Human resources facts for kids
Human resources (HR) is all the people who work for a company, business, or even a whole country. Think of it as the "people power" that makes things happen!
Sometimes, people also talk about "human capital." This means the special skills and knowledge that each person brings to their job. Other words for human resources include "staff," "employees," or just "people."
Most big companies have a special department called the Human Resources (HR) department. Their main job is to manage everything about the people who work there.
The HR department helps with many important tasks. They plan who to hire, put up job ads, look at resumes, and set up interviews. They also check backgrounds, help new employees get started, and make sure everyone is doing well in their jobs.
Contents
What Does HR Do?
The HR team in a company has many different jobs. They help make sure the workplace runs smoothly and that employees are happy and productive.
Finding the Right People
- Figuring out who to hire: HR helps decide how many people a company needs and what skills they should have.
- Finding and hiring new team members: They post job openings, look through applications, and interview people to find the best fit.
- Checking backgrounds: HR makes sure new employees are trustworthy and qualified for the job.
Helping Employees Grow
- Training and learning: HR helps employees learn new skills and get better at their jobs. This can include special training programs.
- Supervising and evaluating work: They help managers check how employees are doing and give feedback.
- Motivating employees: HR finds ways to encourage staff and help them feel good about their work.
Keeping the Workplace Fair and Safe
- Setting rules: HR helps create clear rules for how people should work together.
- Managing employee relations: If there are problems or disagreements between employees, HR helps sort them out.
- Ensuring equal opportunities: They make sure everyone has a fair chance, no matter their background.
- Dealing with discrimination: HR handles any unfair treatment or discrimination in the workplace.
- Mediating disputes: They help solve arguments or conflicts between co-workers.
- Sharing information: HR makes sure important news and updates reach everyone in the company.
Managing Pay and Benefits
- Handling payroll: HR makes sure everyone gets paid correctly and on time.
- Managing benefits: They look after things like health insurance, retirement plans, and other perks for employees.
- Preparing employee records: HR keeps track of all employee information and company policies.
New Ways of Working
- Remote and hybrid work: HR helps create policies for working from home or a mix of home and office work.
- Using HR software: They use special computer programs to make their work easier and more organized.
Managers also need good people skills to work well with their teams. Understanding how people behave at work helps make companies more successful.
How HR Started
Long ago, what we now call "human resources" was known as "personnel administration." In the 1920s, these departments mostly focused on hiring, checking on employees, and paying them. They didn't really think about how employees felt or how their work connected to the company's overall success.
The very first personnel management department started in 1900 at the National Cash Register Co.. The owner, John Henry Patterson, created it after some strikes. He wanted a team to handle complaints, firings, safety, and to give managers information about new laws.
Other companies soon followed. For example, in 1913, the Ford Motor Company had many employees leaving their jobs. But just one year later, Ford doubled its workers' daily pay from $2.50 to $5. Even though $2.50 was a good wage back then, the higher pay made employees much happier. This shows how good management can lead to happier workers and better results for the business.
In the 1970s, businesses in America faced more competition. Companies started to grow globally, rules changed, and technology advanced very quickly. This made big companies think more about their future plans. They started to focus on how to make their organizations work better.
This led to more jobs and chances for people to use their skills. The goal was to use employees effectively to reach individual, team, and company goals. Many years later, universities started offering degrees in human resource management, often as part of business administration. This field covers all the ways companies try to use their employees more effectively.
Today, human resources is all about the "people side" of running a business. One way to think about HRM (Human Resource Management) is that it's about managing people in a structured way. This includes hiring, firing, pay, benefits, and checking performance. This is the more traditional view, like what a personnel manager did in the 1920s.
Another way to see HRM is that it looks at managing people from a bigger picture. It considers how employees fit into the whole marketplace, alongside customers and competitors. This view focuses on making the "employment relationship" good for both the company and the employees.
Some studies have shown that employees work much better when their managers pay attention to them. Elton Mayo, often called the "Father of Human Relations," was one of the first to say how important it is for employees to communicate, cooperate, and be involved. His studies found that how people feel is sometimes more important than physical things, like good lighting in the office. For example, a good reward system can really encourage employees to do their best.
Where Did the Term "Human Resource" Come From?
The economist John R. Commons first mentioned "human resource" in his 1893 book The Distribution of Wealth. But he didn't explain it much. In the early 1900s, the phrase was used to show that people have worth and dignity. By the 1950s, it started to mean people as a way for employers to get things done. A scholar named E. Wight Bakke used the phrase in this way in a report in 1958.
When thinking about how people react to changes in the job market, a few things are important:
- Skills and qualifications: As jobs change from manual labor to more office work, companies need people with more skills. If there aren't enough skilled workers, companies might offer better pay or benefits to attract them.
- Location: How far is the job from where a person lives? The travel distance should make sense for the pay. How easy it is to get to work also affects who applies.
- Job types: Different jobs have different ways of working. Some jobs might make you loyal to your profession, while others focus on moving up within one company.
- Generational differences: People from different age groups might have different ideas about work and what they expect from a company.
Why Some People Don't Like the Term
One concern about calling people "assets" or "resources" is that it might make them seem like objects or things to be used. People are not just "commodities" or "resources." They are creative and social beings who work together to build something.
Because of this, some businesses are changing the name of their HR department. They might call it "people operations" or "culture department" instead. This helps to remove the idea that employees are just a resource.
How HR Helps Companies Grow
Human resource teams are very important for helping a company succeed. They help create better relationships between employees and make sure everyone has a good work ethic. This leads to a better working environment for everyone.
HR also deals with key things that motivate people at work. These include payroll, benefits, team spirit, and making sure there's no harassment in the workplace.
Planning for the Future
In the past, HR mostly handled daily tasks and operations. But now, HR directors often work with the top leaders of a company. This is because HR planning is a big part of a company's goals and strategies.
HR helps plan how many and what types of employees a company will need in the future. They also help decide how pay and benefits will change over time. Many things can affect HR planning, like how the company is growing, where its offices are, changes in the population, and other uncertainties. This planning also includes managing talent, which means finding, keeping, and developing skilled employees.
