Factors That Influence Business Organizations Business Essay


Assess the factors that influence business organizations in their Human resource functions, especially as it relates to recruitment and selection. Use an organization of your choice for the assessment.

What strategies could your chosen business use to reduce the cost of its human resource?

Chosen Organization: Honey Bun Bakery: 26 Retirement Crescent, Kingston 5

Glossary of Key terms as it relates to the research thesis:

Human Resource, Business, Employment, Recruitment, Selection, Assessment.

Human resource:

1. The personnel of a business or organization, esp. when regarded as a significant asset.

2. The department of a business or organization that deals with the administration, management, and training of personnel.


1. a person's regular occupation, profession, or trade.

2. An activity that someone is engaged in.


the act or practice of employing something for a particular purpose


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The act of getting recruits; enlisting people for the army (or for a job or a cause etc.).


1. The action or fact of carefully choosing someone or something as being the best or most suitable.

2. A number of carefully chosen things.


The evaluation or estimation of the nature, quality, or ability of someone or something: "the assessment of educational needs".

Factors that influence the Selection Process

Relevant Experience

Relevant work experience is likely the most important factor that influences the HR selection method. The relevant work experience required by an employer depends largely on the available job position and the level of skills required to carry out the duties of the position. HR personnel initially look at job candidates' relevant work experience by reviewing their resumes. Applicants without relevant work experience are typically eliminated from the job-selection process. Employers desire to hire candidates with relevant experience because it saves the company time and money in training an employee. Employers also seek to reduce employee turnover by hiring qualified applicants.


Educational achievements also play a role in a company's hiring decisions. Some job positions require certain industry knowledge that is often obtained through the completion of a degree program. For example, a company desiring to hire a registered nurse will most likely require that candidates possess a nursing degree for employment consideration by the HR department. Educational achievement not only acts as a factor in making hiring decisions, but for some employers, the mode of education is also a factor. Some companies prefer to hire candidates who graduated from certain top-ranking institutions, or a company may prefer not to hire candidates who earned degrees through online-degree programs.


One of the factors that influence the selection process for the human resource department is the geographical location of the job candidate. Most employees prefer to hire employees living in the local area. Employers prefer to hire local candidates because it hastens the hiring process and saves the employer money on the interviewing process and on relocation fees. Although most employers look to hire local candidates to save time and money, some employers choose to make the application process open to individuals living in other states. If local candidates fail to meet the employer's qualifications for the job, HR typically seeks regional candidates next before widening the search to national and global candidates.

Salary Requirements

The salary requirements of a job candidate influence the HR employment-selection process. Employers typically set a maximum salary for an open job position. Candidates who require a salary greater than what the employer offers are typically eliminated from the selection process. Some companies choose to negotiate the salary with attractive candidates because they desire to retain their talents and skills. HR managers also consider the present salary of a job candidate. If the candidate's current or previous salary is not competitive enough, an employer may not consider the candidate for the job.

Factors that influence the Recruitment Process

Factors Affecting Recruitment

Strategies to reduce the cost of Honey Bun's Human Resource

First priority Honey Bun could use to cut costs on its human resource, though it is somewhat of a new development for many managers and HR staff personnel, particularly if they had seen laying off staff as the only feasible means to cut cost on human resource would be, is reducing turnover. Turnover is very burdensome on the financial resources of any given company, and if management does not have sound knowledge of the actual cost of turnover, the organization may be in a situation where it is inescapable to reduce it.

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Another way Honey Bun could improve their human resource management and to cut cost on labour is to ensure that the HR manager designated for recruitment is efficiently trained and certified with the necessary experience in a similar scope of position in a similar company model. A database of CV's of prospective employees could be kept thus ensuring that the HR Manager spends a portion of his or her time on a weekly basis emailing prospective candidates from the searchable CV databases available on job boards. The searchable databases are what HR managers and job recruiters use every day.

The company could also institute a referral / finder's fee asking their own workers of prospective employees, in the manner as job agencies do. Another strategy they could utilize is to pay key staff 15% above market rates to their star employee this is a nominal strategy seeing that replacing them is 40-50% of their annual salary if you include agency fees - possible lost days in training and the employee who has contributed heavily to the overall development of the company walking through the door, probably to the competition.

The company could also Reduce Healthcare Costs. Of course, the most intuitive method of reducing healthcare costs involves shopping around for healthcare insurance. For example if they are using an old fashioned broker for years, the current provider of such services will be costly compared to a newer less expensive healthcare company.

Before the company cuts down on healthcare offerings for its employees, they must first consider eliminating dental and vision plans. Then after they have right healthcare provider for the company, they can make adjustments to their plan to minimize costs. They should ask direct and concise information that will in turn pose to be beneficial to the company.

Switching to a higher deductible health plan is not always the most popular plan amongst the company's employees - but striking the right balance between deductible cost and premiums can save the company money while satisfying the needs of its employees without any lost on both parties; Honey Bun on whole should analyze who they are covering under their medical plans especially if the company is providing full insurance coverage for spouses and family members this might just be saving such expenses from competitors and driving a hole in the companies pockets by taking in unnecessary expenses of their own.

A strategy most companies are utilizing is they are beginning to demand higher employee contributions for the coverage of their family members who can receive general medical coverage from through the company. Another strategy the company could use is to have the employee pay the full premium for their spouse who can receive coverage at their place of work; this will go a long way to reduce healthcare expenses.

Health and Wellness programs are now becoming popular in various business organizations; today most medium and large size businesses with backgrounds in various sectors and employing between 50-85 workers are drifting towards this focus. Implementing the right wellness program for Honey Buns employees can increase employee health and happiness while decreasing costs on pending healthcare cost.

Most employers are now seeing the evidence of the success of wellness programs improving their employee's happiness and productivity in the workplace and the favorable reduction in money wasted dealing with various health related sicknesses of their staff thus health insurance costs can be documented and proven.

Honey Bun can also reduce its cost on human resource by creating a healthy social atmosphere at the workplace as this strategy is shown to increase morale, camaraderie and increase the productivity of the employee. Many companies do this by hosting a number of social events where the employees come together to bask in each other's company and share in various activities.

Hosting competitive events such as sports competitions for employees can be a defining tool. This allows employees to get to know each other and have a deeper understanding of each other's roles and responsibilities and have a deeper appreciation for each other's welfare, a team building approach in the work environment, and overall a sense of loyalty for the company this will make them proud they work for a company that encourages its employees to have a friendly and collective approach to their work rather being individualistic in their work relations. This can be the key factor in determining whether an employee joins the company, stays grounded in a team oriented setting, or moving on the competitors company.

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Improving the hiring practices of Honey Bun through the HR department can save the company much money and time. This would involve analyzing all CV's for a particular candidate who will maximize his or her strengths for the overall development of the company, the first time around, the long-term relationship of the potential employee should be the most vital factor whether he or she is added to the staff at Honey Bun. A detailed, comprehensive job description should be drawn out to highlight the important aspects of the position, as well as all activities that will be under their auspices; add additional requirements for the post including activities not relevant to the post available in order to test the flexibility of the potential candidate . This will ensure that the potential employee is informed of all of their responsibilities before the interview is even conducted.

By working strategically at creating a well defined job listing that quantifies the scope of the position it will most definitely yield candidates with higher quality, and thus ensures a job skill match as well. Offering competitive salaries will inevitably draw in higher quality human resource and thus rids the company of the unskilled talents and the pending cost of replacing such.

Optimizing HR operations and company policies can reduce costs while increasing employee satisfaction. By offering flexible work schedules for its employees this will increase morale and productivity. If employees are working too many hours, their level of productivity will decrease throughout the day. Allowing them to switch up their hours and come in at different periods of the day will ensure that they are working at their optimum levels and are properly rested. They must be offered competitive salaries as well. If a salary offered is way below industry standards for the same level of responsibility, potential star employees will be lost to the competition. Honey Bun could also provide their employee's incentives to boost productivity and encourage employees to take the extra step when trying to make a sale or ensuring quality in their work this will make every employee think twice before slacking off.

Another way Honey Bun could cut cost on its human resource is by integrating HR Technology this will save time and money by eliminating costly mistakes and introducing automation to manual processes. It is important to find competent, up to date, and fully integrated software to implement.

Implementing integrated time and attendance and employee scheduling software is low-hanging fruit in this department. Time and attendance software in particular has been shown to provide organizations with a significant return on investment (ROI).

Reducing the risk of expensive litigation can save Honey Bun's financial assets in the long run. The last thing the company would need in a recession type climate is to be sued by a former employee.

The company should know the risks, and plan ahead to rid the company of legal pitfalls. Know all of the laws and regulations for the company's industry and following them rigorously. A number of people will jump at the opportunity to sue the company for large amounts of money. To avoid lawsuits, documentation must be a key player in determining the company is caught in a litigation trap; record its defenses, such as warnings given to an employee or the fact that guidelines were given and broken one should not cite concerns, criticisms, or introspects on any particular employee.

Honey Bun could also reduce its cost on human resource by not allowing employees to work overtime. The workloads must be objectively and critically analyzed to evaluate the time that is required for tasks to be completed efficiently, identify streamlining opportunities, and improve proficiency amongst individual staff members.

Honey Bun could also adhere to a economical phenom most companies are familiarizing themselves with which is the use of contingent workers (people who are hired, as needed, to perform specific tasks, but are not employed by the company) in other words contracted staff, Honey Bun could utilize this as a means cutting cost on human resource seeing that the level of income being paid to contracted staff is way below the market value and at the same time contracted workers are not open to benefits as fulltime staff members.