Definition of HR
HR stands for Human resources, it is one of the pivotal roles in any company. The term Human Resources encompass all the aspects related to the employees of a company starting from their hiring into the company to determining and giving out their payment and also their growth and wellbeing within the company and in their overall career, therefore, most companies have a dedicated pool for this purpose so that they can focus in this domain of talent management. Apart from the employee perspective, HR also needs to think from the company perspective and see where the company is lacking and how to fill this gap. In this article, we will discuss the Full Form of HR.
Goals of HR
The goals of HR (human resource) are below:
- Understand and Determine How to Achieve the Goals of the Organization: Under this aspect, HR should be aware of the larger picture and what the organization wants to achieve in the short, medium, and long term. After having outlined the same, he needs to determine his strategy to achieve the same.
- Talent Management: After understanding the requirement of the company, HR should formulate the manner in which it can bring in the employees required by the organization and how can they be trained to conduct themselves efficiently.
- Develop and Maintain Organisational Environment: Employees need a soothing environment to develop in and work at their best ability. Therefore, it is one of the HR goals to develop such an environment in the organization and keep the employees aligned to the same by periodically arranging events that remind the employees about what is acceptable and expected from them.
Objectives of HR
Once HR understands what is needed for achieving the organizational goals, it lays down its objectives to achieve them:
1. Determine Organizational Structure
As every organization has a different set of needs and products, its organizational structure needs to be defined in the manner in which productivity is achieved at its maximum level. For example, in an asset management company, there needs to be a barrier between the Investment banking department and the research department because the research report should not be affected by the investment banking department’s investment stakes; otherwise, these reports will be biased and misleading. Therefore, it is HR’s duty to create such silos. There can be different reasons for such divisions or integrations within the organization.
2. Creating Medium of Effective Communication
There needs to be interdepartmental communication within the organization as there are various projects which one or more organizations take up. So such mediums of communications need to be developed and maintain by HR. Further, the employees should be aware of the secure mediums of communication to not let out confidential information, and therefore, HR needs to ensure that the employees are aware and are following the appropriate means of communication.
3. Recruitment and Management
The HR needs to ensure the skill set required by the various teams and conduct periodic recruitment drives to attract the right talent to the organization so that the organization has the required pool of executives working for them. Further, there need to be periodic training programs to upgrade the skills of the employees for the ever-evolving nature of today’s world.
4. Channel Organization’s Evolution
The world is always evolving, and it is HR’s responsibility to keep the organization ethically relevant; and therefore, HRs need to focus on this and keep an eye for unacceptable ethical behavior, urge switch to evolved behavior and educate employees why such evolution is desired.
Human Resource Management
The department in a company, which deals with all of the above-mentioned goals and objectives is known as the Human Resource Management, and it is one of the integral roles in a company because it acts as a place where employees could express their grievances and what more would they need to perform at a higher level.
Therefore it acts as a communication channel for the organization and the employee, without which the company may not be able to work in an effective manner, nor would it be able to gain a competitive edge or become a market leader.
Requirement of Human Resource
Educational qualification varies from company to company. A smaller company may not require a highly qualified HR executive, but a multinational company with 1000s of employees do require highly qualified employees.
- The minimum requirement is of a bachelor’s degree; however, MBAs specialized in HR are also preferred at senior positions.
- Some companies require certifications in country-specific laws for foreign applicants.
- Experience of an average of 5 years is required for higher positions
Functions of Human Resource
Below are the various functions of human resources:
1. Labor Laws
As an organization has to abide by the country’s labour laws in which it is working, it needs the HR department to research and convey whether the company is failing to comply with any such law and what it needs to do more to comply with the same. Furthermore, HR should also keep updating the company policies as per the changes in the laws.
The selection of candidates who can fill the vacancies in the organizations falls under the purview of HR. The HR needs to shortlist the appropriate resumes from the available pool and conduct telephonic or on-site interviews, as the requirement might be, and fill the vacancies as soon as possible.
The candidates may require HR training that involves how they should conduct themselves within the office, such as not allowing tail-getting into the office, awareness regarding phishing calls, and the expected ethical behavior within the office. Apart from this, there might be a career trajectory that an employee wants to take up, and it is HR’s duty to ensure how to help him in achieving it.
4. Salary, Taxation, and Perks
The HR needs to ensure that the salaries are given out at the proper time, and employees get their regular bonuses and perks as per their employment letter and performance-based incentives as conveyed and agreed upon. Further, it is the duty of HR to convey the tax deductions and taxation policies to the employees and help them in understanding the same.
5. Employee Engagement
High turnover or employees is a cost to the company because time, money and effort go into the on-boarding and off-boarding of the employee; therefore, it is the HR’s duty to reduce this turnover by keeping the employees engaged. This involves understanding their grievances and requirements, figuring out how to resolve the same, and organizing periodic events to rejuvenate employee spirits.
Importance of Human Resource
The importance of human resources is given below:
- Keeps the Organization Intertwined: HR acts as a bridge between the company and the employees and therefore keeps both on the same page and prevents wide disparities of visions from erupting between the two
- Ensures Timely Disbursement of Compensations: If the employees are not paid in a timely manner, there will be great discontentment among them, leading to unnecessary disrepute of the organization. Therefore, HR ensures that any such idiosyncrasies are avoided, and the organization functions smoothly.
Conclusion – Full Form of HR
Therefore, the importance of HRs is immense, and they play a very important role in keeping the organization going. Without a dedicated HR department, it becomes very difficult for big organizations to function seamlessly. Wide communication gaps arise between the employees and the organization because employees work in silos and cannot figure out how the big picture. In contrast, the organization becomes unaware of what the employee wants and how he can help achieve the same.
This is a guide to the Full Form of HR. Here we discuss the Full Form of HR and the goals and objectives of HR and various functions of HR are. You may also look at the following articles to learn more –
- Principle of Resource Management
- Principles of Corporate Finance
- Full Form of FYI
- Productivity Formula