Human Resource Management Flashcards
What is Human Resource Management
HRM involves managing the employees (human resources) in a business.
Aims to find, retain and make the best possible use of its employees.
What are the functions of HRM?
Manpower Planning Recruitment and Selection Training and Development Performance Appraisal Pay and Rewards Employer / Employee Relationships
What is manpower planning and it’s steps?
Involves HR manager ensuring the business has enough skilled workers to do all jobs needed for business to achieve its goals. three steps are :
Forecast Future Demand
Calculate Existing Supply
Recruit / Make Redundancies Accordingly
Explain three benefits of manpower planning
Avoids under staffing- Few workers means products not made on time and unhappy customers
Identifies over staffing - Manager can make excess workers redundant to reduce wages costs.
Improved Efficiency -business runs smoothly with enough staff to do the work required
Explain recruitment and the two types
Recruitment: finding the most suitable people for a job vacancy and encouraging them to apply. can be internal or external
Explain selection and screening
Selection: choosing the best applicant for the vacancy from all those who applied. There are then methods like tests, interviews an checking references to choose best candidate.
Screening: going through all applications and removing those that do not meet the selection criteria
Name three methods of selection
Testing / Aptitude Tests
Interviews
Reference Checks
Define a job description
A Job Description is a document that outlines the duties and responsibilities of the job. It sets out clearly where job fits into business structure and who the employee will report to.
What are the steps in recruitment and selection?
- Job description
- Prepare a person specification.
- Encourage suitable candidates to apply
- Screening
- Selection tests
- Interview
- Check References
- Offer the job
Define a person specification
A document that describes the qualifications, skills and characteristics of the ideal candidate for the job.
Define a job advertisement
The information from the job description and person specification can be used to draw up an advertisement for the job.
Define equal opportunities employer
Means that the business will judge all candidates fairly on their merits alone. It will not discriminate against applicants based on the nine grounds of discrimination (gender, race, age, religion etc.)
Explain external recruitment
External Recruitment means finding someone from outside the business to fill the position
Explain internal recruitment
Internal recruitment means finding someone to fill the position from existing employees who already work for the business
Explain four sources of external recruitment
Media Advertisement (e.g newspaper, radio etc.)
Recruitment Agency - specialist firm will find applicants for fee. ex: Adecco
FÁS / Solas
Headhunting - Business approaches people working for rival businesses and invite them to apply for job.
Explain four advantages of external recruitment
New talent and skills - help business improve, prosper
Fresh approach and perspective - new to business
Bigger pool of candidates - increases chances of finding excellent candidate for job
Less jealously with staff - less resentment-promotions
Explain four advantages of internal recruitment
Quicker than external recruitment
Less expensive - no ad, sign on a notice board instead
Motivating effect - provides career path for employee. work harder to get a promotion
Familiarity of Employees - know business, how it works and all staff. manager knows employees work first hand
Name three sources of internal recruitment
Promotion - current employee moves up to more challenging role
Demotion - employees struggling with job asked to move downwards to fill vacancy
Transfer - employees in one department to another
What are the two main ways to apply for a job?
Curriculum Vitae (CV) and Cover Letter Application Form and Letter of Application
Define CV
A document prepared by an applicant for a job in which they summarise their qualifications and work experience.
It contains details such as:
Name, Address, Education, Work Experience, References
Define application form
A document designed and printed by an employer asking a series of questions (regarding education, hobbies, experience etc) they require to be answered by the person apply for a job
Can be online or filled in
HR managers prefer using an application form because they can ask the questions they want answers to
Define a letter of application/cover letter
This is a letter in which an candidate introduces themselves, states the job they are applying for and outlines a brief summary of why they want the job and why they would be suitable for it.
It accompanies a CV.
Explain the step of recruitment and selection Screening and shortlisting
The HR Manager then goes through the CVs that have been received and removes those that do not meet the criteria for the job (screening).
The people who reach the criteria are ‘shortlisted’ and called for interview
Name three types of selection tests
May have to sit aptitude / personality / intelligence tests to assess their abilities.
Explain and define an interview
An interview is a face-to-face meeting between the candidate and management of the business. Its purpose is to see if candidate will ft in with the business
Most common selection technique in Ireland
Can be conducted by more than one person from management (panel interview)
Explain to check reference as a step in recruitment and selection
A business will check with former employers of the candidate to assess their ability and suitability for the job. Hear first-hand what they were like at their last job.
Explain induction training
This is given to new recruits to a job
It involves familiarising employees with the business, its staff, its culture and major operating procedures - settle in
Work Shadowing: observing others doing a job in order to learn how it’s done
Explain on-the-job training
Teaching knowledge, skills and attitude needed for job when in normal working situation - observing experienced employees
Used for existing employees when new work practices or technologies are introduced
It is learning by doing and directly related to the job that is being done
Explain off-the-job training
Teaching knowledge, skills and attitude needed for job when away from normal working situation - courses/evening classes
Employees are sent to outside specialist agencies who offer training in particular areas
Example: Colleges and Universities offering Masters Degrees
Explain the function of HR - Training and and development
Employees need regular training and development in their jobs or they need to be trained up for a new position.
Explain staff development
Development teaches employees life long skills that will help tackle any future work challenges
Development teaches transferrable skills (skills that can be used in any job)
Ex: Barista
Training: teaching them how to make coffee
Development: sending them on a communication skills course
Exlain four benefits of training and development
Better trained staff - know skills needed for job and so excellent quality products are made increasing profit
Helps employees adapt to change - variety of skills makes them more flexible
Increased morale and motivation - there is less supervision needed as employees are trusted.
Improves industrial relations - workers work well
Cheaper than recruitment
What are four benefits of performance appraisal for the employee
Gives employees clear understanding of what is expected
Increases motivation and job satisfaction
Improves working relationship with managers
Helps employees overcome their weaknesses
Explain performance appraisal
Process of assessing/ evaluating the contribution of employees to the organisation.
Done in a face-to-face meeting between managers and employees
Used to set performance targets for a worker which are regularly monitored
Performance targets are usually linked to pay and rewards
Formally meet again with employee to discuss the results of their appraisal
What are four benefits of performance appraisal for the company
Identifies strengths and weaknesses of employees
Helps create and maintain a culture of continuous improvement
Clarifies managerial and employee expectations
Increases employees motivation and loyalty to the company
Name seven financial rewards
Hourly Rate Piece Rate Commission Bonus Benefit-in-Kind Share Ownership Profit Sharing
Explain the function of HR pay and rewards and the two types
Pay and Rewards consist of the incentives offered to employees as compensation for the work they have done.
Can be:
Financial
Non-Financial
Explain non-financial rewards and give three examples
These are rewards that an employer uses to compensate employees for work done that are not money or have a monetary value.
Improved Working Conditions
Job Enlargement
Job Enrichment
Explain the function of HR employer/employee relations
The HR department play a role in ensuring there is a good working relationship between the employers / managers and employees of the organisation
Ensure they communicate and get on well.
how can the HR department can ensure there is a good working relationship?
Regular Open Communications
Following Grievance Procedures
Providing Relevant Training
Careful Selection of Employees
What are the Benefits of Good Employer / Employee Relationships
Increased Motivation and Productivity Promotes Intrpreneurship Retention of Employees Successful Delegation Increased Co-Operation Reduction in Chance of Strike Action
What are the Benefits of Effective HRM
Increase in Competitiveness for the Organisation
Motivated Workforce and Increased Staff Loyalty
Reduction in Absenteeism , Conflict and Staff Turnover
Promotes a Positive Attitude to Training and Development
What can Ineffective HRM can lead to?
Low Staff Morale
Prolonged Industrial Relations Conflicts
Less Productivity
High Staff Turnover and Absenteeism Rate
Explain Forecast future demand as a step of manpower planning with example
HR manager must estimate how many employees and what skills the business will need in the future. ex: Airline plans to run 100 flights a day with 2 pilots for each. Airline needs to hire 200 new pilots
Explain Calculate existing supply as a step in manpower planning with example
HR manager must conduct and audit of existing employees to see how many workers the business already has. Ex: Currently airline has 180 pilots
Explain Recruit / Make Redundancies Accordingly as a step in manpower planning with example
If demand exceeds supply strategy is to recruit more employees.
If supply exceed demand strategy is to make existing employees redundant
Ex: Airline has to start recruiting 20 pilots
Explain encourage suitable candidates to apply as a step of recruitment and selection
HR manager understands the type of person needed for the job and finds a number of suitable candidates internally or externally.
Explain panel interview
Applicant is interviewed by a number of interviewers who each have a vote
Explain offer the job as a step in recruitment and selection
HR manager writes to best candidate offering job. When job is accepted contract of employment is drawn up setting out duties and behavior expected of employee
Explain the benefits of recruitment
Drawing up job description and person specification gives business criteria to compare suitability of various applicants
Good recruitment saves the business time and money as it stops unsuitable candidates applying
Explain the benefits of selection
Choosing the right person to fit in with the business reduces possibility of industrial action in future
Choosing best candidate means job will be done well. Employee will make excellent quality products and give customers excellent service helping increase sales and profit.
Explain training
Where the Human resource manager teaches the employees the knowledge, skills and attitude needed to perform the duties of their job properly
Explain basic wage with advantages and disadvantages as a financial reward
Paid fixed amount each week or month.
It is easy for employer to operate
no incentive for employee to work harder
Explain hourly rate with advantages and disadvantages as a financial reward
Fixed amount paid per hour for certain number of hours. - overtime paid at a higher rate
Easy for employer to operate
Can cause employee to make work last longer
Explain piece rate with advantages and disadvantages as a financial reward
Paid fixed amount for each item employee makes
Encourages employee to work harder
Employee may rush work and make mistakes
Explain commission with advantages and disadvantages as a financial reward
Employee receives percentage of sales they make
Incentive for employee to work harder
Salespeople may be too pushy and turn customer off the business
Explain bonus with advantage as a financial reward
Additional lump sum payment given to employee when she reaches her target.
encourages employee to work to their target
Explain benefit in kind as a financial reward
A non-cash payment made to employee. perk of the job ex: company car
Explain share ownership with an advantage as a financial reward
Employee is given free/cheap shares in business as a form of bonus
Incentive to work harder as employee benefits from how well the business does through dividends
Explain profit sharing with advantages as a financial reward
Employee is paid a percentage of profit made by the business.
Employees are motivated to work hard - more profit made the more money they receive as bonus
Helps recruit best staff
Employees feel part of the business - better industrial relations
Explain Helps organisational performance as a benefit of performance appraisal
Helps manager spot employees who are not working up to the standards required of them and can help them improve their performance
Manager can sack under-performing employees
Unsatisfactory work is eliminated and so sales increase
Explain identifies employees suitable for promotion as a benefit of performance appraisal
Employees with excellent appraisal are suitable for promotion.
The proved their ability at their current job
Business has a steady flow of future managers to run the business.
Explain motivates employees as a benefit of performance appraisal
Employee know he is being graded on his work
Motivation to work harder as they want to achieve a good appraisal
Explain Helps improve employer employee relations as a benefit of performance appraisal
Regular meetings between manager and employee the relationship should improve
Good industrial relations and less chance of strikes that would harm the business
Explain financial rewards
When the employees as compensation for the work or some other item that has a money value
Explain improved working conditions as a non-financial reward
Reward employees with flexitime - Where employees start and finish work when they want provided they work the contracted number of hours
Another reward could be longer holidays
Explain job enrichment as a non-financial reward
Employees are given greater responsibility in the business. Tasks intended to develop them and get them to use their full abilities and skills
Explain job enlargement as a non-financial reward
Employees are given extra duties to do in order to relieve boredom of workplace.
Duties do not carry extra responsibility
Explain regular open communications as a method of improving industrial disputes as HR department
Regular face to face meetings with employees informing them about current state of business
Business should not hide things from employees
Honest and open with them to build trust and avoid disputes
Explain grievance procedures as a method of improving industrial disputes as HR department
Manager and the employees should agree in advance on procedures for dealing with conflict situations - promotions, redundancies and grievances
Must have agreed way to solve it.
These procedures minimise the risk of industrial action
Explain training as a method of improving industrial disputes as HR department
Managers should be taught how to deal with employee problems in sensitive way.
Should handle conflict so issues do not turn serious industrial problems
Employees should be taught knowledge, skills, and attitude they need to perform duties properly.
Reduces conflict over unsatisfactory work
Explain careful selection as a method of improving industrial disputes as HR department
HR manager should select employees who will fit in with the business and it’s beliefs
Minimises likelihood of conflict
Explain Increased Motivation and Productivity as a benefit of good employer/employee relationships
Employees will be happier
More willing to work hard for the business
Employee motivation and productivity increases
Explain promotes intrapreneurship as a benefit of good employer/employee relationships
They put in extra effort at their job and will become intrapreneurs.
They will offer employer really useful suggestions to help the business ex: microsoft
Explain Employee retention as a benefit of good employer/employee relationships
Employees are more likely to stay in the job
Labour turnover and absenteeism will decrease.
This saves the business money
Explain Delegation as a benefit of good employer/employee relationships
Employer will delegate work and give employees power to make decisions for the good of the business.
Employees make a useful contribution to the success of the business
Explain as a benefit of good employer/employee relationships increased coordination and better industrial relations
Employers and employees will be able to talk out any problems in a spirit of cooperation.
Less chance of strikes
Strikes can harm business’s good reputation and profits
