Role of HR management

Question 1

Strategic role of HR

Answer 1

• management of total r/s b/w an employer + employee in order to achieve strategic goals of (b)
• focus on use of HR to retain, reward + motivate effective + skilled employees to achieve (b) goals
• meet goals of (b) + customer expectations
• HR should acquire, develop + maintain staff to
  create positive (b) culture

Question 2

Interdependence with other key business functions

Answer 2

Operations
- creates jobs/roles for staff e.g. new machinery require HR to hire, train + pay workers
- HR ensures workers with relevant skills are hired so operations more efficient
- ensure (b) has recruited staff with skills + experience necessary to produce product - expertise
Marketing
- staff = public face of (b) - interactions with customers influence decision to purchase + recommend products of the (b) - customer service (people + process)
Finance
- HR work within budgets provided by finance to fund T+D, monetary benefits, salary/wage + remuneration
- effective HR policy linked to profitability gains, share price increases + higher incidence of long term survival

Question 3

Outsourcing

Answer 3

• use of third party specialist (b)’s to perform non-core (b) functions
• ADV: reduced costs (employ someone possible for few hrs per week + no on-costs - access to cheaper labour), improve quality, improve productivity, focus on core (b) functions + will have no on-costs
• DISADV: loss of control/monitor (over record-keeping as no day to day oversight) → loss of quality control + security issues, communication problems e.g. cultural misunderstanding + language difficulties, less reliable

Question 4

Outsourcing

- HR functions

Answer 4

• focus more on their core (b) as they grow
• take advantage of specialist skills provided + to achieve a reduction in labour costs
• obtain a superior service, better functional quality + a lower-cost service than would be provided internally

Question 5

Outsourcing

- Using Contractors (domestic, global)

Answer 5

• an external provider of services to a (b) - individual or (b)
• create cost savings + access greater expertise + capabilities to improve competitiveness
• major risks: loss of control, quality; difficulty monitoring
• recommended for non-core function - focus elsewhere
  Domestic
• avoids additional ‘in house costs’, along with overhead expenses involved
• attractive to SME’s lacking capacity to internally audit, compliance updates, research
• potential to improve quality + productivity without resources usually required to achieve this
  Global
• reduces costs + allows access to labour without having to consider issues such as min. labour requirements + WHS laws
• risks include: difficulty controlling reliability + quality, cultural differences, security issues (confidentiality)