Human Resources Business Management: Unit 2A Introduction to Human Resources

This unit falls under Business Management, specifically focusing on Human Resources.
Other core areas of Business Management include Finance, Marketing, Operations, and Strategy.

Human Resources (HR): Refers to the personnel (people) of a business, considered a valuable asset.
Human Resource Management (HRM): Involves the acquisition, training, motivation, and rewarding of human resources within a business.
Competitive Advantage: Efficient HRM can provide a significant competitive advantage for a business.
Connection to Factors of Production (Review from 1A.1): HR represents both a business's Labor and Enterprise.

Organizational Objective (Review from 1A.3): A stated result or goal a business aims to achieve.
Role of HRM: While HRM addresses individual employee needs, its primary function is to support the long-term needs and objectives of the business.
Example: Software Company Revenue Growth:
- Objective: 10\% revenue growth in two years.
- HRM Approach:
  - Hire more sales and marketing personnel.
  - Outsource or specialize certain functions.
  - Incentivize sales teams to boost performance.

Purpose: Before hiring, a business must identify its labor needs.
Workforce Plan (or Human Resource Plan): A document that identifies:
- The number of workers a business requires.
- The specific skills those workers must possess to achieve business objectives.
Considerations for Workforce Planning:
- Labor turnover rates.
- Sales forecasts.
- Prevailing wage levels.
- Impact of new technology.
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