Human Resource Management c9

Question 1

What is HRM?

Answer 1

HRM seeks to attract the best people and
rewards its employees so that they are fully
motivated to achieve the overall strategic
objective of the business.

Question 2

What are the functions of HRM?

Answer 2

MANPOWER PLANNING

RECRUITMENT AND SELECTION

TRAINING AND DEVELOPMENT

PERFORMANCE APPRAISAL

Pay and REWARDS

INDUSTRIAL RELATIONS

Question 3

wHAT IS MANPOWER PLANNING?

Answer 3

A manpower plan is a plan for the human resources of a business. It Sets out the number of staff which are required.

It also sets out the type of staff which are required/ putting the right number
of people, with the right skills in the right place, at the right time to achieve
the goals of the organisation.

Question 4

WHAT ARE THE STEPS IN MANPOWER PLANNING?

Answer 4

Step1 Forecast future demand-The HRM
must estimate how many employees and
what skills the business will need in the
future

Step 2 calculate existing supply-The HRM
must calculate existing supply by
conducting an audit of the existing
employees. This will take into account the
employees that are nearing retirement.

Step3 recruitment or selection-If demand
exceeds supply the strategy is to recruit.

If supply exceeds demand the strategy is to
make some employees redundant.

Question 5

Why is man power planning important?

Answer 5

Ensures the business always has enough workers.

Saves the business money as
it helps to reduce the
businesses wage bill, as the
business is not over staffed.

Question 6

What is recruitment?

Answer 6

Recruitment: involves attracting suitable
candidates with the relevant skills,
qualifications and experience to apply for a
job vacancy.

Question 7

What is selection?

Answer 7

Selection: the process of deciding which
applicant is the most suitable for the
advertised job vacancy.

Question 8

What is the first step in recruitment and selection?

Answer 8

Step 1- prepare a job description and specification

This is a document of the job title, duties and
responsibilities associated with the role. It
may include details of pay and the person to
whom the employee will report.

It should include:
It outlines the qualifications,
skills, characteristics and
experience needed by the
person to fill the role.

Question 9

What is the second step in recruitment and selection?

Answer 9

Step 2 – ( Job advertisement)

Encourage suitable
applicants to apply: this can
be internal recruitment or
external recruitment. The
most common methods of
application are a curriculum
vitae, application form and
covering letter.

Question 10

What is the third step in recruitment and selection?

Answer 10

Step 3 – Screening Applicants :
This is where the HRM examines the applications and rejects the ones that do not meet the requirements. The successful applicants are them shortlisted for the next stage.

Question 11

What is the fourth step in recruitment and selection?

Answer 11

Step 5 – Selection Tests and interviews :
The shortlisted applicants
may undergo a series of
tests including intelligence
tests, aptitude tests and
personality tests. This attempts to determine the candidates ability to do the job, get along with others and work in the team to contribute to the business

Question 12

What is the fifth step in recruitment and selection?

Answer 12

Step 5 – Check references: The
HRM checks the references of
those who did best at the interview.

Question 13

What is the sixth step in recruitment and selection?

Answer 13

Step 8 – Offer the job and prepare the contract : The HRM
offers the job in writing to the successful candidate and if they accept a contract of employment is drawn up.

Question 14

Define panel interview

Answer 14

Is a process in which the candidate is interviewed by a group of interviewers rather than one person

Question 15

Define references

Answer 15

Are from other people who testify about a candidates character, skills and abilities

Question 16

Define job interview

Answer 16

Is a process in which a potential employee is evaluated by an employer for the prospective employment in the company

Question 17

Define flexible working conditions

Answer 17

Flexible working conditions refer to an arrangement between the employer and their employees that allows the employee input into their place of work, when they complete their duties etc. Flexible working conditions can enable an employee to work from home for a number of days per week and may also allow for flexitime.

Question 18

What is internal recruitment?

Answer 18

This is finding someone from withinthe business.
eg from

Promotion

Demotion

Transfer

Question 19

What are the advantages of internal recruitment?

Answer 19

ADVANTAGES:

They know how the business works

Motivates workers

Cheaper than external recruitment.

Question 20

What is external recruitment?

Answer 20

This is finding someone from outside
the business.

SOURCES:

Media – newspapers, radio, internet.

Recruitment agencies

Headhunting

Question 21

What are the advantages of external recruitment?

Answer 21

ADVANTAGES:

New ideas/ best qualified person for the job.

Less jealousy from employees within the business

Question 22

What is training?

Answer 22

Training is where the the human resources management teaches the
employees the knowledge, skills and attitude
they need to perform their task properly.

Question 23

What is induction training?

Answer 23

Induction training-

Introducing new employees to the workplace.
Providing them information on rules and
procedures . The purpose of this to help the
employee settle into the business when they first
start.

Question 24

What is on the job training?

Answer 24

The employee learns through practical experience
gained from working with and observing
experienced employees internally within the business.

Eg. Ciara learns how to
use google drive by observing Max.

Question 25

What is off the job training?

Answer 25

The employee learns by attending courses outside their place of work to upskill

Eg. A business will train an accountant by sending them to weekend
classes run by professional accountants.

Question 26

What is meant by development?

Answer 26

Development can include employees taking educational courses or
developing career plans. It increases employees’ self-esteem and
prepares them for promotion.

E.g. Sending all employees in a shop on a communications course.

Question 27

What are the BENEFITS OF TRAINING
AND DEVELOPMENT?

Answer 27

More highly skilled- employees have a variety of skills and makes them better able to cope with future change and are improves customer service.

Staff feel valued- as the business is investing within them by paying for courses and developing them as people so tend be happier in the workplace.

Improved product/service quality- having better skilled staff means that there will be fewer mistakes and that products should be of a better quality and standard

Future managers- Training and development prepares staff for
management roles in the firm.

Increased productivity- Employees have the correct skills and
knowledge to complete their duties effectively.

Question 28

What is a performance appraisal?

Answer 28

A process of assessing or evaluating the contribution of
employees. Employee performance is evaluated in the
light of agreed goals.

Question 29

What are the steps in a performance appraisal?

Answer 29

Steps

The employee and the manager meet to set targets for the
employee to achieve.

The manager monitors and evaluates the employees progress.

The manager fills in formal appraisal form and assesses how well
or bad they completed tasks.

The manager will meet with employee to discuss results.

Question 30

What are the BENEFITS OF
PERFORMANCE
APPRAISAL?

Answer 30

-Increases job satisfaction and productivity- it fosters a positive relationship with management and workers which ensures high standards and allows staff to be given feedback and for the staff to provide feedback in areas in the business they are unsatisfied with. It gives staff motivation and adds to job satisfaction.

-Highlights areas for improvement- the HRM will be able to see how effective any training that has been given has been and identifies any further training and career developments needs employees may have.

-Recognises employees- an appraisal might identify hidden strengths an employee has and it helps recognise those who are showing management traits of high levels of performance so may be suitable for promotions.

-Evaluates performances- the HRM can compare other appraisals from previously to track targets and bonuses can be given for successful work or corrective action can be taken to get back on track with goals.

Question 31

What are pay and rewards?

Answer 31

Pay and rewards consist of the incentives offered to employees as
compensation for the work they have done. They can be financial or
non-financial.

Question 32

What are financial rewards?

Answer 32

Financial rewards are when the employer compensates the employee
with money as payment for work they have done.

Question 33

Give an example of financial rewards

Answer 33

Time rate-The employee is rewarded a fixed amount per hour for a fixed number of hours. Hours worked over and above the fixed number of hours are paid at a higher rate called overtime e.g. time and a half or double time.

Salary- a salary is paid to the employees in equal amounts, either weekly, biweekly or monthly.

Benefit in Kind (if taxable)-The use of an asset as a form of reward.
E.g. Company car available for private use. It could include
preferential loans, free or subsidised accommodation.

Bonus- A sum of money raised for reaching a certain target e.g.
producing units above an agreed limit.

Question 34

What are non financial rewards?

Answer 34

Are when the employer compensates the employee for work done
with inducements other than money or items that have a money value.

Question 35

Give examples of non financial rewards

Answer 35

Promotion: Movement to a more responsible senior level in the
organisation. While this will also carry a higher wage it is often the
job title, bigger office or the availability of a personal assistant that is
the real reward as per Maslow’s self-esteem needs.

Job sharing- This involves employees sharing a position e.g. two
employees have a job split between them. This is a flexible approach
to employment and recognises that employees may wish to prioritise
leisure time over work time.

Job satisfaction, enrichment and enlargement- giving employees extra responsibilities. wider roles and teamwork to satisfy social needs and increase job satisfaction are extra rewards an employer may give

Flex-time- employers allow employees to decide their hours of work to suit their lifestyle such as childcare, hobbies and work from home.

Question 36

What determines the level of pay and rewards?

Answer 36

Skills – the more valuable the skill the more
the firm will pay.

Qualifications – the more qualified a person
is the more pay you get.

Scarcity – If skills are scarce employees will
be paid more.

Responsibility – The more responsibility the
more pay.

Experience – A highly experienced person
will be paid more.

Question 37

What are the benefits of pay and rewards?

Answer 37

Motivate employees to work harder and produce excellent quality products.

Help the business to attract the best employees.

Question 38

What are employee/employer relationships (ir)?

Answer 38

This involves the HRM making sure that there is a good working
relationship between the employer and employee in the business.

Question 39

How can a business improve industrial relations?

Answer 39

Regular open communications – hold face to face meetings with employees.

Grievance procedure – have procedures for dealing with conflict.

Train managers – should be taught how to handle conflict

Careful selection – This should be done at the recruitment stage.

Train employees – so they can perform their duties properly.

Question 40

What are the benefits of improving industrial relations?

Answer 40

Employees will be happier in their work therefore they will be more productive.

Idea generation improved.

Low labour turnover

Communication and co-operation improved

More motivated workforce

More adaptable employees

Question 41

How can a HRM improve employee-employer relationships\?

Answer 41

-Team building - HRM arranges team building exercises and social nights using teamwork to boost morale between both employees and employers so they work better together

-Improving feedback- Increase openness of communication there will be effective communication between employers and employees makes it easier for management to receive suggestions for ways to improve their leadership style and practices.

-Clear grievance procedures- this brings clarity and fairness to any conflict, as staff know they have management that allow consistent procedures for dealing with disputes and that they are treated fairly when resolving issues.

-Recognition- The HRM can introduce different types of recognition in the workplace for good work. Performance appraisals can allow employees to be formally recognised for their work. Through the recognition employees feel valued and as though they are part of the team so it improves motivation.

Question 42

What are the benefits of good industrial relations?

Answer 42

Better decision making – teams can
brainstorm and each member brings new
ideas and experiences.

Motivation – employees are happier to be
part of a team and it satisfies there social
needs.

Better quality products – The team wants to
be a success so each member does their job
to the best of their ability creating the best
products.

Intrapreneurship – team structures make the
best of employees talents.

Improved industrial relations – team
members come from all areas in the
business.