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
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
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
application form : to compare like-w-like
curriculum vitae : to see what candidates has achieved to judge whether past experience meet the requirements of the job
cover letter : allows HR to see the potential of applicants
the selection process ( shortlisting )
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
newspaper ads
specialist trade publication
internet advertising
commercial employment agecies
job centres
headhunting
university visits
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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