The Human Resources (HR) function plays a crucial role in both operations/manufacturing and services based organisations, yet the challenges and approaches required differ significantly. While both environments demand effective talent management, compliance, and employee engagement, the distinct nature of each industry shapes HR strategies accordingly.
HR in Operations and Manufacturing
Operations and manufacturing environments are characterised by problem solving, structured processes, physical labour, stringent compliance and active response requirements. HR professionals in this sector must prioritise workforce safety, adherence to labour laws, and operational efficiency (Dessler, 2020). The focus is on high volume recruitment, training in technical skills, and maintaining workforce stability in shift based operations. Employee relations often revolve around union negotiations, occupational health and safety (OHS), and productivity optimisation (Armstrong & Taylor, 2020).
HR in Services Based Organisations
Conversely, services organisations rely heavily on human capital and interpersonal interactions. HR strategies emphasise talent acquisition, employee experience, and professional development to ensure high quality service delivery (Boxall & Purcell, 2016). Unlike manufacturing, where standardised processes tend to dominate, services HR must manage dynamic customer interactions, flexible work arrangements, and a knowledge driven workforce. Employee engagement, soft skills training, and cultural alignment become key HR functions (Ulrich et al., 2017).
Some Key Differences in HR Approaches
1. Recruitment and Training: Manufacturing HR focuses on technical skills and safety compliance, whereas services HR prioritises soft skills and customer service training.
2. Workplace Culture: Operations often have hierarchical structures, while services businesses foster collaborative and adaptable environments.
3. Compliance and Safety: Manufacturing HR ensures strict adherence to OHS standards, while services HR navigates issues like workplace flexibility. Both can have a focus on employee welfare and mental wellbeing.
4. Employee Relations: Unions and industrial relations mostly play a larger role in manufacturing, while services HR centres on engagement and retention strategies.
In summary, HR challenges vary by industry, with manufacturing requiring structured compliance driven strategies and services demanding agility in talent management. But of course success in either sector depends on HR’s ability to align strategies with business needs.
Linq HR are Australian Employment and Workplace Specialists assisting organisations and employees be their best at work. Ph 1300234566.
References
Armstrong, M. & Taylor, S. (2020). Armstrong’s Handbook of Human Resource Management Practice. 15th edn. Kogan Page.
Boxall, P. & Purcell, J. (2016). Strategy and Human Resource Management. 4th edn. Palgrave Macmillan.
Dessler, G. (2020). Human Resource Management. 16th edn. Pearson.
Ulrich, D., Younger, J., Brockbank, W. & Ulrich, M. (2017). HR from the Outside In: Six Competencies for the Future of Human Resources. McGraw-Hill.
