| HR (Human Resources) can be defined in many ways | | | | resource they have. For example, employees: |
| but in the context of business, we can say that HR is | | | | * Represent your business |
| the strategic and effective management of your most | | | | * Bring knowledge, skills and experience to your |
| profitable resource: people. | | | | business which are intangible but are also priceless |
| A strategy is a careful plan or method that is put in | | | | * Create customer satisfaction |
| place to ensure success and maximum results! To be | | | | Talented employees guarantee competitive success, |
| strategic, your HR policy must be aligned with your | | | | and competitive success secures a growth in profits. |
| business strategy. So you need to understand your | | | | Whilst these principles apply to all businesses, it is |
| business objectives and consider the impact that these | | | | essential that each business identifies its own specific |
| have on your employees. | | | | HR measures to monitor the impact of employees - |
| The role of HR has traditionally been supportive, i.e. to | | | | and indeed, employee policies. A good HR policy will: |
| carry out payroll and administration functions and to | | | | * Minimise the costs associated with high employee |
| uphold positive employee relations. Nowadays, HR | | | | turnover |
| personnel have expanded their role to include: | | | | * Improve retention of skills, knowledge, motivation and |
| Legal compliance - ensuring the business meets legal | | | | morale, which in time impact productivity |
| requirements e.g. employment law, health and safety. | | | | * Give employees job security and money in their |
| Transaction activities - i.e. dealing with financial matters | | | | pockets |
| such as pay and benefits | | | | * Give employees opportunities - to learn new skills |
| Transformation activities - i.e. introducing changes that | | | | and gain more knowledge |
| make for a good working culture e.g. induction, training. | | | | Employees are a significant part of your competitive |
| Measurement - putting in place systems that show a | | | | advantage - they can make or break your business in |
| tangible return on investing in people. | | | | the way that they interact with your customers, |
| The role of the HR is also to demonstrate to their | | | | consumers and the general public. |
| business why their employees are the most profitable | | | | Employees are also your business' reputation. |