The Relationship Between HRM and Business Objectives: KK1

human resource management

the effective management of the formal relationship between the employer and the employees

human resource manager

• coordinates all the activities, involved in acquiring, developing, maintaining and terminating employees from a business

  also:

• ensures employees are motivated

• ensuring employees positively contribute to the achievement of business objectives

productivity

a measure of employee performance that indicates how many inputs (resources) it takes to produce an output (goods or services)

aligning human resources objectives with business objectives

• human resources strategies must support overall business objectives

  Business objectives (AoS1)	Human Resource objectives	Human resource strategies
  To make/increase profit To expand market share To meet shareholder expectations	Increase worker productivity Develop sales skills	managers need to ensure that wages are appropriate and not too high. Motivation strategies Performance-related pay Implement training programs
  To improve efficiency	Develop production skills Reduce number of accidents	Implement training programs Establish safe work processes
  To improve effectiveness	Improve management skills	Implement training programs Refine organisational structure Goal Setting and MBOs
  To fulfil a market/social need	Define the goals of marketing, operations and sales	Implement job design review Goal Setting and Management by Objectives (MBOs)

Relationships between human resource management and business objectives

• employees are a crucial input in the operations of a business, and ultimately, it is staff who will achieve the objectives of the business

• well-designed strategies related to the management of employees, including recruitment, training and performance related to pay, help to ensure that employees contribute effectively to the achievement of business objectives

• the human resources area will be involved in determining business objectives and will work closely with other areas in the business to support them in achieving business objectives

• the human resource departments focus on positive work and employment relationships which should lead to motivated staff, increased productivity and the achievement of business objectives

Contemporary business case study: bunnings

• Bunnings Warehouse

• owned by public listed company, Wesfarmers

• business objective of increasing their revenue

• by providing training, product knowledge, customer service training

• rewards and recognition for employees (meeting or exceeding goals)

• gives bunnings people skills and knowledge to work hard and achieve business objectives