Human resource management (HR)
What are human resources?
Human resource management
The organisation of employees’ roles, pay and working conditions
Effective human resource management can enable a business
to retain its employees, as it promotes high levels of motivation
and job satisfaction among staff
Human resource manager
Coordinates all the activities involved in acquiring, developing,
maintaining, and terminating employees from a business’s human
resources
Why are employees important for a business?
- Motivated employees are more likely to work productively and
help achieve objectives
- Recruiting, selecting, and training employees’ costs money. This
money is seen as an investment in employees
- The training and development of employees can lead to a
competitive advantage over rival businesses
Linking business objectives and HR activities
Business objectives HR objectives HR strategies
Increase market Increase worker Thorough selection process
share productivity
Increase in profits Improve product Regular performance
knowledge appraisal
Provide safe Reduce number of Establishment of work
workplace accidents team’s introduction of
flexible work practices
Relationship between managing employees and business objectives
Within a business, human resource manager coordinates and directs
employees throughout all stages of their employment. When
managed effectively, employees are likely to feel valued, encourage,
,and motivated to perform at their best, which can contribute to
higher levels of job satisfaction. Subsequently, high-performing
employees can improve a business’s performance and assist the
business in achieving its objectives.
TO MAKE A PROFIT: When employees have increased job
satisfaction, the number of employees leaving the business is likely
to decrease. Therefore, the costs associated with recruiting and
training replacement employees for leaving staff are reduced.
TO INCREASE MARKET SHARE: When employees have increased job
satisfaction, the quality of the goods and services manufactured and
delivered is likely to also increase. Therefore, a higher quality of
goods and services can lead to increased customer satisfaction and
sales
TO MEET SHAREHOLDER EXPECTATIONS: When employees have
increased job satisfaction, they are motivated to work harder and to
a higher standard. Therefore, highly motivated employees can
enable a business to increase its sales and profit, allowing higher
dividends to be paid to shareholders.
TO FULFILL A MARKET NEED: When employees have increased job
satisfaction, they are more likely to contribute to innovative ideas.
Therefore, a business that produces unique goods and services may
be able to better meet customer needs.
TO FULFILL A SOCIAL NEED: When employees have increased job
satisfaction, their support of business initiatives is also likely to
increase. Therefore, business initiatives that aid the community and
reduce waste are more likely to be successful.
TO IMPROVE EFFICIENCY: When employees have increased job
satisfaction, they are more motivated and determined to complete
work tasks, doing so in a focused, error-free, and productive manner.
Therefore, a business is able to produce goods and services at a
faster pace and to a higher quality, with fewer errors and discarded
materials.
TO IMPROVE EFFECTIVENESS: When employees have high job
satisfaction, they are more motivated to achieve business objectives
, and have greater resilience when doing so. A business can more
readily achieve its objectives and continue improving its
performance.
Motivation
The willingness or drive to exert high levels of effort to achieve
business objectives, while also satisfying individual employees need
to achieve
How do you motivate employees to work?
Businesses invest significant time and money trying to discover
what motivates employees
Motivated employees are more likely to work harder to help
achieve objectives
Three theories of motivation:
Maslow’s Hierarchy of Needs
A motivational theory that suggests people have five fundamental
needs, and their sequential attainment of each need acts as a source
of motivation.
Maslow explained that humans are motivated to satisfy five
needs in a sequential order
Self-actualisation needs Higher order
Esteem needs
Social needs
Safety and security needs
Physiological needs Lower order
What are human resources?
Human resource management
The organisation of employees’ roles, pay and working conditions
Effective human resource management can enable a business
to retain its employees, as it promotes high levels of motivation
and job satisfaction among staff
Human resource manager
Coordinates all the activities involved in acquiring, developing,
maintaining, and terminating employees from a business’s human
resources
Why are employees important for a business?
- Motivated employees are more likely to work productively and
help achieve objectives
- Recruiting, selecting, and training employees’ costs money. This
money is seen as an investment in employees
- The training and development of employees can lead to a
competitive advantage over rival businesses
Linking business objectives and HR activities
Business objectives HR objectives HR strategies
Increase market Increase worker Thorough selection process
share productivity
Increase in profits Improve product Regular performance
knowledge appraisal
Provide safe Reduce number of Establishment of work
workplace accidents team’s introduction of
flexible work practices
Relationship between managing employees and business objectives
Within a business, human resource manager coordinates and directs
employees throughout all stages of their employment. When
managed effectively, employees are likely to feel valued, encourage,
,and motivated to perform at their best, which can contribute to
higher levels of job satisfaction. Subsequently, high-performing
employees can improve a business’s performance and assist the
business in achieving its objectives.
TO MAKE A PROFIT: When employees have increased job
satisfaction, the number of employees leaving the business is likely
to decrease. Therefore, the costs associated with recruiting and
training replacement employees for leaving staff are reduced.
TO INCREASE MARKET SHARE: When employees have increased job
satisfaction, the quality of the goods and services manufactured and
delivered is likely to also increase. Therefore, a higher quality of
goods and services can lead to increased customer satisfaction and
sales
TO MEET SHAREHOLDER EXPECTATIONS: When employees have
increased job satisfaction, they are motivated to work harder and to
a higher standard. Therefore, highly motivated employees can
enable a business to increase its sales and profit, allowing higher
dividends to be paid to shareholders.
TO FULFILL A MARKET NEED: When employees have increased job
satisfaction, they are more likely to contribute to innovative ideas.
Therefore, a business that produces unique goods and services may
be able to better meet customer needs.
TO FULFILL A SOCIAL NEED: When employees have increased job
satisfaction, their support of business initiatives is also likely to
increase. Therefore, business initiatives that aid the community and
reduce waste are more likely to be successful.
TO IMPROVE EFFICIENCY: When employees have increased job
satisfaction, they are more motivated and determined to complete
work tasks, doing so in a focused, error-free, and productive manner.
Therefore, a business is able to produce goods and services at a
faster pace and to a higher quality, with fewer errors and discarded
materials.
TO IMPROVE EFFECTIVENESS: When employees have high job
satisfaction, they are more motivated to achieve business objectives
, and have greater resilience when doing so. A business can more
readily achieve its objectives and continue improving its
performance.
Motivation
The willingness or drive to exert high levels of effort to achieve
business objectives, while also satisfying individual employees need
to achieve
How do you motivate employees to work?
Businesses invest significant time and money trying to discover
what motivates employees
Motivated employees are more likely to work harder to help
achieve objectives
Three theories of motivation:
Maslow’s Hierarchy of Needs
A motivational theory that suggests people have five fundamental
needs, and their sequential attainment of each need acts as a source
of motivation.
Maslow explained that humans are motivated to satisfy five
needs in a sequential order
Self-actualisation needs Higher order
Esteem needs
Social needs
Safety and security needs
Physiological needs Lower order
