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Summary AS Part of Section 2
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AS summary of Section 2: Human Resource Management
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Summary Cambridge International AS and A Level Business Coursebook with CD-ROM - Business Studies
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Summary Cambridge International AS and A Level Business Coursebook with CD-ROM - Business Studies
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Unit 2: Human Resource ManagementChapter 10: Human Resources Management
Human Resources Management= the strategic approach to the effective management of employees
so that they help the business gain a competitive advantage. It focuses on:
1. Workforce planning 6. Responsibility for management &
2. Recruitment and selection workforce relations
3. Training $ developing employees 7. Monitoring and motivating morale
4. Preparing employment contracts 8. Managing payments
5. Dismissal and redundancy 9. Measuring and monitoring performance
Workforce Planning= forecasting the numbers of workers and the skills that will be required by the
organisation to achieve its objectives. It has 3 stages:
1. Workforce audit= a check on the skills and qualifications of all existing workers/managers
2. Number of employees required(will depend on demand of product, productivity, business
objectives, law changes, labour turnover & absenteeism)
3. Skills of workers required
Labour Turnover= measures the rate at which employees are leaving an organisation.
Number of employees leaving in 1 year x100
Average number of people employed
Recruitment= the process of identifying the need for a new employee, defining the job to be filled and
the type of person needed to fill it, and attracting suitable candidates for the job.
Selection= the series of steps by which candidates are interviewed, tested and screened to choose the
most suitable person for a vacant post.
Recruitment Agency= a business that offers the service of recruiting applicants for vacant posts.
Process:
1. Job Description= a detailed list of the key points about the job to be filled, stating all its key
tasks and responsibilities.
2. Person Specification= a detailed list of the qualities, skills and qualifications that a successful
applicant will need to have.
3. Job advertisement: advertise externally, notify and website
4. Application Form= a set of questions answered by a job applicant to give a potential employer
information about the applicant, such as educational background and work experience.
5. Shortlist:
- Curriculum Vitae (CV)= a detailed document highlighting all of a person’s professional
and academic achievement, work experience and awards.
- Resumé= a less detailed document than a CV, which itemises work experience,
educational background and special skills relevant to the job being applied for.
- Reference= comment from a trusted person about an applicant’s character or previous
work performance.
6. Selection of applicants:
- Interview
- Aptitude tests
- Psychometric tests
- Assessment Centre= a place where a range of tests is used to judge job applicants on
their potential ability to perform a particular role.
Internal Recruitment= when a business aims to fill a vacancy from within its existing workforce.
Advantages:
- Knowledge of the business - Cheaper as no advertising
- Faster than external - Chance to progress
External Recruitment= when a business aims to fill a vacancy with a suitable applicant from outside of
the business, such as an employee of another organisation.
Advantages:
- New ideas - No resentment between employees
- Wider choice of applicants - Higher standards of application.
1
, Employment Contract= a legal document that sets out the terms & conditions governing a worker’s
job.
Typical features:
- Work responsibilities
- Permanent or temporary
- Working hours & level of flexibility expected (part-time or full-time, weekends,etc)
- Payment method & pay level
- Holiday entitlement & other benefits (pension)
- Number of days’ notice that must be given by employee or employer when leaving
Redundancy= when a job is no longer required, the employee doing this job becomes unnecessary
through no fault of their own.
- Guidelines followed to ensure correct person is made redundant
Dismissal= being dismissed or fired from a job due to incompetence or breach of discipline.
- Withdraws a worker’s immediate means of financial support and some social status.
- Before this happens, HR must do all that it can for the employee to stay within standards.
Reasons:
- Bullying of other employees - Disregard for health and safety
- Negative attitude procedures
- Destruction of property
- Inability to the job after sufficient
training
Unfair Dismissal= ending a worker’s employment contract for a reason that the law regards as being
unfair:
- Pregnancy - Being a member of a union.
- Discrimination (gender or religion)
Gross Misconduct= stealing or some other serious offence resulting in immediate dismissal (without pay
or notice). If less serious (late arrivals), a written or verbal warning must be given.
Employee Morale= overall outlook, attitude and level of satisfaction of employees when at work.
Employee Welfare= employees’ health, safety and level of morale when at work.
- The HR department will offer advice, counselling and other services to employees who are in
need of support (perhaps because of family or financial problems).
- Improving conditions is an effective way of improving employee welfare.
Work-life Balance= a situation in which employees are able to allocate the right amount of time and
effort to work and to their personal life outside work.
Methods:
- Flexible working - Job sharing
- Teleworking - Sabbatical periods
Equality Policy= practices and processes aimed at achieving a fair organisation where everyone is
treated in the same way without prejudice and has the opportunity to fulfil their potential.
Promoting equality in the workplace impacts on business by:
- High employee morale and motivation
- Good reputation (comes with ability to recruit top talent)
- Measuring employee performance by their achievements at work
Diversity Policy= practices and processes aimed at creating a mixed workforce and placing a positive
value on diversity in the workplace.
Promoting diversity in the workplace impacts on business by:
- Bigger market share as consumers are attracted by diverse sales force
- More qualified workforce as it will be based on merit not on discrimination
- Different ideas from different backgrounds
- Cultural awareness leads to improved knowledge
- Promotion of diverse language skills (promote internationally)
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