Human Resource Management, Motivation, and Leadership

Vocabulary practice flashcards covering Human Resource Management (HRM), workforce planning, recruitment, employee welfare, motivation models, financial and non-financial incentives, and leadership management styles.

Human resource management (HRM)

The strategic approach to recruiting capable, flexible, and committed people, managing and rewarding their performance, and developing their key skills to the benefit of the organisation.

Workforce planning

Thinking ahead to establish the number of employees and the skills required in the future to meet the business's planned objectives.

Workforce audit

The first stage of workforce planning, involving a check on the skills, qualifications, and numbers of all existing employees.

Labour turnover

The rate at which employees leave a business over a given period (usually one year), measured as: $\frac{\text{Number of employees leaving in 1 year}}{\text{Average number of people employed}} \times 100$.

Recruitment

The process of analysing a vacant job, identifying the people required to do it well, and encouraging suitable candidates to apply.

Selection

The process of assessing applicants who have applied for a vacant job and choosing the most suitable candidate(s) to appoint.

Recruitment agencies

Specialist external businesses to which a company outsources its recruiting function to find and screen suitable candidates.

Job description

A document providing a complete picture of a vacant job, including job title, tasks, responsibilities, hierarchical position, working conditions, and performance assessment.

Person specification

An analysis of the specific qualities, skills, experience, and qualifications looked for in suitable applicants, based on the job description.

Application form

A standardised form designed by the HR department (usually completed online) for candidates to apply for a vacant job.

CV (curriculum vitae)

A detailed document prepared by an applicant containing their personal details, educational background, qualifications, and work experience.

Résumé

A concise summary of an applicant's personal details, skills, and work experience used when applying for jobs (more common in North America).

References

Statements or reports obtained from an applicant's previous employers to verify their character and past work performance.

Assessment centres

Multi-day or single-day selection sessions where groups of candidates undergo personality tests, group problem-solving exercises, written tests, and role plays in realistic situations.

Internal recruitment

Filling a job vacancy by selecting a candidate who already works for the organisation.

External recruitment

Filling a job vacancy by appointing an applicant who does not currently work for the business.

Employment contracts

Legally binding documents setting out the rights, responsibilities, tasks, working hours, pay, benefits, and notice periods agreed between employer and employee.

Redundancy

Ending a worker's employment because their job is no longer required (e.g., due to falling demand, technological change, or cost-cutting), not due to the worker's fault.

Dismissal

Terminating a worker's employment due to incompetence, misconduct, or continued failure to meet the obligations in their employment contract.

Unfair dismissal

Ending a worker's employment for an illegal or discriminatory reason (such as pregnancy, race, gender, religion, or union membership) or without following proper disciplinary procedures.

Employee morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work.

Employee welfare

The health, safety, comfort, and overall well-being of employees, supported through safe working conditions, hygiene facilities, and counselling/advice services.

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 (leisure, family, relaxation).

Equality

Ensuring all employees have equal opportunities and are not discriminated against in recruitment, pay, promotion, or dismissal based on race, gender, age, religion, sexuality, or origin.

Diversity

Acknowledging differences between employees and deliberately creating an inclusive environment that employs and values people of various races, genders, ages, religions, and ethnicities.

Training

Work-related education and instruction provided to employees to increase their skills, knowledge, and efficiency so they can perform their duties effectively.

Induction training

Introductory training given to all new recruits to introduce them to colleagues, explain the company structure and layout, and cover essential health and safety procedures.

On-the-job training

Instruction taking place directly at the employee's normal place of work, often by watching or working closely with experienced staff or training officers.

Off-the-job training

Any course of instruction taking place away from the normal place of work, such as at a specialist training centre, college, university, or external provider.

Multi-skilling

Training employees to possess a range of different skills so they can perform multiple tasks and roles within the business.

Employee appraisal

A formal annual process of assessing an employee's performance against pre-set targets and establishing new goals linked to business objectives.

Intrapreneurship

The practice of encouraging employees to behave like entrepreneurs within an organisation by thinking creatively, taking calculated risks, and driving innovations.

Industrial action

Measures taken by employees (often coordinated by a trade union) as a protest to put pressure on employers during a dispute over pay or working conditions.

Collective bargaining

Negotiations on pay and working conditions between employers (or their representatives) and trade union officials acting on behalf of all union members.

Trade union recognition

An employer's official acceptance of a trade union to negotiate and conduct collective bargaining on behalf of its workers.

Motivation

The internal and external factors that stimulate people to take action toward achieving a goal.

Piece rate

A fixed payment made to an employee per produced unit or product.

Self-actualisation

Reaching one's full potential and personal self-fulfilment (the highest level of Maslow's hierarchy of needs).

Time-based wage rate

Remuneration calculated per unit of time worked (usually an hourly wage) multiplied by the number of hours worked.

Salary

A fixed annual income (usually paid monthly) that does not depend on the number of hours worked or units produced.

Commission

A payment made to a salesperson for each completed sale, which can be 100% of the wage or an addition to a basic salary.

Bonus (Bonus payment)

An additional payment given on top of agreed wages or salary based on predetermined performance criteria.

Performance-related pay (PRP)

A bonus scheme added to basic salary for roles where output is not quantitatively measurable, linked to targets and annual appraisals.

Profit-sharing

A scheme in which employees receive a share of the company's profits (often as a percentage of basic salary) to increase their commitment.

Share-ownership schemes

Arrangements where employees receive shares in the company or are allowed to buy them at a discount, making them co-owners.

Fringe benefits

Non-cash rewards (benefits in kind) provided on top of ordinary salary to attract, retain, and offer status to personnel.

Decision-making

The process of analysing options and selecting the best course of action or method to achieve an organisational goal.

Context (Business context)

The specific internal and external circumstances of a business (such as sector, culture, budget, and personnel) that dictate which managerial decision is most suitable.

Job rotation

Switching employees between different tasks at the same level to reduce monotony and increase flexibility.

Job enlargement

Broadening the scope of a job by adding extra tasks at the same level (horizontal loading).

Job redesign

Restructuring a job—usually in consultation and with the consent of the worker—to make the work more interesting and challenging.

Employee promotion

Advancing an employee to a higher hierarchical level within the organisation as a reward for hard work.

Employee status

The social standing, recognition, and rank held by an employee within the organisation.

Employee participation

Actively involving employees in decision-making at team, operational, or strategic levels.

Teamworking

Organising production into small groups that share collective responsibility for a complete unit of work and possess autonomy to make their own decisions.

Empowerment

Giving authority, skills, resources, and freedom to employees so they can make decisions and solve problems independently.

Quality circle

A voluntary group of 5 to 10 employees from the same department who meet regularly to analyse and solve work-related issues.

Managers

Individuals responsible for directing, organising, and controlling business processes and resources to achieve planned objectives.

Management functions

The core tasks carried out by managers to run an organisation, traditionally categorised by Fayol into planning, organising, commanding/directing, coordinating, and controlling.

Autocratic management

A management style where the leader makes all decisions independently without consulting staff and imposes instructions via one-way communication.

Democratic management

A management style where the leader encourages consultation, listens to employee feedback, and involves workers in decision-making through two-way communication.

Paternalistic management

A management style where the leader acts in a 'fatherly' manner, listening and deciding what is best for employees, while keeping final decision-making power to themselves.

Laissez-faire management

A management style in which employees are given wide freedom to perform tasks and make decisions autonomously within broad parameters.

Theory X and Theory Y (McGregor)

Two contrasting management views regarding worker attitudes: Theory X assumes workers are inherently lazy and unmotivated, whereas Theory Y views work as natural and assumes employees seek responsibility.