section 2 human resource management terms

Human resource management (HRM)

the strategic approach to the effective management of employees so that they help the business gain a competitive advantage

Workforce planning

forecasting the no. of workers + the skills that will be required by the organisation to achieve its objectives

Workforce audit

a check on the skills + qualifications of all existing workers/managers

Labour turnover

measures the rate @ which employees are leaving an organisation

Recruitment

the process of identifying the need for a new employee, defining the job to be filled + the type of person needed to fill it + attracting suitable candidates for the job

Selection

the series of steps by which candidates are interviewed, tested + screened to choose the most suitable person for a vacant spot

Recruitment agency

a business that offers the service of recruiting applicants for vacant posts

Job description

a detailed list of all the key points about the job to be filled, stating all its key tasks + responsibilities

Person specification

a detailed list of the qualities/skills/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 (eg. educational background + workplace experience)

Curriculum vitae (CV)

a detailed document highlighting all of a person’s professional + academic achievements/workplace experience/awards

Résumé

a less detailed document than a CV, which itemises work experience/educational background/special skills relevant to the job being applied for

Reference

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

Assessment centre

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 w/in its existing workforce

External recruitment

when a business aims to fill a vacancy w/a suitable applicant from outside of the business (eg. employee from another organisation)

Employment contract

a legal document that sets out the terms + conditions governing a worker’s job

Redundancy

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

Dismissal

being dismissed/fired from a job due to incompetence/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/level of satisfaction of employees when @ work

Employee welfare

employee’s health/safety/level of morale when @ work

Work-life balance

a situation in which employees are able to allocate the right amount of time/effort to work + their personal life outside work

Equality policy

practices/processes aimed @ achieving a fair organisation where everyone is treated in the same way w/out prejudice + has the opportunity to fulfil their potential

Diversity policy

practices/processes aimed @ creating a mixed workforce + placing a positive value on diversity in the workforce

Training

work-related education to increase workforce skills/efficiency

Induction training

introductory training programme to familiarise new recruits w/the business’ systems + layout of the business site

On-the-job training

instruction @ the place of work on how a job should be carried out

Off-the-job training

training undertaken away from the place of work

Multi-skilling

the training of an employee in several skills to allow for greater flexibility w/in 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/trade union to put pressure on management to settle an industrial dispute in favour of employees

Collective bargaining

process of negotiating terms of employment b/w an employer + 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/working conditions w/a trade union rather than bargain individually w/each worker

Motivation

the internal & external factors that stimulate the desire in workers to be continually interested in + committed to, doing their job

Piece rate

payment to a worker for each unit produced

Self-actualisation

a sense of self-fulfilment reached by feeling enriched + developed by what 1 has learned + achieved

Motivators (motivating factors)

aspects of a worker’s job that can lead to positive job satisfaction, such as achievement, recognition, meaningful/interesting work, responsibility + advancement at work

Hygiene factors

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

Time-based wage rate

payment to a worker made for each period of time worked

Salary

annual income that is usually paid on a monthly basis

Commission

a payment to a salesperson for each sale made

Bonus

a payment made in addition to the contracted wage/salary

Performance-related pay

a bonus scheme to reward employees for above-average work performance

Profit-sharing

a bonus for employees based on the profits of the business, usually paid as a proportion of basic salary

Share-ownership scheme

scheme that gives employees shares in the company they work for/allows them to buy those shares @ a discount

Fringe benefits

benefits given, separate from pay, by an employer to some/all employees

Job rotation

a scheme that allows employees to switch from 1 job to another

Job enlargement

an attempt to increase the scope of a job by broadening/deepening the tasks undertaken

Job enrichment

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

Job redesign

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

Development

the gaining of new/advanced skills + knowledge as well as opportunities to apply to what is gained

Employee promotion

the advancement of an employee within a business to a higher level of responsibility + status

Employee status

the level of recognition offered by an employer to a worker in terms of pay, level of responsibility + 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 + opportunity to employees so that they can take decisions + be accountable for their work

Quality circle (QC)

a voluntary group of workers who meet regularly to discuss, + try to solve, work-related problems + issues

Manager

the person responsible for setting objectives, organising resources + motivating workers so that the objectives of the business are met

Management

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

Autocratic management

a management style where 1 manager takes all decisions w/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 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 + in need of constant direction

Theory Y

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