2.1 Functions and evolution of human resource management

Question 1

Appraisal

Answer 1

Appraisal refers to the formal process of evaluating the
contributions and
performance of an employee, usually conducted through observations and interviews with the appraisee’s line manager.

Question 2

Behavioural training

Answer 2

Behavioural training deals with identifying functional
issues that could improve performance in the workplace by developing behavioural changes in the workforce. It is based on the notion that training is meaningless unless a desirable change in behaviour takes place.

Question 3

Cognitive training

Answer 3

Cognitive training is about training and developing mental skills to improve work performance. It is based on the notion that the ability to learn is fundamental to success in the
workplace.

Question 4

Contract of employment

Answer 4

Contract of employment refers to the legal agreement

between an employer and an employee, detailing the terms and conditions of employment.

Question 5

Demography

Answer 5

Demography is the statistical study of population
characteristics, using data such as birth rates, death rates, ageing populations
and net migration rates.

Question 6

Dismissal

Answer 6

Dismissal is the termination of a worker’s employment due

to employee incompetence (unsatisfactory performance) or a breach of contract.

Question 7

External recruitment

Answer 7

External recruitment involves hiring staff from outside the

organization to fill vacant posts.

Question 8

Flexible work pattern

Answer 8

Flexible work patterns means the trend in using less core staff and more peripheral workers and subcontractors to improve the flexibility and productivity of the workforce.

Question 9

Gross misconduct

Answer 9

Gross misconduct refers to major misdemeanours, such as theft, fraud, endangering others or being drunk at work. Such acts can lead to instant dismissal.

Question 10

Human resource management (HRM)

Answer 10

Human resource management (HRM) refers to the role of managers in planning and developing the organizations people. This is done through interrelated functions such as the recruitment, selection, dismissal and training and development of employees.

management function of using and developing
people within a business to meet its organizational
objectives. This entails interrelated roles, such as:

Question 11

Human resource planning (or workforce planning)

Answer 11

Human resource planning (or workforce planning) is the

management process of forecasting an organization’s current and future staffing needs.

Question 12

Induction

Answer 12

Induction is training aimed at introducing new staff to the

business to get them familiar with the policies, practices and culture of the organization.

Question 13

Internal recruitment

Answer 13

Internal recruitment is the practice of hiring people who

already work for the firm to fill a position, rather than employing someone new to the organization.

Question 14

A job analysis

Answer 14

A job analysis is part of the recruitment process that involves scrutinising the different components of a job (such as the routine tasks and responsibilities of the post holder) to determine what it entails.

Question 15

A job description

Answer 15

A job description is a document that outlines the nature of a particular job, i.e. the roles, tasks and
responsibilities. It is used
for the recruitment and performance appraisal of employees.

Question 16

Labour turnover

Answer 16

Labour turnover measures the number of workers who leave a firm as a percentage of the workforce, per year. It is often used to gauge the level of motivation in an organization.

Question 17

Mentoring

Answer 17

Mentoring is a type of on-the-job training involving a

partnership between a mentor and a mentee to help the mentee gain and develop specific skills and knowledge.

Question 18

The mobility of labour

Answer 18

The mobility of labour is the extent to which workers are
flexible enough to move to different locations
(geographical mobility) and/or their flexibility in changing to different jobs (occupational mobility).

Question 19

Offshoring

Answer 19

Offshoring is an extension of outsourcing that involves
relocating business activities and processes abroad. It is possible to offshore work but not to outsource it, although the practice is dominated by offshore outsourcing.

Question 20

Off-the-job training

Answer 20

Off-the-job training refers to training carried out off-site,
such as at a tertiary college or training centre. It often requires specialist trainers and equipment that are not available within the business.

Question 21

On-the- job training

Answer 21

On-the- job training refers to training carried out whilst at the workplace,with the training delivered by an in-house specialist, such as a head of department or more experienced colleague.

Question 22

Outsourcing

Answer 22

Outsourcing refers to the practice of using external providers for certain non-core business activities. These firms are able to carry out the outsourced work for less than the business would
be able to.

Question 23

Performance management

Answer 23

Performance management is the continuous process involving the planning, reviewing and mentoring of employees in order to enhance their performance at work.

Question 24

A person specification

Answer 24

A person specification is a document that gives the profile of the ideal candidate for a job, such as their skills, qualifications and experience.

Question 25

Portfolio working

Answer 25

Portfolio working means to simultaneously carry out a number of different jobs, often for various employers, usually on a part time or temporary basis. Examples include freelance editors and management consultants.

Question 26

Recruitment

Answer 26

Recruitment refers to the process of hiring suitable workers. This entails a thorough job analysis to ensure that the best
candidate is hired.

Question 27

Redeployment

Answer 27

Redeployment means transferring a staff member from a department or branch that no longer requires his/her services to other areas of the business where a vacancy exists.
ct.

Question 28

Redundancies (retrenchments or lay-offs)

Answer 28

Redundancies (retrenchments or lay-offs) occur when the
employer can no longer afford to hire the worker or when the
job ceases to exist following the completion of a project.

Question 29

Re-shoring

Answer 29

Re-shoring is the reversal of offshore outsourcing, i.e. the

transfer of business operations back to its country of origin.

Question 30

Shortlisting

Answer 30

Shortlisting is the process of sifting through applications to identify suitable candidates for a job.It is the stage that precedes the interview in the recruitment process.

Question 31

Teleworking

Answer 31

Teleworking is a method of workforce planning whereby

employees work in a location away from the workplace, such as those working from home or at a call centre.

Question 32

Training

Answer 32

Training is the process of providing opportunities for workers to acquire employment-related skills and knowledge.

Question 33

Workforce

Answer 33

Workforce refers to the number of employees at any one point in time for a particular organization. It is often used to measure
the size of businesses.

Question 34

Labour turnover

Answer 34

Labour turnover = (Number of staff leaving) / (Total number of staff) x 100%

Question 35

Internal and external factors that influence human resource planning

3p

Answer 35

1. such as demographic change
   - net birth rate
   - net migration rate
   - retirement age
2. change in labour mobility
3. new communication technologies

Question 36

Common steps in the process of recruitment

10

Answer 36

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 37

Induction

Answer 37

Induction training is a type of on-the-job training aimed at
introducing new employees to the organization.

The purpose of induction training is to help new recruits to settle in quicker. It can help to avoid costly mistakes being made by new employees who are not aware of the procedures or code of behaviour required to carry out their duties.

It can also help new recruits to integrate into the corporate culture of the organization (see Unit 2.5).

Question 38

Formative appraisal

Answer 38

-planned and ongoing: appraisal evidence is used by employees to
inform them about what to do to improve their work practices
• monitor the performance of employees’ learning
• help employees to identify their strengths and weaknesses (areas that need developing)
• help managers to recognise areaswherestaffare struggling
so that any problems can be addressed promptly

Question 39

Summative appraisal

Answer 39

1. A summative appraisal is a written description of an employee’s performance at work, summarising personal performance and achievements during the year.
2. The summative appraisal
   usually has recommendations for improvement (targets for a
   subsequent appraisal). It is used to hold staff accountable for their work, often testing the knowledge and competence of employees.
3. For example, summative appraisals of teachers
   usually involve lesson observations carried out by line managers.

Question 40

360-degree-feedback

3

Answer 40

1. 360-degree appraisal involves collecting evidence about the appraisee’s job performance from peers, subordinates, line managers or other parties (such as suppliers or customers)
   who have direct contact with the employee.
2. Opinions and comments are usually obtained by the use of questionnaires or interviews. The questions are mainly focused on the core
   competencies of the appraisee.
3. However, such appraisals often rely heavily on opinions rather than factual evidence. Hence, this is not suitable for all businesses and it is important for managers to
   consider group norms and sub-cultures before embarking with 360-degree appraisals. In some cultures, 360-degree appraisals
   are inappropriate as subordinates do not appraise their seniors.

Question 41

Self-appraisal

4

Answer 41

1. Self-appraisal involves employees appraising themselves based
   on predetermined criteria.
2. Appraisees are expected to be honest about their strengths and weaknesses.
3. They also need to set
   realistic targets for improvement.
4. Some self-appraisal systems require workers to rate themselves.

Question 42

3 reasons for outsourcing

AO3

Answer 42

1. When activities are not core to the functions of the
   business - For example,many firms outsource marketing
   and security functions. A school may outsource catering services to allow the school to concentrate efforts on its core activities, i.e. teaching and learning.
2. When the business lacks specific skills or expertise -
   For example, subcontractors are often hired to maintain
   the ICT functions of a business, such as networking and systems upgrades. The services of market research organizations, lawyers and accountants are further
   examples.
3. To cut costs of production - Outsourcing is used if it
   leads to productivity gains and cost advantages. Many
   multinationalcompanies,both manufacturersand service
   providers, have outsourced operations abroad in order to
   benefit from significantly lower labour costs.