Business Studies: HUMAN RESOURCES YEAR 12

Human Resource Management

• The management of the total relationship between an employer and employee

Employer

• One who exercises control over employees

Employee

• A worker under the control of an employer

HR Management Functions

HR management has its own life cycle with four main functions involved

○ Acquisition = Involves attracting and hiring staff

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○ Development = Involves improving employee skills and knowledge

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○ Maintenance = Includes managing legal responsibilities of the business and rewarding staff for their

performance

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○ Separation = Employees leave the business

Effective HR mangement….. sees an employee as an …

• Sees an employee as an asset rather than a cost

The Strategic Role of HRM - assits the busines in ach

The strategic role of HR is to assist the business in achieving its overall goal of profit maximisation

How does it help businesses (3)

• Improves competitveness

• Sustainable competitive advantage

• Recongise employee as valuablke resources

Strategic Challenge of HR

• Develping and retaining staff

• Managing an ageing workforce

• Analysing increased role of technology

Interdependance

• Refers to when two or more business functions rely on each other to achieve business sucess

Interdependance with other Business Functions

• Finance

• Marketing

• Operations

1 Finance

• HR needs to finance to provide it with funds so that they can pay salaries and benefits as well as training courses. HR policies affect staffing costs.

2. Markeitng

• HR needs marketing to help understand the nature of the workforce they should employ, which is highly influenced by the opinion strategies.

  Customer services and brand reputation depend on employee conduct and training.

3. Operations

HR needs operations to provide it with information about the nature, skills and number of job hires, high talent individuals

HR Managers Responsibility

• Planning and Job design

• Acquistion

• Development

• Maintencance of Staff

Outsourcing

When a business hires an external business to peform tasks or functions

Aim of Outsourcing (skill, reduc labour cos, achiev better qua.)

• Use specialised skills

• Help them achieve redution in labour costs

• Achieve better quality

Outsourcing Human Resources

Most HR tasks are done internally such as

• rewards

• desiging job roles

Other aspects in HR that might be outsources include:

• A business might use a recruitment agency to find employes

• Send employes to training

Advantages of Outsourcing (3)

• Focus on core functions, dont waste time and energy

• Can reduce costs if cheaper then in house

• Improve quality w/ specialised skills

Disadvanatges of Outsoucing (3)

• Conflict between employees and outsourced

• Loss of control

• Cost savings arent always achieved

Using Contractors

Contractor

• External workers or business hired to peform specific taks for business

Advantages of Contractor (reduc cos, skil, main goa)

• Reduce costs

• Specialised skills

• Allows employees to focus on main goals

Risks/ Disadvantages (3)

• Increased Costs

• Loss of quality

• Difficultu coordinating

Domestic Subcontracting

• Contractors that operate within the same country

• Normally for small businesses

Advantages of Domestic (2)

• Expert knowledge on local market

• Convenicnes

Global Subcontracting

• Buisness contract activities overseas

Global contractors help business develop knowledge of…

overseas market if they want to expand

Advantages

• Cheaper labour/materials as exchange rate different

• Specialised skils, and increased prodctivity

• Improved abiloty to serve diverse range of customers

Disadvantages

• Hidden costs

• Language barriers

• Different Laws

• Loss of secutity

2 main forms of Outsoucing

1. Process Outsourcing

2. Project Outosourcing

1. Process outsoucing

• Outsourcing a repetitve routine task

• Easy to emasure and follow

2. Project Outsourcing

• Larger more complex projects that require specialised knowlegd and skills

• REQUIRE EXPERTISE