What Does "Human Resources" Really Mean?

Human resources is a broad term which refers to the department within an organization responsible for implementing the policies and strategies relating to the management of employees. Those working in a human resources department have in-depth involvement with the hiring, training and terminating of other employees. Additionally, human resource workers are responsible, in part, for employees' continuing education, and must also ensure that federal and state employment regulations, as well as policies specific to the company itself are being followed.

Often, the manager of the human resources department must handle volatile issues such as accusations of harassment between coworkers or labor and wage disputes. Those in human resource positions must also maintain a discrimination-free workplace, as well as possess detailed knowledge of regulations such as Affirmative Action and the Americans with Disabilities Act. In basic terms, the strategy of an organization's human resource department should be to optimize return on the organization's investment in human capital and decrease financial risk wherever possible.

Human Resources in History

The earliest record of human resources is arguably the arrangements between apprentices and their mentors in the 1700s. The apprentice typically lived in the home of the craftsman, and relied on the same for every need while learning the trade. With this arrangement the craftsman protected the investment he had made in another human being. This is probably the most stripped down example of human resource principles in the workplace.

The Industrial Revolution of the mid 1700s led to the elimination of most home-based apprenticeships, as manufacturing was moved from household settings such as the homes of guild manufacturers to factories where multiple individuals were employed. During this same period the government was forced to step in after numerous labor riots took place, and basic regulations to protect the rights and welfare of employees were permanently established. Factory owners who were wise realized these regulations were not simply a passing whim of the government, and many business owners choose to set up formal mechanisms to address labor issues on-site. Business owners felt this was a better approach to dealing with their workers than to risk the eventuality of labor riots or penalties from government bodies.

The first department that functioned in the capacity of what is known today as human resources was created by the National Cash Register Company in 1901. Similar to a modern department of this kind, issues were addressed on a daily basis such as wage management, terminations, training, grievances, and the fair distribution of workloads. Many other businesses followed suit throughout the early 20th century.

The Role of the Human Resources in the Modern Business World

"Times change, people do not" is a popular saying that is especially true with regard to human resources. Many of the issues that were dealt with in the business world of the early 20th century are still considered human resource issues today. A phrase used only since the 1960s, "human resources" is a term that was initially coined to describe the strategic management of human beings. Known prior to the 1960s as "personnel function," the position of human resources in a company emerged primarily as an administrative job throughout the 1960s and 1970s, and a high level of problem solving skills were needed to function effectively in the position. In today's modern world many companies prefer human resource managers with psychology or human behavior degrees. This may be a wise strategy, as human resource workers must frequently deal with delicate and controversial issues.

Human resource departments also play a large role in determining in which position a worker will be most effective. Whether skilled or unskilled, laborers who are placed in the positions for which they are best qualified helps the company to maximize its potential, operate in a more efficient manner, and secure future success. In addition to making sure the aforementioned goals are reached, the human resource department must ensure that issues such as discrimination or unfair labor practices can be dealt with before they can result in a negative effect on an employee of the company, or a negative public opinion about the company itself.

Employment in a Human Resources Position

In today's constantly changing corporate world, human resource workers will discover that as well as traditional job duties, they may also be asked to complete tasks such as creating company policy manuals, discovering strategies for continuing education, and speaking to company executives regarding the organization's future. A bachelor's degree is typically the minimum education required in order to work as a human resources professional, and as the modern business world continues to grow, job openings will most likely do the same. If one is detail oriented and has an adequate amount of problem solving skills, a career in human resources may be a wise choice.