Introduction to Human Resources (HR) (OCR GCSE Business): Revision Note

The purpose of the HR function

• In larger businesses, a human resource function commonly oversees:

  • Determining the workforce needs of the business

  • Recruitment and selection of employees

  • Training and development

  • Motivation and employee retention

  • Communication with employees

• Effective human resource management is important because:

  • It ensures that the organisation has the right people in the right roles, with the right support and opportunities to succeed

  • It also helps create a positive work environment

• This will lead to higher productivity, improved efficiency and a competitive advantage

Determining workforce needs

• A key role of the HR function is forecasting the number and type of workers the business requires

• These needs are likely to change over time as a result of factors including:

  • Staff turnover

    • Staff leave job roles due to promotion, retirement or moving to a new position

  • Business growth or retrenchment

    • Expanding businesses are likely to need more workers, with an increasing range of skills

  • Changes to business structure or location

    • Decisions to reorganise workers or move to a new facility may create new jobs or reduce staffing needs

  • Changes to methods of production

    • Moving to a capital-intensive production process may require fewer workers, or staff with technical skills

• The HR function needs to plan, usually within a budget:

  • How many workers are needed

    • Full time staff

    • Part-time or casual staff

    • Contractors

  • When workers are needed

    • Length of contracts

    • Hours and days of work

  • Where workers are needed

    • Remote staff

    • Production facilities

    • Administrative needs

    • Supervisors

  • What type of workers are needed

    • Skills, qualifications and experience

    • Interpersonal and communication skills

• It is only when these factors have been determined that the HR function can take steps to meet a business's staffing needs