Relationship of human resources to business objectives Flashcards
Human resources
People in an organisation are often referred to as human resources. Human resources should not be seen as just another resource, but as a valuable asset. It is the employees who direct and combine other resources to produce goods and services.
Human resource management
Human Resource Management is the function responsible for the efficient and effective management of the relationship between the employees and the organisation. It includes recruitment, maintenance and termination of the employees.
HR MANAGERS COORDIANTE THE ACTIVITIES INVOLVED IN THE …
Acquiring, maintaining and terminating of employees.
Relationship to objectives and strategy
Human Resource Management is related to wider business objectives in that without employees, organisations can’t achieve their objectives. The effective and efficient management of these human resource is therefore vital to the achievement of these corporate objectives. For example, the objective of increasing sales cannot be completed without employees to make the sales.
Example of How human resources can have a role in the objective of an increase in sales
Improving the sales skills of staff through how to approach customers, training employees to know the products better so they can sell it to customers and encouraging and training employees to upsell.
ANZ Bank is cutting 200 local jobs, blaming tough economic conditions and low lending growth especially effecting the marketing function. Explain how the strategy of job cuts will help ANZ achieve its objective of improving productivity.
The low lending growth may have indicated to ANZ that marketing is not making much of a difference so they decided to reduce the amount of marketing staff while still producing the same amount of outputs, this way they are using less inputs to produce the same amount if outputs which increases productivity.DEFINE PRODUCTIVITY
Outline the relationship between human resource management and business objectives
Human resource management is the function responsible for the efficient and effective management of the relationship between the employees and the organisation. Objectives are desired goals, outcomes or specific results that an organisation intends to achieve in a set time period. Human Resource Management is related to wider business objectives in that without employees, organisations can’t achieve their objectives. The effective and efficient management of these human resource is therefore vital to the achievement of these corporate objectives. For example if an objective was to increase sales by 10% in one month, this objective requires employees to make sales for it to be achieved.
Justify a suitable HR objective and strategy to achieve the objective of an increase in sales.
The HR objective to improve sales skills and strategy of ongoing sales training as this will improve e skill of staff which will allow them to sell more efficiently to customers. This could involve improving their product knowledge or direct selling skills.
Justify a suitable HR objective and strategy to achieve the objective of innovating new products.
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Extrinsic and intrinsic motivation
Intrinsic motivation come from the task or job itself, such as recognition or feedback or a sense of achievement.Extrinsic motivation comes from outside the job itself. They may be monetary such as pay or non- monetary such as long term job contracts.
Analyse the impact of business strategy on the human resource management function.
The Hr function and business strategy are closely related. HRs are the labour or people power used to produce outputs and can be used to achieve objectives. As businesses have the objective of earning a profit, they can use the strategy of making more sales to achieve this. The human resources function can decide to use the strategy of increasing the sales skills of employees to achieve this through training. If employees are able to make more sales than the business will earn money and profit should increase as a result contributing to the objective of profit.
