2.1 Functions and evolution of human resource management

Question 1

1. What is meant by human resource management?

Answer 1

Human resource management refers to the roles of managers in planning and developing the organisation’s people. This is done through interrelated functions such as recruitment and selection, dismissal, training and development.

Question 2

2. What is workforce planning?

Answer 2

Workforce planning is the the process of forecasting the current and future staffing needs of an organisation.

Question 3

3. What is labour turnover and how is it calculated?

Answer 3

Labour turnover is the measure of the number of people who leave the organisation and is expressed as a percentage, usually over one year. It is calculated by:
number of staff leaving / total number of staff x 100

Question 4

4. What are demographic changes and how do these influence workforce planning?

Answer 4

-> Changes in the population structure
Changes in the retirement age - if the retirement age is increased, it increases the number of people in the labour force
Net birth rate - Countries with a high net birth rate will, in the long term, have a larger supply of human resources.
Net migration rate - If the net migration figure is positive, the supply of human resources will increase.
Women entering and leaving the workplace - boosts the supply of human resources

Question 5

5. What is an ageing population and what are the consequences of this for workforce planning?

Answer 5

An aging population is when the average age of the population increases, and this may lead to:

• Increase in the dependent population
• Reduce labour mobility
• Change in employment patterns
• Changes in consumption patterns

Question 6

6. How do new communications technologies influence human resource planning?

Answer 6

Recruitment 
Meetings 
Appraisals 
Flexitime and teleworking
Online training courses

Question 7

7. Why do businesses need to recruit people?

Answer 7

Labour is an essential factor of production needed for the provision of any good or service.

Question 8

8. Identify the general steps in the recruitment and selection process.

Answer 8

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

Question 9

9. What is a job analysis and why is it important?

Answer 9

Job analysis involves scruntinising the different components and aspects of a job to determine what the job entails -> helps create the job description and the person specification.

Question 10

10. Differentiate between internal recruitment and external recruitment.

Answer 10

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.

Question 11

11. Why is testing often used in the recruitment process?

Answer 11

Testing ensures that the best candidate is employed for the right job, and reduces costs incurred in the long run if an applicant is hired.

• Intelligence tests
• Aptitude tests
• Psychometric tests
• Trade tests

Question 12

12. What are the objectives and benefits of training?

Answer 12

Objectives of training include:
Enhance the efficiency and effectiveness of staff
Improve the quality of work
Facilitate career and personal development of employees
Develop a multi-skilled and productive workforce
Help staff adapt to change

Benefits of training:
Better skilled and flexible workforce
Improved competence
Good reputation for training and developing staff
Staff feels more confident and competent in their roles
Higher morale

Question 13

13. Distinguish between cognitive and behavioural training.

Answer 13

Cognitive training is about training and developing mental skills to improve work performance - based on the notion that ability to learn is fundamental to success in the workplace. It includes:
- learning activities to improve memory, attention, listening skills, logic and reasoning etc.
Behavioural training deals with identifying functional issues that could improve performance in the workplace by developing behavioural changes in the workforce - enables participants to move towards a desired change. It includes:
- team building
- ethical business practice
- emotional intelligence
- motivation training
- conflict resolution
- stress management
- anger management
- leadership skills

Question 14

14. Outline the advantages and disadvantages of using appraisals for workforce planning.

Answer 14

Advantages:
Used to set targets, leading to changes for personal and professional development
Allow managers to objectively praise staff on their strengths and contributions
Provide constructive feedback
Getting valuable feedback from the staff
Managers can aggregate the findings of appraisals to identify common strengths and areas in need of improvement
Can be used as part of job evaluation to work out levels of pay - looking at different tasks, responsibilities, skills, qualification and challenges that a job entails

Disadvantages
Time consuming and costly
Confidential feedback must be given and follow-up action requires funding and monitoring otherwise would be meaningless
Appraisals can be subjective
Staff may get offended by comments about weaknesses
Many appraisers lack the skills, experience and confidence to carry out appraisals effectively -> diminish credibility
Employees can experience unnecessary anxiety and stress if appraisals are linked to pay

Question 15

15. Distinguish between formative and summative appraisal.

Answer 15

Formative appraisal is a planned and ongoing process in which appraisal evidence is used by employees to inform them about what to do to improve their work practices. It is often used in schools (teachers mark an end-of-topic test, grade it, add written comments to how the students can improve) It is often used for appraising staff hired for a trial period. Its goals include:
Monitor the performance of employee’s learning
Help employees to identify strengths and weaknesses
Help managers to recognise areas where staff are struggling

Summative appraisal is a written description of an employee’s performance at work, summarising personal performance and achievements during the year. Its goals include:
Recommendations for improvements
Evaluate the performance or contribution of workers by comparing this with a predetermined standard or benchmark

Question 16

16. What is the difference between dismissal and redundancy?

Answer 16

Dismissal is the termination of a worker’s employment due to incompetence or breach of contract (‘sacked’ or ‘fired’). Redundancies occur when a business can no longer afford to employ the worker or when the job ceases to exist.