AICE Business AS Level Unit 2: Human Resource Management

Human Resource Management (HRM)

The strategic approach to the effective management of an organization's workers so that they help the business gain a competitive advantage

Workforce Planning

Forecasting the number of workers and the skills that will be required by the organization to achieve its objectives.

Labor Turnover

Measures the rate at which employees are leaving an organization

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, attracting suitable candidates for the job and selecting the best one

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

Job Description

A detailed list of the key points about the job to be filled - stating all its key tasks and responsibilities

Person Specification

A detailed list of the qualities, skills and qualifications that a successful applicant will need to have

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

Curriculum Vitae (CV)

A detailed document highlighting all of a person's professional and academic achievements, work experience and awards

Resume

A less detailed document than a CV, which itemizes 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

Assessment Center

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

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 organization

Employment Contract

A legal document that sets out the terms and conditions governing a worker's job

Redundancy

When a job is no longer required so the employee doing this job becomes redundant through no fault of his or her own

Dismissal

Being dismissed or fired from a job due to incompetence or breach of discipline

Unfair Dismissal

Ending a worker's employment contract for a reason that the law regards as being unfair

Employee Morale

Overall outlook, attitude and level of satisfaction of employees when at work

Employee Welfare

Employee's health, safety and level of morale at work

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

Equity Policy

Practices and processes aimed at achieving a fair organization where everyone is treated in the same way and has the opportunity to fulfill their potential

Diversity Policy

Practices and processes and at creating a mixed workforce and placing positive value on diversity in the workplace

Training

Work-related education to increase workforce skills and efficiency

Induction Training

Introductory training program to familiarize new recruits with the systems used in the business and the layout of the business site

On-the-job Training

Training undertaken at the place of work

Off-the-job Training

Training that takes place away from the place of work

Multi-Skilling

The training of an employee in several skills to allow for greater flexibility within the business

Employee Appraisal

The process of assessing the effectiveness of an employee judged against pre-set objectives

Industrial Action

Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favor of employees

Collective Bargaining

Process of negotiating the terms of employment between an employer and a group of workers who are usually represented by a trade union official

Trade Union Recognition

When an employer formally agrees to conduct negotiations on pay and working conditions with a trade union rather than bargaining individually with each worker

Motivation

The internal and external factors that stimulate the desire in workers to be continually interested in, and committed to, doing a job well

Piece Rate

Payment to a worker for each unit produced

Self-Actualization

A sense of self-fulfillment reached by feeling enriched and developed by what one has learned and achieved

Motivators (Motivating Factors)

Aspects of a worker's job that can lead to positive job satisfaction, such as achievement, recognition, meaningful and interesting work, responsibility, and advancement at work

Hygiene Factors

Aspects of a worker's job that have the potential to cause dissatisfaction, such as pay, working conditions, status, and over-supervision by managers

Job Enrichment

Aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work

Time-Based Wage Rate

Payment to a worker made for each period of time worked, e.g. one hour

Salary

Annual income that is usually paid on a monthly basis

Commission

Payment to a sales person for each sale made

Bonus

Payment made in addition to the contracted wage or salary

Performance-Related Pay

A bonus scheme to reward staff for above-average work performance

Profit Sharing

A bonus for staff based on the profits of the business

Share-Ownership Scheme

A scheme that gives employees shares in the company they work for or allows them to buy those shares at a discount

Fringe Benefits

Benefits given, separate from pay, by an employer to some or all employees

Job Rotation

A scheme that allows employees to switch from one job to another

Job Enlargement

An attempt to increase the scope of a job by broadening or deepening the tasks undertaken

Job Redesign

The restructuring of a job to make the work more interesting, satisfying and challenging

Development

The gaining of new or advanced skills and knowledge as well as opportunities to apply what is gained

Employee Promotion

The advancement of an employee within a business to a higher level of responsibility and status

Employee Status

The level of recognition offered by an employer to a worker in terms of pay, level of responsibility and benefits

Employee Participation

Active encouragement of employees to become involved in decision-making within an organization

Teamworking

Production is organized so that groups of workers undertake complete units of work

Empowerment

The giving of skills, resources, authority, and opportunity to employees so they can take decisions and be accountable for their work

Quality Circles (QC)

A voluntary group of workers who meet regularly to discuss, and try to resolve, work-related problems and issues

Manager

The person responsible for setting objectives, organizing resources, and motivating workers so the objectives of the business are met

Management

The organization and coordination of the activities of a business in order to achieve defined objectives

Autocratic Management

A management style where one manager takes all decisions with very little, if any, input from others

Democratic Management

A management style that encourages the active participation of workers in taking decisions

Paternalistic Management

A management style based on the view that the manager is in a better position than the workers to know what is best for an organization

Laissez-Faire Management

A management style that leaves much of the business decision-making to the workforce

Theory X

The view that some managers believe that employees are lazy, fear-motivated and in need of constant direction

Theory Y

The view that some managers believe employees are internally motivated, enjoy their work and are prepared to take on additional responsibilities