Introduction to human resource management

Long-term HR planning that aligns staffing and HR policies with the business’s overall objectives.

Leaving.

HRM is the strategic management of a business’s workforce, including recruitment, training, appraisal, rewards and employee relations.

Objectives.

Recruitment and selection — attracting applicants and choosing the most suitable candidate.

Day-to-day HR activities such as payroll, scheduling, handling grievances and running interviews.

Day.

Planning workforce needs and training for a new factory opening in two years.

Training and development — improving employees’ skills and knowledge to raise performance.

Processing payroll or resolving an employee grievance this week.

Recruitment and selection; training and development.

Monitoring employee performance against targets, giving feedback and setting new objectives.

It helps the business have the right number of employees with the right skills to meet future goals and stay competitive.

Because managing employees effectively helps the business achieve long-term objectives and remain competitive.

Link the HRM function to the specific business context and explain the impact on performance/motivation/costs.

Recruitment is the process of finding and attracting suitable candidates to fill a job vacancy.

Attracting.

Filling a vacancy with an existing employee (e.g. promotion or transfer).

Job.

To identify what the role involves and what skills/qualifications are needed before hiring.

It is faster and cheaper, and the employee already understands the business culture.

Person.

It limits the pool of candidates and can create resentment or another vacancy elsewhere.

About the job — duties, responsibilities, conditions, hours, location and pay.

Filling a vacancy with someone from outside the business (e.g. job adverts, agencies).

Faster.

About the person — qualifications, experience, skills and personal qualities needed.

It is more expensive and risky because the new employee may not fit the culture and needs induction.

Shortlist applicants and select the best candidate (often using interviews/tests).

State the method (internal/external), explain one advantage and one disadvantage, then apply to the case.

Higher productivity because employees work more efficiently and make fewer mistakes.

Training is developing employees’ skills and knowledge to improve job performance.

New.

Working.

Training given to new employees when they join, covering policies, health and safety, and basic job procedures.

Employees feel valued and see progression opportunities, so they are less likely to leave.

Away.

Financial cost such as course fees, trainer time, materials and lost working time.

Learning while doing the job, usually guided by an experienced colleague.

Because returns can come through higher quality, productivity, motivation and retention over time.

Motivation.

It is practical and directly relevant to the role, and is usually cheaper than external courses.

Employees may leave and take their new skills to a competitor.

It can be expensive and employees are away from productive work while training.

Choose the most suitable training type, explain one benefit and one limitation, and apply to the case.

Formal.

A formal process where an employee’s performance is assessed against agreed targets and standards, usually in a meeting with their manager.

They receive feedback and know how to improve, which can increase motivation and performance.

Ongoing feedback focused on development and improvement, identifying training needs and setting new goals.

Development.

It creates a formal record of performance to support pay rises, promotions or training decisions.

Promotion.

A summary judgement of performance over a period (e.g. annual review), often linked to pay, promotion or disciplinary action.

It can be time-consuming and costly, especially in large organisations.

Feedback collected from multiple sources such as managers, peers, subordinates and sometimes customers to give a rounded view.

Multiple.

Bias or personal preferences can affect a manager’s judgement, so ratings may not reflect true performance.

Motivation.

The impact on motivation — a well-run appraisal motivates, but a poorly run one demotivates.

Review performance against objectives and set new targets (also discuss strengths, improvements and training needs).

Dismissal is when an employer ends employment because of the employee’s behaviour, misconduct or poor performance.

Behaviour.

Investigation — gather facts about the alleged misconduct or poor performance.

Redundancy is when a job role is no longer needed, so employment ends for reasons not caused by the employee.

Job.

Formal warning — inform the employee in writing about the issue and expected improvement.

Investigate.

Disciplinary hearing — a formal meeting where the employee can present their case (with representation).

Dismissal is due to the employee’s behaviour/performance; redundancy is because the job no longer exists (not the employee’s fault).

Outsourcing, automation, business downsizing, restructuring, relocation, or falling demand.

Decision — employer decides the outcome (no action, warning, or dismissal).

Appeal.

When an employee is dismissed without a valid legal reason and/or without following a fair procedure.

Clearly identify whether it is dismissal or redundancy, then explain the impacts/costs and apply to the case.

Right of appeal — the employee must have the chance to appeal the decision.

Labour turnover is the rate at which employees leave a business over a period of time, usually expressed as a percentage.

Lower recruitment and training costs because fewer employees need replacing.

Percentage.

Average.

(Number of leavers during the period / Average number of employees) x 100.

Long-serving employees are experienced, make fewer mistakes and work more efficiently.

Drive.

The business may lack new ideas and become resistant to change.

A push factor is a problem at the current job that drives employees away (e.g. low pay, poor conditions, poor management).

A pull factor is an attraction elsewhere that encourages employees to leave (e.g. higher pay, better role, relocation).

Increased recruitment, selection and training costs from repeatedly hiring replacements.

Attract.

New employees take time to learn standards, so mistakes increase and customer experience can worsen.

Give both positive and negative impacts, explain why, and apply to the case business.

High turnover increases recruitment and training costs and can reduce productivity, quality and customer service.

Much.

Flexible working offers alternatives to traditional working hours/locations, such as when, where or how much employees work.

Teleworking (remote working) where employees work from home using ICT to stay connected.

Teleworking and flexitime.

Wider recruitment pool and higher retention because roles suit parents/carers and others needing flexibility.

Employees choose start and finish times within agreed limits, often with core hours everyone must work.

It can reduce absenteeism and improve motivation because employees can balance work with personal commitments.

Not all jobs suit it (e.g. manufacturing/retail) and communication may suffer.

Whether flexible working is suitable for the specific role and the business, with one benefit and one drawback.

Supervision and communication can be harder, reducing team cohesion and control.