2.1 Functions and evolution of human resource management

Question 1

Human resource management

Answer 1

Human resources (HR) is a department
charged with finding, screening,
recruiting and training job applicants
and new employees

HRM is the management function of using and developing people within a business to meet its organisational objectives

Question 2

Roles and responsibilities of HRM

Answer 2

workforce planning

recruitment, selection and induction

training and development of staff

reviewing pay and remuneration packages( wages and salaries)

looking after the health and welfare of employees

Question 3

How can HR add value to the output?

Answer 3

increase productivity
improve quality

come up with new ideas
provide better customer service

Question 4

Human resource/workforce planning

Answer 4

the management process of anticipating and meeting an organisation’s current and future staffing needs

Question 5

Short-term workforce planning

Answer 5

deals with the upcoming and existing demands of an organisation

Question 6

Long-term workforce planning

Answer 6

looks at the human resources needs of the business in the foreseeable future

Question 7

What does workforce planning look at?

Answer 7

historical data and trends

sales and income levels

labour turnover rates

flexibility and workload of staff

demographic changes

Question 8

Labour turnover

Answer 8

measures the percentage of the workforce that leaves the organisation in a given time period, usually one year

Question 9

Labour turnover formula

Answer 9

number of staff leaving / total number of staff

x 100

Question 10

What are the main reasons some people leave their jobs? [CLAMPS]

Answer 10

Challenge

Location

Advancement

Money

Pride (Prestige)

(Job) Security

Question 11

What are some internal and external factors that influence human resource planning?

Answer 11

demographic changes

changes in labour mobility

new communication technologies

Question 12

Why do businesses need to recruit people?

Answer 12

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.

Question 13

Summary of the recruitment process (10 steps)

Answer 13

1. Conduct a job analysis to determine the firm’s need to hire new employees
2. Produce a job description and person specification
3. Advertise the vacant post
4. Check applications and shortlist suitable candidates
5. Interview the shortlisted candidates
6. Perform aptitude testing (if applicable)
7. Check references for shortlisted candidates
8. Job offer made to the best candidate
9. Issue and sign the contract of employment
10. Carry out induction of new recruit

Question 14

Differentiate between internal recruitment and external recruitment.

Answer 14

Internal recruitment involves hiring people who have already been in the organization to fill out a position,

whereas external recruitment hires new employees from outside of the organization to fill out vacant posts.

Question 15

Occupational and Geographical Mobility of Labour -

Answer 15

Occupational Mobility of Labour -
extent to which workers are willing
and able to move to different jobs
requiring different skills.

Geographical mobility of Labour -
extent to which workers are willing
and able to move geographical region
to take up new jobs

Question 16

Training and types of training

Answer 16

Work-related education to increase workforce skills and efficiency.
Types:

On-the-job
training

Off-the-job
training

Cognitive
training

Behavioural
skills
training

Question 17

Employee appraisal

Answer 17

Employee appraisal is the process of assessing the effectiveness of an
employee judged against preset objectives

Question 18

Dismissal and redundancy

Answer 18

DISMISSAL means being removed
or ‘sacked’ from a job due to
incompetence or breach of discipline.

REDUNDANCY when a job is no
longer required so the employee
doing this job becomes redundant
through no fault of his or her own.

Question 19

Main reasons for changes in the employment patterns

Answer 19

Competitive pressures from globalization

Need for greater labor flexibility

Rapid changes in technology

Greater opportunities for outsourcing

Changing social and demographic patterns.

Question 20

● Contract of employment:

● Unfair dismissal:

Answer 20

● Contract of employment:
○ a legal document that sets out the terms and conditions governing a
worker’s job

● Unfair dismissal:
○ ending a worker’s employment contract for a reason that the law regards
as being unfair

Question 21

Teleworking
Outsourcing:
Portfolio working

Answer 21

Teleworking: staff working from home but keeping contact with the office by means of modern IT communications.

Portfolio working: the working pattern of following several simultaneous employments at any one time.

Outsourcing: using another business (a ‘third party’) to undertake a part of the production process rather than doing it within the business using the firm’s own employees

Question 22

Adv and Dis. of Part-time and flexible contracts for a business

Answer 22

Advantages
1. Employees can be required to work at
particularly busy periods of the day but
not during the slack times

2. More employees are available to be
   called upon should there be sickness or
   other causes of absenteeism.
3. By using teleworking from home for
   some groups of workers, even further
   savings in overhead costs can be made,
   such as smaller office buildings

Disadvantages
1. There will be more employees to
‘manage’ than if they were all full time

2. Effective communication will become
   much more difficult
3. Some managers fear that teleworking
   will lead to lower productivity as
   workers cannot be monitored so easily
   as when they are present in the office

Question 23

Adv. and Dis. of Part-time and flexible contracts for a worker

Answer 23

Advantages
1. This contract could be ideal for
certain types of workers, e.g. students

2. They may be able to combine two
   jobs with different firms

3. Teleworking allows workers to
organise their own working day at
home, while meeting preset targets
and deadlines and keeping in contact
with head office via the internet.

Disadvantages
1. They will be earning less than
full-time workers.

2. They may be paid at a lower rate than
   full-time workers.

3. Teleworking and temporary/flexi-time
contracts can lead to much less social
contact with fellow workers – social
interaction is an important human
need.

Question 24

Outsourcing and Offshoring

Answer 24

Outsourcing means using another business (a ‘third party’) to undertake a part of the production process rather than doing it within the business using the firm’s
own employees.

Offshoring is the relocation of a business process done in one country to the same or another company in another country.

Question 25

HR functions that can be outsourced

Answer 25

● payroll administration
● employee recruitment
● training and development (some or all)
● human resources information systems (e.g. employee records)
● exit interviews when an employee decides to leave
● equal opportunity compliance/reporting
● legal advice
● legal compliance
● health and safety administration

Question 26

HR functions that should not be outsourced

Answer 26

change management
● strategic HR planning
● development and maintenance of HR policies
● remuneration and benefits strategy (as distinct from administration)
● termination of employment/redundancies
● cultural change programmes
● recruitment and selection for key jobs (e.g. senior management)
● succession planning
● specialised training

Question 27

Harm and Soft HRM

Answer 27

●Hard HRM: an approach to managing staff that focuses on
cutting costs, e.g. using temporary and part-time
employment contracts, offering maximum flexibility but
with minimum training costs
● Soft HRM: an approach to managing staff that focuses on
developing staff so that they reach self-fulfilment and are
motivated to work hard and stay with the business