Lesson 20 - The Role of HR

Question 1

Define ‘Human Resource Management’

Answer 1

Human Resource Management is the effective management of the formal relationship between the employer and employees.

Question 2

True or False

1. It is the activities of employees that generate most of the business’ revenue.
2. Wages paid to employees are a major expense to the business.
3. A business does not need to balance the number of employees it needs with the cost of employing those employees.
4. Employees with higher skills and qualifications will cost more to employ than employees with lower skills and qualifications.
5. Lower skilled employees work harder and produce better quality output than higher skilled employees with higher qualifications.

Answer 2

1. True
2. True
3. False
4. True
5. False

Question 3

The employment cycle consists of 4 phases. What are they?

Answer 3

Attract
Develop
Maintain
Terminate

Question 4

Attraction Phase

1.When does the attraction phase start?

2.What does the attraction phase encompass?

3. Provide 3 examples of aspects of a business that would attract potential employees.

Answer 4

1.Before the organisation is looking for a new employee.

2. The organisation’s brand, and anything that shapes a potential employee’s overall perception of the company.
3. Above average pay, flexible working conditions (eg ability to work from home), day off on your birthday, positive culture, opportunities for promotion, flexible work hours (eg. start later and finish later to work around family commitments).

Question 5

Development Phase

1. What does development of an employee involve?
2. What are the two types of training that businesses can use to develop their employees?
3. Provide two examples of each type of training.

Answer 5

1. Identifying the employee’s career objectives, providing opportunities for professional growth and training them to prepare the employee for more responsible positions with the company.
2. On the job and off the job
3. On the job = work shadowing, observations, professional development

Off the job = training away from the work place which is offered by an external provider

Question 6

Maintenance Phase

1. What does maintaining an employee involve?
2. How can this be achieved?
3. What is likely to happen if employees are not maintained?
4. What does employee turnover refer to?

Answer 6

1. Focussing energies on keeping top employees at the organisation and ensuring they are happy and sufficiently challenged in their respective roles.
2. This can be achieved by meeting with the employee and discussing how they feel about their role at the organisation. Many businesses do this at annual performance appraisals.
3. They are likely to leave the organisation and find a more challenging and satisfying role elsewhere. This can contribute to high turnover.
4. The total number of employees that leave an organisation over a certain time period. Turnover can be voluntary or involuntary.

Question 6

Termination Phase

1. True or False:
   Termination can be voluntary (instigated by the employee) or involuntary (instigated by the employer)
2. There are four types of termination. What are they?
3. Why is it important to understand why employees leave an organisation?

Answer 6

1. True
2. Terminated (fired/dismissed) - only for gross misconduct.
   Resigned- employee got a new job elsewhere.
   Retired – employee is leaving the labour force.
   Redundant – business can no longer provide the employee with a position
3. It is key to being able to retain the best people going forward. Having a high turnover rate is very expensive for businesses and businesses should do all that they can to avoid it from occuring.