10. HRM Flashcards
Define HRM
The strategic approach to the effective management of an organisation’s workers so that they help the business gain a competitive advantage
What are the roles of HRM?
Strategically manage people as business resources:
- Planning the workforce
- Recruiting and selecting staff
- Appraising, training and developing staff at every stage of their careers
- Drawing up contracts of employment
- Discipline and dismissal of employees if necessary
- Redundancy if necessary
- Improving staff morale and welfare
Define workforce planning
Analysing and forecasting the number of workers and the skills of those workers that will be required by the organisation to achieve its objectives
Define workforce audit
A check on the skills and qualifications of all existing workers/managers
How to decide the number of workers required?
- Forecast the demand for the firm’s products: consumer demand is increasing => more staff needed
- The productivity levels of staff: productivity high => recruit fewer staff
- Changes in the law regarding workers’ rights: government might pass laws that establish maximum working week => greater demand for workers or minimum wage level => fewer demand for workers
- The labour turnover: the higher rate at which staff leave the business, the greater the need to recruit replacement staff
Define labour turnover
- The number of workers who leave and join an organisation over a period of time, as a proportion of the total number of workers employed in that same time
- Formula: (no.of workers who leave or join / total no. of workers) x100
Costs of high labour turnover
- Costs of recruiting, selecting and training new staff
- Poor output levels and customer service due to staff vacancies before new recruits
- No staff loyalty, poor morale
- Difficult to establish team spirit
Benefits of high labour turnover
- Low skilled and less productive staff might be leaving => replaced with better ones
- New ideas and practices are being brought into an organisation by new workers
Factors affecting the skills of staff required
- The pace of technological change in industry
- The need for flexible or multi-skilled staff as business try to avoid excessive specialisation
Define recruitment
The process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, attracting suitable candidates and then select the best one
Benefits of internal recruitment
- Applicants already know the organisation and its internal methods => no need for induction training
- Costs of advertising will be saved
- Give internal staff a career structure and a chance to progress => motivated
- Encourages other staff to work hard to get promoted
Disadvantages of internal recruitment
- Envy and jealousy within the organisation
- Size of prospective applicants is significantly reduced. Many other people would be more suitable for that specific position
- Organizations that heavily rely on inside recruitment might eventually find that they have to advertise outside the organization to fill the vacancies
Benefits of external recruitment
- External applicants will bring in new ideas and practices to the business
- Wide choice of potential applicants
- Avoids resentment sometimes felt by existing staff if one of them gets promoted
- In touch with the external business world
Disadvantages of external recruitment
- Costs of advertising and induction training
- Damages employee morale because current employees feel like they do not have a chance of promotion
- More time consuming
- Bringing in different coporate culture can affect the running of the business - time to introduce new methods and culture
Define job description
A detailed list of the key points about the job to be filled - stating all its key tasks and responsibilities
What does the job description include?
- Job title
- Details of the tasks to be performed
- Responsibilities involved
- Place in the hierarchical structure
- Working conditions
- How the job will be assessed and performance measured
Define person specification
A detailed list of the qualities, skills and qualifications that a successful applicant will need to have. e.g. experience, qualification
What does the selection process involve?
Job description and person specification -> job advertisement -> drawing up a shortlist of applicants -> conducting interviews
What are the 3 types of training?
- Induction training
- On-the-job training
- Off-the-job training
Define training
Work-related education to increase workforce skills and efficiency
Define on-the-job training
Instruction at the place of work on how a job should be carried out
Define off-the-job training
All training undertaken away from the business e.g. institutions
Define induction training
Introductory training programme to familiarise new recruits with the systems used in the business and the layout of the business site
Costs of training staff
- Expensive
- Well-qualified staff leaving for better paid job
Costs of not training staff
- Untrained staff will be less productive and inflexible => give a less unsatisfactory customer service
- Without being pushed to achieve higher standards or other skills => become bored and demotivated
- No self-actualisation (Maslow)
Define employment contract
A legal document that sets out the terms and conditions governing a worker’s job
Main features of a contract of employment
- Name of the parties
- Start date
- Job title and description
- Hours of work
- Salary
- Probationary period
- Deductions
- Holidays
- Expense: The employer can agree with the employee, which work-related expenses will be covered and when the employee will be reimbursed
- Sickness and disability
- Retirement and pension
- Discipline and dismissal of employees
Define dismissal
Being dismissed or sacked from a job due to incompetence or breach of discipline
Define unfair dismissal
Ending a worker’s employment contract for a reason that the law regards as being unfair
Examples of dismissal
- Inability to do a job when sufficient training has been given
- Negative attitude at work
- Continuous disregard of require health and safety procedures
- Violate employment’s contract
Examples of unfair dismissal
- Pregnancy
- Discriminatory reasons e.g. race, colour, religion
- Being a member of the trade union
- A non-relevant criminal record
Define redundancy
When a job is no longer required so the employee doing this job becomes redundant though no fault of his or her own. Receives redundancy payment
What is employee welfare and how to achieve it?
Most HR departments will offer counselling and other services to staff who are in need of support (financial problems, family) or have troubles with work. When workers feel that the employer is concerned about their long term welfare then it is likely to lead to a much stronger sense of loyalty and desire to do well for the business => increases staff morale as well
Define flexi-time contract
Employment contract that allows staff to be called in at times most convenient to employers and employees
Define outsourcing
Not employing staff directly, but using an outside agency or organisation to carry out some business functions
Define hard HRM
An approach to managing staff that focuses on cutting costs. e.g. temporary and part time employment contracts, offering maximum flexibility with minimum training
Define soft HRM
An approach to managing staff that focuses on developing staff so that they reach self actualisation and are motivated to work hard and stay with the business
