H4.4 Human Resources Strategies

Business Studies is awesome.

What are they?

Human Resources strategies are tools that a firm can utilise to maximise the return on funds invested into staff within a firm. 

The goal of human resources is to leverage human capital within a firm—that is, to gain the most benefit possible from the human resources within the firm in pursuit of strategic objectives (market share, revenue, profitability).

Through the monitoring process, the Human Resources department tracks Key Performance Indicators in both quantitative and qualitative metrics. This data analysis, trend analysis and benchmarking will highlight areas to improve. The HR team then take corrective measures to improve these metrics by deploying specific and targeted Human Resources strategies.

They are important because: 

• A large proportion of a firm’s cost base is human labour. It is important to ensure that money is well spent and leads to productivity in the business;

• Human beings are the most dynamic and valuable asset in a business; they have new ideas, deliver customer service and they are the ‘face’ of the organisation;

• A firm’s performance (market share, revenue, profit) is determined by the talent, skill, motivation and innovation of human beings within the firm.

• When staff are happy, they are more loyal and productive and less likely to leave (reducing turnover and costs of replacement and training).

Important:

Depending upon the circumstances of the firm (what influence is most urgent—internal and external), a different strategy would be required. 

You must know what strategy ‘fits’ the business to make desired improvements in response to the specific influences a business faces. It would be a very poor doctor that offers a plaster caste on a patient's leg who was complaining about a fever.

You will be required to evaluate the effectiveness of various strategies for certain types of businesses in various situations. Some will fit brilliantly (highly effective) others not so much (irrelevant, ineffective…) Others may be ‘somewhat effective’.