2.1 HRM

• what is hrm?


  strategic approach to the effective management of an organisation’s workers so that they help the business gain a competitive advantage
• what is the focus of hrm?

  1. plans the workforce needs of a business
  2. recruit & select appropriate staff
  3. appraise, train and develop staff
  4. prepare contract of employment for staff & decide whether it should be permanent, temporary , full or part time
• what is the process of HRM?


  plan,recruit,selection,orientation,training,performance management, compensation & benefits, career development
• what is workforce planning?


  its a process where managers ensure that they have the right number and kinds of people in the right place, and at the right time who is capable of performing their task effectively and efficiently.
• what is workforce audit?


  it’s a method of reviewing various policies & procedures within other areas of an organisation basically is to identify areas that need improvement.
• what is labour turnover and the formula for that?


  Labour turnover is the rate at which employees leave a company and are replaced. The formula for calculating labour turnover is: (Number of employee leaving in 1 year ÷ Average number of employees) x 100
• what is the cost of high labour turnover?

  1. poor output levels and customer service due to staff vacancies before new recruits are appointed.
  2. difficult to establish customer loyalty due to lack of regular contact
  3. difficulty in establishing team spirits
• what are the potential benefits of high labour turnover?

  1. low skilled & less productive staff leaves and could be replaced with more carefully selected workers
  2. new ideas & practices brought into an organization by new workers
  3. helps business plan to reduce employee numbers, as workers who leave will not be replaced
• what is recruitment?


  process of identifying the need of new employee, defining the job to be fill and the type of worker needed to fill it, attracting suitable candidates and selecting the best candidate for the job.
• what is selection?


  the steps where candidates are interviewed, tested and screened in order to choose the most suitable person for the vacant post
• Recruitment and selection process


  1. Drawing up a job description

  2. Drawing up a person specification

  3. Prepare a job advertisement

  4. Making a shortlist of applicants

  5. Interviewing applicants and obtaining references
• Job description


  Detailed list of key points about the job to be filled stating all its key tasks and responsibilities
• Person specification


  Detailed list of the qualities, skills and qualifications that a successful applicant will need to have
• Job advertisement


  Can be internal or external recruitment or through newspaper or social media
• Shortlisting


  Selection process begins, a small number of suitable applicants will be asked for an interview
• References


  May be obtained from previous employers
• Selection


  Based on the applicants' curriculum vitae or resume
• What are the types of selection tests?

  1. aptitude tests - test applicants ability in specific tasks like retooling a machine, typing skills etc
  2. psychometric test - test character, attitudes and personality by role plays, questions and problem solving questions.
  3. personality test - provide info on a persons‘ preferences and personal style such as extroverted, introverted and etc
• what are the benefits of internal recruitment?

  1. cheaper than using external advertising and recruitment agencies.
  2. often quicker than external recruitment
  3. applicants will already know the organization and its internal methods and no need for induction training.
  4. applicants may already be known to the selection team
  5. culture of the organization will be well understood by the applicants
• what are the benefits of external recruitment?

  1. avoids resentment sometimes felt by existing staff if one of their colleagues is promoted above them
  2. standard of applicants could be higher than if just limited to internal staff applicants
  3. external applicants might bring in new ideas and practiced to the business - helps existing staff focus on the future rather than staying the ways as it is.
• what is assessment centre?


  a place where a range of test is used to judge job applicants on their potential ability to perform a particular role
• what is the definition of employment contracts?


  a legal document that sets out the terms and conditions governing a worker‘s job
• Redundancy


  when a job is no longer required, the employee doing this job becomes unnecessary through no fault of their own
• Dismissal


  being dismissed or fired from a job due to incompetence or breach of discipline.
• unfair dismissal


  ending a worker‘s employment contract for a reason that the law regards as being unfair
• fair dismissal

  1. inability to do the job even after sufficient training and giving continuous negative attitude at work
  2. disregard of required health and safety procedures
  3. bullying of other employees
  4. deliberate destruction of an employer’s property
• employee morale


  overall outlook, attitude and level of satisfaction of employees when at work
• employee welfare


  employee’s health, safety and level of morale when at work
• ways to boost employee morale

  1. create growth plan with employee recognize and reward employees
  2. strengthen or coach managers
  3. provide proper tools or stay up to date with new tools
  4. understand what employees consider meaningful
  5. measure employee morale regularly and make positive changes
• benefits of improving employee morale?

  1. increase in teamwork across the organization as individuals are more incline to work with one another and collaborate when they feel satisfied with their jobs
  2. better retention wheres teams with high employee morale find that their retention levels are greater than those with lower morale
  3. productivity increases wheres positive employees are significantly more productive and more likely to put in extra effort
• what is work life balance?

  situation which employees are able to give the right amount of time and effort to work and to their personal life outside work
• benefits of work life balance

  1. improved employee morale and job satisfaction
  2. increases attraction and retention of desirable staff
  3. improved customer service and satisfaction
  4. increased employee commitment to the organization
  5. increased productivity
• what are six ways to improve your work life balance?

  1. find a mentor to provide advice and insight
  2. plan your vacation & days off in advance
  3. prioritize your top tasks and do them first
  4. take time to rest both mentally & physically
  5. add exercise as a part of your daily routine
  6. donate your time, expertise, or finances
• equality policy


  practices and processes aimed at achieving a fair organization where everyone is treated in the same way and has the opportunity to fulfill their potential
• diversity policy


  practices and processes aimed at creating a mixed workforce and placing positive value on diversity in the workplace
• impact of diversity and equality in workplace?

  1. help capturing a bigger market share as consumers are attracted by a diverse sales force
  2. employing more qualified workforce as selection is based on merit and not on discrimination
  3. increased creativity because individuals from different background approach problem in different ways
  4. achieve cultural awareness, leading to improved knowledge about foreign markets
  5. promoting diverse language skills, which allows businesses to provide products and services internationally
• what is the importance of training?

  1. training is needed to prepare employees for rapid changes in technology
  2. to improve efficiency of one’s organization
  3. training provides employees with new skills, new technology and knowledge and also to attract recruits
• types of training?

  1. induction training - introductory training programme to familiarize new recruits with the business
  2. on the job training - training done in the work place on how the job should be carried out
  3. off the job training - training done outside from work place such as work related college courses
• on the job training

  1. receive training while employee is working
  2. observing and watching an experienced worker
  3. mentor will teach trainee what to do and at the same time give them support
  4. demonstrating techniques to the trainee and let them practice
  5. cheaper than off the job training
• off the job training

  1. training received by the workers are outside of the premises at the local university or college.
  2. seminars, lecturers or workshops
  3. can vary from hours to months or even years
  4. it is tailored to meet specific needs of both business & individual concerned