Interdependence - Human Resources

A business is a single, organic entity that involves all 4 Key Business Functions simultaneously. 

The artificial separation of a 'whole' business into these functions is only to aid structure and comprehension. 

Understanding business is kind of like colouring in a circle. 

It is hard to do it in a straight-line. It requires back tracking, leaps forward and repeated coverage of the same territory. 

The best way to get this understanding is by clicking on the hyperlinks to other parts of the course that are embedded in the text on each page. By traversing across the full terrain of the course, the development of a 'holistic' business intelligence will gradually emerge.

Here are the main ways that Human Resources is interdependent with other Key Business Functions:

• Operations: The nature of an operations process will shape the human requirements for staffing; manufacturing / service / level of customisation. New ideas for product adaptations and process improvements come from staff. Customer service is delivered by human staff. Performance Management processes based upon the achievement of Operations KPI.

• Marketing: the marketing processes must be undertaken by human staff; the best marketing staff will produce the best ideas for lifting revenue and profitability; promotional efforts can emphasise service and friendliness of staff as differentiator. 

• Finance: human resources are a significant cost for business; must ensure productivity and performance to get money’s worth (otherwise low efficiency; high cost to little benefit); the ideas, efforts and customer service of a firm lead to higher revenue and profitability.