Business Studies Notes – Human Resources (Role)

These vocabulary flashcards cover the role of Human Resource Management, its interdependence with other business functions, outsourcing concepts, real-world examples and key stakeholders.

Human Resource Management (HRM)

The management of the total relationship between an employer and an employee to achieve the strategic goals of the business.

Human Resources

The people who make up a business’s workforce; includes recruitment, training, rewards and separation.

Strategic Approach to Human Resources

Viewing an effective workforce as a source of added value and using specific strategies to retain, reward and motivate skilled employees → can provide a COMPETITIVE ADVANTAGE.

• Major challenged include developing and retaining talented staff, managing an ageing workforce, and improving leadership development.

Interdependence with Operations

Processes that convert inputs into goods/services.

• HR ensures staff have required skills and abilities to process inputs.

QANTAS - in 2017, they introduced the Flight Pulse app which provided in flight data to monitor and reduce fuel usage - pilots had to be trained first.

Interdependence with Marketing

Planning, promoting and selling products.

• Marketing’s plans determine HR skill needs and customer-facing staff quality.

QANTAS - has established itself as the premium airline service in Australia - to maintain this image, the correct staff must be employed and effective training provided.

Interdependence with Finance

Budgeting and managing monetary resources.

• Finance funds HR training and development and pays employee remuneration.

QANTAS - in 2019, they paid a total of $4.27 billion in wages and salaries to 29,000 staff.

Outsourcing

Using external third-party providers to perform business tasks to save time/costs, access expertise and focus on core activities.

• recruitment

• induction

• provision of training and development programs

• performance reviews

• payroll

MCDONALDS - uses Workstar, an external firm delivering a 1-hour online induction program for Gen Y/Z crew - ensures employees are ready for day one.

Contractor

External provider hired for a specific period to perform a task or function, often for cost savings or expertise.

• Domestic: individual or business within the home country hired to complete work, avoiding extra in-house staff.

• Global: foreign individual or business hired to perform work, usually to lower costs or support international operations.

Process Outsourcing

Dominant form for repetitive, easily measured tasks such as recruitment or payroll management.

Project Outsourcing

Longer-term outsourcing involving high intellectual property or strategic business knowledge.

Advantages of Outsourcing

Cost savings, access to specialists, focus on core functions, higher productivity/quality, improved legal compliance and flexibility.

Disadvantages of Outsourcing

Communication issues, ethical concerns, loss of control, quality variability, possible cost increases, weak grasp of corporate culture.