Unit 2: Human Resource

Human Resource Management (HRM)

The function of management that involves recruiting, training, compensating, and developing employees to meet organizational goals.

Workforce

The collective group of employees within a business, considered one of its most valuable assets.

Workforce Planning

The process of forecasting the number and type of employees needed now and in the future.

Recruitment

The process of seeking, finding, and hiring individuals for positions within an organization.

Retention

The efforts made by HRM to keep employees engaged and prevent turnover.

Labour Turnover

The rate at which employees leave a workforce and are replaced.

Training and Development

The process of teaching employees new skills or improving existing skills to enhance productivity.

Appraisal

The assessment of an employee's performance, often involving steps for continuous improvement.

Dismissal

The termination of an employee's contract due to misconduct or poor performance.

Redundancy

The termination of an employee's position because it is no longer required, often due to economic conditions.

Internal Factors

Elements within an organization that affect HR planning, such as structure, size, and budget.

External Factors

Influences outside the organization that impact HR planning, including sociocultural, technological, and economic changes.

Sociocultural Changes

Shifts in societal values and demographics that affect consumer behavior and workforce availability.

Technological Changes

Advances in technology that alter the types and numbers of employees needed in a business.

Economic Changes

Fluctuations in the economy, such as recession or unemployment rates, that influence workforce needs.

Labour Mobility

The ability of workers to move geographically or change careers, affecting recruitment and retention.

Centralisation

A management structure where decision-making is concentrated at the top levels of the organization.

Decentralisation

A management structure that delegates decision-making authority to lower levels within the organization.

Matrix Structure

An organizational format where employees report to multiple managers, often used in project-based environments.

Autocratic Leadership

A leadership style characterized by centralized decision-making and little input from subordinates.

Democratic Leadership

A leadership style that values employee input and encourages participation in decision-making.

Motivation

The reasons or incentives that drive individuals to perform tasks or engage in work.

Intrinsic Motivation

Motivation driven by internal rewards, such as personal satisfaction or enjoyment of the task.

Extrinsic Motivation

Motivation driven by external rewards, such as pay or recognition.

Maslow’s Hierarchy of Needs

A theory that categorizes human needs into a hierarchy, suggesting that lower-level needs must be met before higher-level needs can be addressed.

Herzberg’s Two-Factor Theory

A theory that distinguishes between hygiene factors (which prevent dissatisfaction) and motivators (which drive satisfaction).

Job Enrichment

Redesigning jobs to increase complexity and challenge, enhancing employee motivation.

On-the-Job Training

Training conducted while the employee continues to work, allowing for immediate application of skills.

Off-the-Job Training

Training that occurs away from the employee's normal work environment, often in a structured setting.

Communication

The process of exchanging information, thoughts, and ideas within an organization.

Internal Communication

The transfer of information within the organization among employees.

External Communication

The transfer of information between the organization and external stakeholders.

Formal Communication

Communication that follows defined channels and is documented, often used for official matters.

Informal Communication

Unstructured communication that flows freely among employees, often used for casual interactions.

Barriers to Communication

Factors that hinder effective communication, such as emotional, cultural, or technological barriers.