Human resources
Human resources relates to the people who work in a business organisation. The performance of a business is affected by the quality and impact of the people who work for it.
Human resources covers:
- managers
- employees
The people who work for an organisation will have an impact on how the business performs
Managers
Managers can influence a business through:
- decision-making Good decision making can increase productivity, increase profits and grow the business. Poor decisions could result in employees losing motivation, production being disrupted and complaints from customers.
- creating policy - Managers create policies that aim to motivate employees and set realistic goals.
- hiring and firing of employees - managers recruit new staff and let others go
- setting budgets - managers will decide how much money a business can spend within a specific period.
- conducting appraisals with staff - managers need to assess their staff to ensure they are working effectively.
Employees
Employees can influence a business through their:
- The rate of output of a business.
- ability to satisfy customers
- When workers are off work due to poor health or other reasons.
- ability to perform their job
- training
- Action carried out by employees of a business as a protest, for example about pay or conditions. Examples of industrial action include going on strike or working to rule.
Each of these areas of influence can impact positively or negatively on a business. Employees are the public face of a business. Badly performing employees will result in inferior products being produced and a poor service being offered to customers. The short and long term impact of badly performing employees will have a negative effect on sales and the reputation of the business.