Strategic role and interdependence of HR

• Human resource management (HRM): refers to :: the management of the total relationship between an employer and an employee.
  • An employer:
    • exercises control over employees
    • responsible for paying wages
    • can dismiss employees
  • An employee:
    • works under an employer’s control
    • may involve in
      • workplace location
      • the way work is performed
      • the degree of supervision

Interdependence with other business functions

• Human Resources is interdependent with the key functions for:

• Finance

  • HR must have adequate funds to attract and train staff
  • HR is reliant on financial reports reflecting the true value of the business
  • Effective HR positively correlates to profitability, share price, etc.

• Marketing

  • HR managers rely on marketing managers to identify needs/wants of customers → money for business etc.

• Operations

  • For operations to produce goods/services, HR must manage employee relationships to achieve its strategic intent.
  • HR deals with employment resourcing (acquisition, development, maintenance, separation)
  • Effective HR is vital, as employees are the most valuable asset to a business
  • Investing in employee relationships
    • → effective training & development programs
      • → increased motivation of all employees
        • → increased overall efficiency and productivity within the business.