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In simple terms, an organization's human resource management strategy should maximize return on investment in the organization's human capital and minimize financial risk. Human Resources seeks to achieve this by aligning the supply of skilled and qualified individuals and the capabilities of the current workforce, with the organization's ongoing and future business plans and requirements to maximize return on investment and secure future survival and success. In ensuring such objectives are achieved, the human resource function purpose in this context is to implement the organization's human resource requirements effectively but also pragmatically, taking account of legal, ethical and as far as is practical in a manner that retains the support and respect of the workforce. 

Key functions 

Human Resources may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas. The following are typical of a wide range of organizations: 

  • Recruitment, selection, and onboarding (resourcing) 
  • Organizational design and development 
  • Business transformation and change management 
  • Performance, conduct and behavior management 
  • Industrial and employee relations 
  • Human resources (workforce) analysis and workforce personnel data management 
  • Compensation, rewards, and benefits management 
  • Training and development (learning management) 

Implementation of such policies, processes or standards may be directly managed by the HR function itself, or the function may indirectly supervise the implementation of such activities by managers, other business functions or via third-party external partner organizations. 

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