Business Studies Human Resources Notes and Case Studies Band 6

Summary:

This notes from Business Studies Human Resources covers various aspects of human resource management (HRM), including its role in achieving business goals, legal frameworks and influences, employment contracts, and strategies for employee retention and development. It emphasizes the importance of effective communication, compliance with legal and ethical standards, and alignment with business objectives in managing human resources. Additionally, it discusses the potential consequences of poor HR practices, such as low productivity, high turnover, and legal disputes. HR indicators such as staff turnover, absenteeism, levels of disputation, workplace accidents, and worker satisfaction are used to determine the effectiveness of HRM strategies.

Excerpt:

Business Studies Human Resources

Role of Human Resource Management

• Strategic role of human resources:
  • HRM refers to the management of the total relationship between employer and employee in order to achieve the strategic goals of the business.
  • HRM is a strategic approach that incorporates all aspects of managing the employer – employee relationship in the workplace.
  • Effective HRM sees an employee as an asset rather than a cost, and encourages open communication and goal orientation. AIMs to reduce conflict through appropriate procedures and relationships. Need to continually examine ways to improve competitiveness and profitability.

Consequently, increasing number of businesses use strategic approach to manage employees by:
– Seeing an effective workforce as a way of adding value to all areas if their business performance
– Focusing on the use of specific HRM strategies to retain, reward, and motivate effective and skilled employees to achieve business objectives.

STRATEGIC CHALLENGES FOR HRM:
– Developing and retaining staff
– Improving leadership development
– Managing ageing workforce
– Increased role or technology
– Ethics and CSR
– Increased contacting out (outsourcing) of employment

Interdependence with other key business functions:
– FINANCE: effective HR policy within an organisation is linked to profitability gains, share price increases and high incidence of long-term survival
– MARKETING: Stronger relationships between business and its customers
– OPERATIONS: businesses that invest strongly in the relationship between them and their employees more likely to see a better performance by their employees.