Entrepreneurship & innovation “human resources operational design”

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Provide a response to this person’s answers. It must be a minimum of 125 words of substantive content with a minimum of two references cited in APA format. No copying and pasting of work that was previously done for someone else. 

· Determine the top three (3) functions of the Human Resources Department and then explain why you believe they add value to the business model. Justify your response.

· Discuss the key theories associated with Best Practices, Lean Manufacturing, Total Quality Management, and Six Sigma as it relates to the defined processes and procedures of a company’s operations strategy. Next, describe specific best practices you would include in the design of your operation’s plan. Provide support for your response.

The top 3 HR functions are recruitment/screening applicants, management of benefits/personnel issues and following labor laws.  Each of these areas are extremely important to a business model, what a company does, the structure it puts into place in order to make money (smallbusiness.chron.com).

For a business to be successful, not only does it need to provide a good product or service, but it must also have the right people to help run the company.  Without the right management and employees then the company will not be successful in achieving its goals and expectations, thus it is important to have an HR dept. to assist in making sure the right people are hired, thus properly screening applications.  The jobs must be posted in a way to entice the right candidates to apply and once they are interviewed the proper questions must be asked to ensure that they are making the right choice in the person(s) that are chosen.    

Once the right employees are in place then HR needs to ensure that they are doing what it takes to keep good employees such as offering good benefits, pay and creating a great company culture.  Employees need good management who can set obtainable company goals that fit the company business model.  By doing so, the employee will work hard in order to succeed.  Business can retain good employees by doing things like offering bonuses or other non-monetary rewards (such as flexible work hours).

And finally, businesses need to have an HR dept. that will follow labor laws.  It is important to make sure there is a good understanding of the types of employees that are hired: exempt, non-exempt and independent contractors.  It is important to know the law and how each of these employees are different.  Knowing how/whom is responsible for taxes, how many hours can be worked before one may be entitled to over-time pay are just a few examples as to how these employees differ. As a business you do not want to be in violation of any tax or federal laws which could open the business to lawsuits.  At the end of the day any of these HR functions if not properly handled or set up properly could be detrimental to a company’s business model and/or success.   

Business practice theories are proposed laws and principles that can be used to describe markets, competition, innovation and organizational culture.  There are several different business practices according to an article, 40+ Useful Business Theories by John Spacey.  Examples are Absolute Advantage – ability to produce more than your competitors or Economic Advantage – ability to outperform in a market, like competitive advantage.  However, our texts talk about theories such as Lean Manufacturing – which focuses on eliminating waste in order to cut costs and offer the best product possible to its customer.  Total Quality Management – ability to have all employees working towards consistently, always looking for continuous improvement in all elements of the business.  By doing so, we cut back on wasted time as it relates to company processes.  Also simply being able to track business products so that they are meeting standards set forth by ISO.  With Six Sigma – techniques and tools for process improvements.

Best practices that I would put in place in a business would depend on the type of business I was running. For example, my current employer is big on Continuous improvement and I really like this theory.  If you want to maintain good employee and ensure that the business is continuously making improvements that can save the company money and/or produce a better product then it is important to go straight to the source, your employees.  I believe that it is extremely important to listen to or obtain ideas from those who are involved in the day-to-day operation to see what can be done to improve on the production.  These ideas can be used to cut costs or improve manufacturing processes, ultimately improving upon the business model.

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