What is HR and Types of HR?

What is HR and Types of HR?

Human Resources (HR) departments usually have various job titles and types. There are several different roles within an HR department that all work together to help properly manage your company's most valuable assets - your employees.

HR software systems can also be a highly useful and beneficial investment for companies of all types and sizes to streamline administrative work on the HR team and also smooth communications and operations when it comes to managing your human resources effectively during their full time with your company, from recruiting and hiring, to training and onboarding, to performance reviews and even termination if called for. 

This article outlines HR and discusses the different types of HR tasks and types to help you better understand how HR works and how HR software can be implemented into your company for smoother management of people and processes.

What is HR & Why is it Called HR?

HR (Human resources) is a department within a company or organization that manages and supervises the development of employees. An HR system should include all the tools to manage the lifecycle of every employee. This involves all aspects of the hiring process, such as interviewing, recruiting, and employee training. It also handles other concerns such as fair labor practices, conflict resolution, and workspace diversity. 

In his book " The distribution of wealth, "the term "HR" was coined by an American institutional economist, John R. Commons, in the book "The distribution of wealth" in 1983.

Nevertheless, until the 19th century, the human resource (HR) departments were developed earlier and tasked with handling employee performance department. Having a functional human resources department is crucial because it boasts loyalty and overall employee satisfaction. 

This leads to less misunderstanding, longer retention, and better performances, saving a company's time and money. And, the HR department researches to ensure competitive salaries and develops productive ways to negotiate ideal rates for employee benefits. 

HR was originally known as people or personnel management. In the past years, it was offering limited services. Human resource management is a conventional way of managing people within any organization or company. It's a basic part of any organization and its business strategy. Human resource management is thus focused on a wide variety of areas, including:

  • Recruitment and staff management
  • Benefits and compensation
  • Learning and training
  • Employee engagement
  • Organization development
  • Labor & employee relations

Human resources departments usually build a hierarchy of projects or jobs and every level has an employee who may support others or serve particular duties. This scaling helps ensure that the department is operating smoothly and meeting the company's personnel requirements. 

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How Many Types of HR are There?

It’s crucial to know where human resource management falls at an organization or business level. An organization is split into several segments that work together to add a particular service or product to the market. Every level comprises its own particular set of functions to oversee each different service or product. 

The three levels are:

  • Corporate level
  • Business level
  • Functional level

HR falls into the functional level.

Managers at the functional level are responsible for particular business operations that make up a company or one of its segments. Human resource management's responsibilities are strategy implementation and execution of business-level and corporate-level plants at the operational level. 

Here is a quick list of some of the most common types of human resources positions to give you an idea of how other companies structure HR departments, positions, and titles. 

  • Employment specialist
  • Assistant, Human Resources
  • Coordinator human resources
  • Specialist human resources
  • Recruiter
  • Generalist human resources
  • Manager human resources
  • Recruiter manager
  • Employee relations manager
  • Labor relations specialist
  • Director of the employee experience
  • Director of human resources

What are the 4 Types of HR?

Human resources is only perceived as recruiting, hiring, or firing most of the time. But the work of an HR department is much more than just those activities.

Job descriptions, responsibilities, and skills on an HR team vary depending on the company size, structure, and needs.  For instance, in a large company, responsibilities of the HR departments may include:

1.     Handling policies, programs, and benefits linked to human resources

2.     Directors of human resources might be managing diverse departments like talent acquisition, onboarding and training, benefits administration and performance management. They may also support managers in employee education or training programs as well as performance management and corrective plans for employees.

3.     Human resources managers will oversee recruiting, hiring, and employee training, performance management, or when called for, employee termination. 

In a small company, there may only be one person in the HR department. The responsibilities of human resources  include hiring, recruitment, training, benefits, and compensation.

Small businesses usually hire full-time human resource specialists only when the employee limit exceeds 50. Most companies hire professionals in Human Resources or HR professionals with PHR or Senior Professional in Human resources (SPHR) certification, which offers extra proof that a human resource specialist is qualified and deserving for the position.

Here are 4 major types of Human Resources:

1.     Administrator Human Resources (HR)

The administrator of Human resources serves as the first node of call to employees and external partners for HR-related queries. An HR administrator handles the majority of documents, including starter packs, recruitment paperwork, and contracts. An HR administrator performs the following tasks:

  • Forms and maintains employee records
  • Updates databases internally such as maternity or sick leave
  • Prepares and modifies all document types, i.e., recruitment guides, employee handbooks, and employment contracts 
  • Reviews and renews company policies and legal company compliance
  • Assists with payroll by providing the department with relevant employee details

2.     Human Resources (HR) Assistant

An Assistant Human Resources is a certified professional who deals with the organization's regular HR and administrative duties. They help HR managers with hiring, recruitment, record maintenance, employee verification letters, process payrolls, and provide clerical support to all workers.

Here are some core responsibilities of an assistant in Human Resources:

  • Assists with daily operations of HR duties and functions
  • Provides administrative and clerical support to human resources executives including benefits administration, and payroll.
  • Process all allowable documents and document templates regarding staffing, training, recruitment, performance evaluations, etc.)
  • Deals with employee requests regarding company culture, employment opportunity, employment classifications, accommodation, and food services.
  • Assists in payroll preparation by providing relevant information (bonus, absences, leaves, etc.)

3.     Employment Specialist

An employment specialist is liable for applicant tracking to match job applicants to a particular job that suits their talents. They make sure that the candidate has the correct documents and right skills required for the job. Some of the core duties of an employment specialist include conducting mock interviews, testing the expertise of job candidates, monitoring job retention, and helping applicants with their resumes and the required amounts of documents. 

As the other HR employees must have PHR, SPHR, or associate professional in Human Resources credentials, an employment specialist doesn’t require any experience. Still, they must have a GED or high school diploma. They are also responsible for a good employment relationship to communicate with the potential candidate to find their expertise effectively. 

Some of their responsibilities include:

  • Monitoring job retention rate
  • Working with applicants and employees to understand their services and needs
  • Recommend training to job applicants for their career progression

4.     Director of Human Resources

The Director of Human Resources supervises the hiring and employee relations of all the company departments and makes sure that they are being overseen according to the company's standards.

The main difference between a director and a manager of HR is their level of authority. The former focuses on bigger tasks such as developing and enforcing company policies, Goal tracking, and implementation of HR strategies. At the same time, the latter is responsible for the day-to-day functions of the HR department.

Their responsibilities vary according to the type and size of the organization. Here are some generic duties they perform:

  • Plan, lead, and manage all HR initiatives such as hiring, training, benefits, compensations, and employee relations.
  • Collaborate with other divisions to deliver employee training, assure compliance and facilitate the management
  • Supervise budget development, business operations, and planning of HR programs.
  • Advise managers and supervise staff operations and labor policies
  • Implement HR strategies through department accountabilities for compensation and benefits, talent acquisition, AA/EEO compliance, training and development, and employee retention. 

HR software

Is HR for the Employee or Employer?

Among the non-HR executives surveyed by BambooHR, nearly one-third said their HR team doesn't report often enough, and 16 percent said they have no idea how often their HR team reports. 

However, Human resources departments must balance the needs and benefits of employees, managers, and the entire organization. When it comes to managing employees’ problems, the HR department can be a trustable friend. They are a place of support and help for all the workers; they are also full of professionals who must think realistically about the best interests of their workers. 

An organization has complete obligations to the employees, and it's HR's responsibility to assure these obligations are being served well. 

How Do I Assign an HR Role in HR?

Human Resource Managers work as the backbone of any business. They have the complete blueprint of the company to meet its mission, vision, and company goal.

If you have decided to follow a career in the human resources and recruitment department, you have to work on your skills because HR managers are expected to work with people by enduring the ordinances and principles. They are dealt with as the key matter for developing professional standards of discipline and cooperation.