all the cornerstones we discussed above. For example, for recruitment and selection an Applicant Tracking System, or ATS, is often used to keep track of applicants and hires. For performance management, a performance management system is used to keep track of individual goals and put in performance ratings. For compensation, a payroll system is often used, and there are also digital tools that enable effective succession planning.
All these functionalities can often be done in one single system — the HRIS. Sometimes, however, the management of these functionalities is split up into different HR systems.
The bottom line here is that there is a significant digital element to working in HR which is why the HRIS is the final element when we talk about the HR basics. The last of the HR basics revolves around data and analytics. The last half decade, HR has made a major leap towards becoming more data-driven. The Human Resource Information Systems we just discussed is essentially a data-entry system.
The data in these systems can be used to make better and more informed decisions. These are specific measurements that answer how a company is doing on a given measurement.
This is referred to as HR reporting. This reporting focuses on the current and past state of the organization. Using HR analytics, HR can also make predictions about the future. Examples include workforce needs, employee turnover intention, the impact of the recruitment candidate experience on customer satisfaction, and many others.
By actively measuring and looking at this data, HR can make more data-driven decisions. These decisions are often more objective, which makes it easier to find management support for these decisions.
You now know the 7 Human Resource Management basics. The work in Human Resources is varied and includes many more topics. However, after reading this article, you know the basics. There is a lot more to learn when it comes to HR. For more advanced HR reading, check our articles on HR best practices , talent management , employee experience , and HR innovation.
These are amongst our most popular articles. These people can be full-time employees, contractors, freelancers or any other kind of contingent worker. And, of course, subscribe to stay up-to-date. He is a globally recognized HR thought leader and teacher in the future of HR.
He regularly speaks at conferences about HR training and upskilling. Connect with Erik on LinkedIn. Skip to content. Jul 1 HR Business Partner 2. Download Syllabus. What is Human Resource Management?
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Sign-Up to receive Teaching and Learning news and events. Problem-Based Learning PBL is a teaching method in which complex real-world problems are used as the vehicle to promote student learning of concepts and principles as opposed to direct presentation of facts and concepts. In addition to course content, PBL can promote the development of critical thinking skills, problem-solving abilities, and communication skills. It can also provide opportunities for working in groups, finding and evaluating research materials, and life-long learning Duch et al, PBL can be incorporated into any learning situation. In the strictest definition of PBL, the approach is used over the entire semester as the primary method of teaching.
In this article, we will go over the basics of Human Resource Management. The 7 HR Basics. Conclusion FAQ. Data-driven HR starts by creating and implementing a set of relevant HR metrics that help you determine the efficiency and impact of the workforce and HR department. 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.
There are some basic computer skills every worker needs to have. Short on time? Jump down to see some free courses , so you can start learning for free today! Most likely, you only have so much free time that you can dedicate to learning a new skill. Networking is another great way to discover what technical skills other people in your field have, or what software and apps they use on a day-to-day basis. In addition, you can also find much of this information online.
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