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Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials  HR.

Human resources purpose and role

In simple terms, an organization's human resource management strategy should maximize return on investment in the organization's human capital and minimize financial risk.

Human resource managers seek to achieve this by aligning the supply of skilled and qualified individuals and the capabilities of the current workforce, with the organization's ongoing and future business plans and requirements to maximize return on investment and secure future survival and success.

In ensuring such objectives are achieved, the human resource function is to implement an organization's human resource requirements effectively, taking into account federal, state and local labor laws and regulations; ethical business practices; and net cost, in a manner that maximizes, as far as possible, employee motivation, commitment and productivity.

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Key HR Functions

Human Resources may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas. The following are typical of a wide range of organizations:

  • Maintaining awareness of and compliance with local, state and federal labor laws
  • Recruitment, selection, and on boarding (resourcing)
  • Employee recordkeeping and confidentiality
  • Organizational design and development
  • Business Transformation and change management
  • Performance, conduct and behavior management
  • Industrial and employee relations
  • Human resources (workforce) analysis and workforce personnel data management
  • Compensation and employee benefit management
  • Training and Development (learning management)
  • Employee motivation and morale-building (employee retention and loyalty)


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