Recruitment and retaining
the best employees
9.1: Human resources management
Consists of all the activities involved in acquiring, maintaining and developing an
organisation’s human resources.
HRM begins with acquisition – getting people to work for the organisation.
This process can be competitive for certain types of qualified employees.
Steps must be taken to keep these valuable resources.
9.1.1: HRM activities
3 phases: acquiring, maintaining, developing human resources.
HRM includes 5 separate activities:
o Human resources planning: determining the needs
o Job analysis: determining the exact nature of positions
o Recruiting: attracting people to apply for positions
o Selection: choosing and hiring the most qualified applicants
o Orientation: acquainting new employees with the firm
HRM programmes:
o Employee relations: increasing employee job satisfaction
o Compensation: rewarding employee effort through monetary payments
o Benefits: providing rewards to ensure employee well-being
Two important activities of the development phase:
o Training and development: new jobs, skills and effective ways of present jobs
o Performance appraisal: assessing employees’ current and potential performance
9.1.2: Responsibility for HRM
HRM is a shared responsibility of line managers and staff HRM specialists. Large firms
have a HRM manager.
Large organisations, activities are specialised. Separate groups dealing with
compensation, benefits, training, etc.
Compensation systems are developed by the HRM staff, however, line managers
recommend pay increases and promotions.
9.2: Human resources planning
HRP is the development of strategies to meet a firm’s future human resources needs. The
starting point is the organisation’s overall strategic plan, then planners can forecast future
demand for human resources.
9.2.1: Forecasting human resource demand
Planners should base forecasts on relevant information.
the best employees
9.1: Human resources management
Consists of all the activities involved in acquiring, maintaining and developing an
organisation’s human resources.
HRM begins with acquisition – getting people to work for the organisation.
This process can be competitive for certain types of qualified employees.
Steps must be taken to keep these valuable resources.
9.1.1: HRM activities
3 phases: acquiring, maintaining, developing human resources.
HRM includes 5 separate activities:
o Human resources planning: determining the needs
o Job analysis: determining the exact nature of positions
o Recruiting: attracting people to apply for positions
o Selection: choosing and hiring the most qualified applicants
o Orientation: acquainting new employees with the firm
HRM programmes:
o Employee relations: increasing employee job satisfaction
o Compensation: rewarding employee effort through monetary payments
o Benefits: providing rewards to ensure employee well-being
Two important activities of the development phase:
o Training and development: new jobs, skills and effective ways of present jobs
o Performance appraisal: assessing employees’ current and potential performance
9.1.2: Responsibility for HRM
HRM is a shared responsibility of line managers and staff HRM specialists. Large firms
have a HRM manager.
Large organisations, activities are specialised. Separate groups dealing with
compensation, benefits, training, etc.
Compensation systems are developed by the HRM staff, however, line managers
recommend pay increases and promotions.
9.2: Human resources planning
HRP is the development of strategies to meet a firm’s future human resources needs. The
starting point is the organisation’s overall strategic plan, then planners can forecast future
demand for human resources.
9.2.1: Forecasting human resource demand
Planners should base forecasts on relevant information.
