Chapter 6: Human Resources The Functions of Human Resources Management

The Functions of Human Resources Management In business, human resources (HR) is part of the management team who hire workers, set up their training programs, and arrange for payment of their salaries. Small companies handle these duties themselves. However, large companies have a human resources department that is responsible for coordinating all employees’ activities, such as reviewing applications to arranging pay.

The Functions of Human Resources Management The Labour Market The labour market is where employers (buyers of skills) meet employees (sellers of skills). Occupational forecasts involve predictions about jobs that help to inform individuals about future job conditions and wages.

The Functions of Human Resources Management The Importance of Productivity Employers want employees to be productive: the more they produce in the hours that they work, the more profit the business can make. The Importance of Skilled Labour A skilled employee means that a business can save money because the worker can usually produce a better product or service. The Importance of a Positive Attitude Happy employees are more productive than unhappy ones.

The Functions of Human Resources Management Determining the Need for a New Employee HR helps businesses to create a staffing plan to avoid hiring under pressure. HR also forecasts a company’s employee turnover, the rate at which employees leave a company for another job or to retire.