10. Human Resource Management Flashcards
Human Resource Management
HRM focuses on:
* workforce planning to plan how many employees, and what skills, are needed for the business in the future
- recruitment and selection of appropriate new employees
- developing employees by appraising and training them
- preparing employment contracts for all employees
- dismissal and redundancy of employees
- taking responsibility for management and workforce relations
- monitoring and improving employee morale and welfare
- introducing and managing payment and other incentive systems
- measuring and monitoring employee performance.
Reasons for and role of a workforce plan
HR departments need to calculate the future employment needs of the business. Failure to do this can lead to too few workers with the right skills or too many workers with the wrong skills. The first stage is always a workforce audit. Once this has been conducted, the next stage in workforce planning is to assess how many additional employees and skills might be needed.
What will depend on how many employees business needs?
- Forecast demand for the product: This will be influenced by market and external conditions, seasonal factors, competitors’ actions, trends in consumer tastes and so on
- The productivity level: If productivity (output per worker) is forecast to increase – perhaps as a result of more efficient machinery – fewer workers will be needed to produce the same level of output.
- The objectives of the business: If the business plans to expand over the coming years, then employee numbers will have to rise to accommodate this growth.
- Changes in the law regarding workers’ rights: If a government introduces laws that establish a shorter maximum working week or a minimum wage level, then there could be a big impact on the workforce plan
- The labour turnover and absenteeism rate:
The skills of the workers required depend on?
The pace of technological change in the industry: for example, production methods and the complexity of the machinery used.
The need for flexible or multi-skilled workers as businesses try to avoid excessive specialisation. Many businesses recruit workers with more than one skill who can be used in a variety of different ways
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 are appointed
- difficult to establish customer loyalty due to a lack of regular, familiar contact
Potential benefits of high labour turnover
- low-skilled and less-productive staff might be leaving and could be replaced with more carefully selected workers
- new ideas and practices brought into an
organisation by new workers - high labour turnover can help a business plan to reduce employee numbers, as workers who leave will not be replaced
Recruitment and selection process
1. Establishing the exact nature of the job and drawing up a job description
This provides a complete picture of the job that is vacant and will 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 how performance will be measured.
The advantage of the job description is that it should attract the right type of people to apply for the job, as potential recruits have a good idea whether they are suited to the position or not.
2. Drawing up a person specification
This is an analysis of the qualities, skills and qualifications that will be looked for in suitable applicants. It is clearly based on the job description because these factors can only be identified once the nature and complexity of the job have been determined. The person specification helps in the selection process by eliminating applicants who do not match the necessary requirements
3. Preparing a job advertisement
The job advertisement needs to reflect the requirements of the job and the person specification. It can be displayed within the business premises or in government job centres, recruitment agencies and newspapers. Increasingly, businesses are using the internet to advertise vacancies
4. Making shortlist of applicants
Once application forms have been received, then the selection process can begin. number of applicants are chosen based on their application forms and their personal details and work experience, often contained in a CV (curriculum vitae) or résumé.
5. Selecting between the applicants
Interviews are the most common method of selection. Interviewers question the applicant on their skills, experience and character to see if they will both perform well and fit into the organisation. Some interviewers use a six-point plan to carry out a methodical interview. Candidates are assessed according to: achievements, intelligence, skills, interests, personal manner and personal circumstances.
Advantages of internal recruitment
- Applicants may already be known to the selection team.
- Applicants will already know the organisation and its internal methods so there is no need for induction training.
- The culture of the organisation will be well understood by the applicants.
- It is often quicker than external recruitment.
- It is likely to be cheaper than using external advertising and recruitment agencies.
- It gives internal staff a career structure and a chance to progress.
- If the vacancy is for a senior post, workers will not have to get used to a new style of
management
Advantages of external recruitment
- External applicants will bring new ideas and practices to the business, which helps to keep existing employees focused on the future rather than the past.
- There is a wider choice of potential applicants, not just limited to internal staff.
- It avoids the resentment sometimes felt by existing staff if one of their colleagues is promoted above them.
- The standard of applicants could be higher than if the job is open only to internal applicants.
Employment contracts
- A typical employment contract will contain the following features:
- the employee’s work responsibilities and the main tasks to be undertaken
- whether the contract is permanent or temporary
- working hours and the level of flexibility expected, including whether the job is part time or full-time , whether it includes working weekends or not, the payment method and the pay level
- holiday entitlement and other benefits such as pensions
Redundancy and dismissal of employees
- Redundancy occurs when workers’ jobs are no longer required, perhaps because of a fall in demand, a change in technology or the need to cut costs
-
Dismissal is a different matter. It may be necessary for an HR manager to discipline an employee for continued failure to meet the obligations set out in the contract of employment.
Before dismissal can happen, the HR department must do all that it can to help the employee reach the required standard or stay within the conditions of employment. There should be support and training for the person concerned. It is important from the organisation’s point of view that it does not leave itself open to allegations of unfair dismissal.
Fair dismissal:
* Inability to do the job even after sufficient training has been given
- continuous negative attitude at work
- disregard of required health and safety procedures
- deliberate destruction of an employer’s property
- bullying of other employees.
Unfair dissmisal:
* pregnancy
- a discriminatory reason, for example the race, gender or religion of a worker
- being a member of a union.
Employee morale and welfare
Most HR departments will offer advice, counselling and other services to employees who are in need of support, perhaps because of family or financial problems. These support services can reflect well on the caring attitude of the business towards its workforce. Improving the working conditions with excellent hygiene facilities and safety equipment is another effective way of improving employee welfare. When workers feel that the employer wants to improve their long-term welfare, it often leads to high morale and a strong sense of loyalty to the business, together with a desire for it to do well. If employee morale is high, productivity often increases and labour turnover is low.
Importance of work-life balance
Improving employee morale is important as it may increase labour productivity and help control costs due to lower labour turnover. Improving employee welfare is a hygiene factor according to Herzberg and this will also reduce the costs associated with labour turnover. However, HR performs many other important tasks.
Impact of equality in the workplace
- creating an environment with high employee morale and motivation
- developing a good reputation and the ability to recruit top talent based on fairness
- measuring employee performance by their achievements at work, not by any discriminatory factor.
Impact of diversity in the workplace
- capturing a bigger market share as consumers are attracted by a diverse sales force
- employing a more qualified workforce as selection is based on merit and not on discrimination
- increasing creativity because individuals from different backgrounds approach problem-solving in different ways
- achieving cultural awareness, leading to improved knowledge about foreign markets
- promoting diverse language skills, which allows businesses to provide products and services
internationally.
