Chap 11. Human Resource Management

• Human Resource Management (HRM)


  The process by which an organisation attracts, develops, monitors and rewards its workforce
• Human Resource Management


  • Promotes staff commitment
  • Promotes positive attitude to work
  • Promotes flexible work practices
  • Promotes communications
  • Promotes respect for employees
• Functions of Human Resource Management


  • Manpower Planning
  • Recruitment and Selection
  • Induction Training and Development of people
  • Appraisal of Performance
  • Rewarding People
  • Monitoring employer/employee relations
• Manpower Planning (Human Resource Planning HRP)


  1. Audit: HR will conduct a survey of the skills present is the existing workforce

  2. Forecast: Staff numbers can rise and fall due to developments such as expansion of the business or the introduction of new technology

  3. Monitor Labour Turnover: This refers to the rate at which employees leave a firm
• Stages in Recruitment and Selection


  • Preparation
  • Recruitment
  • Selection
• Job Description


  Outlines the main duties, tasks and responsibilities involved in the job, job title, where the job fits in the overall organisation structure, who the job holder reports to, the salary, employees for whom the job holder is responsible, and the expectations (targets to be achieved)
• Person Specification


  Outlines the professional qualifications, experience and key characteristics and skills required by the successful candidate. It allows the business to define the kind of person required and helps in the writing of an accurate job advertisement.
• Sources of Recruitment


  • Internal
  • External
• Benefits of Internal Recruitment


  • Morale improves in business as staff have greater variety and promotion opportunities
  • Employee's skills capabilities and attitude to work will be well known by management
  • Reduces labour turnover as the opportunity for promotion exists
  • Less disruption within the business as the vacancy can be filled quicker and cheaper
  • There will be reduced costs of advertising etc.
• Benefits of External Recruitment


  • Quality: Best candidate for the job can be recruited/wider range of candidates
  • Creativity: New employee brings fresh ideas/more open to change
  • Experience: Wide ranging experience from previous employment/better skill set/higher calibre
  • Office Politics: No existing relationships in the business - may reduce chance of conflict/less tension among existing staff
• Screening and Interviewing


  1. Job applicants may be asked to submit a CV or a standard application form

  2. The candidates that will be selected for interview will be the people who are the closest match to the person specification
• Interview


  A process in which a potential employee is evaluated by an employer for prospective employment in the company
• Panel Interview


  • A selection technique used to choose the candidate who most closely matches the criteria set out in the person specification
• Selection Tests


  • Intelligence tests
  • Aptitude tests
  • Personality tests
• Group Selection


  Particularly used for senior posts. A group of candidates are given a task to discuss and are observed by the interviewers while they carry out the task
• Contract of Employment


  Once the suitable person has been selected a job offer made and selected, an employment contract will be signed
• Manpower planning 


  This involves identifying the future staffing needs and planning to have the right number of the right people with the right skills at all times so the company can achieve its objectives.
• Preparation 


  The requirements of the job and the person needed must be clear. A job description and a person specification must be drawn up.
• Recruitment and selection 


  Finding suitable people for a job vacancy in the business and persuading them to apply. It's the process by which a firm gets the right people to do the jobs necessary to achieve its goals.
• Internal recruitment 


  Using Internet communications such as noticeboards, emails, company newsletters. Its also means promoting our redeploying existing staff.
• External recruitment 


  Inviting applications from people outside the firm through personal contacts, Internet, newspapers.
• Training


  Supplying the skills, knowledge and attitudes needed by employees to do their jobs better
• Types of training


  • Induction training
  • On-the-job training
  • Off-the-job training
• Staff development


  Preparing the employees to take on more responsibility and new challenges in the workforce
• On-the-job training


  New people placed alongside more experienced people to learn by imitation and instruction
• Off-the-job training


  Provided by specialists at training courses
• Induction


  Time spent "showing the ropes" to a new employee, including instructions about the job, introductions, and information about health/safety, pay, and procedures
• Induction period


  Allows effective transmission of the values and code of ethics of the organisation
• The more senior and complex the job, the more induction time is required
• Personal development


  A wider process than mere job training, involving the growth and development of the person
• Types of personal development


  • External development (short management courses, longer degree courses)
  • Internal development (job rotation, working as assistant managers)
• Benefits of training and development


  • Better quality service to customers
  • Increased staff motivation
  • Lower labour turnover rates
  • Flexible and adaptable labour force
• Performance appraisal


  Reviewing the performance of employees, usually carried out by the Human Resource Manager. They evaluate the employee. It's a judgement on a person's work.
• Performance appraisal process


  1. Agree targets

  2. Review progress

  3. Discuss results

  4. Identify training needs

  5. Consider promotion
• Benefits of performance appraisal


  • Rewards (pay increases, other awards)
  • Motivation (positive relationship, high performance standards)
  • Industrial relations (address conflicts)
  • Training and development (identify needs)
  • Feedback (improve job satisfaction)
  • Promotional path (identify hidden strengths)
• Methods of calculating pay

  • Time rate
  • Piece rate
  • Commission
  • Salary
  • Benefit in kind
  • Bonus
  • Profit-sharing scheme
  • Employee share ownership scheme
• Non-monetary rewards

  Benefits-in-kind, job satisfaction
• Factors determining pay and rewards


  • Responsibility
  • Experience
  • Trade union activity
  • Profitability
• Employer/employee relations


  The quality of the relationship between employers and employees, which determines the quality of industrial relations
• Ways of promoting good employer/employee relations


  1. Establishing agreed procedures for dealing with conflict

  2. Flexitime

  3. Teleworking

  4. Management training