Working in human resources often requires a unique blend of interpersonal skills and strategy. There are many administrative chores and processes that must be followed, but the majority of the job tends to be extremely people-oriented.
When we talk about the complicated world of human resources, advantages, systems, procedures, potential employees, and interviews are all significant components, and if you've ever had a meeting with human resources professionals at your current or previous job, the jargon could have made your head spin.
A good mastery of some of the common HR jargon will help you get ahead in the race for an MBA. There are many HR concepts and ideas that are often used, so we've put together this handy glossary to help you learn them all.
Top 10 HR Concepts and Terms
Engagement is the first concept that every generalist in human resources should be familiar with. For a long period of time, engagement has been HR's golden standard. Engagement is something that the majority of us are acquainted with. It is said to increase productivity, decrease absenteeism, decrease staff turnover, improve product quality, and result in fewer product faults.
Unlike burnout, engagement is a positive state. Those who get burnt out have little energy, are emotionally disengaged from their job, and are cynical; in contrast, individuals who are engaged have great energy, are committed to serving, and often lose track of time while working.
2. Job Demands-Resources Model
JD-R, or the job demands-resources model, is another HR concept. It's a work-related stress model. The model suggests that each profession has its own unique risk factors for occupational stress. For the most part, these variables fall into two groups. These are the requirements and resources of the work.
According to the paradigm, work expectations cause stress (and ultimately burnout), whereas job resources create energy (and eventually engagement). Psychological, physical and emotional requirements of the workplace are caused by heavy workload and time constraints, which have a major impact on job demands.
According to the JD-R framework, job resources serve as a buffer against workplace demands. So, if there are a lot of people looking for work, there should be enough people with jobs to fill those positions as well. If this isn't the case, stress and, eventually, exhaustion are real possibilities.
3. Strategic Human Resource Management
Dave Ulrich and his colleagues popularized the term "strategic human resource management" in the early 2000s. Dave Ulrich wrote in a 1998 essay that "HR should be defined by the outcomes it produces, results that enhance the organization's value to its customers, shareholders, and workers."
Human resources grew more strategic as a result of the response of HR professionals in the years that followed. As a result, the HR Business Partner position was created, which calls for a human resources adviser to provide operational guidance as well as tactical and strategic input.
The purpose of strategic human resource management is for human resources to match their operations with the organization's goals. When done correctly, human resources may assist the business in achieving its objectives.
4. HR Analytics
The following concept refers to the process of integrating human resources operations with the organization's strategic goals. To say that we've increased employee training over the previous year is great, but how does it help the organization achieve its goals?
This is where human resource analytics comes into play. In the field of human resource management, HR analytics, sometimes known as "people analytics," is a data-driven strategy. The use of HR analytics enables us to evaluate if and how HR operations contribute to the overall success of the firm.
5. Employee Turnover
The following HR concept is "employee turnover." It may seem straightforward, but it is far more difficult. There are a variety of difficulties associated with turnover.
To begin, turnover is not always a good or negative thing. There are two types of turnover: regrettable and unforgivable loss. When top performers go, regrettable or undesirable turnover occurs. Unregrettable loss, or desired turnover, occurs when poor performers go.
A certain amount of regrettable turnover is unavoidable. However, an organization's regrettable loss rate might be devastating. Managing and retaining high potentials and critical personnel should be one of HR's primary tasks.
6. Applicant Tracking System
The applicant tracking system, or ATS, is another critical HR concept. An applicant tracking system is a kind of Human Resource Information System (HRIS) that is used to manage recruitment and hiring processes.
An applicant tracking system is a recruiting version of a CRM system. Each time a candidate submits an application to a firm, their profile is kept in the applicant tracking system. The ATS may be used to look for profiles (through links to job and resume boards such as LinkedIn, Monster, and others), post job openings to job websites, match applicants to job openings and invite applicants to interview.
7. HR Report
The following HR concept is "HR Report." Nowadays, all HRISs have a report-generating capability. These are essentially printouts of the system's data. The HR dashboard complements the HR report. The human resources dashboard is a report that may be interacted with. For example, you may slice and dice data to look at certain divisions, teams, areas or function groups.
With the HR report and dashboard, you'll be able to gain better control of your data and make better decisions. Quality HR reporting allows you to combine data from several sources. A basic HRIS and a management framework are required to find out what proportion of turnover is regretted. These data sources may be combined to assess loss remorse.
8. Employee Experience
Employee experience has been an increasingly popular HR phrase over time. Every firm has a unique set of experiences that people have while working there. HR may benefit from a unique viewpoint provided by the employee experience. Employee experience is how HRM is seen when employee engagement is considered as a result of the work done by the employees themselves. As a result, it's considered a motivator for both employees and the company as a whole.
There hasn't been a lot of interest in employee experience in literature since it's a relatively new subject. Whether or not employee experience and employee engagement have comparable effects on company results will need further research.
9. 360-Degree Survey
The 360-degree survey is another HR Concept. It is possible to get input from a variety of viewpoints by using 360 surveys. It is often conducted in collaboration with one's management, coworkers, subordinates, and clients, and provides a comprehensive picture of one's behavior.
The majority of 360-degree surveys are used to evaluate the performance of managers. Despite its popularity, the instrument has not always been a success. Only one-third of the time does this kind of evaluation work, according to the research. Surveys are ineffective in another third of situations, and in the last third of cases, they even worsen performance.
10. Cost Per Hire
In the context of hiring a new employee, it refers to the direct and indirect costs associated with the process, including everything from advertising the position and paying recruitment agencies to move and train the new worker. For each employee, a smart HR software maintains track of the total cost of each new hiring.
Let MBA Be Your Next Stop!
If you're looking to further your career in human resources, earning a master's degree is an excellent approach to acquiring the skills and information necessary to take the next step. Get ahead in your career with Simplilearn's Global MBA Program. Set yourself up for future successes by establishing a strong foundation in management studies, as well as a wide range of business connections.