IB Business Management SL - 2.1. Functions and evolution

Human resources

All the people working in a business

Human resource planning

Identifying current and future HR needs to ensure the staff is sufficient, qualified and competent.

Four key parts of HR planning

Recruitment, training, appraisal, dismissal

Recruitment

Hiring the right person for the right job

Training

Ensuring that an employee receives proper professional development

Appraisal

Evaluating an employee's job performance

Termination or dismissal

Employee's voluntary or involuntary leave

Labor turnover

A measure used in HR planning of how many people leave a business over a given period of time, expressed as a percentage

High labor turnover

Suggests labor problems, as it means that there is a reason why staff don't stay in the business

Low labor turnoner

Means that the business is stable but also lacks progress

External factors

Impact size and availability of the pool of potential employees for the business. Includes: technological and demographic change, and the state of economy

Internal factors

Changes from within the business itself. Includes: changes in business organization, in labor relations and in finance.

Three steps of recruitment

- Identification: defining the job description.
- Application: to find the best job applicants, businesses make a job advert.
- Selection: applicants may be shortlisted and interviews may be scheduled.

Four types of training

On the job, off the job, cognitive, behavioral

On the job training

Done while the employee is doing their normal job, such as induction.

Off the job training

Happens outside working hours, such as workshops.

Cognitive training

Helps employees develop their thinking and processing skills.

Behavioral training

Helps employees develop interpersonal skills like stress management and communication.

Staff appraisal

The process of reviewing the performance of employees against preset objectives

Four appraisal strategies

Formative, summative, 360 degree, self-appraisal

Formative appraisal

An ongoing process that focuses on giving the employees recognition for what they have done well and indicate what they can do better

Summative appraisal

Measures an employee's performance based on standards set by the business, usually done at the end of a project

360 degree appraisal

Feedback is received from the manager and the coworkers

Self-appraisal

Employees reflect on their own performance

Termination

When employees leave the business at the end of their contract

Dismissal

When an employee has broken some of the terms of their contract

Redundancy

When a job is no longer required

Teleworking

Employees work a set amount of hours at the office and the remainder from home

Flexitime

The employee only has to work a set amount of hours per week

Migration for work

Some employees migrate to other places due to better infrastructure and connectivity.