10 HRM Flashcards
Human Resource Management(HRM)
STRATEGIC APPROACH to the EFFECTIVE MANAGEMENT of employees so they help the business gain competitive advantage.
HRM focuses on:
- Providing employee contracts
- Workforce planning, plan how many employees are needed and skills needed for the business in the future
- Monitoring and measuring employee performance
- Recruitment and selection
- Developing employees by training & appraisal.
Workforce planning
Forecasting the number of workers & skills that will be required by the organization to achieve its objectives.
Workforce audit
Check on skills & qualifications of all existing workers/managers.
Number of employees businesses will require depends on:
- Absenteeism rate
- Business expansion
- Productivity levels
- Forecast demand for products
Labour turnover
number of employees leaving in 1 year/average number of people employed x 100
Measures the rate at which employees are leaving the organisation.
Costs of high labour turnover
- The costs needed for recruiting, selecting and training new employees.
- Poor output levels & customer services since there are frequent staff vacancies before new employees are recruited
Advantages of high labour turnover
- Poor skilled & unproductive staffs might be leaving and they can be replaced with more carefully selected workers.
- New ideas and practices brought into an organisation by new workers.
High labour turnover is more likely in what areas?
Areas that have low unemployment rate because it then indicates that there are more jobs that are more high-paying and attractive in the local area.
Recruitment & selection is usually necessary when:
- Employees leave and needs to be replaced
- When business is expanding and needs a larger workforce
- When demand for products increases meaning that there is a need to increase output levels.
Recruitment
Process of identifying the need for a new employee, defining the job to be filled, type of person to fill it and attracting suitable candidates for the job.
Selection
Series of steps by which candidates are interviewed, tested & screened to choose the most suitable person to fill in vacancy.
Job description
A detailed list of the key points of the job to be filled, stating all its key tasks and responsibilities.
Advantage of job description
Attracts the right people for the job as potential recruits will have a good idea whether they are suited for the job or not.
Steps of recruitment & selection
- Make job description
- Drawing up person specification
- Prepare job advertisement
- Making shortlist of applicants
- Selecting between applicants
Person Specification
Detailed list of all the qualities, skills and qualifications a successful applicant will need to have.
Curriculum Vitae
Detailed document highlighting all of a persons professional and academic achievements, work experience and awards.
Resume
A less detailed document than a CV which itemises/lists work experience, educational background and special skills relevant to the job being applied for
Reference
Comment from a trusted person about an applicants character or previous work performance.
Internal recruitment
When a business aims to fill in a vacancy from within its existing workforce
Adv of internal recruitment
- Less time consuming
- Since taken by existing workers, workers knows how the business works which means there is no need for induction training
- Lower costs since there is no need for external advertising for jobs or the need to hire recruitment agencies
External recruitment
When a business aims to fill a vacancy with a suitable applicant from outside the business (such as employees from another business).
Advantages of external recruitment
- May bring in the business new ideas and practises by external applicants which helps the existing workers focus on the future instead of the past
- Avoids resentment sometimes felt from existing workers if one of their colleagues get a promotion above them
Redundancy
When a job is no longer required, the employee doing the job becomes unecessary.
Causes of employees that are made redundant:
- Fall in demand
- Change in technology
- Need to cut costs to remain competitive
If redundancies are to take place what does the company do?
Follow guidelines to ensure that the correct person are made to be redundant.
Dismissal
Being dismissed or fired from a job due to incompetence/breach of discipline.
What happens if dismissal are not accordance with the law, company policy, etc?
Can lead to court action which can cause the company having to pay substantial financial compensation to the employee
Type of court that can decide whether dismissal is unfair or not
Tribunal
Unfair dismissal
Ending a workers employment contract for a reason that the law regards as unfair.
