Human Resources

SECTION 1: UNDERSTANDING HUMAN RESOURCES

  • Human Resources (HR) is a business department in charge of managing the recruitment, hiring, training and development, benefits, and employee relations within an organisation.
  • The primary role of HR is to ensure the company has the right people available at the right time to accomplish the business objectives.
  • HR functions play a crucial part in maximising employee performance and furthering a business’s strategic goals.

SECTION 2: KEY HR ACTIVITIES

  • One of the critical activities of HR is recruitment and selection. HR professionals identify staffing needs, post job ads, screen resumes, conduct interviews, and make hiring decisions.
  • Another activity is employee development. HR conducts regular trainings and professional development programs to equip employees with necessary skills and knowledge.
  • The HR department is also responsible for compensation and benefits, determining fair and competitive salary structures and benefit packages to attract and retain talent.
  • HR also oversees employee relations. It is in charge of handling grievances, conflicts, and disciplinary issues and creating a positive work environment.

SECTION 3: HR STRATEGIES AND BUSINESS DECISION MAKING

  • The HR strategy should align with the business strategy to ensure that the number and type of employees match the skills required for the organisation’s current and future success.
  • HR decisions can significantly impact a business’s operations, finances, and overall success. For instance, the cost of recruiting and retaining staff can directly affect the company’s profitability.
  • HR analytics, which uses HR data to make informed decisions, can help improve the overall quality of HR decision making.

SECTION 4: LEGAL CONSIDERATIONS IN HR

  • HR must comply with various employment laws regarding issues such as discrimination, safety, wages, and termination of employment.
  • Non-compliance can result in costly litigation, fines and damage to the company’s reputation, thus HR’s role includes ensuring adherence to these laws.
  • Important legislation affecting HR decisions in the UK include the Equality Act of 2010, designed to prevent discrimination, and the Employment Rights Act of 1996, which covers rights regarding contracts, pay, dismissal and redundancies.

SECTION 5: HR AND ETHICS

  • HR policies should be applied consistently and fairly to promote trust and respect within the organisation.
  • Ethical considerations in HR include ensuring confidentiality of personal employee information, fair treatment of all employees, and adherence to ethical hiring practices.
  • Failure to uphold ethics in HR practices can harm ma company’s reputation and could lead to employee disengagement and high turnover.