This document outlines the 7 key fundamentals of human resource management that every HR professional should know. It discusses: 1) Recruitment and selection to find the best candidates; 2) Performance management to provide feedback and maximize employee performance; 3) Learning and development to help employees continuously improve their skills; 4) Succession planning to ensure business continuity; 5) Compensation and benefits to attract and retain talent; 6) Human resource information systems to digitally manage HR processes; and 7) Using data analytics to make more informed HR decisions. Mastering these 7 HR basics is essential for effective human resource management.

1. 7 Human Resource Management
Basics Every HR Professional
Should Know

2. People are essential to the
success of any business. The
performance of employees can be
a liability or asset to a company.
As an HR professional, you will
play a pivotal role in how
successful your company is. Good
Human Resource Management
(HRM) is essential for businesses
of all sizes. In this article, we will
breakdown the fundamentals of
Human Resource Management.
INTRODUCTION

3. We will start with a brief
description of HRM and HR.
Then we will dive into the seven
HR basics you have to know to
have a good understanding of
what HR does. We will end with
some information on technical
terms, such as HRIS (Human
Resources Information System).

4. What is Human Resource Management

5. Let’s start with a brief definition.
Human Resource Management, or
HRM, is the practice of managing
people to achieve better
performance.
For example, if you hire people into a
business, you are looking for people
who fit the company culture as they
will be happier, stay longer, and be
more productive than people who
won’t fit into the company culture.

6. Another example is engagement.
Engaged employees are more
productive, deliver higher quality
work and make customers
happier. This means that if we
can find ways to make
employees more engaged, we
help the company.

7. What is a Human Resource?

8. It may feel a bit weird to refer to people as
‘human resources’. Human Resources are
all the people that in one capacity or
another work for or contribute to an
organization.
These people make up a company’s
workforce. 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.

9. 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.

10. The seven HR basics
When we talk about Human
Resource Management, several
elements are considered
cornerstones for effective HRM
policies. These cornerstones are:
1.Recruitment & selection
2.Performance management
3.Learning & development
4.Succession planning
5.Compensation and benefits
6.Human Resources Information
Systems
7.HR data and analytics

11. 1. Recruitment & selection
Recruitment and selection are
arguably the most visible elements of
HR. We all remember our first
interview, right?
Recruiting candidates and selecting
the best ones to come and work for
the company is a key HR
responsibility. People are the
lifeblood of the organization and
finding the best fits is a key task.

12. The request for new hires usually starts
when a new job is created or an
existing job opens up. The direct
manager then sends the job description
to HR and HR starts recruiting
candidates. In this process, HR can
use different selection instruments to
find the best person to do the work.
These include interviews, different
assessments, reference checks, and
other recruitment methods.

13. 2. Performance management
Once employees are on board, performance
management becomes important. Performance
management is the second HR basic. It
involves helping people to become their best
selves at work, boosting the company’s bottom
line.
Usually, employees have a defined set of
responsibilities that they need to take care of.
Performance management is a structure that
enables employees to get feedback on their
performance – to reach their best
performance.

14. 3. Learning & development
People are the product of life
experiences, the country and
era they grow up in, and a
range of cultural influences.
Within HR, learning and
development ensure that
employees adapt to changes
in processes, technology, and
societal or legal shifts.

15. Learning and development helps
employees to reskill and upskill.
Learning & Development (L&D) is led
by HR and good policies can be very
helpful in advancing the organization
toward its long-term goals. One of
the HR trends for 2023 is bringing
learning into day-to-day work and
helping employees develop soft and
hard skills that are aligned with
organizational goals.

16. 4. Succession planning
Succession planning is the
process of planning contingencies
in case of key employees leaving
the company. If, for example, a
crucial senior manager quits
his/her job, having a replacement
ready will guarantee continuity and
can save the company significant
money.

17. Succession planning is often based
on performance ratings and L&D
efforts. This results in the creation of
a talent pipeline. This is a pool of
candidates who are qualified and
ready to fill (senior) positions in case
of someone leaving. Building and
nurturing this pipeline is key to good
people management.

18. 5. Compensation and benefits
Another one of the HR basics
is compensation and benefits. Fair
compensation is key in motivating and
retaining employees. One of the
fundamentals of human resource
management concerning pay is ensuring
equity and fairness.

19. Making the right offer of pay is a key
part of attracting the best talent. This
must be balanced with the budget
and profit margins of the company.
HR should monitor pay increases,
and set standards of merit. HR may
also carry out a pay audit on
occasion.

20. 6. Human Resource Information System
The last two HR basics are not HR
practices but tools to do HR better.
The first is the Human Resource
Information System, or HRIS. An
HRIS supports all the cornerstones
we discussed above. For example,
for recruitment and selection, HR
professionals often use an Applicant
Tracking System, or ATS, to keep
track of applicants and hires.

21. All these functionalities can often be
done in one single system – the
HRIS. Sometimes, however, the
management of these functionalities
is split up into different HR systems.
The bottom line here is that there is a
significant digital element to working
in HR, that’s why we need to mention
HRIS when talking about the HR
basics.

22. 7. HR data and analytics
The last of the HR fundamentals
revolves around data and analytics.
In the last half-decade, HR has made
a major leap towards becoming more
data-driven.
The Human Resource Information
Systems we just discussed is
essentially a data-entry system. The
data in these systems can be used to
make better and more informed
decisions.

23. By actively measuring and
looking at this data, HR
can make more data-
driven decisions. These
decisions are often more
objective, which makes it
easier to find management
support for these
decisions.

24. Conclusion
You now know the 7 Human Resource
Management basics. None of these HR
fundamentals are isolated. They all
interact and affect each other. Think of
these 7 basics as building blocks –
strong management of each
fundamental element contributes to the
strength of the next.
Collectively, these HR fundamentals
enable a workforce not only to perform
better but to perform at its very best.

25. Thank You