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Writer's pictureAn Minh Nguyen

2.1 Functions and evolution of Human Resources ( part 1 )

Updated: Sep 3, 2023

Human resource management : the management function of using and developing people within a business to meet its organisational objectives

  • workforce planning

  • recruitment, selection, induction

  • training and develop staffs

  • performance management/ appraisals

  • reviewing pay and remuneration packages ( benefits )

  • disciplinary and grievance procedures ( dealing with employee's complains about their employer )

  • welfare of employee

people add value to the business by

- increase productivity ( output per worker )

- improving quality

- coming up with new ideas

- provide better customer service to enhance the overall purchasing experience of customer

- achieve their aims and objective


Human Resources planning ( workforce planning ) : the management process of anticipating and meeting an organisation's current staff needs

( how to meet staff needs )

  • short term : dealing with existing and upcoming demands

eg : employing workers to cover for staff who are about to resign, retire, go on maternity leave

  • long term : Human Resources needs of the business in the foreseeable future

eg: company recruit and train employees before the company was opened


achieve by :

  • historical data and trends

* past data does not indicate what happens in the future

  • sales and income level

higher income --> more spending --> more jobs created

  • labour turnover rates

higher turnover rate --> more workers firm need to recruit

  • flexibility and workload of staff

high flexibility + skilled worker --> easier to cope with sudden shortage of staff

  • demographic change

change in the no. of female workers in the economy - manage to forecast HR needs


workforce planning can be expensive

- despite attempts to achieve effective workforce planning, external influence affect the accuracy of the forecast

--> businesses are constantly exposed to the forces of change

eg : economic recession which reduced the demand for Human Resources


Labour turnover : measures the percentage of the workforce that leaves the organisation in given period of time

number of staff leaving / total number of staffs x 100


some organisation have higher labour turn over due to nature of the job

--> relatively low wages paid to unskilled workers


reason people leave their jobs CLAMPS

challenge

location

advancement

money

pride

job security


low labour turnover

--> suggested that managers have recruited the right people for the job

--> existing employees are content and motivated at work


high labour turnover

--> suggest staffs are incompetent / lack of job satisfaction

--> cause by better job opportunities + remuneration packages offered

- add to the cost of recruiting and training new staff

- lost the productivity when experienced staff leave


staff retention

--> firm with high staff retention tends to be motivating their workers

--> develop a positive organisational culture

--> offer training for personal and professional development

- this help to boost staff morale as they see their employers valuing their contributions and development


internal and external factors that influence Human Resources planning


internal factors

  1. demographic change : businesses need to understand the change in population characteristic and trends to respond appropriately

net birth rate : higher the rate --> larger the supply of HR

net of migration rate : net migration figure is + --> supply of HR increase

retirement age : higher age --> increase no. of employee in a workforce

women : entering or returning to the workforce --> increase the supply for HR


effect of declining birth rate and ageing population

  • increased dependent population ( people below 18 and retired ) : less people will be working in proportion to those retired --> pressured on tax payer for gov expenditure

  • reduce labour mobility : reduced the flexibility and international competitiveness

  • changes in consumption patterns : create oppotuniay foe firms to cater for mature age group

  • change in employment pattern : more likely to retain staff beyond retirement age due to shortage of labour supply

factors contributed to changes in labour mobility

mobility of labour : the extent to which labour can move to different location ( geographical ability ) and their flexibility in changing to different job ( occupational mobility )

  • friends and family

  • relocation cost

  • fear of unknown

  • cost of living in the area

  • language and cultural differences --> limit int mobility

limitation on occupational mobility :

  • acquired with attributes of a worker

  • mature worker might not be so open about moving

  • some are immobile because of specialisation

  • discrimination

new communication technology

information and communications technology ( ICT ) in HR can be use to support current practices and improve workforce planning

  • recruitment

--> advertise jobs ( website / commercial providers )

--> speed up communication ( online application )

--> reduce cost

  • meetings

--> reduce cost of meeting by using video-conferencing tech

  • appraisals

--> line manager and appraisees to set targets --> more effecient

  • flexitime and teleworking

--> enable work from home --> cut cost and increase efficiency --> boost labour productivity

  • online training courses

--> cheaper than offline


recruitment and selection

hiring the right people --> business function effectively


recruitment and selection process

  1. job analysis : scrutinising the different components of a job --> create 2 imp docs

  • job description

  • person specification

managers wants to verify

  • skills and training required to do the job

  • qualification and personal qualities needed to carry out the job

  • rewards needed

2. job advertisement --> get suitable people for the vacant job


job description : docs that outline the details of a particular job

--> what the job entails

--> have an element of flexibility --> exploit the skills pf employees


person specification : document that profiles the ideal candidate


effective job ads ( TRAPS )

  • truthful

  • relevant : to attract people's interest

  • accurate : minimise no. of unsuitable applicant

  • positive : attract

  • short


application process

  1. application form : to compare like-w-like

  2. curriculum vitae : to see what candidates has achieved to judge whether past experience meet the requirements of the job

  3. cover letter : allows HR to see the potential of applicants


the selection process ( shortlisting )

  1. interview : must be well planned and conducted professionally

most effective tends to follow a structure ( same questions being ask to all candidates ) --> reduce bias


good :

  • find and appoint the best candidate for the vacant job

bad :

  • time consuming

  • person's actual ability is not tested --> unreliable is the person lie


testing

  • psychometric test ( personality test ) : recruit people who will fit into the culture of the organisation

  • aptitude test ( skills and ability )

  • intelligence test

  • trade test ( specific profession )

reference --> statement from previous employer


contract of employment

--> the term and condition of their employment


induction

--> help them settle into their new roles


Internal recruitment: hiring people who already work for the business

good :

  • cost effective : cheaper and quicker

  • less down time : minimal down time

  • less risk : risky as their actual ability can not be tested during recruitment process

  • motivational : suggest that managers value their employees --> create employee loyalty and commitment to the firm

bad :

  • fewer applicants

  • difficult to get new ideas or internal lack of necessary skills

  • time consuming: leads to vacant spot

  • internal politics : --> uncomfortable working environment

external recruitment : process of hiring people outside of the business

  1. newspaper ads

  2. specialist trade publication

  3. internet advertising

  4. commercial employment agecies

  5. job centres

  6. headhunting

  7. university visits

  8. employee referrals

good :

  • new ideas and way of thinking --> how rivals firm might have done it

  • .wide range of experience

  • large pool of applicants --> increase their chance of finding the ideal candidate

bad :

  • greater degree of uncertainty --> might not fit into the corporate culture

  • time consuming ( ads short listing interview )

  • expensive

training : the process if providing opportunities for workers to acquire employment related skills and knowledge

objectives

- enhance efficiency and effectiveness

improve quality of work

facilitated career and personal development

develop a multi skilled and productive workforce

help adapt to change


benefits

  • better skilled and more flexible workforce

  • improve competence --> greater efficiency and better productivity --> reduce cost

  • high moral --> reduce absenteeism and reduce staff turnover

  • good reputation

  • staff more confidence and competent --> quality of output and consumer service increase

  • employee adjust better to change --> better cope with organisational change

bad

  • financial cost

main type of training


On the job training : training conducted within the workplace whilst the employee is working

induction : for employees who are new to the organization

--> aim to support staff getting acquainted


mentoring : advisor provided support to less experienced colleagues in various aspect of their job


good :

  • cheaper

  • relevant

  • fewer disruptions

  • establish relationship

  • convient

bad :

  • pick up bad habits

  • lack of up to date skills

  • trainers cannot work

  • lack of resources

  • productivity is low

off the job training : conducted by specialist away from the work place

day release : employee take time off work to attend training centre

distance learning : self study course

seminars : lecture or meeting


good :

  • wide range of skills and qualifications can be obtained

  • not exist within the organisation

  • not distracted

bad :

  • more exp

  • low productivity

  • employee might leave

cognitive training : exercising and developing employee's metal skills

- improve performance and productivity

memory, attention, perception --> improve self esteem, confidence and emotional stability


behavioural training : seek to change or improve the patterns of behaviour at work based on desired outcome

- anger management, stress management



























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