The Role of Human Resources
People are the greatest asset of a business. Learn what the human resources function is for, and how getting the right people and keeping them lifts productivity and helps the business meet its goals.
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Free interactive practice at using the material, which is what the marks are for.
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People make the business
A business can have the best product and the smartest plan, but nothing happens without people to make it, sell it and run it. Human resources, often shortened to HR, is both the people who work for a business and the part of the business that looks after them. The job of HR is to identify and meet the human resource needs of the business: the right number of people, with the right skills, in the right roles, and willing to do their best. To do that, HR takes on a handful of responsibilities: - getting the right people into the right jobs, - developing their skills so they can do the work well, - motivating and rewarding them so they stay and try hard, - organising the workforce so everyone knows their role. ⚠️ The point is not paperwork. Done well, HR lifts how much each worker produces and keeps good staff from leaving, which is exactly what helps a business hit its goals.
Words for managing people
Five terms you need before you use them. Learn what each one means.
Match the HR job to its purpose
- recruitment and selection
- training and development
- motivation and reward
- organising the workforce
- following employment law
- getting the right people into the right jobs
- building the skills that staff need to do the work
- keeping staff willing to work hard and stay
- making sure everyone knows their role and who they report to
- treating staff fairly and keeping the business within the rules
HR done well against HR neglected
The same business can look very different depending on how well it manages its people. This is why HR matters.
Choose the HR action
A factory owner finds that workers make a lot of mistakes because they have never been shown the correct method. Which HR activity would most directly help?
- training and development
- giving everyone a pay rise
- recruiting more workers
- redrawing the reporting chart
Spot the true HR facts
Tap the TWO statements that are true.
- Human resources means both the staff and the function that manages them
- Keeping good staff saves a business the cost of constant rehiring
- The only purpose of HR is to file paperwork
- High labour turnover means staff rarely leave the business
Why keeping staff matters
It is tempting to think hiring is the main job of HR, but keeping good people is often more valuable, and here is why. When an experienced worker leaves, the business does not just lose a pair of hands. It must advertise, interview and choose a replacement, then train them up, all while the work is covered by others. That costs time and money, and the new person takes a while to reach full speed. ⚠️ So a business with a lot of staff leaving is quietly paying a heavy price. Good HR reduces that by making people want to stay, through fair reward, useful training and clear roles. Keeping people is not being soft; it is good business.
Benefits of good HR
Select the TWO genuine benefits of managing human resources well.
- A skilled, motivated workforce produces more
- Good staff are more likely to stay, cutting the cost of rehiring
- The business no longer needs any plan or objectives
- The business no longer needs customers
Order how HR meets a need
A business is short of a particular skill. Put the steps HR would take in order.
- Identify the human resource need, such as a missing skill
- Plan how best to fill it, by hiring or by training
- Recruit a new person or train existing staff
- Review whether the need has now been met
A growing cafe
Here is the role of HR shown through one small business. A busy cafe is turning customers away at lunchtime because there are not enough staff to serve them quickly. Identify the need: the owner works out that two more trained servers are needed for the lunch rush. Meet the need: the owner hires one new server and trains an existing kitchen worker to serve as well, so the skill is covered from both inside and outside. The result: customers are served faster and fewer leave, the staff feel less rushed and happier, and the cafe takes more at lunch. Notice that HR here was not paperwork; it was spotting a people problem and solving it, which is exactly what the role is for in any business, large or small.
Complete the HR facts
The people who work for a business, and the function that manages them, are its _____. Keeping hold of good staff so they do not leave is called _____. The rate at which staff leave and must be replaced is the _____. How much each worker produces in a period of time is their _____.
Build the HR rule
Choose the words that complete this statement about the role of HR.
The HR run
Five questions on the role of human resources. Three lives.
HR decisions
Read each case and choose the best answer, then think about why.
- A shop keeps losing trained staff after only a few months, and spends a lot of time hiring and training new ones. Which HR aim would help most?
- A manager says HR is a waste of money because it does not make or sell anything. What is the best response?
- A growing bakery needs more people who can decorate cakes to a high standard. What is a sensible first HR step?
Explain the role of HR
A student in the year below thinks human resources is just paperwork. Explain what the role of human resources really is, using what this module has covered.
- Explain what human resources means, both the people and the function
- Describe the main responsibilities that human resources takes on
- Explain how good human resources raises how much staff produce
- Explain why keeping good staff saves a business money
- Finish by linking the role of human resources to a business meeting its objectives