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Human resources (HR)


What is a human resource?

A human resource is one singular employee. Therefore, human resources describes all people who work for a company. Other common terms are human capital, talent, or personnel. Human resources are considered to be the greatest asset a company can possess.

Human resources is also a term used to describe the department that manages all of the people who work in a given organization. Commonly known as HR, this team is tasked with all of the logistics surrounding an employee’s lifetime at a company, from the recruitment and selection phase to performance management and continued training. They also devise a company culture that keeps personnel motivated and unified with the overall vision.


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Major duties of an HR department

In a company, the HR division acts in many ways like a bridge between top management and the employees. The goal is to align the interests of the business with the talent and motivation of its “human resources” in order to advance the venture’s overall success. This is accomplished through practices known as human resource management (HRM).

Some key responsibilities of an HR department include:

  • Communicating company values and vision to personnel through policies, training, and the hiring process.

  • Working with management to identify areas in need of additional human resources, and then managing a recruitment and selection process to fill those roles.

  • Evaluating the impact of business decisions on company employees, and offering informed input on these choices.

  • Ensuring employee retention by developing policies and a workplace culture that keep team members satisfied.

Figuring out your human resources management is a key part of both starting and scaling a business. To learn more, you can also read our human resources guide for more in-depth guidance.


Related Term


Related Term

Business-to-Business (B2B)

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