Chapter 10 - Human Resource Management Flashcards
(49 cards)
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