Human Resources

The topic of human resources could warrant a separate study, as it is a fairly extensive subject that is still dynamically evolving. To understand the significance of this phenomenon for the contemporary labor market, we will analyze what constitutes a company’s resources and what part of these resources human resources are.

From this article, you will learn:

• What are human resources?
• What part of a company’s resources are human resources?
• What are examples of actions within human resource management?
• What is the importance of human resource management in a company?

Human Resources – Definition

Have you ever felt a sense of distaste when hearing the term “human resources”? This concept is often criticized for equating the workforce with other resources that make up a company. However, if we view resources as capital, something valuable to be nurtured and developed, then the connotation becomes decidedly milder.

When did this term emerge? The initial structures of hierarchical work assumed that employees should be utilized as efficiently as possible. It was only with the industrial revolution that some reflection on personnel management emerged, aiming to address the needs of employees. Increased interest in psychology and sociology – such as Maslow’s hierarchy of needs theory – led to a more conscious approach to workforce management. Nowadays, with the dynamic development of business, technological progress, and globalization, there is no doubt that employee engagement and effective work are the result of a smart, flexible, and innovative approach.

So what are human resources? We will analyze this issue in detail. Human resources are one of several other resources. The resources of a company consist of various elements that the company possesses and utilizes in its activities to achieve its goals. The resources of an organization include:

• Physical resources: these include buildings, land, equipment, machinery, facilities, raw materials, and finished products ready for sale.
• Human resources: employees – both at the managerial level and operational personnel. Human resources is a term that refers to the employees employed by the company. It’s not so much the number of these employees that matters, but the potential they bring to the company, including skills and competencies in the tasks assigned to them.
• Organizational resources: these are the foundation for the functioning and development of the organization. They primarily include management personnel, organizational culture and structure, management procedures, and customer relationships.
• Financial resources: everything related to finances, such as working capital necessary to maintain the financial liquidity of the company, loans, investments, cash, bank accounts, and other financial assets.
• Intellectual resources: these are values ​​derived from knowledge, experience, and skills within the company. Among them are patents, copyrights, trademarks, brand, and business contacts. Intellectual resources build a good company image and attract customers.
• Technological resources: used software, information systems, platforms, inventions, and new technologies.

Why such a division? Why are organizational resources so diverse? Their diversity depends on the specifics of the activity and the needs dictated by the market industry. Thanks to various resources, companies can more effectively achieve their goals and achieve success.

Human Resources – Examples of Organizational Activities

What does human resource management entail? The definition states that it is a series of diverse initiatives undertaken to achieve goals. Below are a few examples of human resource management practices:

• Recruitment and selection: to speak of human resources, they must first be acquired. Recruitment and selection involve assessing and selecting candidates for employment.
• Training: providing employees with professional development opportunities, learning opportunities, to enable them to acquire new skills, which in the long run means the development of the organization.
• Compensation and motivation: a well-organized company has a developed system of compensation and motivation, which includes bonuses, rewards, promotion systems, and other incentives.
• Employee evaluation: systematic evaluations of employees’ work, setting goals, monitoring progress, and providing feedback contribute to improving company performance.
• Problem-solving: every company should be prepared to resolve conflicts between employees and prevent bullying situations.
• Identifying employees for higher/different positions: due to employee development and rotation, the company must be prepared for possible personnel changes to ensure continuity of management.
• Employee relations management: creating a positive work environment, building relationships between employees and management, and responding to employee needs and expectations.

The Importance of Human Resource Management

Human resource management is of great importance for the proper functioning of a company. The actions taken within HRM (Human Resource Management) encompass several key areas. What does a company gain from HRM activities? Thanks to qualified and engaged employees, the company can count on increased productivity. Employees who are engaged in their tasks and have the right skills can work more effectively. A company that invests in the development of its employees stands out for its innovation. Motivated employees who form a strong team can offer higher-quality products, making them attractive competition. It is also noteworthy that a well-functioning HRM department positively affects the organizational culture of the company. Employees who identify with the company’s goals and values are more likely to create a positive work culture.

Increasingly, companies are concerned with the transparency of human resource management. Such actions affect the positive image of the company and build trust among both customers and potential employees. Exceptions include confidentiality issues, such as employee information or discipline-related procedures.