2.1.1—Role of human resource management

Human resource management (HRM) is the coordinated management of people at work: recruiting, developing, rewarding and supporting them so the organisation can meet its objectives.

HRM is not just administration. It connects workforce capability and motivation to productivity, quality, innovation and retention, while also shaping costs and employee relations. The appropriate choice depends on the organisation's strategy and context.

A growing café that promises faster delivery may need more staff, training and clearer roles. Hiring without training raises headcount but may not raise service quality; training existing staff may build capability but leave short-term capacity tight.

HRM does not automatically mean maximising output or cutting labour cost. Explain the people–objective link and acknowledge the trade-off between employee experience, flexibility and financial performance.