Feedback Form

What are Human Resources Labor Employment Law Labor Employee Relations and Why Should It Matter to You

What are Human Resources Labor Employment Law Labor Employee Relations and Why Should It Matter to You

My definition of human resources (HR) is that it's the management of employees as if they’re a capital asset. A business acquires and manages employees in a manner similar to acquiring and managing any other capital asset. Now what exactly does this entail?

Employees are human and they are a business resource. However, in the same way that machinery or equipment is capital that is acquired, utilized, appreciates or depreciates in value, and which can be improved, sold or discarded, HR relates to the management of employees in a similar fashion. Although this explanation may seem callous, when further scrutinized it is evident that HR pays as much attention to the "human" half of its name as it does to the "resources" half.

HR concerns the approach and ideology a business adopts for its company culture and the life cycle of its employees. Recruiting, selecting, compensating, motivating, maintaining and promoting employees are all part of HR. Consequently, to some extent, all businesses with more than one employee practice HR. Yet, an effective HR philosophy has to acknowledge that because employees affect every facet of business, employees have enormous impact on profit.

HR AFFECTS PROFIT

Therefore, in order to improve profit and decrease expenses, management must know how to treat employees in a way which enhances their value. Ultimately, effective HR helps to maximize profit by minimizing employment related expenses and maximizing employee performance.

In U.S. industry, modern HR theories date back to the Industrial Revolution. Moreover, since the Industrial Revolution, HR has evolved along with changes in production, distribution, finance and, perhaps most importantly, legal and civil rights. HR poses problems for a business when it fails to understand how these changes influence macro and micro HR.

Micro and Macro HR

Macro HR is the strategic function of HR in a particular work environment. It encompasses the understanding of what HR means to a business; that is, how HR fits into the organization’s structure, mission and planning. Macro HR further incorporates policy and practice development. It’s the “big picture” stuff of HR.

Micro HR is the actual execution of duties as delineated at the macro level. These duties include the administration of policies regarding the selection, hiring, compensation, placement, performance management, promotion, conflict resolution, discipline and discharge of employees.

How Macro and Micro HR Impact the Bottom Line
As stated above, a business will encounter difficulties when it fails to account for changes to macro and micro HR practices and changes to our labor and employment laws. Such difficulties include an unsafe workplace, attendance issues, conflict, misconduct and litigation. Simply stated, when a business encounters HR related problems, money is lost.

Businesses have money coming in through the "front door" via revenue, venture capital, grants, investors, etc. However, much of this money can exit through the "back door" because
of poor HR practices. For instance, time and money is lost when a business realizes that it hired the wrong employee and may now have to discharge that employee. Consequently, that business will have to spend money and time finding and training a new employee and may even have to defend its treatment and discharge of the former employee. Recognizing and efficiently resolving these problems often costs a great deal of time, energy and money.

However, time and energy spent upfront, proactively, on HR related matters could help to reduce, and in certain instances eliminate, the loss of money out the "back door." Thus, HR becomes an investment in capital. Time, energy and money are saved and increased productivity and profits result.

Knowing which HR practices to adopt and which HR disciplines to focus on is crucial in resolving macro and micro HR issues. Effective HR helps transform business from just a place to work into an environment which provides employees varied opportunities for meaningful contributions. Meaningful employee contributions lead to decreased operating costs, innovation and increased profits. Implicit in this explanation is the fact that results are measurable via means such as before and after analyses and time and expense audits.

Labor & Employment Law Defined

Labor & employment law generally refers to the body of law regulating the workplace and all human resources and human capital related matters.

However, labor law and employment law are two distinct categories which are often confused with one another because they somewhat overlap.

Generally, labor law refers to the body of laws regulating labor unions and associations and their relationship with management. Such laws include the National Labor Relations Act and other similar federal, state and local labor laws. These laws permit employee organizing, electing representation and entering into legally binding contracts with management.

Generally, employment law concerns the body of laws and rules regulating civil rights and non-union related conduct in the workplace. Civil rights include a workplace free from discrimination and harassment for people (it need not be an employee, it could be customers or the public) who fit into one of the legally protected classes (e.g., race, gender, disability, national origin, religion, military status, pregnancy, and in some instances sexual or gender orientation). Conduct laws refer to the employer’s treatment of its employees. Like labor laws, these are federal, state and local laws.

Labor & Employee Relations Defined

On the macro HR level, labor relations refers to the philosophy a business adopts for dealing with labor unions, union organizing and employee associations. On the micro level, this refers to practices and rules for dealing with individual employee issues concerning unions and associations.

Employee relations refers to the ideology (macro) a business adopts for dealing with harassment and discrimination and other employee issues, unrelated to labor unions or employee associations. This may include communication, discipline, recognition and payroll policies. On the micro level, it generally refers to how laws and rules are applied to employees.





What are Human Resources Labor Employment Law Labor Employee Relations and Why Should It Matter to You - To learn more about this author, visit Charles Krugel's Website.

Like this article? Share it with your friends

Related Forum Posts Article Feedback
Article Feedback No article feedback found.
Leave Your Feedback

Related Articles Related Articles
What are Human Resources Labor Employment Law Labor Employee Relations and Why Should It Matter to You
  An article defining human resources and human capital, labor and employment law, and labor and employee relations, and discusses their importance to business. Explains theory and applies the concepts to the real wo...
Hiring Employees FAQs
  What labor posters do I need to display for my particular business?
California Labor Law Challenges and Solutions
  California employers need to be aware that California Labor Law differs from federal law in significant ways that can make life even more difficult, if not downright treacherous, for businesses with limited human re...
Glossary of National Labor Relations Board Terms
  Charge--An allegation made by an individual, employer, or labor organization of an unfair labor practice under the Act. Charges are filed at NLRB's regional offices.
What is the Equal Employment Commission EEOC and Does it Cover Small Biz
  Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act (ADA) cover all private employers, state and local governments, and education institutions that employ 15 or more individuals. These ...

Related Forum Posts Related Forum Posts
New Small Business Topic New Small Business Topic
Re: Best Month For Getting Financed? Re: Best Month For Getting Financed?
Public Relations! Public Relations!
Re: Please report "spam" to Kevin Re: Please report "spam" to Kevin
New topics New topics
Re: Food Marketing Entrepreneur Assistance Re: Food Marketing Entrepreneur Assistance
Non Commercial Food Service Handbook Non Commercial Food Service Handbook
The Top 50 Human Resources Blogs of 2009 The Top 50 Human Resources Blogs of 2009

Related Forum Posts Related Businesses - Evan Elite Authors
John Power
John Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website

Jeff Foster
WebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. - Visit Jeff Foster's Website

Dr. John Oda
John Oda Ph.D NLP is a business peak performance expert, an author, and speaker frequently called upon to provide corporate training, workshops and seminars for many companies in the United States. He is an expert in coaching sales and business professionals in overcoming the behaviors and obstacles that may impede their sales results and affect their bottom line. Since 1995, John has created a speaking bureau such topics, which include: time management, sales training, human diversity, leadership programs and etc. He provides companies with a strategic plan to increase their bottom line by over 25 percent yearly. - Visit Dr. John Oda's Website

George Ludwig
George Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website

Staging Diva
Debra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website


To learn more about the Evan Elite Author Program please contact us.

About The Author


Charles Krugel
(Visit Charles's Website)
As a labor and employment attorney and HR consultant, Charles Krugel, www .charlesakrugel.com, has represented management in hundreds of proceedings and has 13-plus years of experience in the field. For the past 6 years, Charles has run his own management side practice and is Director of Legal & Compliance Services for the Human Resource Store (www.hrsto re.com). Besides having earned his Juris Doctorate from Ohio Northern University, he has a Master of Arts in Industrial/Organizational Psychology from the University of North Carolina-Charlotte. Charles is a published author, has been the subject of numerous TV, radio and newspaper interviews and frequently gives seminars and speeches in his field. He is on the boards of directors of 4 organizations (Urban Gateways, Time Dollar Tutoring, YMCA Alliance and Youth Communication). He serves as Vice President and Treasurer for 2 of them. Charles is also on the Advisory Board of the Law & Policy Institutions Guide. He is a member of the Chicagoland Chamber of Commerce (serving on the Employment Law and Workforce Quality Committees), the Greater O'Hare Association (member of the Government Affairs Team) and the World Trade Center Chicago.
About The Author

View Author Blog
View Author Blog

View Author Video
View Author Video

Free Downloads


Charles Krugel's

Complete
List Of
Human-Resources
Articles

First Name
Last Name
Email
What's the color of the sky?
Blue or Green
 
If you enjoyed this article, get Charles Krugel's Complete List of Human-Resources Articles For FREE!

More Charles Krugel
Employee Screening and Risk Assessment
More Questions Concerning Severance Separation Agreements
Questions Concerning Severance Separation Agreements
What are Human Resources Labor Employment Law Labor Employee Relations and Why Should It Matter to You
Severance and Separation Agreements
Are Employment Policies or Handbooks Really Necessary
How Much Money Does an Employment Dispute Cost Whats A Business Likelihood of Getting Into an Employment Related Dispute
Become An Author


 
 
 



Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
Have A Suggestion?


Sales Lessons From Starbucks And Dell