What Is Human Resources? What HR Does, Explained for Managers

Human resources (HR) is the part of an organisation that looks after its people: finding and appointing them, paying them, developing them, managing their performance and conduct, and handling the legal side of employment. Human resources management is the practice of doing this well, so that the organisation has the right people, in the right roles, working within the law. This guide explains what HR does, how the function is organised, which South African laws it works with, and what line managers must still do themselves.

What is human resources?

In most organisations “human resources” means two things at once: the people who work there, and the department that manages employment. The HR department exists because employing people involves a long chain of decisions and records, from the job advert to the exit interview, and each step carries legal duties. A small business may have no HR department at all; the owner or office manager does the work. A large organisation may have an HR director, HR business partners for each division, specialists in recruitment, payroll, training and employee relations, and an HR administrator keeping the records.

What HR does: the main functions

Workforce planning and recruitment

HR works out which roles the organisation needs, writes job descriptions, advertises, screens applications, arranges interviews and checks references and qualifications. In South Africa, recruitment must also take the organisation’s employment equity plan into account.

Appointments, contracts and onboarding

HR prepares offer letters and employment contracts, registers new staff for tax and the Unemployment Insurance Fund, sets up their records, and runs the induction so that new employees understand the organisation, their role and its policies from the first week.

Pay, benefits and leave

HR sets pay scales and grades, administers benefits such as medical aid and retirement funds, records leave, and works with payroll so that people are paid correctly and on time. Payroll is sometimes part of HR and sometimes part of finance; either way, HR supplies the employment data that drives it.

Policies, records and compliance

HR writes and keeps the policies that govern working life, such as leave, working hours, remote work, grievances and discipline, and keeps the employment records the law requires. Under the Protection of Personal Information Act, those records must be kept secure and used only for the purpose they were collected for.

Performance management

HR designs the performance system: goals, reviews, ratings and what happens when performance falls short. Line managers run the conversations; HR makes sure the process is fair, consistent and documented.

Training and skills development

HR identifies skills gaps, plans training, and in South Africa usually owns the skills development reporting: the Workplace Skills Plan and Annual Training Report submitted to the organisation’s SETA, which also bring part of the skills development levy back as mandatory grants. Many organisations appoint a Skills Development Facilitator inside HR for this work.

Employee relations, discipline and dismissals

HR advises managers on misconduct and poor performance, arranges disciplinary hearings, handles grievances, deals with trade unions and the CCMA, and makes sure dismissals and retrenchments follow a fair procedure. This is where most legal risk sits, and where HR earns its place.

Health, safety and wellbeing

HR supports the organisation’s health and safety duties, employee wellness programmes, and the handling of injuries on duty and incapacity.

Exits

Resignations, retirements, retrenchments and dismissals all end in HR: notice periods, final pay, UIF documents, certificates of service, exit interviews and the closing of records.

The laws HR works with in South Africa

• Labour Relations Act, 1995: unfair dismissal, unfair labour practice, trade unions, strikes and the CCMA
• Basic Conditions of Employment Act, 1997: working hours, leave, notice periods, pay slips and records
• Employment Equity Act, 1998: unfair discrimination, equal pay for work of equal value, and employment equity plans and reports for designated employers
• Skills Development Act, 1998, and Skills Development Levies Act, 1999: the levy, SETAs, Workplace Skills Plans and learnerships
• Occupational Health and Safety Act, 1993: a safe working environment and the duties of employers and employees
• Protection of Personal Information Act, 2013: how employee and candidate information is collected, stored and used

Together these Acts set the minimum standards for employing people. HR’s job is to keep the organisation inside them, and to build policies and practices that go beyond the minimum where it makes business sense.

HR department, HR manager and line manager: who does what

A common misunderstanding is that HR manages people. HR manages the system; line managers manage their people. The manager sets goals, gives feedback, deals with day-to-day conduct and decides who is appointed or promoted. HR provides the framework, the records, the advice and the procedures, and steps in when a matter becomes formal, such as a disciplinary hearing, a grievance or a retrenchment. The HR manager is responsible for the function as a whole; an HR business partner works alongside a division’s leadership on its people plans; an HR administrator or officer keeps the records and processes running.

Skills HR people need

• A working knowledge of South African labour law and how it applies in practice
• Recruitment and interviewing skills
• Clear writing, for contracts, policies, letters and hearing records
• Discretion and fairness in handling confidential and contested matters
• Numeracy for pay, leave and skills development reporting
• The ability to advise managers without taking their decisions for them

HR training at BOTI

BOTI runs practical HR courses for HR staff and for the line managers who do most of the people management in practice. They run in-house at your premises, at BOTI’s venue in Sunningdale, Johannesburg, or live online:

• Human Resource Management Course (1 day): the HR function and its main processes
• HR and Labour Relations Essentials (2 days) and the 3-day HR and Labour Relations course for managers
• Recruit and Select Candidates to Fill Defined Positions (3 days)
• Skills Development Facilitator (SDF) Training for the person who owns the Workplace Skills Plan

These courses are not accredited. They are delivered as professional skills programmes, and delegates receive a BOTI certificate of attendance. The full range is on BOTI’s human resources, labour and employment equity courses page.

Frequently asked questions

What is human resources?

Human resources is the function in an organisation that manages employment: recruiting and appointing staff, pay and benefits, policies and records, performance, training, employee relations, discipline and exits, within the requirements of labour law.

What does the HR department do?

The HR department recruits and appoints staff, prepares contracts and runs induction, administers pay, benefits and leave, keeps employment records and policies, supports performance management and training, handles grievances, discipline and dismissals, and manages exits.

What is the difference between human resources and human resources management?

Human resources is the function, or the people themselves. Human resources management is the practice of running that function: the planning, policies, processes and decisions that make employment work for the organisation and its staff.

What does an HR manager do?

An HR manager runs the HR function: plans the workforce, oversees recruitment, pay and records, advises managers on performance and conduct, keeps the organisation compliant with labour law and skills development requirements, and handles formal matters such as hearings, grievances and retrenchments.

Is HR the same as payroll?

No. Payroll calculates and pays salaries and handles tax and UIF deductions. HR supplies the employment information payroll needs, such as appointments, pay rates, leave and exits. In some organisations payroll sits inside HR; in others it sits in finance.

Call BOTI on 011 882 8853 or email [email protected], or request a quote.