Human Resource and Operations Management
Domain focus
This section covers Human Resource and Operations Management. The exam tests recruitment, training and motivation, and how small firms plan capacity, quality, inventory and productivity.
Core rules and concepts
- The HR cycle includes job design, recruitment, selection, induction, training, appraisal, compensation and retention.
- Small firms benefit from multi-skilled staff, clear duties, safe conditions and fair wages; motivation can be non-financial through recognition and responsibility.
- Operations covers capacity planning, scheduling, layout, quality control, inventory and vendor management.
- Productivity = output ÷ input. A good layout minimises movement, and prevention is cheaper than rework.
Worked example
A bakery faces a morning rush and evening slack. It cross-trains two staff for billing and packing, schedules baking in batches, keeps flour on a first-in-first-out system and checks weight and hygiene at two points. Reasoning: scheduling matches capacity to demand; FIFO reduces spoilage; checks prevent rejects rather than catching them at the end. The result is less waste and faster service.
Traps that cost marks
Do not treat HR as only hiring. Do not skip training. Do not overstock raw material. Do not inspect quality only at the finished stage.