Business Management 2.1 – FUNCTIONS AND EVOLUTION OF HRM
HUMAN RESOURCE MANAGEMENT – Strategic approach to the effective management of an
organization’s workers so that they help the business achieve its objectives and gain a competitive
advantage. Requires careful planning.
HUMAN RESOURCE PLANNING – Analysing and forecasting the numbers of workers and skills
required to by an organization to achieve its objectives. People with the right skills, experience and
competencies.
Workforce plan: number of workers and skills required over a future time period
Workforce audit: check on the skills and qualifications of all existing employees.
1. Forecasting number of employees
Forecasting demand for the firm´s product
Productivity (output per worker) levels of staff
Objectives of the business. If planned expansion, + staff. If attempts to increase
customer service levels, + staff
Changes in law regarding workers’ rights
Labour turnover and absenteeism rate. + Labour turnover → + Recruitment. +
Absenteeism rate → + Staffing levels
2. Forecasting skills required
Pace of technological change
Need for flexible or multi-skilled staff. Skills to be applied in different ways to adapt to
different market conditions. Makes workers more rewarding.
LABOUR TURNOVER – Measures rate at which employees are leaving an organization.
n ° employees leaving∈1 year
×100
average n° of peopleemployed
High labour turnover implies employee discontent, low morale and a policy of employing the wrong
people. Generally, in areas of low unemployment
Drawbacks of high labour turnover Benefits
Costs of recruiting, selecting and training Replaced by carefully selected, and best,
Poor output levels and customer service employees
Difficult to establish loyalty and familiar New ideas
contact with customers To reduce staff workforce, leaving
NO team spirit and stable work groups employees will not be replaced.
DEMOGRAPHIC CHANGE AND HR PLANNING
Demographic change PRO CONS
Population growth Easier to recruit employees Increased birth rates may take
years before they can work
Net migration (inm/ Easier to recruit foreign Brain drain (reduce
emigration) employees. Cheaper competitiveness)
Qualifies employees recruited Immigrants need training
from other countries
Ageing population Older employees more royal and Less flexible and adaptable
reliable
Experience and “people” skills
1
, Business Management 2.1 – FUNCTIONS AND EVOLUTION OF HRM
CHANGES IN LABOUR MOBILITY
Occupational mobility of labour: extent to which workers are willing and able to move to different
jobs requiring different skills. High help achieve economic efficiency, to keep structural
unemployment low. Generally, in emerging market countries because home ownership is low and
low skill workers to take part in different low-skilled jobs
Geographical mobility of labour: extent to which workers are willing and able to move geographical
region to take up new jobs. Relocation grants, job centres and other government offices to advertise
job vacancies nationally, training and retraining programmes.
NEW COMMUNICATION TECHNOLOGIES
ICT make that location is no longer vital to share information and work together, so there is a need
to adapt workforce. Geographical flexibility in organizing production and HR resources. Increased
creative jobs and reduce routine jobs.
RECRUITMENT – Process of identifying the need for a new employee, defining the job to be filled and
the type of person needed to fill it, attracting suitable candidates for the job and selecting the best
one.
1. Establish the nature of the job vacancy and draw up job description (list of key points about
the job to be filled, stating tasks and responsibilities)
Job title Tasks to be performed Responsibilities
Hierarchy Working conditions How job will be assessed
and performance measured
2. Person specification / Person profile: list of qualities, skills and qualifications
3. Job advertisement reflecting requirements and personal qualities: can’t state any race,
gender or religion.
Internal recruitment External recruitment
Applicants are known New ideas and practices
Applicant knows organization and Wider choice
internal method (no training) Avoids resentment felt by existing
Culture is understood by the applicant staff if a colleague is promoted
Quicker Higher standards
Cheaper
Chance to progress (motivation)
Staff will not have to get used to a new
style of management
4. Draw up shortlist of applicants
5. Conduct interviews: generally a seven-point plan to carry out methodical interview
(achievements, intelligence, skills, interests, personal manner, physical appearance and
personal circumstances)
TRAINING – Work-related education to increase workforce skills and efficiency. To assure they are
well equipped to perform their duties.
Types of training:
On-the-job training: instruction at the place of work, by HR managers or departmental training
officers. Working with experienced members. Cheaper
Induction training: to familiarize new recruits with the systems used in the business and layout
of the business site. Given to all recruits.
2
HUMAN RESOURCE MANAGEMENT – Strategic approach to the effective management of an
organization’s workers so that they help the business achieve its objectives and gain a competitive
advantage. Requires careful planning.
HUMAN RESOURCE PLANNING – Analysing and forecasting the numbers of workers and skills
required to by an organization to achieve its objectives. People with the right skills, experience and
competencies.
Workforce plan: number of workers and skills required over a future time period
Workforce audit: check on the skills and qualifications of all existing employees.
1. Forecasting number of employees
Forecasting demand for the firm´s product
Productivity (output per worker) levels of staff
Objectives of the business. If planned expansion, + staff. If attempts to increase
customer service levels, + staff
Changes in law regarding workers’ rights
Labour turnover and absenteeism rate. + Labour turnover → + Recruitment. +
Absenteeism rate → + Staffing levels
2. Forecasting skills required
Pace of technological change
Need for flexible or multi-skilled staff. Skills to be applied in different ways to adapt to
different market conditions. Makes workers more rewarding.
LABOUR TURNOVER – Measures rate at which employees are leaving an organization.
n ° employees leaving∈1 year
×100
average n° of peopleemployed
High labour turnover implies employee discontent, low morale and a policy of employing the wrong
people. Generally, in areas of low unemployment
Drawbacks of high labour turnover Benefits
Costs of recruiting, selecting and training Replaced by carefully selected, and best,
Poor output levels and customer service employees
Difficult to establish loyalty and familiar New ideas
contact with customers To reduce staff workforce, leaving
NO team spirit and stable work groups employees will not be replaced.
DEMOGRAPHIC CHANGE AND HR PLANNING
Demographic change PRO CONS
Population growth Easier to recruit employees Increased birth rates may take
years before they can work
Net migration (inm/ Easier to recruit foreign Brain drain (reduce
emigration) employees. Cheaper competitiveness)
Qualifies employees recruited Immigrants need training
from other countries
Ageing population Older employees more royal and Less flexible and adaptable
reliable
Experience and “people” skills
1
, Business Management 2.1 – FUNCTIONS AND EVOLUTION OF HRM
CHANGES IN LABOUR MOBILITY
Occupational mobility of labour: extent to which workers are willing and able to move to different
jobs requiring different skills. High help achieve economic efficiency, to keep structural
unemployment low. Generally, in emerging market countries because home ownership is low and
low skill workers to take part in different low-skilled jobs
Geographical mobility of labour: extent to which workers are willing and able to move geographical
region to take up new jobs. Relocation grants, job centres and other government offices to advertise
job vacancies nationally, training and retraining programmes.
NEW COMMUNICATION TECHNOLOGIES
ICT make that location is no longer vital to share information and work together, so there is a need
to adapt workforce. Geographical flexibility in organizing production and HR resources. Increased
creative jobs and reduce routine jobs.
RECRUITMENT – Process of identifying the need for a new employee, defining the job to be filled and
the type of person needed to fill it, attracting suitable candidates for the job and selecting the best
one.
1. Establish the nature of the job vacancy and draw up job description (list of key points about
the job to be filled, stating tasks and responsibilities)
Job title Tasks to be performed Responsibilities
Hierarchy Working conditions How job will be assessed
and performance measured
2. Person specification / Person profile: list of qualities, skills and qualifications
3. Job advertisement reflecting requirements and personal qualities: can’t state any race,
gender or religion.
Internal recruitment External recruitment
Applicants are known New ideas and practices
Applicant knows organization and Wider choice
internal method (no training) Avoids resentment felt by existing
Culture is understood by the applicant staff if a colleague is promoted
Quicker Higher standards
Cheaper
Chance to progress (motivation)
Staff will not have to get used to a new
style of management
4. Draw up shortlist of applicants
5. Conduct interviews: generally a seven-point plan to carry out methodical interview
(achievements, intelligence, skills, interests, personal manner, physical appearance and
personal circumstances)
TRAINING – Work-related education to increase workforce skills and efficiency. To assure they are
well equipped to perform their duties.
Types of training:
On-the-job training: instruction at the place of work, by HR managers or departmental training
officers. Working with experienced members. Cheaper
Induction training: to familiarize new recruits with the systems used in the business and layout
of the business site. Given to all recruits.
2
