Human Resource Management (HRM)

Chapteri 10 i 11 (fali 12)

Human resorce management (HRM)

The strategic approach to the effective

management of an organisation’s workers so that they help the business gain a

competitive advantage.

Labour turnover

Measures the rate at which employees are leaving an organisation.

It is measured by:

Formula: Number of employees leaving in 1 year x 100

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

Involves the series of steps by which candidates are interviewed, tested

and screened for choosing 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.

Example: Assistant Director - Assisting in developing and implementing plans and goals

for the department, working with the director to coordinate and supervise daily

operations and ensuring compliance with regulations and internal policies

Person specification

A detailed list of the qualities, skills and qualifications that a

successful applicant will need to have.

Example: A Bachelor’s Degree in a particular field OR 5 years experience working on the

tools within the plumbing industry or at least 3 years working in a face to face customer

service role in a fast paced environment

CV

Short for curriculum vitae; 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 itemises work experience, educational background and special skills relevant to the job being applied for

References

comment from a trusted person about an applicant’s character or previous work performance

Assessment centres

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 organisation

Employment contract

A legal document that’s sets out the terms and conditions

governing a worker’s job.

Example: Working hours and holiday entitlement

Redundancy

when a job is no longer required, the employee doing this job becomes unnecessary through no fault of their own

Example: Over the two years to 2013, Nokia Siemens, the mobile (cell) phone

manufacturer, made 20,000 workers redundant worldwide in order to cut costs and

restore profitability.

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

Example: Pregnancy, race, gender or religion of a worker

Employee morale

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

Employee welfare

employees’ health, safety and level of morale when at work

Work-life balance

A situation in which employees are able to give the right

amount of time and effort to work and to their personal life outside work to family or

other interests.

Example: Leave Work at a reasonable hour and allow flexible schedules

equality policy in the workplace

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

Diversity policy in the workplace

Practices and processes aimed 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 programme to familiarise new recruits with the systems used in the business and the layout of the business site

On-the-job training

instruction (for new recruits) at the playe of woek on how a job should be carried out

Off-the-job training

training undertaken by new recruits away from the place of work

Multi-skilling of workers

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

Employee appraisal

The process of assessing the effectiveness of an employee

judged against pre - set objectives.

Industrial action

measures taken by the workfore or trade union to put pressure on management to settle an industrial dispute in favour of employees

collective bargaining

the process of negotiating 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 bargain individually with each worker

piece rate

payment to a worker for each unit produced in order to encourage high output

Self actualisation

a sense of self-fulfilment reached by feeling enriched and developed by what one has learned and achieved

motivators

aspects of a worker’s job that can elad to positive job satisfaction, such as achievement, recognition, meaningful and interesting work, responsibility, and advancment 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 (for example one hour). The total wage (multiplication of wage level with number of hours worked) is usually paid weekly

Salary

Annual income that is usually paid on a monthly basis.

Commission

A payment to a sales person for each sale made.

Bonus

A payment made in addition to the contracted wage or salary.

Example: Most common for employees of banks

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 - usually paid as

a proportion of basic salary. Done so employees would feel more comitted to the success of the business and strive to achieve higher performances and cost savings

Share ownership schemes

a scheme that gives employees shares in the company they work for or allows them to buy those shares at a discount. This reduces the division between owners and workers which makes them more involved in the company’s sucess

Fringe benefits

benefits given, separate from pay, by an employer to some or all employees. Non-cash forms of reward - for example: company cars, free insurance, pension, private health insurance,…

Job rotation

Increasing the flexibility of employees and the variety of work they do

by switching from one job to another.

Example: An administrative employee might spend part of the week looking after the

reception area of a business, dealing with customers and enquiries.

Job enlargement

Attempting to increase the scope of a job by broadening or

deepening the tasks undertaken.

Example: Adding customer service tasks for administrative staff

Job redesign

Involves the restructuring of a job - usually with employees’

involvement and agreement - to make work more interesting, satisfying and challenging.

Development of employees

the gaining of new or advanced skills and knowledge as well as opportunities to apply what is gained by company employees

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 organisation

Teamworking

Production is organised so that groups of workers undertake

complete units of work.

Empowerment

the giving of skills, resources, authority and opportunity to employees so that they can take decisions and be accountable for their work. This leads to quicker problem-solving

Quality circle (QC)

Voluntary groups of workers who meet regularly to discuss work -

related problems and issues.

Workforce audit

a check on the skills of all existing workers/ managers

management

the organisation and coordination of activities in order to achieve the defined objectives of the business

autocratic managers

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

democratic managers

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

paternalistic managers

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 organisation

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 constant need of direction

Theory Y

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

Human needs and how they can be satisfied at work

1. Social connection: by working in groups or teams

2. Challenge: by providing different work tasks and chance of promotion

3. Significance: by praising and recognising performance

4. Certainty: by providing employment contracts and some job security

Motivation theories

1. Taylor and scientific management

2. Mayo and human relations theories

3. Maslow and human needs

4. Herzberg and the two-factor theory

5. McClelland and motivational needs theory

6. Process theories

Taylor and scientific management

• Frederick Taylor (1856–1917): First to study worker motivation seriously; aimed to boost productivity through scientific management.

• Scientific Management Steps:

  1. Select workers for a task.

  2. Observe and record performance.

  3. Find the quickest method.

  4. Train all workers in this method.

  5. Supervise and time workers.

  6. Pay based on output.

• Goal: Fix inefficiency in manufacturing by training workers, improving supervision, and creating job security.

• Economic Man Theory:

  • People are motivated only by money.

  • Led to piece rate pay: pay per unit produced, with bonuses for high output.

• Impact:

  • Managers liked the efficiency focus.

  • Workers feared more work without more pay.

  • Ideas influenced early mass production (e.g., Ford).

• Criticism:

  • Later seen as too simplistic.

  • From the 1960s, more participative management styles became common