Business Studies - Human Resources Department The aspects of the human resources department and management are explained including the 2 main types of HRM which is soft and hard HRM. It also explains the factors that affect it and objectives along with the jobs that HRM do.

1. Human Resources
Department
Business Studies
(A Level)

2. One of the most important tasks that involves the
personnel department in a business is Human Resources.
A business is only likely to achieve its objectives if it’s
employees are used effectively, therefore, planning how
best to use human resources will help the business.
HR must be integrated into the strategic and corporate
planning of the business. This means constantly looking for
better ways of using employees to benefit the
organisation.

3. Jobs of the HR
Department
Health and
Safety
Training
Recruitment
Staff
General staff
issues
(conflicts)
Welfare
Wages/Pay
Tax
Employment History
Reward
Systems
Holidays/
Absences
Communication
Systems
Policies + Procedures
Job Design +
Development
National
Insurance

4. Soft HR Hard HR
• Motivation • Analysing current needs
of employees
• Organisational Culture • Predicting future
demand of employees
• Support for employees • Predicting future supply
of employees
• Employee and Industrial
relations
• Predicting labour
turnover

5. Soft HRM treats employees as the
most important resource in the
business and a source of competitive
advantages
Focus of HRM - Concentrates on needs of
employees (their roles, rewards,
motivation etc.)

6. Strong and regular two-way communication
Strategic focus on long-term workforce planning
Competitive pay structure with performance related rewards
Employees are empowered and encouraged to seek delegation and take
responsibility
Committed staff
Less turnover
Better solutions
Staff feel more important
Values staff
Staff are treated as individuals and their needs are planned accordingly
Appraisal system focus on identifying and addressing training and employee
development needs
Flatter organizational structure
Democratic leadership style
Key Features:

7. Hard HRM treats employees simply as
a resource of the business (such as
machinery and buildings)
Focus of HRM - identify workforce needs of the
business and recruit + manage
accordingly (hiring, moving,
firing). It has a strong link with
corporate planning (resources,
how to get them, cost)

8. Short-term changes in employee numbers (recruitment, redundancy)
Minimal communication (from the top down)
Pay – enough to recruit and retain enough staff (e.g. minimum wage)
Little empowerment and delegation
Strict control
Predictable profit
Larger turnover
Untapped staff potential
Appraisal systems focus on judgement of employees (good or bad)
Taller organizational structure
Autocratic leadership style
Key Features:

9. HR Objectives
Matching the workforce to the needs
of the business
Minimise labour costs
Make effective use of workforce
Maintaining employee/employer
relations

10. Factors that affect HR
Changing goals of business
Changes in market
Technology
Population (age, activity rates)
Competition
Corporate Culture and Structure
Trade Unions
Finance
Government Legislation