Chapter 13 Flashcards
(13 cards)
List the three syllabus dot points under role of human resource management
SIO (like think strategy = siot)
- Strategic role of human resources
- Interdependence with other key business functions
- Outsourcing
–> human resource functions
–> using contractors - domestic, global
What are strategic approaches to managing employees
- seeing an effective workforce as a way to nadd value to all areas of business
- focus on HR strategies to retain, reward and motivate skilled employees to achieve goals
List some challenges that come with HRM
- managing ageing workforce
- developing and retaining skilled employees
- increased role of tech and outsourcing
What is the interdependence between HR and Operations
HR - recruiting staff, downsizing workforce, proving T&D in response to new tech.
Operations needs HR to - find right staff, retain skilled staff, maintain staff morale through monetary and non monetary benefits
Success of HR function is reliant on operations management – effective operations processes is required to ensure HR objectives such as higher labour productivity, job satisfaction and workplace safety performance are met.
Effective HRM ensures a highly skilled, happy and productive workforce, improving the performance of the operations function
HR and finance
The HR function is responsible for ensuring that there are enough employees, they have the right skills, are paid competitively, and receive the proper motivation and rewards.
The finance function provides the funds required for HR processes such as acquisition, development, maintenance and separation.
While each of these processes can be expensive, the long-term financial costs can be far more significant than the short-term expense if a business does not allocate adequate funds to HRM.
Secondly, the finance function provides HR with the data used to measure and evaluate performance, such as output per worker, labour costs, absenteeism,
–> helps appraise employees
–> helps identify staffing and development needs
- Effective HR processes result in higher labour productivity and lower staff turnover, contributing to the achievement of financial objectives:
–> boosting profitability by increasing sales revenue through improvements in the quantity and quality of output
–> improving cash flow and the ability to meet short- and long-term debts through increases in sales revenue
–> greater efficiency improving price competitiveness, higher quality output, and/or the development of innovative products
Interdependence with other KBFs
HRM provides: job design, acquisition, nseparation, union + agreement negotiations
As a result:
- Finance: increase profitability + share prices
- Marketing: stronger customer relationship
- Operations: increase employee performance + level of service
why outsource human resource function?
- allows the business firm focus on core business focus while HR experts can plan for growth, manage staff, etc
What functions of HR is typically outsourced?
- recruitment
- training
- payroll
What is a contractor
external provider of services to a business – individual or business
Features of domestic subcontracting
- increases quality and productivity using less resources = firm focus resources on essential business activities
–> experts in payroll etc - benefit of fresh ideas e.g leadership development
Features of global subcontracting
- offshore contractors = low cost
- process outsourcing: outsourcing repetitive work e.g payroll
- project outsourcing: using skills and strategic knowledge e.g IT and research
list three advantages and three disadvantages of of global contracting
advantage:
1. save cost - efficient
2. access new networks
3. conserve capital
disadvantage:
1. costs may rise + hidden costs
2. loss of control of quality and security
3. difficult coordinating activities - language barrier
4. high labour turnover
5. reliance on experts = no business learning
