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Functions and Evolution of HR
Management
Human resource management (HRM) is the management function of using and
developing people within a business to meet its organisational objectives
...


Workforce/Human Resource Planning
Process of anticipating current and future demand for workers in both the short and
long term
...
g
...

Workload, specializations and flexibility of workforce
e
...
flexible workforce can deal with sudden shortage of staff

Others that are included in workforce planning:
•
•
•

Work study (time and motion study or efficiency studies)
Derived demand (from forecast output)
Demand for labor depends on demand for product

•

Natural wastage (aging/retirement)

Staff/labor turnover:
•
•
•
•

Percentage of workforce that leaves the company in a time period
(Number of leavers / Total number of staff) x 100
Low turnover suggests good workforce planning and recruitment
High turnover suggests incompetent employees and poor job satisfaction

Reasons why people leave their jobs:
· CLAMPS (M
...
Yates)
-Challenge, Location, Advancement, Money, Pride, (Job) Security
· Poor morale, which is seen in:
- Militant workforce
- Frequent union representation to management
- Low suggestion rates
- Widespread rumors
Factors affecting workforce plan:
•

Demographic changes:
o
o
o
o
o

Net birth rate
Net migration rate
Life expectancy and retirement age
Workforce flexibility, skills, and education
Women in workforce

•

Mobility of labor (geographic and occupational)

•

New Communication technologies (work from home, meetings, appraisals,
online courses)

Recruitment process
Job analysis:
•
•
•
•

Job description(what the job entails) & person specification
...
e
...
g
...

Application Process:
•

application form is a standardised form produced by the business

•

CV (Curriculum Vitae) is a doc outlining the applicant’s qualifications,
education, employment history, skills
...
Behavioural-based to assess behavioural pattern (eg
...
Situation-based hypothetical scenario (eg
...
It is important to recruit people who will fit into the
organisation’s culture

Aptitude tests
•

Examine the ability and skills of potential employees
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Intelligence tests
•

Calculate the mental ability of an applicant, such as their skills with numbers,
literacy, reasoning and general knowledge
...


References- written statements about an applicant from an independent source, such
as the previous employer
Contract of Employment- written statement of terms and conditions of their
employment

Induction
Training aimed at new recruits to get them familiar with the policies, practices, and
the culture of the business
...

Advantages:
•
•
•
•

Cheaper and quicker as no need for external advertising
Less down-time, as workers are able to adapt quickly due to working already
Less risk, as internal workers already have their potential and skills in the open
Motivational, as co-workers may want to be the next one to be promoted

Disadvantages:

•
•
•
•

Fewer applicants, reducing potential quality and stuff
Dead wood, as new ideas won’t flow into the business
Time-consuming, as another unfilled vacancy will arise, continuing the process
Internal politics, as co-workers might experience jealousy and resentment,
creating conflict

External
Involves hiring people from outside the business
Methods of Advertising: newspaper ads, specialist trade publications, internet ads,
commercial employment agencies, job centres, university visits, headhunting,
employee referrals
...

Development is enhancing the personal attributes of a person
...


Advantages:
•
•
•

Establishes expectations
Understand company culture
Morale booster

Disadvantages:
•
•
•

Time consuming
Personnel have to be freed to work on the induction
Info overload

On the Job
Refers to training carried out in the workplace, learning from coworkers by
experience, and may involve being mentored by or shadowing senior managers
...
g
...


Advantages:
•
•
•
•

Expert expertise
Wide range of training
No distractions
Networking

Disadvantages:
•
•
•

Expensive
Loss of output
Skills may be irrelevant

Cognitive
Theoretical training in the hopes of improving overall intelligence
...


Advantages:
•
•

Improves brain function (memory, reasoning, etc
...


Advantages:
•
•

May make for more competent and assertive employees
Improves customer and intra-company relations

Disadvantages:
•
•

Costly
Difficult to track progress

Appraisals
Annual formal assessment of performance judged from tasks and responsibilities set
in job description
...
It uses feedback and evidence to guide
improvement
...


Summative
A written description of an employee’s performance summarizing personal
performance during the year
...


360-Degree Feedback
collecting evidence of the employee’s performance from all those who have direct
contact with her/him
...

However, it can be very time consuming and highly opinionated
...
This
helps the employees recognise their areas of weakness and set realistic targets for
improvement
...
Dismissal- due to incompetence or a breach of contract
2
...

3
...
Resignation- when the worker chooses to leave their job

Dismissal
The termination of a worker’s employment due to incompetence or a breach of
contract
...
If there is recurrence of the conduct, an
official WRITTEN warning is also given
...

Unfair dismissal is when an employee is fired without a valid or legal reason
...
The employee can
sue the firm for this
...
three month’s pay
...


Involuntary/Compulsory
may be done through LIFO or retention by merit
Some firms can redeploy (move workers to other departments in the business) staff
at the end of their contracts or reduce pay
...
Employment sector (primary, secondary, tertiary)
2
...
Flexible work structures (more training, retention of core staff, flexitime)
4
...
Portfolio/Project based/Contractual working

6
...
Flexitime, when businesses offer flexible work hours (aside from core minimum
hours)
Remember to discuss the implications of these new practices on job security, morale
of the employees, cost-effectiveness for the business, and productivity of the firm as
a whole in your long answers
...


Outsourcing
Transferring the internal business activities to an external firm to reduce costs and
gain a cost advantage, e
...
business outsources bookkeeping duties to accounting
firms

Reasons:
•
•
•

Activities are not the core function of the business
Business lacks the specific skills
Cost reduction

Advantages:
•
•

Better focus on core activities
Helps reduce production and labor costs

•

Ensures high quality standards

Disadvantages:
•
•
•
•

Requires effective two-way communication, coordination and mutual trust
Subcontractors need to be monitored and managed properly
Quality inconsistency
Possibility of unethical practices

Offshoring
Transferring of internal business activities overseas, usually done in countries with
low minimum wage

Reasons:
•
•
•

Cut down labor costs
Enter new markets in growing countries
Overcome political protectionist measures

Advantages:
•
•
•
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Reduce labour cost
Help the business expand and gain exposure
Business has access to large talent pool
Stimulate host country’s economy (job opportunities, trade, etc
...
Recruitment -Higher costs of recruitment and training
2
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3
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Returns- lower levels of profits and productivity
5
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