Before you decide why you should outsource HR, you should first learn what human resources is. HR, in a nutshell, is concerned with the human beings in an organization. “The management of man” is an important, yet challenging job because of people and their dynamic nature. No two people are the same in terms of behavior, sentiment, and mental ability because they can differ widely as a group and are subject to many different influences. People cannot be altered and shifted like a template in a room layout or operated like machines because they think, they feel, and they are responsive. HR is the process of managing people of a company or business using a human approach. The approach to manpower in human resources allows managers to view their employees as important resources. This allows organizations to use their manpower not only to provide benefits for the company, but also for the development, self-satisfaction, and growth of the people themselves. Essentially, HR is the system that focuses employee development in one hand and effective and dignified management of people in another.
Human resources can be defined in two different ways. The first definition of HR is the process of managing people in organizations in a thorough and structured manner. This includes the fields of staffing or hiring people, performance management, pay and perks setting management, change management, retention of people, and taking care of exits from the company. This is how HR is traditionally defined; it is simply a modern version of the Personnel Management function that came before it. The second definition of HR is the management of people in organizations from a macro perspective. In other words, managing people in the form of a harmonious relationship between management and employees. This approach is focused on the outcome and objectives of the human resource functions. It means that the HR function in modern organizations includes enabling people, developing people, and making the employment relationship fulfilling for both management and employees.