7 Basic Principles of Human Resource Management that Every HR Professional Should Know


Therefore, these human resource basics or fundamentals enable the workforce to perform at its highest efficiency. After the employees become a part of the company, performance comes into existence being the second basic. It explains helping employees for effective work at their job.

This means that if we can find ways to make employees more engaged, we help the company. Sometimes, when there are many applicants, HR may use pre-selection tools. These tools help separate the wheat from the chaff when it comes to suitable candidates. The successful candidates then move on to the next round, where they receive an interview and a more in-depth assessment. Human Resource Management is the practice of managing people to achieve better performance.

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This budget is then divided among employees, with apprentices, future managers and other high potentials often receiving more training opportunities than others. Individual employees can come to a company with very different skills and experience. L&D provides an opportunity for employees to fill skill gaps and develop into leaders. Based on employee performance and potential assessments, HR can work with managers to recommend various development plans.

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After selected, training and motivation, the next task, a HR manager has to perform is to evaluate the personality and performance of each employee by quantitative factors . Effective performance management ensures that the output of the employees meets the goal and objectives of organization. The core principle is recognizing that human resources are the most valuable assets of a business or an organization. A business can become successful with the effective management of this resource. The last two HR basics are not HR practices but tools to do HR better. For example, for recruitment and selection, HR professionals often use an Applicant Tracking System, or ATS, to keep track of applicants and hires.

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Get ahead in your career with Simplilearn’s Global MBA Program. Set yourself up for future successes by establishing a strong foundation in management studies, as well as a wide range of business connections. Human resource managers, generalists, and directors are the people who staff and operate the human resources department.

HR data and analytics

This new approach represents the company’s effort to contribute to the development of the individual and the organization. If you do everything we’ve talked about today and everything that’s recommended in the supporting tutorials, it could quite easily get overwhelming. Good communication is at the heart of any successful business. And the flipside of that, of course, is that bad communication can be disastrous.

Companies typically work with an annual performance management cycle, which involves planning, monitoring, reviewing and rewarding employee performance. The result of this process is that employees are categorised as high and low performers, and as high and low potential. Successful performance management is a joint effort between HR and management, usually led by the direct supervisor and supported by HR.


Excellent performance management is important – employees who can increase business efficiency, sustainability, and return and maximize their potential. Job knowledge evaluation is an important test to assess the applicant’s professional knowledge and skills test to evaluate the applicant’s job knowledge in the same way as cognitive evaluation. Within the company, it is necessary to test applicants by creating tests suitable for roles and positions according to various organizational locations. Employee experience has been an increasingly popular HR phrase over time. Every firm has a unique set of experiences that people have while working there.

Basic Principles of Human Resource Management that Every HR Professional Should Know

For the effective function of any organization, it must possess money, human resources, machinery, and materials. The resources cannot achieve the objectives themselves, human resources need to collect, coordinate and utilize them properly and for this effective human resource management is also important. HR managers manage strategies to ensure that the organization reaches its business goals, which is very essential in any organization. HR touches virtually all aspects of the employee experience, which includes Hiring, Employee productivity, conducts training and development programs and payrolls. HR also manages employee relations issues and aims to resolve them with minimal risk of the company.

  • Good people management requires the creation and development of this pipeline.
  • Benefits, or fringe benefits, are the various forms of non-cash rewards.
  • The budget is then allocated among employees and provides various training programs for trainees, future leaders, and other high-potential people.

You need to accommodate the different learning styles, which may involve helping employees design their own path for development. For informal development, weekly meetings can easily be coordinated between the mentor and employee. When planning a formal or internal training cadence, aim for weekly meetings over a set number of weeks with milestones employees can plan around.

In addition, there are more and more non-humans at work in the company. The bottom line is that there is a significant digital element to HR work, which is why HRIS is the final element when we talk about HR basics. This is also one of the fundamental tasks of the HR department. In addition, there are an increasing number of non-humans working in the company.

Boost Your Employee Management Skills

Robots are more and more involved in daily work and the interaction between man and machine is becoming more and more essential for the success of the organisation. Although these machines are not considered “human resources”, they should be included in some way, as they are part of the workforce. Fair compensation is key to motivating and retaining employees. One of the fundamentals of HR management in terms of compensation is ensuring equity and fairness. People are the product of life experiences, the country and era in which they grow up, and a range of cultural influences.

Primary quickbooks self employed involves the direct payment of money in exchange for work, which is often a monthly salary and sometimes performance-based pay. Making an appropriate salary offer is a key element in attracting the best talent. This offer should be balanced with the company’s budget and profit margins. HR should monitor salary increases and establish merit standards.

Good training can also be a powerful tool for improving employee satisfaction and retention. The action is the corrective measure from all the analysis of the deviations from the standards. This step will be different for every business where some might need recruitment while others need training of employees, transition or promote the existing workforce.


In this case, we’re talking about the increase in robotization. Robots are increasingly involved in day-to-day work and the interaction between man and machine is becoming increasingly essential to the success of the organization. Although these machines are not considered ‘human resources’, there is a case to be made that they should be included in some way as they are part of the workforce. While you might not be ready to hire an HR specialist for your business, you should be prepared to handle a few key aspects of human resource management.

They can be regular employees, for example, but also contractors. Especially with the rise of the gig economy, more and more people are starting to work for an organization on a contract basis without having a traditional labor contract. This course will give you a solid overview of the key aspects of HR and provide tools you can immediately put to use in your organization. The content is newly updated with the latest HR regulations, trends and best practices. Case studies, competency connections and SHRM Body of Competencies and Knowledge principles are incorporated into the material to illustrate how HR helps drive overall business success.

Based on people’s performance and potential ratings, HR department, together with managers, can advise different development plans. Onboarding Once you’ve hired a new employee, it’s also HR’s job to get them settled in. There are forms to complete, information to share and—most important of all—employees need to meet their teams and get ready to play an important role. A successful onboarding process boosts the confidence of new employees by ensuring they have all of the information they need to get started in their role.

In short, creating an encouraging and ongoing learning environment increases a sense of respect and trust between you and your employees. A company’s human resource development plan can be a major attraction to the best employees in the market. Generally speaking, career-oriented employees are always in search of new opportunities to develop and sharpen their skills.

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