2.1 Introduction to Human Resource Management Flashcards
Human Resource Management (HRM)
strategic approach to the management of people within a business to meets its objectives
what does an HR department do?
HR Planning
Recruitment
Training
Appraisal
Remuneration
Dismissal
Motivations
Why is HR Important?
People are a business’ most important resource
HR tries to get the best employees and getting them to work productively
Reasons for Dismissal (Firing, Termination)
Incompetence, misconduct
Formal Process - verbal warning, written warning etc
Redundancies (Laid off)
Employee leaves the company because there is no need for their job. No fault of their own.
Redundancy pay usually must be paid
HR planning
Predicting how many employees are needed and what skills they need
Internal Factors (what are they)
things that the business has some sort of control over
Internal Factors (examples)
Labour Turnover
Change in company objectives
Productivity of employees
Automation
Flexitime
External Factors (what are they)
things that are beyond the control of the business
External Factors (examples)
demographic change
changes in labour mobility
immigration
economy
change in laws
gig economy
Labour Turnover (Internal)
% of employees leaving in a year as a proportion of the workforce
the higher the labour turnover, the higher the need to hire more staff
Change in company objectives (Internal)
E.g. expansion, new product
will need to hire more workers with particular skills
Productivity of employees (Internal)
Increased productivity may mean less need to hire more workers
Automation (Internal)
when everything switches to machines
possibly less workers needed, but need to hire machine specialist
Flexitime (Internal)
Homeworking, teleworking
workforce becomes more flexible
can lead to job sharing, access to larger pool of talent, more equitable
job sharing = one job can be done by two people
Demographic change (External)
Increase in retirement age, more women entering the workforce
larger pool of talent
Changes in labour mobility (External)
Willingness to move location for a job
Willingness to take jobs with a different skill set
Immigration (External)
People moving from one country to another
immigration increases the pool of labour
Economy (External)
E.g. a recession might decrease demand for the product reducing the need for so many employees
Change in laws (External)
E.g. maximum 40 hour week
increase in retirement age
Gig economy (External)
Temporary workers (Uber)
Reasons for resistance to change in the workplace
One HR goal is to maximize productivity of employees in the workplace
But changes they make may encounter resistance
e.g. change in working hours, change in pay structure
Why are there reasons for resistance to change?
Fear of change/the unknown
self-interest
poor communication by the business
lack of trust in management
