The Role of HR Management in the Organization
The Role of HR Management in the Organization
HR departments recruit, retain, and motivate the best employees for the organization. To do so, they must keep the company competitive in terms of compensation, benefits, learning opportunities, career advancement, work-life balance, and other matters important to employees.
At the same time, HR plays an important business role in the organization. HR management strategizes how to allocate staff appropriately, maintain regulatory compliance, and prevent risks. Aligning “people needs” with business needs is essential to the organization’s viability and attractiveness in the market.
HR functions or areas of expertise include recruitment, health and safety, employee relations, compensation and benefits, and compliance. HR practitioners may perform a combination of these or specialize in one or a few. Small businesses that do not have a dedicated HR professional will sometimes outsource these functions or join a professional employer organization to get the same benefits of an internal HR team.
Recruitment
Talent acquisition or recruitment by a human resources organization can be performed through internal recruiters, employment specialists, or HR generalists. As part of the overall recruitment process, these professionals advertise and post jobs, source resumes, screen candidates, conduct first-round interviews, and coordinate with the hiring manager (or team).
In many organizations, recruiters’ success is measured by the time taken to fill job openings (requisitions) and the number of positions filled. Recruitment can also be performed by external agencies or headhunters.
Health and Safety
Workplace health and safety is essential, especially in industries in which workers operate heavy machinery, are exposed to chemicals or harmful substances, or work in otherwise dangerous places or situations. Employee safety is mandated through the Federal Occupational Safety and Health Act of 1970. HR often facilitates or oversees health and safety training and maintains federally mandated logs for workplace injuries and fatalities that must be reported to the government. HR also manages workers’ compensation issues for on-the-job injuries.
Employers generally must keep a record of on-the-job illnesses, accidents, and injuries for up to five years. And, they must keep any medical records of these injuries or illnesses for thirty years.
Employee Relations
Employee relations strengthen the employer-employee relationship through measuring job satisfaction, maintaining employee engagement, and resolving workplace conflicts or grievances. Employee relations also include coaching employees and managers to handle difficult situations, investigating sexual harassment and discrimination claims, placing employees on performance improvement plans, and terminating employees.
In a unionized work environment, labor relations functions may include negotiating collective bargaining agreements, facilitating the grievance process, and interpreting union contracts. The employee and labor relations functions of HR may be combined and handled by one specialist, or they might be entirely separate functions managed by two HR specialists with expertise in each area.
Compliance
Compliance with local, state, and federal labor laws is an essential HR function. Noncompliance can result in litigation and governmental complaints of unfair employment practices and unsafe working conditions, fines from the government, and overall dissatisfaction among employees.
HR staff must be aware of federal, state, and local employment laws such as the Fair Labor Standards Act, Title VII of the Civil Rights Act, the National Labor Relations Act, the Family and Medical Leave Act, and many more. To comply with these laws and maintain fairness in the organization, HR professionals help develop company policies and procedure manuals.
Compensation and Benefits
Like employee and labor relations, the compensation and benefits functions of HR are often handled by one HR specialist with dual expertise. HR functions include setting compensation and evaluating competitive pay practices.
A compensation and benefits specialist may also negotiate group health coverage rates with insurers and coordinate with the retirement savings fund administrator. Payroll might be conducted by the compensation and benefits section of HR, but it often is handled by the finance department or outsourced to an external provider.
Training and development
Employers must provide employees with the training and tools necessary for their success. New employees should go through an orientation to help them transition to the new organization as part of the onboarding process and undergo adequate training for their job.
Many HR departments also coordinate leadership training and ongoing professional development activities. Depending on the organization’s financial resources, programs such as tuition assistance programs for college or advanced degrees may be offered as part of training and development.
HR Generalist and HR Specialist: What's the Difference?
HR professionals typically fall into one of two categories: generalist or specialist.
- HR generalists, also called HR managers or HR business partners, have a broad range of responsibilities in one or more of the functional areas of human resources.
- HR specialists with technical knowledge and skills in specific areas usually work in larger organizations.
There are different levels of generalists and specialists in an organization, depending on its size, budget, and other needs.
Functional Areas of HR and Related Job Titles | |
|---|---|
Functional Area | Job Title Examples |
Recruiting | ■ Recruiter ■ Recruiting Assistant or Recruiting Coordinator ■ Talent Acquisition Specialist ■ Staffing Manager |
Training and Organizational Development | ■ Learning and Organizational Development Manager ■ Organizational Development Specialist |
Compensation and Benefits | ■ Compensation Analyst
■ Benefits Specialist ■ Total Rewards Manager |
Employee and Labor Relations | ■ Performance Manager Specialist ■ Employee Relations Manager ■ Labor Relations Manager |
Safety | ■ Risk Management Specialist ■ Workers’ Compensation Specialist |
HR Information Systems | ■ HRIS Administrator ■ HRIS Manager |
Policies and Procedures
As organizations grow, they must develop policies and procedures to maintain consistency throughout the organization, convey important information to employees, and comply with federal and state laws. Clear, well-communicated human resources policies and procedures ensure consistent message and administration throughout the organization. Documented policies can also protect the organization in case of lawsuits or complaints. Finally, HR policies and procedures help the organization formalize its approach to achieving compliance with federal law.
Policies should support managers in handling personnel issues. A supervisor who reads and understands the written policies of the organization can answer employee questions, respond to complaints, and handle minor disciplinary issues without always involving the human resources department.
For example, if two employees in different departments are consistently late or are not meeting performance standards, having established policies in place will help managers treat employees fairly. If an employee questions how the supervisor handles an employment issue, the supervisor can reference the HR policies, helping the supervisor maintain authority while remaining unbiased.
Policies and procedures help employees too. By providing handbooks to employees, organizations empower them with information, helping them better understand their own responsibilities. Employees with questions about work hours, paychecks, dress code, paid time off, harassment, or other issues can find answers in the handbook. In addition, complete policies provide employees with guidance on whom to contact with concerns about their employment or other issues.
Handbooks should be reviewed carefully and updated regularly because they may create an enforceable contract.
Finally, the handbook is an example of how the organization administers policies consistently and fairly. In the event of litigation or a complaint about an employment action, policies protect the organization. Human resource professionals should reference the policies when responding to questions and coach supervisors on the appropriate methods or procedures to document employee disciplinary problems. Policies and procedures should be reviewed periodically and updated to reflect changes in federal and state laws relating to employees, as well as changes in the work environment or organizational structure.
REVIEW QUESTIONS
Click or tap each question below to reveal the answer.
What are major HR functions or areas of expertise?
recruitment, health and safety, employee relations, compensation and benefits, and compliance
In many organizations, recruiters’ success is measured by which TWO metrics?
the time taken to fill job openings and the number of positions filled
Company policies and procedures help ensure what?
compliance with federal, state, and local laws
What is a benefit of providing handbooks to employees?
Handbooks provide employees with information to help them better understand their own responsibilities and the policies and procedures of the organization.
How do established policies and procedures benefit managers?
Policies and procedures help managers answer employee questions, respond to complaints, and treat employees fairly.