CHAPTER 13: The role of human resource management

Define human resource managemnet
The management of the total relationship between an employer and employee in order to achieve the strategic goals of the business.
What functions are included in human resources?
Equal Opportunity
Give one reason as to why HRM is one of the most important business functions
Because staff costs are more than 60 per cent
Distinguish between an employer and employee
An employer
Exercises control over employees
Has responsibility for payment of wages
Holds the power to dismiss employees

An employee is a worker under an employers control.

Outline the role of human resource management
To help in achieving the strategic goals of the business.
State the importance of the human resource management role in business success
Establishes an effective workforce which helps to add value to all areas of their business performance.
A successful human resource management helps a business to gain a sustainable competitive advantage.
What are the challenges facing human resource managers over the next decade?
The challenges of developing and retaining talented staff
Improving leadership development
Managing the ageing workforce
Succession planning
Who are line managers?
Are responsible for the management of staff contributing to the prime function of the business.
Who is responsible for human resource management in large businesses as opposed to small businesses?
In large businesses a specialist human resources team or manager

In smaller businesses the general manager and employees

What are specialist human resource managers responsible for?
Human resource planning and job design
Acquisition: recruitment, selection and placement
Maintenance of staff: wellbeing, legal responsibilities and communication
Justify the use of line managers in effective Juan resource management
As the span of control widens, the need to delegate human resource roles to line managers increases.
What is offshore outsourcing referred to as?
Global subcontracting
What are the top reasons for business outsourcing?
Reduce costs
Focus on core
Improve quality
What are the most commonly outsourced human resource functions and areas?
Leadership training
What is a contractor?
An external provider of services to a business.
Why are contractors used by businesses?
To create cost savings

To access greater expertise and capabilities to improve competitiveness

What business function are contractors mostly used for?
Particularly used for processing functions. These are the functions that are repetitive and easily measured.
Why is contracting mainly used for non-core functions?
To allow staff to focus on the broader aspects of managing a firm
What are the risks of outsourcing as the proportion of a firms activities are outsourced?
Cost overruns (or cost increase)
Loss of quality
Difficulty coordinating activities
Difficulty monitoring quality and performance in outsourced activities
What are the two forms of global outsourcing?
Process outsourcing

Project outsourcing

What is process outsourcing?
The dominant for pm of outsourcing of repetitive, easily measured and documented work
What is project outsourcing?
The much greater use of intellectual property and strategic business knowledge
What are the risks associated with global outsourcing?
Difficulty controlling the quality and reliability of the service

Cultural differences such as language or accent aides, which may impact on customer service

Well qualified employees may be replaced by less qualified staff, causing the quality of the service to decline

What are the advantages of global outsourcing of human resources?
Expand capacity / flexibility

Improve quality

Cave costs

What are the disadvantages of global outsourcing of human resources?
Less integrated organisation

Quality may fall

Loss of security and confidentiality of information

Recall the meaning of outsourcing
The use of outside specialists to undertake one or more key business functions
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