Staffing
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
Managers
Managers can affect the performance of a business
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
The people who work for an organisation will have an impact on how the business performs
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/skill set
- 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.
- motivation
- availability
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.