What Are The Types Of Human Resources – HR has developed significantly in recent decades and continues to grow. However, the best HR practices have remained and have served as a guideline for HR professionals over the years. But what do they mean and why are they so important? In this article, we discuss the 7 best HR practices. They are crucial for effective personnel management.
Best practices are a set of HRM processes and activities that work across the board. There are two schools of thought in HRM research on managing people. The first one is
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We leave out the extensive scientific debate about the pros and cons of each approach. In such discussions, the truth is often somewhere in the middle.
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This means that the HR strategy and subsequent HR activities must be consistent with the organization’s strategy for optimal performance (the so-called pursuit of best fit). In the literature, this approach is also called strategic personnel management.
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At the same time, there are many best practices that have been proven to lead to superior organizational performance. If HR applies these practices correctly, they add significant value to the company and its goals (i.e. adoption of best practices).
Jeffrey Pfeffer suggested the 7 best HR practices listed below. Pfeffer wrote two books on the subject:
Human Resource Best Practices
In these books, he suggests best practices that can increase a company’s profits. When these HR principles are combined (or combined), their impact is even more profound.
The first HR best practice is occupational safety. Life is unpredictable and work is a constant factor that is very important to most people. An employer that allows an employee to support himself and his family is actually the main reason why people come to work.
There is both an official contract (work for money) and an informal contract (you put in the extra effort, we take care of you) between the employee and the employer. Occupational safety enables employees to return home from work and take care of themselves and their families. This security concept is essential and supports almost all HR.
When occupational safety is compromised, such as in the case of restructuring or layoffs, you can see the immediate effects on the entire organization.
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Occupational safety also benefits organizations because it helps them retain employees. For example, when employees are fired, the organization usually pays the price. They invested in the selection, training and development of these employees. It’s an expensive process. If an organization does not strive to retain its employees, they are more likely to leave and work for a competitor.
According to the 2020 study, occupational safety is the third most important factor for employees. 28% of the 1,100 professionals surveyed in the UK cited workplace safety as an important factor. Occupational safety is important in all global HRM practices. 2. Selective hiring: Hiring the right people
Another HR best practice is selective hiring. This gives the organization the opportunity to acquire employees who bring added value.
You can’t just hire anyone; you want people who are right for the job. Companies do everything they can to employ exceptional people because they bring the most value to the company. Priority should also be given to building a structured and fair selection process. This reflects the requirements of the law, internal diversity goals and the fact that a more diverse workforce better reflects society. This can be very useful for understanding broader consumer behavior and the needs of different customers.
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Studies show that the difference between average and high performance can be as much as 400%! This applies to a number of industries and jobs, including scientists, artists and athletes.
In today’s digital world, there are many different recruitment tools to help us make the right choice. More and more companies are heavily tracking their recruitment metrics to see how well they are doing in this regard.
Commonly used selection tools include structured and unstructured interviews, IQ tests, personality assessments, work tests, peer reviews and reference checks. These (pre-employment) assessments are used to uncover three key characteristics of applicants.
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We all know that teamwork is crucial to achieving goals. Effective teams are critical to the success of any business.
Teams provide value because they are made up of people who are and think differently but work towards a common goal. This means that different ideas are generated to achieve the goal. These ideas are then processed and combined to select the best ones.
The best teams are cognitively versatile and psychologically secure. This means that team members can generate different ideas while feeling comfortable presenting and discussing them.
Building and nurturing effective teams is one of the most important tasks of the HR department. Bel’s Team Role Inventory is a popular tool for team building and collaboration. Effective HRM means directly supporting teamwork by participating in the organization of teams. This can be done in several ways. Measuring team performance, rewarding team excellence, and advising management on techniques and tools to facilitate teamwork are just a few methods.
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Individual personality assessments also help to understand how other team members think and behave. Understanding these processes is one of the manager’s main responsibilities. This is why many management courses focus on this.
Various tools facilitate teamwork. Examples are communication software, feedback tools, project management tools and other task and goal setting software. They can facilitate communication and help Teams to be more efficient.
Finally, HR must encourage different Teams to work together in the organization. A team is usually part of a larger unit, such as another team or department. These larger units also need to work together. Facilitating this helps build an efficient and functioning organization. One tool that can be used for this is organizational network analysis. 4. Reasonable salary based on results
Contingent remuneration is the fourth best practice in human resources. It’s all about compensation and benefits.
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First, if you hire the right people, you want to reward them above average. These people add the most value to your business, so you want to keep them and pay them fairly. This is an example of how different best practices together deliver more value than they do individually, in this case selective hiring, contingent pay and job security.
Overpaying people also has some potential downsides. For example, it prevents bad employees from leaving. However, if you’re consistently hiring world-class contractors, an above-average salary is a must.
This type of compensation package can be financial (basic) compensation and employment benefits. You need to follow market trends in your field and related fields (many of the best hires can come from other career fields). Then you will be able to understand what the average salary is and where your company ranks in the compensation offer.
Second, you want to link individual rewards to different types of employee contributions. These are performance based awards.
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By combining organizational performance points with individual rewards, the individual is motivated to maximize that score. It also creates a sense of ownership in the employee.
Think, for example, of profit sharing, joint ownership or stock options. These are great ways to engage employees in the company’s long-term vision and maintain high potential. Hiring is a key factor in successful talent management.
This type of joint ownership is therefore not usually intended for all employees. Lepak and Snell (2002) provide a good model for assessing the importance of individual employees.
As an organization, you specifically want to preserve your “criticism”. These are people with unique skills (ie hard to replace) who are extremely valuable to the company. For this reason, senior executives, most of whom fall into this category, often receive these benefits. 5. Training of relevant skills
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This HR best practice says that companies should invest a lot of time and budget in training their employees.
Once you’ve recruited the best people, you need to ensure they remain industry leaders. This has become even more important today as the pace of technology increases exponentially. This is where science and development come into play.
How to create an organization where the pace of learning matches the pace of change? Science has become a way to stay innovative, develop faster and maintain a competitive edge.
Employers are investing more and more in training forms that focus on specific skills. According to the Economist’s special report on lifelong learning, the number of subscription courses has grown exponentially. Thanks to the Internet, everyone is connected and can learn anything, anytime, anywhere.
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In addition to formal learning, on-the-job learning plays an important role. The increased focus on feedback, coaching and peer learning has an impact here. This is the part
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