2 - HRM

Question 1

Define labour turnover

Answer 1

Ratio of workers who leave a firm to those who remain

Question 2

Why is labour important?

Answer 2

• Increased production
• Improved quality
• New ideas
• Better customer service/realtions

Question 3

What does supply of labour depend on?

Answer 3

• Competition
• Rate of unemployment
• Internal workforce
• Cost of living
• Cost and availibilty of transportation

Question 4

What are the effects of an ageing population?

Answer 4

• Change in emplyment patterns
• Reduced labour mobility
• Changes in consumption patterns
• Increased dependent population

Question 5

What are demographic changes?

Answer 5

Changes within the statistical population of countries that affect supply of HR

Question 6

Examples of demographic changes?

Answer 6

• Women in the workforce
• Net birth rate
• Mobility of labour
• Retirement age
• Unemplyment rates
• Net migration rate

Question 7

Define workforce planning

Answer 7

Systematic identification and analysis of what a company needs in terms of size, quality and type of labour to achieve objectives

Question 8

Why do employees change jobs?

Answer 8

• Challenge
• Location
• Advancement
• Money
• Prestige/pride
• Job security

Question 9

Steps of the recruitment process?

Answer 9

• Vacancy arises
• Job description
• Personal specification
• Job advertisement
• Job application
• Shorlist applicants
• Interview/Testing/References

Question 10

Rules for designing an effective ad?

Answer 10

• Truthful
• Relevant
• Accurate
• Positive
• Short

Question 11

3 methods of application?

Answer 11

• Curriculum vitae (CV)/Resume
• Application form
• Covering letter

Question 12

Advantages/disadvantages of internal recruitment?

Answer 12

\+Cost effective
\+Motivational
\+Quicker/easier
\+Less risk
-Few applicants
-Internal politics

Question 13

What are appraisals?

Answer 13

Assessments aimed at determining performance of employees

Question 14

Reasons for appraisals?

Answer 14

• Assessing and recording performance
• Assess training needs
• Set new goals/objectives
• Reflection
• Assessing suitability for promotion

Question 15

Advantages/disadvantages of appraisals?

Answer 15

\+Setting new goals
\+Feedback from staff
\+Objective praise
\+Constructive criticism
-Time consuming, difficult
-Employees may take offence
-Linked to pay

Question 16

Methods of appraisal?

Answer 16

• Essay appraisal
• Self appraisal (appraising oneself)
• Upwards appraisal (employee to senior)
• 360 degree appraisal (collect opinions from colleagues)
• Rating system
• Peer appraisal (same level employee appraising)
• Management by Objectives

Question 17

Objectives of training?

Answer 17

• Adapt to change
• Develop multi-skilled workers
• Improve quality
• Enhance efficiency
• Facilitate career & personal development

Question 18

Induction training advantages & disadvantages?

Answer 18

\+Morale is boosted
\+Good work ethic created
\+Helps understand business culture
\+Employee settles in quicker
-Information overload
-Trainers must be free
-Planning is time-consuming

Question 19

On-the-job training advantages/disadvantages

Answer 19

\+Cheap
\+Convenient location
\+Relevant training
\+Establish relations with colleagues
-Trainers become less efficient
-May learn bad habits
-Trainers may be inexperienced

Question 20

Off-the-job training advantages/disadvantages?

Answer 20

\+Networking outside company
\+Expert training
\+No distractions
\+Wider range of training
-Expensive
-Loss of output
-Risk of desertion
-Skills learnt may not be useful

Question 21

Ways in whcih employee contracts can be terminated

Answer 21

• Retirement
• Redundancy
• Dismissal
• Resignation