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What is Human Resource?

By James Collister on December 14th, 2008
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Human Resource ManagersThe term “human resource” is an attempt to quantify a person’s value within the business world. In the private sector, ‘human resource development’ generally refers to the personnel processes implemented within a business. These include hiring, firing, promotions, demotions, layoffs and so forth. These functions are generally overseen by the Human Resources, or Human Resources Development Department. Some firms have more focus on their human assets than others, and will support programs that underwrite training or education so that quality employees can advance through the ranks. That is a straightforward example of human resources development.

Within the business consulting industry, the term ‘human resources development’ has been expanded to include a number of other functions. Human resource development firms will contract with a business to do an analysis of the company’s personnel allocations and uses. They will look at how each department functions, how job responsibilities are allocated and how the various departments interact.

From the data gathered, the consulting firm will develop a plan that recommends changes so that the contracting business can maximize use of its employees. Such changes may include realigning departmental functions, or moving one set of tasks from one department to another. This hypothetical move may result in the reduction of required headcount in the workforce. The consultant will probably also develop a standardized set of job descriptions for the business workforce and a wage scale that is equitable for all classes of job and types of work.

In a situation where layoffs are required, a human resources development consultant will often be called on to help reorganize job functions in order to keep the business running with fewer employees. Less tangible functions in situations like this include ‘change management’, a process that helps a company’s human resources (employees) deal with substantial alterations in the business structure. This function is often an important one because it helps to minimize employee fears and maintain morale which, in turn, keeps productivity up.

In larger corporations, acquisitions often mean substantial corporate realignment as one business is folded into the other. This often means layoffs and it always means absorbing one ‘corporate culture’ into another. In situations like this, large businesses will turn to experts to help with their “human resource capital” management. This term supposedly has positive overtones as it qualifies employees as company assets with serious value, equal to inventory and equity and quarterly profits. From another perspective, when employees become a ‘capital resource’ managing their oversight, improvement, productivity and removal seems to eliminate the human element to a great degree.

In the public sector, many state departments of employment services have renamed themselves as departments of human resources in recent years. Within this framework, human resource development includes providing job training, assistance in job placement, job listings and the distribution of unemployment checks. If you are undergoing a job search, you may be surprised at the little things you can find at the state Department of Human Resources. Services such as resume consulting and interview coaching are available in many instances. It is the purpose of this government bureau to help people find jobs or learn how to do jobs. Many of their little known services can contribute to your personal search by preparing you for the process.

Category: Business and Management


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