Chapter 10 - Human Resource Management Flashcards
State the purposes and roles of human resource management. (9)
- Workforce planning: plan how many workers and skills needed for business in future
- Recruitment and selection of appropriate new employees
- Developing employees by appraising and training them
- Preparing employment contracts for all employees
- Dismissal and redundancy of employees
- Taking responsibility for management relations
- Monitoring and improving employee morale and welfare.
- Introducing and managing payment and other incentive systems
- Measuring and monitoring employee performance
Explain the factors that influence the skill levels required by a business (2)
- Pace of technological change in industry e.g. production methods / complexity of machinery
- Need for flexible or multiskilled workers as business tries to avoid excessive specialisation. Many businesses recruit workers with more than one skill who can be used in variety of ways. Gives business more flexibility, jobs more rewarding.
Describe the two reasons for workforce planning
- To establish the number of employees required in future
- To establish the skills of the workers required in future
Explain the factors that influence the number of employees a business will require in future (5)
- Forecast demand for product.
Influenced by market and external conditions, seasonal factors, competitors actions, trends in consumer tastes etc. Demand forecasts may be necessary to help establish labour needs. Some make provision for additional employees to allow for unexpected increases in demand. Alternative, recruit temporary or part-time staff. - Productivity Level.
If productivity is forecast to increase (perhaps result of more efficient machinery) fewer workers needed to produce same level of output. - Objectives of the business.
If business plans to expand in coming years, employee numbers will have to rise to accommodate growth. - Changes in the law regarding workers rights
If government introduces laws that establish a shorter maximum working week or minimum wage level, big impact on workforce planning - The labour turnover and absenteeism rate.
The higher rate at which workers leave business, greater need will be to recruit replacements. If employees frequently absent, more workers will need to be recruited to cover for absences.
Define “human resource management”
The strategic approach to the effective management of employees so that they help the business gain a competitive advantage.
Define “workforce planning”
Forecasting the number of employees and the skills that will be required by the organization to achieve its objectives.
Define “workforce audit”
A check on the skills and qualifications of all existing workers/managers
Define “labour turnover” (include formula)
Labour turnover measures the rate at which employees are leaving an organisation/business.
Formula:
(Number of employees leaving in 1 year / average number of people employed) x 100
Explain the costs of high labour turnover (4)
- costs of recruiting, selecting, training new staff
- poor output levels and customer service due to staff vacancies before new recruits appointed
- difficult to establish customer loyalty due to lack of regular, familiar contact
- Difficult to establish team spirit
Explain the potential benefits of high labour turnover (3)
- low-skilled and less productive staff might be leaving and could be replaced with more carefully selected workers
- new ideas and practices brought into an organisation by new workers
- high labour turnover can help business plan to reduce employee numbers as workers who leave will not be replaced.
State 2 reasons when recruitment and selection of employees would be necessary
- Business needs bigger workforce
- Employees leave and need to be replaced.
State and explain the stages in the process of recruitment and selection (6)
- Establishing the exact nature of the job and drawing up a job description
- Drawing up a person (job) specification.
Analysis of qualities, skills, qualifications looked for in suitable applicants. Helps in selection process by eliminating applicants which do not match the necessary requirements. - Preparing a job advertisement
Needs to reflect requirements of job and person specification. HR needs to design form for applicants, usually done online. Care must be taken that ad does not imply element of discrimination as nearly all countries outlaw unfair selection based on race, gender, sexuality, religion etc. - Making a shortlist of applicants.
Small number of applicants chosen based on application forms, personal details and work experience contained in CV and resume. References may have been obtained from previous employers to check on character. - Selecting between applicants.
Interviews most common method. Interviewers question applicant on skills. experience and character. Some use 6-point plan to carry out interview: achievements, intelligence, skills, interests, personal manner and personal experiences. Other selection tests may be conducted such as aptitude / psychometric tests. - Employment contracts
Once successful applicant appointed, must be given contract of employment. Legally binding document. Care taken to ensure they are fair and comply with current employment laws where worker employed.
Define “job description” and the elements included in a job description.
A job description is a detailed list of the key points about a job to be filled, stating all its key tasks and responsibilities.
Job description will include:
- job title
- details of task to be performed
- responsibilities involved
- place in hierarchal structure
- working conditions
- how the job will be assessed and performance measure
Define the term “person (job) specification”
A detailed list of the qualities, skills, and qualifications that a successful applicant will need to have.
Define the term “curriculum vitae (CV)”
A detailed document highlighting all of a person’s professional and academic achievements, work experience an awards.
Define the term “resume”
A less detailed document than a CV, which itemises work experience, educational background and special skills relevant to the job being applied for.
Define “internal recruitment”
When a business aims to fill a vacancy from within its existing workforce.
Define “external recruitment”
When a business aims to fill a vacancy with a suitable applicant from outside of the business, such as an employee of another organisation.
Explain the advantages of internal recruitment (7)
- Applicants may already be known to selection team
- Applicants already know organisation and internal methods, no need for induction training
- The culture of organisation well understood by applicants
- Often quicker than external recruitment
- Likely cheaper than using external advertising and recruitment agencies
- It gives internal staff career structure and chance to progress
- If vacancy is for senior post, workers will not have to get used to new style of management
Explain the advantages of external recruitment (4)
- External applicants bring new ideas and practices to business, helps keep existing employees focused on future rather than past.
- Wider choice of potential applicants, not just limited to internal staff
- It avoids resentment sometimes felt by existing staff if one of colleagues promoted above them
- The standard of applicants could be higher than if job is only open to internal applicants.
Explain the features of employment contracts (5)
- Employee’s work responsibilities and main tasks to be undertaken
- Whether contract permanent or temporary
- Working hours, level of flexibility expected, including whether part time or full time, whether working weekends or not, payment method and pay level
- Holiday entitlement and other benefits such as pensions
- Number of days’ notice that must be given by worker (if wish to leave) or employer (if wish to make employee redundant).
Define the term “redundancy”
When a job is no longer required, the employee doing this job becomes unnecessary through no fault of their own. (Perhaps because of a fall in demand, change in technology or need to cut costs.)
Define the term “dismissal”
Being dismissed or fired from a job due to incompetence or breach of discipline. May be necessary for HR manager to discipline an employee for continued failure to meet obligations set out in contract of employment.
If employee involved in gross misconduct, organisation can dismiss with immediate effect.
Define “unfair dismissal”
Ending a worker’s employment contract for a reason that the law regards as being unfair
Explain what an employer would need to be able to show to prove that dismissal was fair (5)
- inability to do the job even after sufficient training
- Continuous negative attitude at work
- Disregard for required health and safety procedures
- Deliberate destruction of employer’s property
- Bullying of other employees
Explain methods used to give employees more work-life balance (4)
- Flexible working
- Teleworking - working from home for some of working week
- Job sharing - allows 2 people to fill 1 full-time vacancy although each worker will only receive proportion of full time pay
- Sabbatical periods - extended period of leave from work of up to 12 months Some businesses pay. All employers guarantee to keep job open.
Define “work-life balance”
A situation in which employees are able to allocate the right amount of time and effort to work and to their personal life outside work.
Define “equality policy”
Practices and processes aimed at achieving a fair organisation where everyone is treated in the same way without prejudice and has the opportunity to fulfil their potential.
Define “diversity policy”
Practices and processes aimed at creating a mixed workforce and placing a positive value on diversity in the workforce.
Acknowledging differences between employees and deliberately creating an inclusive environment that values those differences.
Explain the impacts of promoting equality in the workplace (3)
- Creating an environment with high employee morale and motivations
- Developing a good reputation and ability to recruit top talent based on fairness
- Measuring employee performance by achievements at work, not only by discriminatory factor at work
Explain the impacts of promoting diversity in the workplace (5)
- Capturing a bigger market share as consumers are attracted by a diverse sales force
- Employing more qualified workforce, selection based on merit, not discrimination
- Increasing creativity because individuals from different backgrounds approach problem solving in different ways
- Achieving cultural awareness, leading to improved knowledge about foreign markets
- Promoting diverse language skills, which allow businesses to provide services and products internationally.
State the three types of training.
- Induction training
- On-the-job training
- Off-the-job training
Explain/Define “induction training”
Should be given to all new recruits. Introductory training programme to familiarise and introduce the recruits to the people they will be working with most closely, to explain the internal organisational structure, systems used in the business, layout of the premises and make clear essential health and safety issues such as procedures during a fire emergency
Explain the benefits of induction training to employees (7)
- Understanding workplace issues
- Knowing organisational structure
- Information about basic terms and conditions
- Info about g/s sold
- IT training to help new employee use IT system
- Basic customer service training
- How to ensure products fir for purpose.
Explain/Define “on-the-job training”
Involves instruction at place of work on how a job should be carried out. Watching or working closely with existing experienced member of staff is frequent component. Cheaper than sending recruits on external training courses and content of training controlled by business itself.
Explain/Define “off-the-job” training”
Any course of instruction away from the place of work. Could take place in specialist training centre belonging to company itself or could be a course organised by an outside body.
Off the job training has added potential of being a source of new ideas. Courses can be expensive but may be indispensable if business lacks anyone with required degree of technical knowledge.
Explain the impacts of training on a business and its employees (7)
- Training can be expensive
- Well qualified employees leaving for better paid jobs once they have gained better qualifications from a business with good training programme
- Workers less productive during training programme, especially if off the job
- Untrained employees are less productive, less flexible, less adaptable. Unsatisfactory customer service.
- Accidents likely result from workers untrained in health and safety
- Increases employee satisfaction and motivation. Without being pushed to achieve higher standard or more skills, workers may become bored and demotivated.
- Multi-skilling can be great benefit, especially in times of rapid economic and technological change
Define “employee appraisal”
The process of assessing the effectiveness of an employee judged against pre-set objectives.
Explain the different ways that employees can be developed (4/5)
- New challenges and opportunities
- Additional training courses to learn new skills
- Promotion with additional delegated authority
- Chances for job enrichment
To enable worker to continually achieve a sense of self-fulfilment, HR department should work closely with worker’s functional department to establish career plan that individual feels is relevant and realistic.
Most employees can demonstrate entrepreneurship if they are: (5)
- encouraged to be independent thinkers and creative
- given opportunities to mix and work with other skilled employees from other departments
- empowered with the authority and resources they need to introduce innovations
- assured that some failure is expected and acceptable
- encouraged to start with small ideas and innovations before moving on to bigger issues
Explain the benefits of cooperation between management and the workforce (5)
- fewer days lost through strikes and other forms of industrial action
- much easier for manager to introduce change in workplace
- contribution of workforce likely recognised by management and pay levels, and other benefits might reflect this.
- agreement on more efficient operations increases’ competitiveness of business
- Wokers practical insight into way a business operates can contribute to more successful decisions
Explain reasons why an employee would join a trade union (4)
- Basis of trade union influence has been “Power in solidarity”. Union’s ability to engage in collective bargaining, negotiating on behalf of all employees. Puts workers in stronger position than if they negotiated individually.
- Individual action e.g. one worker on strike, unlikely effective. Collective industrial action could result in much more influence over employers during industrial disputes.
- unions provide legal support to employees who claim unfair dismissal or poor working conditions
- unions put pressure on employers to ensure all legal requirements are met.
Define “trade union”
An organisation of working people with the objective of improving the pay and working conditions of their members and providing them with support and legal services.
Define “collective bargaining”
The process of negotiating terms of employment between an employer and a group of workers who are usually represented by a trade union official.
Explain the benefits of collective bargaining (4)
- Employers can negotiate with 1 trade union officer rather them with individual workers. Saves time, prevents workers feeling they are obtaining better pay and conditions than others.
- Union officials can provide useful channel of communication with workers. Two-way communication allows workers problems to be raised with management, employers’ plans to be discussed with workers
- Unions impose discipline on members who plan to take hasty industrial action that could disrupt a business.
- The growth of responsible, partnership unionism has given employers valuable forum for discussing issues of common interest and making new workplace agreements. Discussions should lead to increased productivity, helping secure jobs, raise profits.
Explain the several forms of industrial action by employees during a dispute with employers over improved pay and working conditions. (5)
- Continue Collective Bargaining
- Go-Slow: workers keep working but at minimum pace demanded by contract of employment
- Work-to-rule: employees refuse to do any work outside the precise terms of employment contract. Overtime not worked; all non-contractual cooperation withdrawn
- Strike action: workers totally withdraw labour for period of time. Leads to production stopping, business shutting down.
Explain the various methods employers could use to try resolve industrial disputes (6)
- Negotiations: to reach a compromise solution, aim of avoiding industrial action.
- Public relations campaign: to gain public support for employer during dispute, put pressure on union to settle for compromise
- Threats of redundancies: to pressure unions to settle dispute
- Changes of contract: require workers to work overtime, accept more flexible working, or agree not to take industrial action.
- Lock-outs: short term closure of business to prevent employees from working and being paid.
- Closure of business: leading to redundancy of all workers. Extreme measure, clearly damage long term interests of both workers and business owners
