What is Human Resources (HR)? Abbreviation & Definition

Human resources (HR) are an important success factor for every company. But what exactly does the term mean? We have the definition and explain which tasks and responsibilities HR includes.

What are human resources? The term refers to the intangible resources that a company receives from its employees. This includes the skills and knowledge, but also the motivation of the employees.  

In order to “manage” these resources, companies have their own human resources management department or Human Resource Management Team.

In Germany, the terms human capital, human resources and manpower are commonly used as synonyms for human resources.

And what does HR mean – after all, it is something you often read in connection with this topic? It's simple: HR is the abbreviation for Human Resources.

Many companies also simply refer to their human resources department as the HR department.

In Germany in 2004, the HR synonym “human capital” was awarded the title “unword of the year”. The term was criticized primarily because it reduced employees to merely an economically interesting factor.

Probably also spurred on by this criticism, the HR department today is making great efforts to take into account the individual needs and wishes of the staff and not to treat employees only as an interchangeable resource to be used in the best possible way.

The field of activity of a human resource manager is diverse. On the one hand, it can be about classic recruiting, but different facets of human resources such as personnel marketing, personnel development, personnel communication, personnel management or personnel planning can also be the focus. The tasks are not purely organizational; HR managers can also be responsible for a good working atmosphere, for example.

Examples of typical tasks in human resource management at a glance:

• Recruitment
• Personnel selection
• Support for employees
• Employee development
• Human Capital Management
• Personnel controlling

In short: Everything that has something to do with the company's workforce is important for the HR department's area of activity.

The goals of human resources are both economic and social in nature. Economic with a view to guaranteeing and improving smooth processes in a flourishing company. Social in the sense that employees (including future ones!) feel comfortable.

Economic goals include avoiding idle time and absenteeism and training young talent. Social goals can include implementing a good work-life balance and improving the working atmosphere.

Why should companies invest in their HR management? Firstly, because they need well-trained specialists with tact and sensitivity to ensure the optimal use and development of their workforce. Secondly, because this means they actively take responsibility for their own employees, which results in a positive corporate culture. The supportive attitude therefore also has an impact on employer attractiveness and competitiveness.    

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