BUSINESS STUDIES-HUMAN RESOURCE
Role of human Resource management

•Strategic role of human resource management
Human resource management: Management of the total relationship between an employer & employee in order to achieve the strategic goals of the business
-Important business function as staff costs are often more than 60%

Interdependence with other key functions
Human resources team or manager is responsible for the business’ HRM.
The HR function is responsible for organizing the business’s human resources – the people who work in the business. HRM is involved with ‘hiring and firing’ staff, and everything in between – acquiring the right people with the right skills, training and motivating employees for better performance, and ending employment when necessary.

Outsourcing
Contracting out noncore business functions of the business
-Allow specialist to complete specific tasks
-saves time and resources
-Reduce costs & improves quality
-Human resource function
Outsourcing HRF such as recruitment, leadership training, mediation allows firms to focus more on their core business.
Disadvantages: Business has less control of outsourced function, employee unrest in the business as positions may become redundant
-Using contractors
A contractor is an external provider of services to a business- may be an individual or a business
-not permanent employee only works for an agreed time- fixed time
-WHY? A business may wish to fill a temporary position/could be less expensive
Domestic contractors: Commonly used, avoids the need of additional staff along with the expenses- allows business to focus on essential business activities leaving detailed support to experts in that field i.e. payroll management- Domestic contractors will have an expert knowledge of Australia in law & general practices.
Global contractors: A business may wish to outsource it HR to a global recruiting firm or recruit workers from overseas
- used to seek the most skilled workers for position (not always local labour)
- remain globally competitive by keeping labor costs lower
-Ethical issues may arise- hiring cheap labor overseas could be seen as exploitation of workers.

Key influences
Stakeholders (EEE,UGS)
-6 main stakeholders that contribute to business activities
Employers:
People that employ labor with a view to increase productivity and profit
-Employers want flexibility in the workplace through deploying labor efficiently to reduce costs
-Handle HRM issues on a daily basis
-Employers responsibilities are increasing as recent legislation encourages them to negotiate agreements & resolve disputes in their workplace
Employers association:
-Organizations that represent and assist employer groups
-Generally support the use of individual contracts and enterprise agreements because they enhance workplace flexibility, help to raise productivity and profitability
-They assist employers in formulating policies and processing logs of claims
-Act on behalf of employers
-Major employer associations include Business council of Australia, Australian chamber of commerce and Industry
Employees:
People who work in businesses and receive wages or salaries in return for their efforts
-Increasingly employees have become more educated and trained and therefore want to seek job satisfaction, job security, career paths and family friendly workplaces that offer a balance between family life and work
Trade Unions:
Organizations which represent employees in the workplace in efforts to improve wages and the working conditions of their members
-Australian council of trade unions (ACTU)
Governments and Government organizations
Play an important role in establishing legislative framework for industrial relations
-The fair work act came into effect in 2010 and established the legal framework for a national industrial relations system based on the 10 national employment standards
Society
Society in large plays a role as a stakeholder in HRM in terms of the values that people