What does the human resources function do, and why does the law matter?
The role of human resources: the purpose of the HR function, workforce planning, the impact of employment law on businesses, and the main areas of legislation covering recruitment, pay, discrimination and health and safety.
A focused answer to OCR GCSE Business J204 topic 3.1, covering the purpose of the HR function, workforce planning, the impact of employment law, and the main areas of employment legislation.
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What this topic is asking
OCR J204 topic 3.1 wants you to explain what the human resources (HR) function does, what workforce planning is, and how employment law affects businesses, including the main areas of legislation (recruitment, pay, discrimination and health and safety). This opens the People topic on Paper 1 and frames the recruitment, motivation and training that follow. The exam often asks about the consequences of getting the law wrong.
The purpose of the HR function
Good HR matters because people are usually a business's biggest cost and its main source of quality and service. Well-managed staff are more productive, stay longer and serve customers better.
Workforce planning
A business plans its workforce by looking at expected demand, growth plans, and the skills it already has against the skills it will need. Planning ahead means it can recruit and train in good time rather than scrambling when a gap appears, and it avoids being over- or under-staffed.
The impact of employment law
Employment law affects almost every HR decision. It adds responsibilities and costs (paying at least the minimum wage, providing a safe workplace, treating people fairly), but it also brings benefits: fair treatment improves morale and retention, and compliance protects the business from claims and damage to its reputation.
The main areas of legislation
OCR does not expect you to quote exact Acts, but you should know these four areas and the consequences of ignoring them: fines, compensation, prosecution, lost staff and reputational damage.
Try this
Q1. State two areas covered by employment law. [2 marks]
- Cue. Any two of pay (minimum wage), discrimination and equality, health and safety, contracts and recruitment.
Q2. A worker is paid an hour but the legal minimum is . Calculate the hourly shortfall. [1 mark]
- Cue. per hour.
Exam-style practice questions
Practice questions written in the style of OCR exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
OCR J204/01 20192 marksState two tasks carried out by the human resources function of a business. (Paper 1, Section A)Show worked answer →
A 2-mark AO1 recall question, one mark per valid task. Acceptable answers include recruitment and selection of staff, training and development, managing pay and rewards, workforce planning, handling discipline and grievances, ensuring legal compliance (employment law and health and safety), and supporting motivation and retention. Any two distinct tasks score. A vague answer such as "looking after staff" without a recognised HR task would not gain both marks.
OCR J204/01 20216 marksA growing restaurant chain has been ignoring some health and safety rules to save time. Analyse two effects that failing to follow employment law could have on this business. (Paper 1, Section B)Show worked answer →
A 6-mark "analyse" needing two developed chains applied to the restaurant. Effect one (legal and financial): breaking health and safety law can lead to fines, compensation claims or prosecution, so the chain faces unexpected costs and possible legal action, which means lower profit and diverted management time. Effect two (reputation and staff): unsafe conditions or unfair treatment damage the chain's reputation and morale, so customers may stay away and staff may leave, which means falling sales and higher recruitment costs. Markers reward two effects, each developed with a cause-effect-consequence chain that refers to the restaurant, recognising both the direct legal cost and the wider reputational damage.
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A focused answer to OCR GCSE Business J204 topic 3.3, covering why communication matters, methods of communication, the impact of digital technology, and the causes and effects of communication barriers.
- Recruitment and selection: internal and external recruitment, the recruitment process and documents, methods of selection, and the costs and benefits of different approaches to hiring.
A focused answer to OCR GCSE Business J204 topic 3.4, covering internal and external recruitment, the recruitment process and documents, methods of selection, and the costs and benefits of each.
- Motivation and retention: the importance of motivation, financial methods (wages, salaries, bonuses, commission, fringe benefits), non-financial methods (job rotation, enrichment, autonomy, praise), and how motivation supports staff retention.
A focused answer to OCR GCSE Business J204 topic 3.5, covering why motivation matters, financial and non-financial methods of motivation, and how motivation supports staff retention.
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A focused answer to OCR GCSE Business J204 topic 3.6, covering induction, on-the-job and off-the-job training, the benefits and drawbacks of training, and how development links to motivation and performance.
Sources & how we know this
- OCR GCSE Business (J204) specification — OCR (2017)