2.1 Functions and evolution of human resource management Flashcards
Human resource management
the management function of using and developing people within a business to meet its organisational objectives
Roles of HRM
workforce planning recruitment, selection and induction training and development of staff reviewing pay and remuneration packages disciplinary and grievance procedures looking after the welfare of employees
How can HR add value to the output?
increase productivity
improve quality
come up with new ideas
provide better customer service
Human resource/workforce planning
the management process of anticipating and meeting an organisation’s current and future staffing needs
Short-term workforce planning
deals with the upcoming and existing demands of an organisation
Long-term workforce planning
looks at the human resources needs of the business in the foreseeable future
What does workforce planning look at?
historical data and trends sales and income levels labour turnover rates flexibility and workload of staff demographic changes
Labour turnover
measures the percentage of the workforce that leaves the organisation in a given time period, usually one year
Labour turnover formula
number of staff leaving / total number of staff
x 100
What are the main reasons some people leave their jobs? [CLAMPS]
Challenge Location Advancement Money Pride (Prestige) (Job) Security
What are some internal and external factors that influence human resource planning?
demographic changes
changes in labour mobility
new communication technologies
Why do businesses need to recruit people?
labour is an essential factor of production needed for the provision of any good or service
–> hiring the right people helps to ensure that businesses can function effectively.
Differentiate between internal recruitment and external recruitment.
Internal recruitment involves hiring people who have already been in the organisation to fill out a position, whereas external recruitment hires new employees from outside of the organisation to fill out vacant posts.
Advantages of high labour turnover
Low skilled and productive staff leave and replaced with better workers
New ideas and practices are brought to the company
Business planning to reduce staff
Disadvantages of labour turnover
costs of recruiting, selecting and training
Poor output levels and customer service due to staff vacancies
Difficult to establish team spirit and stable work groups.
Examples of demographic changes that can affect the supply of labour.
Population growth
Net migration
Ageing population
Factors affecting workforce plan
Supply of labour Government Finances Structure of business Effectiveness of communication Morale of workforce Leadership style of managers Need for change/reaction to change
Advantages of internal recruitment
Cost effective
Less time needed to acclimate to company culture
Less risk
Motivational
Disadvantages of internal recruitment
Fewer applicants
Time consuming
No new ideas
Internal politics
Advantages of external recruitment
New blood (wide range of experiences) Larger pool of applicants
Disadvantages of external recruitment
Even more time consuming
Expensive
Uncertainty
Training
Process of providing opportunities for workers to acquire skills and knowledge
Training is the improvement of task-specific skills
Development involves enhancing personal skills that improve workforce flexibility
Advantages of training
Improve efficiency and effectivity Less wastage Higher morale Adapt to change easily Flexible workforce
Disadvantages of training
Cost
Employees may leave since they are qualified for better jobs
Induction
Introduction to company policies, general info
May involve meeting other personnel, touring the premises, etc.
Advantages of induction
Establishes expectations
Understand company culture
Morale booster
Disadvantages of induction
Time consuming
Personnel have to be freed to work on the induction
Info overload
On the job
Learn from coworkers by experience
May involve being mentored by or shadowing senior managers
Advantages of on the job
Relatively cheap
Relevant job-specific skills are learned
Fewer disruptions to work
Establish team relationships