Part 1:What is Human Resources (HR)?
The Core Functions
Imagine a company is like a car. HR is the maintenance and performance team that keeps the engine (the
employees) running smoothly and efficiently.
HR is split into 8 key teams, each with a specific job:
1. Strategy and Planning (The "Navigators")
• What they do: They don't just think about today; they plan for the company's future people needs.
• Example: A tech company decides it wants to launch a new AI product in two years. The Strategy
team figures out: "We will need to hire 50 AI software engineers and 10 data scientists over the next
18 months. We also need to train our current engineers on new skills."
2. Compliance (The "Rule Enforcers")
• What they do: They make sure the company follows all the laws to avoid fines and lawsuits.
• Example: They ensure that the company pays at least the minimum wage, provides legally required
breaks, and that the hiring process is fair and doesn't discriminate against any candidate.
3. Talent Management (The "Talent Scouts")
• What they do: Their goal is to find and bring great people into the company.
• Example: When a marketing job opens up, this team writes the job description, posts it online,
screens the hundreds of applications, arranges interviews, and finally makes a job offer to the best
candidate.
4. Training and Development (The "Coaches")
• What they do: They help employees learn and grow.
o Training is for your current job (e.g., teaching a salesperson how to use new software).
o Development is for your future career (e.g., preparing an assistant manager to become a
general manager).
• Example: Organizing a workshop on "Advanced Excel Skills" for all finance employees (Training).
Creating a "Leadership Program" for high-potential employees to become future leaders
(Development).
5. Performance Management (The "Feedback Coaches")
• What they do: They ensure everyone's work is helping the company achieve its goals.
• Example: Managers sit with each employee once a year for a performance appraisal (review).
They discuss what the employee did well, where they can improve, and set goals for the next year. If
an employee is struggling, HR steps in to provide support or training.
6. Total Rewards (The "Pay and Benefits Team")
• What they do: They create the whole package of money and benefits to attract and keep employees.
It's not just salary!
• Example: Your total rewards package might include:
o Compensation: Your $50,000 annual salary.
o Benefits: Health insurance, retirement plan (like a 401k), and paid time off.
o Recognition: An "Employee of the Month" award with a bonus.
o Work-Life: Flexible work hours or the ability to work from home.
7. Safety and Health (The "Protectors")
• What they do: They focus on keeping employees safe and healthy at work.
• Example: In a factory, they ensure all machines have safety guards. In an office, they organize
ergonomic assessments to prevent back pain. They also manage workers' compensation if an
employee gets injured on the job.
8. Employee and Labor Relations (The "Culture Keepers")
• What they do: They manage the relationship between the company and its employees.
• Example: They create the company's policies (like the dress code or social media policy). They
also investigate serious complaints, like harassment. If the company has a union, this team
negotiates with the union representatives.
Part 2: The Evolution of HR - From Paper to AI
The PAST: Traditional HR (The "Paperwork Era")
• Scene: Offices filled with filing cabinets.
• Example:
o Payroll: An HR person had to manually calculate hours worked, taxes, and deductions for
every single employee using a calculator. This was slow and prone to errors.
o Hiring: Job applications arrived by mail. HR had to physically read each one and store them
in paper folders.
The PRESENT: Digital HR (The "Efficiency Era")
• Scene: Everyone uses computers and software.
• Example:
o HRIS (Human Resource Information System): A single digital database holds all
employee information. Need to find an employee's hire date? It's two clicks away.
o Applicant Tracking System (ATS): Software that automatically screens hundreds of online
applications for keywords, saving recruiters countless hours.
o Self-Service Portal: An employee wants to change their home address or see their pay stub.
They log in to a company website and do it themselves instantly, without bothering HR.
The FUTURE: AI-Driven HR (The "Strategic Era")
• Scene: HR uses intelligent software to predict trends.
• Example:
o Predictive Analytics: The AI analyzes data and warns HR: "There's an 85% chance that
Sarah, a top performer in the design department, will leave the company within 6 months."
This allows HR to talk to Sarah, address her concerns, and try to retain her before she quits.
o AI in Hiring: AI software can analyze video interviews to assess a candidate's
communication skills and even help remove unconscious bias by focusing on the content of
their answers rather than their appearance.
Part 3: Important HR Concepts Explained with Examples
1. HR Strategy
• Simple Definition: The game plan for how the company will manage its people to win.
• Detailed Example:
o Company Goal: Become the leader in customer service in our industry.
o HR Strategy to support this:
1. Talent Acquisition: Hire people who are naturally empathetic and patient.
2. Training: Provide all employees with advanced "Customer Service Excellence"
training.
3. Performance Management: Set a specific goal for all staff: "Achieve a 95%
customer satisfaction rating."
4. Compensation: Give bonuses to employees who receive the best customer reviews.
2. HR Metrics
• Simple Definition: The numbers that show if HR is doing a good job.
• Detailed Examples:
o Time to Hire: Measure: The number of days from posting a job to the new hire accepting the
offer. Example: "Our average Time to Hire is 45 days. That's too long! We are losing good
candidates to faster competitors. Let's streamline our interview process."
o Employee Turnover Rate: Measure: The percentage of employees who leave each
year. Example: "We have a 10% turnover rate. But in our IT department, it's 25%. This is
expensive and a problem. Let's find out why IT employees are leaving and fix it."
3. HRIS, HRMS, HCM - The Toolboxes
• HRIS (The Basic Toolbox): Does the essential admin work.
o Example Tools: Payroll software, employee database.
o What it manages: Your salary, your tax forms, your vacation days.
• HRMS (The Expanded Toolbox): HRIS + tools for the employee journey.
o Example Tools: Adds recruiting software, onboarding system.
o What it manages: The entire process from when you applied for your job to your
performance reviews.
• HCM (The Strategic Toolbox): HRMS + tools for future planning.
o Example Tools: Adds advanced analytics, succession planning software.
o What it manages: Identifies that you have the skills to be a future CEO and creates a training
plan to get you ready.
4. How AI Helps HR (The Super Assistant)
• Task: Screening 500 résumés for one job.
o Without AI: An HR recruiter spends 10 hours reading every single one.
o With AI: The AI scans all résumés in 10 minutes and shortlists the 20 most qualified
candidates based on skills and experience.
• Task: Answering employee questions.
o Without AI: HR spends all day answering the same questions about holiday pay and
benefits.
o With AI: An AI-powered chatbot on the company portal answers these questions instantly,
24/7.
Summary for the Student
Think of HR's journey:
• It started as a paper-pushing department (Past).
• It became an efficient, digital department (Present).
• It is now becoming a strategic, AI-powered partner that uses data to improve the employee
experience and help the business grow (Future).
The key is to see that HR is not just about hiring and firing. It's a complex field that manages the entire life
cycle of an employee, from before they are hired until after they leave, and it uses technology to do this
more effectively than ever before.
