2.1 Flashcards
Human Resource Management (HRM)
Part of an organisation which attracts, trains, deleops and motivates an effective workforce.
HRM Activities
- Training and development
- Recruitment and selection
- Motivate employees
- HR planning
Human Resource Planning (HRP)
Analysing and forecasting the number of workers and the skills these workers that will be required by the organisation. Involves a workforce plane and a workforce audit.
Workforce Plan
Number of workers and skills of those workers required over a future time period.
Workforce Audit
Check on the skills and qualifications of existing employees.
Workforce Planning Benefits
- Relevant training can be provided
- Overstaffing can be avoided
- Allows business to prepare for periods of change (redundancy)
- Gaps in current staff can be identified
Labour Turnover
The rate at which employees are leaving an organisation over a defined period opf time. It is measured by:
(Number of employees leaving in one year / average number of people employed) x 100
Disadvantages of high Labout Turnover
- Costs of recruiting, selecting and training new staff
- Poor customer service due to staff vacancies
- Difficult to create team spirit
Benefits of high Labour Turnover
- Low-skilled and less-productive staff may be leaving and could be replaced
- New ideas and practices are brought to the organisation by new workers
- A business may be planning to reduce staff members anyway
Demographic changes which can affect labour turnover
Changes in the size or structure of the population:
- Natural population growth (birth rate exceeds death rate)
- Net migration (immigration compared with emmigration)
- Ageing population
Demographic changes labour turnover: Natural population growth
Birth rate exceeds death rate:
- Easier to recruit effective employees
- Increased birth rates may take years before impacting the working population
Demographic changes labour turnover: Net migration
Immigration compared with emmigration:
- Easier to recruit effective employees from other countries at lower rates of pay
- Immigrants may need more training (language)
Demographic changes labour turnover: Ageing population
Average age of population increases as a result of life expectancy:
- Older employees may have experience and people skills that younger workers haven’t developed
- Older exployees may be less flexible and adaptable
Labour Mobility
The extent to which workers are wiling and able to move to different jobs requiring different skills. Helps keep structural unemployment low.
Labour mobility in developed economies
Labour tends to be immobile:
- High levels of home ownership, workers are reluctant to pay and waste time looking for another house
- High-skill levels in one occupation may mean workers are not equipped to deal in other industries
Labour mobility in emerging economies
Labour mobility tends to be higher:
- Home ownership is low
- Low skill levels mean workers can carry out low-skilled jobs in many industries
Geographical Mobility
The extent to which workers are willing and able to move geographical regions to take up new jobs.
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, atracting suitable candidates for the job and selecting the best one.
Recruitment process involves
- Identify a vacancy
- Job analysis
- Job description
- Person Specification
- Job advertisement (Internal/external recruitment)
Job Analysis
The vacancy is analysed to identify the main tasks, duties, skills and responsibilities of the position. Helps identify the type of candidate required for the position.
Job Description
Detailed description of exactly what the job entails. Included in the job advertisement and helps interviewers construct questions. Includes:
- Job title
- Location
- Tasks and duties
- Salary
- Authority
Person Specification
Details the type of person needed for the job. Includes essential and desirable attributes candidates should have:
- Experience
- Qualities
- Interests
Job Advertisement
The job description and person specification are included in the job advert. The organisation can advertise internally or externally.
Internal Recruitment
Filling positions with employees who already work for the organisation, promoted among current employees only.
Internal Recruitment Advantages
- The employer already knows the employee
- The company can save money on training
- Cheaper than external recruitment
Internal Recruitment Disadvantages
- Limited pool of potential applicants
- No fresh ideas are introduced to the business
- A new vacancy continually arises that needs to be filled
- Can cause tension or jealousy between employees
External Recruitment
Recruiting out of the organisation; in newspapers, specialist publications, social media, etc.
External Recruitment Advantages
- More candidates to choose from
- Introduces new ideas
- New skills brought to the organisation
- Opportunity to increase diversity
External Recruitment Disadvantages
- More expensive
- May take longer
- Costs for training
- May upset, demotivate existing employees
Selection
Chosing the most appropiate candidate for the job.
Selection Methods
CVs
Application forms
Interviewing
Testing
Assesment centres
References
Training
Work related education to increase the workforce skills and efficiency.
Types of Training
Induction
On-the-job
Off-the-job
Induction Training
Given to new staff to introduce them to the organisation. Includes meeting colleagues and the policies from the organisation. Such as:
- Provide a tour
- Show a video of the organisation
On-the-job Training
Training is conducted at the normal place or work by another staff member. Can be carried out through demonstration or job rotation.
On-the-job benefits
- Saves costs, workers don’t have to take courses
- Less disruptive to business, less employees missing from the job
- Relevant to the job
- Opportunity to get to know staff
On-the-job Disadvantages
- Trainers may possess bad habits nd pass they to trainees
- Productivity levels fall
- Trainer may not have experience training, ineffective
Off-the-job Training
Training is conducted away from the normal work place. Training center, university.
Off-the-job Benefits
- Use of specialist trainers and accommodation
- Employee can focus on the training and not be distracted by work
- Employees can pass the skills they learn to other workers
Off-the-job Disadvantages
- More expensive; transport, course fees, materials
- Employee’s job won’t be done while they are away
- Temporary staff may need to be hired
Training Methods
Demonstration
Coaching
Distance Learning
Role play
Presentations
Job Rotation
Virtual Learning Environments (VLE)
Cognitive Training
Excercices designed to improve person’s ability to understand and learn information:
- Sustaining attention
- Thinking before acting
- Listening and reading
Behavioural Training
Improves an individual’s ability to communicate and interact with others both inside and outside the organisation:
- Communication
- Negotiation
- Customer service
Staff Appraisal
Method of evaluating the performance of employees and assessing their usefulness to the business against their objectives. Carried out at regular intervals (yearly). Usually done in an interview.
Staff Appraisal Purpose
- Assess perfeomance over the year and identify areas for development
- Allow enployees to reflect on their perfromance
- Set performance targets
- Discuss and support career progression
- Discuss potential promotions
Informal Appraisal
Little discussion between manager and employee. Can be very subjective.
Formal Appraisal
An appraisal interview with the discussion being formally recorded and targets being set. Based on evidence collected in a formal way.
Appraisal Methods
Summative Appraisal
Formative Appraisal
360º Method
Self-appraisal
Summative Appraisal
Setting targets agreed both by the employee and employer:
- Performance is measured against targets
- Development needs identified and targets set (can become targets for next appraisal)
Formative Appraisal
Continual approach to evaluating an employee’s performance at work over time, usually on a one to three year cycle. Focus is on giving the employee feedback to help them improve.
360º Method
Uses a variety of people in the assessment process to gather evidence on employees performance (superiors, peers, customers). Helps build an overall profile by a thrid party (HR management).
Self-appraisal
Employees reflect on their own performance using forms where they can rate themselves on various performance indicators. Helpd identify strengths and areas for development.
Redundancy
When a job is no longer required so the employee doing that job becomes redundant throuh no fault o their own. This may be due to a change in demand, technology or budget.
Trade Unions
Try to prevent redundancies and there is a fall in employee motivation due to a loss of job security from remaining staff.
Employment Contract
A legal document that sets out the terms and conditions of a worker’s job.
Teleworking
Staff working from home but keeping in contact with the office by IT modern communications.
Flexitime
Employees can choose their hours of work as long as they are present during core business hours and agree their working hours in advance with the supervisor.
Portfolio Working
Working pattern of following several simultaneous employments at any one time.
Temporary Contracts
Contracts for a fixed period of time that can be part time or full time:
- Help reduce overhead costs
- Provides flexibility as workers can be hired for particular tasks
- Low levels of job security can impact worker motivation
Outsourcing
Using another business, a third party, to undertake a part of the production process rather that doing it within the business and using its own resources.
E.g. employee recruitment, training, legal advice.
Offshoring
The relocation of a business process done in on country to a company in another country.
Re-shoring
Reversal of offshorin, the transfer of a business process or operation back to its country of origin.
Benefits of Outsourcing
- HR can focus on more important things such as strategic HR issues
- Access to HR specialists for different departments (law, pensions)
Costs of Outsourcing
- Not always cheaper as they have to pay for high-quality workers
- May not know the business’ culture
- No control over the quality of work produced
Offshoring Advantages
Cost savings ad the functions are undertaken in a low-wage country.
Offshoring Disadvantages
- Distance and language barriers can create communication problems
- Workers employed may not be fully aware of the cultures and laws of the country in which the business operates
Innovation in HRM
Based on the principle that employees have more to offer than their physical qualities. Increase in team working, appraisals, information sharing, empowerment. leads to higher productivity, lower labour turnover, high quality applicants.
Ethical considerations in HRM
- Lack of cultural awareness
- Pay (create a difference between foreign and national workers)
Hard HRM Strategy
Business focused on maximisng profits or returns to shareholders use this strategy. An approach to managing staff that focuses on cutting costs.
E.g. using temporary and part-time employment contracts
Soft HRM Strategy
Business such as social enterprises may use this strategy. Focuses on developing staff so that they reach self-fulfilment and are motivated to work hard and stay in the business.