human resources management chapter 10 Flashcards
human resource management (3)
the strategic approach to the effective management of employees so that they help the business gain a competitive advantage.
aims to recruit capable, flexible and committed people.
manages and rewards their performances and develops their key skills to the benefit of organization.
focuses of HRM (9)
workforce planning
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 and workforce relations.
monitoring and improving employee morale and welfare.
introducing and managing payment and other incentive systems.
measuring and monitoring employee performance.
workforce planning (2)
forecasting the numbers of workers and the skills that will be required by the organisation to achieve its objectives.
failure can lead to few workers with the right skills or too many workers with the wrong skills
workforce audit (2)
a check on the skills and qualifications of all existing workers/managers.
next stage is to assess how many additional employees and skills might be needed
how does forecast demand of product affect the number of employees required (4)
influenced by market and external conditions, seasonal factors, competitors’ actions, trends in consumer tastes and so on.
may be necessary to help establish labor needs.
Some businesses build provision for additional employees into the workforce plan to allow for unplanned increases in demand. An alternative could be to recruit temporary or part time staff on flexible hours contracts.
it might be a mistake to replace a worker who decides to leave the business if consumer demand is falling or if there is likely to be a seasonal downturn in demand.
how does productivity level affect the number of employees required
productivity (output per worker) is forecast to increase perhaps as a result of more efficient machinery thus fewer workers will be needed to produce the same level of output.
how does the objectives of business affect the number of employees required (2)
If the business plans to expand over the coming years, then employee numbers will have to rise to accommodate this growth.
If the business aims to increase customer-service levels, possibly at the expense of short-term profits, then more workers might need to be recruited.
how does changes in the law regarding workers’ rights affect the number of employees required
If a government introduces laws that establish a shorter maximum working week or a minimum wage level, then there could be a big impact on the workforce plan.
how does the labor turnover and absenteeism rate affect the number of employees required (2)
The higher the rate at which workers leave a business, then the greater the need will be to recruit replacements.
If employees are frequently absent, then more workers will need to be recruited to cover for absences.
what will the skill levels of employees required depend on (4)
the pace of technological change in the industry.
The need for flexible or multi-skilled workers as businesses try to avoid excessive specialization.
Many businesses recruit workers with more than one skill who can be used in a variety of different ways.
This gives the business greater flexibility to meet changing market conditions- and can also make the workers jobs more rewarding.
labor turnover (4)
measures the rate at which employees are leaving an organisation.
if labor turnover is high and increasing over time then it is a good indicator of employee discontent, low morale and , possibly, wrong people being employed.
often does not include redundancies when employees leave involuntarily.
number of employees leaving in 1 year/average number of people employed x 100
costs of high labor turnover (4)
costs of recruiting, selecting and training new staff.
poor output levels and customer service due to staff vacancies before new recruits are appointed.
difficult to establish customer loyalty due to a lack of regular, familiar contact.
difficult to establish team spirit
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 a business plan to reduce employee numbers, as workers who leave will not be replaced
recruitment
process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, and attracting suitable candidates for the job.
selection
series of steps by which candidates are interviewed, tested and screened to choose the most suitable person for a vacant post.
recruitment agency
business that offers the service of recruiting applicants for vacant posts.
when will businesses require recruitment and selection
the business is expanding and needs a bigger workforce. employees leave and need to be replaced.
job description
detailed list of the key points about the job to be filled, stating all its key tasks and responsibilities. should attract the right type of people to apply for the job, as potential recruits will have a good idea whether they are suited to the position or not.
what do job descriptions include
job title
details of the tasks to be performed
responsibilities involved
place in the hierarchical structure
working conditions
how the job will be assessed and how performance will be measured.
person specification
detailed list of the qualities, skills and qualifications that a successful applicant will need to have. based on the job description because these factors can only be identified once the nature and complexity of the job has been determined. helps in eliminating applicants who do not match necessary requirements.
application form
set of questions answered by a job applicant to give a potential employer information about the applicant, such as educational background and work experience.. HR department needs to design the form and make it available to applicants.
Job advertisement
needs to reflect the requirement of the job and person specification. can be displayed within the business premises or in government job centers, recruitment agencies and newspapers. internet can be used to advertise vacancies. applying online helps save time for recruiting business and potential applicants. some businesses offer online recruitment services . should not imply discrimination
shortlist of applicants
once applications forms have been received, then the selection process can begin. applicants are chosen based upon application forms and CV or resume. references can be obtained from previous employers to check on the character and previous work performance of the applicants. information can be delivered online or paper format. AI is being used to help select appropriate intelligence
Curriculum vitae (CV)
detailed document highlighting all of a person’s professional and academic achievements, work experience and awards.
resume
less detailed document than a CV, which itemizes work experience, educational background and special skills relevant to the job being applied for.
reference
comment from a trusted person about an applicant’s character or previous work performance.
assessment centre
place where a range of tests is used to judge job applicants on their potential ability to perform a particular role. increasingly popular for selecting between graduates and other well qualified applicants for high profile jobs. group of applicants undergo a series of personality tests, group problem-solving exercises, written tests and role play situations. These sessions can last for one day or for longer. effective way because of competition. larger employers organize own assessment centres, others use the services of specialist assessment centre providers
Internal recruitment
when a business aims to fill a vacancy from within its existing workforce.
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.
selections through interview
most common methods of selection. interviewers question the applicant on their skills, experience and character to see if they will both perform well and fit into the organisation. some interviewers use a six point plan to carry out a methodical interview. Candidates are assessed according to: achievements, intelligence, skills, interests, personal manner and personal circumstances.
aptitude tests
designed to test an applicant’s ability in a specific task,
psychometric tests
designed to test character, attitudes and personality by using a series of role plays, questions and problem-solving situations.
advantages of internal recruitment
Applicants may already be known to the selection team. Applicants will already know the organisation and its internal methods. The culture of the organisation will be well understood by the applicants. quicker. likely to be cheaper It gives internal staff a career structure and a chance to progress. If the vacancy is for a senior post, workers will not have to get used to a new style of management.
disadvantages of external recruitment
External applicants will bring new ideas and practices to the business, which helps to keep existing employees focused on the future rather than the past. There is a wider choice of potential applicants. It avoids the resentment sometimes felt by existing staff if one of their colleagues is promoted above them. The standard of applicants could be higher than if the job is open only to internal applicants.
employment contracts
legal document that sets out the terms and conditions governing worker’s jobs. legally binding. should be fair and comply with current employment laws where the worker is employed. illegal in most countries to employ without offering the protection of a written employment contract
features of employment contracts
the employee’s work responsibilities and the main tasks to be undertaken. whether the contract is permanent or temporary. holiday entitlement and other benefits. the number of days’ notice that must be given or the employer. working hours and the level of flexibility expected, including part time or full time, the payment method and pay level
responsibilities imposed by the contract
employer has to provide the conditions of employment as et in contract. illegal in most countries to employ without offering the protection of a written employment contract. employee has to work the specified and to the standards expected in the contract. verbal agreements can also be legally binding. there should be evidence that both sides intended a contract be formed
redundancy
when a job is no longer required, the employee doing this job becomes unnecessary through no fault of their own. because of fall in demand, change in technology or to cut costs. guidelines are normally followed to ensure that the correct people are made redundant.
dismissal
being dismissed or fired from a job due to incompetence or breach of discipline. withdraws means of workers financial support and social status. civil court action might result if dismissal is not in accordance to the conditions of company policy or law. before dismissal can happen, HR must help employee to reach the required standard or stay within the conditions of employment. should not open allegations to unfair dismissal. dismissal can happen immediately if worker is caught in gross misconduct. warnings and disciplinary procedures before dismissal.
unfair dismissal
ending a worker’s employment contract for a reason that the law regards as being unfair. only a tribunal can decide if dismissal is fair
fair dismissal
inability to do the job even after sufficient training has been given. continuous negative attitude at work. disregard of required health and safety procedures. deliberate destruction of an employer’s property. bullying of other employees.
employee morale
overall outlook, attitude and level of satisfaction of employees when at work. if business improve their long-term welfare, it often leads to high morale and a strong sense of loyalty to the business, together with a desire for it to do well. If employee morale is high, productivity often increases and labour turnover is low.
employee welfare
employees’ health, safety and level of morale when at work. most HR departments will offer advice, counselling and other services to employees who are in need of support, These support services can reflect well on the caring attitude of the business towards its workforce.
work life balance
situation in which employees are able to allocate the right amount of time and effort to work and to their personal life outside work.
reason for changes in pace
Customers expect to have goods and services available outside traditional working hours. Organisations want to match their business needs with the way their employees want to work. Globalization has led to much greater levels of competition, so efficiency and flexibility are important for a business to remain competitive.
ways businesses allow employees to take more control of working lives
flexible working. teleworking - working from home for some of the working week. job sharing - allows two people to fill one full-time vacancy although each worker will only receive a proportion of the full-time pay. sabbatical periods - an extended period of leave from work of up to 12 months. Some businesses pay employees during this period. All employers guarantee to keep the job open for the employee on their return to work.
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. discrimination can discourage and demotivate employees
diversity policy
practices and processes aimed at creating a mixed workforce and placing a positive value on diversity in the workplace. Workplace diversity means acknowledging differences between employees and deliberately creating an inclusive environment that values those differences. A workplace that encourages diversity
impacts of promoting equality on business
creating an environment with high employee morale and motivation. developing a good reputation and the ability to recruit top talent based on fairness. measuring employee performance by their achievements at work, not by any discriminatory factor.
impacts of promoting diversity in workplace
capturing a bigger market share as consumers are attracted by a diverse sales force. employing a more qualified workforce as selection is based on merit and not on 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 allows businesses to provide products and services internationally.
training
work related education to increase workforce skills and efficiency. HR department must ensure that they are well equipped to perform the duties and undertake the responsibilities expected of them.
induction training
introductory training programmes to familiarize new recruits with the systems used in the business and the layout of the business site. aims to introduce them to coworkers.
on the job training
instruction at the place of work on how a job should be carried out. often conducted by HR managers or departmental training officers. watching or working closely with existing members of staff. cheaper than sending recruits on external training courses
off the job training
training undertaken away from the place of work. any course. it could be take place in a specialist training ground or belonging to the company or a course organised by an external body. can be a source of new ideas. can be expensive. may be indispensable id the business lacks anyone with the required degree of technical knowledge.
multi skilling
the training of an employee in several skills to allow for greater flexibility within the business
poaching
when one business seeks to employ well trained workers from another business. can discourage some businesses from setting up expensive training programmes.
why should employees be trained
Untrained employees will be less productive, less flexible and less adaptable. Poorly trained workers often give unsatisfactory customer service. Accidents are likely to result from workers untrained in health and safety matters,
disadvantages of training employees
Training can be expensive. It can also lead to well-qualified employees leaving for a better-paid job once they have gained qualifications from a business with a good training programme. workers may be less productive during the training programme, especially if off-the-job training is used.
advantages of training employees
The link between training and the sense of achievement that can result from it was identified by motivational theorists. Without being pushed to achieve a higher standard or more skills, workers may become bored and demotivated. The multi-skilling of workers can be a great benefit to a business, especially in times of rapid economic and technological change.
employee appraisal
the process of assessing the effectiveness of an employee judged against pre-set objectives. often undertaken annually. essential component of a staff development programme. The analysis of performance against pre-set and agreed targets, combined with the setting of new targets, allows the future performance of the worker to be linked to the objectives of the business.
why should employees developed
Development might take the form of new challenges and opportunities, additional training courses to learn new skills, promotion with additional delegated authority and chances for job enrichment. To enable a worker to continually achieve a sense of self-fulfillment
how should HR develop employees
the HR department should work closely with the worker’s functional department to establish a career plan that the individual feels is relevant and realistic. The HR department should analyse the likely future needs of the business when establishing the development plan for each member of the workforce.
how can employees demonstrate intrapreneurship
encouraged to be independent thinkers and creative. given opportunities to mix and work with other skilled employees from different departments. empowered with the authority and resources they need to introduce innovations. assured that some failure is expected and acceptable. Removing the ‘don’t fail’ ethos is important intrapreneurs are meant to take risks and some of their ideas will not work!. encouraged to start with small ideas and innovations before moving on to the bigger issues.
benefits to managers and worker by cooperating
Fewer days are lost through industrial action. easier for management to introduce change in the workplace. The contribution of the workforce is likely to be recognised by management, and pay levels and other benefits might reflect this. Agreement on more efficient operations will increase the competitiveness of the business. Workers’ practical insight into the way the business operates can contribute to more successful decisions.
industrial action
measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favour of employees.
collective bargaining
process of negotiating terms of employment between an employer and a group of workers who are usually represented by a trade union official.
trade union recognition
when an employer formally agrees to conduct negotiations oy and working conditions with a trade union rath an bargain individually with each worker.
reasons for a worker to join a trade union
power through solidarity. collective industrial action. provides legal support who claim unfair dismissal or poor working conditions. unions put pressure on employers to ensure that all legal requirements are met
benefits of collective bargaining
Employers can negotiate with one trade union officer rather than with individual workers, saves time and prevents workers from feeling that one individual has obtained better pay and conditions than others. allows workers’ problems to be raised with management and employers’ plans could be discussed with workers. Unions can impose discipline on members who plan to take hasty industrial action that could disrupt a business. employers can discuss issues of common interest and making new workplace agreements. These discussions should lead to increased productivity, helping to secure jobs and raise profits.
several forms of industrial action used by union leaders
Continue collective bargaining.
Go slow - a form of industrial action in which workers keep working but at the minimum pace demanded by their contract of employment.
Work-to-rule - a form of industrial action in which employees refuse to do any work outside the premises. terms of the employment contract. Overtime will not be worked and all non-contractual cooperation will be withdrawn.
Overtime bans - industrial action in which workers refuse to work more than the contracted number of hours each week.
Strike action - the most extreme form of industrial action in which employees totally withdraw their labour for a period of time.
ways employers can resolve industrial disputes
negotiations-reach a compromise solution with the aim of avoiding industrial action
public relations campaign to gain public support for the employer during a dispute and put pressure on the union to settle for a compromise
threats of redundancies to pressurize unions to agree to settle the dispute
changes of contract, which require workers to work overtime, accept more flexible working or agree not to take industrial action
lock-outs-short-term closure of the business or factory to prevent employees from working and being paid
closure of the business, leading to the redundancy of all workers. This extreme measure would clearly damage the long-term interests of both workers and business owners.
