7 Human Resource Management

Basics Every HR Professional

Should Know

Human resources slide 1

By: Mart Nikki Lou M. Mantilla

INTRODUCTION People are essential to the
success of any business. The
performance of employees can be
a liability or asset to a company.
As an HR professional, you will
play a pivotal role in how
successful your company is. Good
Human Resource Management
(HRM) is essential for businesses
of all sizes. In this article, we will
breakdown the fundamentals of
Human Resource Management.
We will start with a brief
description of HRM and HR.
Then we will dive into the seven
HR basics you have to know to
have a good understanding of
what HR does. We will end with
some information on technical
terms, such as HRIS (Human
Resources Information System).
What is Human Resource Management
Let’s start with a brief definition.
Human Resource Management,
or HRM, is the practice of
managing people to achieve
better performance.

For example, if you hire people

into a business, you are looking
for people who fit the company
culture as they will be happier,
stay longer, and be more
productive than people who won’t
fit into the company culture.
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.
What is a Human Resource?
It may feel a bit weird to refer to people as
‘human resources’. Human Resources are
all the people that in one capacity or another
work for or contribute to an organization.

These people make up a company’s

workforce. 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.
In this case, we’re talking about the
increase in robotization. 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.

Although these machines are not

considered ‘human resources’, there
is a case to be made that they should
be included in some way as they are
part of the workforce.
The seven HR
basics
When we talk about Human
Resource Management, several
elements are considered
cornerstones for effective HRM
policies. These cornerstones are:
1.Recruitment & selection
2.Performance management
3.Learning & development
4.Succession planning
5.Compensation and benefits
6.Human Resources Information
Systems
7.HR data and analytics
1. Recruitment & selection

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.
2. Performance management
Once employees are on board,
performance management becomes important.
Performance management is the second HR
basic. It involves helping people to become
their best selves at work, boosting the
company’s bottom line.

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 – to reach their best
performance.
3. Learning & development

People are the product of life

experiences, the country and
era they grow up in, and a
range of cultural influences.
Within HR,
learning and development
ensure that employees adapt
to changes in processes,
technology, and societal or
legal shifts.
Learning and development helps
employees to reskill and upskill.
Learning & Development (L&D) is led
by HR and good policies can be very
helpful in advancing the organization
toward its long-term goals. One of
the HR trends for 2023 is bringing
learning into day-to-day work and
helping employees develop soft and
hard skills that are aligned with
organizational goals.
4. Succession planning

Succession planning is the

process of planning contingencies
in case of key employees leaving
the company. If, for example, a
crucial senior manager quits
his/her job, having a replacement
ready will guarantee continuity and
can save the company significant
money.
Succession planning is often based
on performance ratings and L&D
efforts. 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.
5. Compensation and benefits

Another one of the HR basics is

compensation and benefits. Fair
compensation is key in motivating
and retaining employees. One of
the fundamentals of human
resource management concerning
pay is ensuring equity and fairness.
Making the right offer of pay is a key
part of attracting the best talent. This
must be balanced with the budget
and profit margins of the company.
HR should monitor pay increases,
and set standards of merit. HR may
also carry out a pay audit on
occasion.
6. Human Resource Information System

The last two HR basics are not HR

practices but tools to do HR better.
The first is the
Human Resource Information Syste
m
, or HRIS. An HRIS supports all the
cornerstones we discussed above.
For example, for recruitment and
selection, HR professionals often use
an Applicant Tracking System, or
ATS, to keep track of applicants and
hires.
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, that’s
why we need to mention HRIS
when talking about the HR
basics.
7. HR data and analytics
The last of the HR fundamentals
revolves around data and analytics.
In 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.
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.
 Conclusion
You now know the 7 Human Resource
Management basics. None of these HR
fundamentals are isolated. They all
interact and affect each other. Think of
these 7 basics as building blocks –
strong management of each
fundamental element contributes to the
strength of the next.

Collectively, these HR fundamentals

enable a workforce not only to perform
better but to perform at its very best.
Human resources slide 10

Thank You