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Explain the relationship between the Human Resources (HR) functions and other business functions
A synopsis of views on the function of HR and how this is evolving
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Recommended: Explain the relationship between the Human Resources (HR) functions and other business functions
In 2008, when a global recession hit, Rio Tinto needed to minimize potential problems with the reduction of force. The company’s HR department participated in the decisions that were being made and contributed to the problem to find a solution. The outcome was hard but also necessary. Rio Tinto determined that in order for the mining company to subsist it would have to let go of 14,000 current employees. This decision was determined through the use of maximizing HR skills such as, understanding and strategizing the use of all employees, maximized human assets, and taking advantage of human capital. Formerly, the HR directors would have used numerous different methods in solving this problem, but by coming together and finding a common …show more content…
It is likely that the reactions of the employees would be confused and, depending on if you were fired, angry or relieved. Employees have given their time and effort into that company to be suddenly laid off. I think without giving a correct explanation the employees would be confused and eventually upset. That is where HR comes in. It is important to let the 14,000 employees know that their time at the company was valued but currently their talents are not needed. As for the employees that “survived”, they need to understand that their employment at Rio Tinto must not be taken for granted. HR is able to determine where their talents are best at and who works better with whom. HR needs to take in consideration the reactions of employees to better prepare for the future and keep the company organized. The company cannot afford to receive a bad reputation because of how they are handling the situation. Being aware of the potential outcomes is always imperative to a company’s success. With good tactics, the company can be at a competitive advantage by using resources such as innovation and talent. It is always important to stay one-step ahead in the business field. Looking for new, more efficient ways to do things is what HR is all about. HR is crucial to a business’s overall success and harmony amongst
The next problem is poor morale. Morale is the job satisfaction, outlook, and feelings of an employee. Right now, employees do not feel secure within the business and are rebelling against it. They do not have a positive outlook for the future of the business and feel betrayed because of all of the people getting let go. The employees right now have a poor morale due to all these factors.
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
Ulrich, D., Younger, J., and Brockbank, W. 2008. “The twenty-first century HR organization.” Human Resource Management, 47, pp.829-850.
As you can see, as the economy increases the environments safety deteriorates. As Per Capita Income increases it eventually reaches the Turning Point Income. The turning point income shows that the environment starts to improve with a growth in Per Capita Income consequently decreasing the environmental deterioration that has been made. However, as a country becomes a developed nation it decides to outsource its industries towards developing countries. These developing countries still have a weak economy with little governmental regulation. In effect the environment of these countries are destroyed at the expense of the developed nation’s economy growing stronger. The reason is because developed nations have strict environment regulations and
...gree and believe that they could get real results if everyone would consistently apply the company’s principles. I have learned personally in the business world consistency means a lot, all employees should have the same consequences. By letting go employees, managers and executives shows that the rules apply to all levels. It will cause everyone involved to have more respect for the company even if they don’t agree with the decision.
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
In an era of organizational flux due to competition and globalization, companies and employees are faced with constant change. Leaders must be able to adapt to change as the environment shifts. HR has been known as the organizational change agent, administrative expert, and employee advocate. More recently they have been regarded as business strategic partners for many organizations. In order to be successful and remain competitive in today’s market, Human Resources (HR) must be considered a strategic partner if an organization wants to flourish. Top executives today commit significant resources to ensure that their company’s functions are capable of rapid change and achieving their goals. Far too often, the Human Resources (HR) function is nominal thus they are not as quick to respond to the rapid rate of change. When “this occurs, companies may be perpetuating or even creating barriers to fully leveraging their human capital. Organizations can begin the process of removing these barriers by assessing the Human Resources function and its alignment with business objectives” (Wert & Liwanag , 2002). This paper will make a case for having HR report to the CEO. In order to do so the author will describe the relationship between HR strategies and business strategies. Examples of HR strategies that can be effective will be discussed. In addition, the author will examine the benefits and consequence of having HR as a strategic partner and well as the key business competencies that they must retain. Furthermore, she will discuss an optimal career path for a senior HR executive.
Rio Tinto is a leading international mining group headquartered in the UK (United Kingdom), combining Rio Tinto plc, a London public listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. These two companies were founded in 1873 and 1903 respectively. The original Rio Tinto company was set up by a group of investors including Matheson & Co. and Duetsches Bank, who together bought Rio Tinto mine from the Spainish government for $3.7 million in the early 1870’s. By the end of the 1880’s Rio Tinto was known as the world’s leading copper producer.
Instead of using previous methods of open pit extraction, block cave mining and rapid tunnel technologies is used to access deep ore bodies faster and with less environmental impacts (RioTinto 2014).
Knouse, S. B. (2005). The Future of Human Resource Management: 64 Leaders Explore the Critical HR Issues of Today and Tomorrow. 58(4), 1089-1092.
The importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources. While some companies took the human side of employment seriously, there were others who did not find it mandatory. Hence they faced huge labor unions and factory shut downs (Henning, 2001).
4) Tokesky, George C; Kornides, Joanne : ‘Strategic HR Management is vital’( Personal journal, December 1994 v 73 n 12 p 115.
Lewis, Clive (2007) Human resource management international digest. Bradford: 2007. Vol 15, Iss.4: pg. 3.
Focus on the Remaining Employees: Managers must make sure the remaining employees are reassured that the situation is not negative. Prepare emails or memos for the remaining employees explaining the termination. Be honest and upfront about the reasons and consequences of terminations. If the termination is for absenteeism, then state that. If the company is experience financial problems, it is also a good idea to get that out in the open to avoid gossip and fear mongering. Implement a transition of responsibilities and assign duties to other associates.
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.