2.1

What is HRM (exam-like answer)

What is HRM (exam-like answer)

HRM is the business sector responsible for seeking, finding, and recruiting employees. They have to work on retaining skilled employees. They do this by having well planned and controlled HRM which leads to increased motivation and productivity amongst employees

what are the key roles of HRM?

1. workforce planning: forecasting how many and what type of employees are needed now and in the future.

   • 1st is gathering and analyzing data

   • 2nd is developing responses to HR needs

2. recruitment and retention:

   • recruitment is the process of seeking and finding skilled employees

   • retention is the process of retaining skilled employees and avoid labor turnover

3. training and development: teaching employees new skills or improving their existing ones

4. appraisal: an assessment of an employee’s performance

5. dismissal and redundancies:

   • dismissal is when an employer terminates an employee for: misconduct or continuous poor performance

   • redundancies is when an employee’s position is no longer needed as a result of recessions

the internal factors affecting workforce planning

1. Structure of the organization: an organizational chart is needed to identify the needed and unneeded positions + to address gaps in the organization

2. size of the organization: larger organizations need to recruit and retain larger amounts of employees + more complex HRM planning

3. budget: the amount of workforce depends on the budget + revenue

4. promotion: HR needs to keep track of employees leaving so that more promotion opportunities arise.

5. flexitime: companies need to have more flexible working hours, group projects, etc… they need to change policies, training, and practices

6. motivation: higher motivation = lower % of labor turnover

the external factors affecting workforce planning

1. sociocultural changes: age, gender, culture, etc… this makes it easier or difficult to recruit employees

2. technology changes: more tech = less workers needed = more tech experts needed

3. economic changes:

   • recession

   • unemployment: low rates = difficult to recruit

   • labor mobility: high labor mobility = easy to recruit.

4. legal and political laws: companies have to pay attention to laws about pay, leave notice, recruitment as they change quite a lot. MNC’s have to follow both the host and home country’s laws

different labor mobility strats + cons

strats:

1. geographical mobility: the ability and willingness of an employee to move countries for work

   • a culture + language barrier

2. occupational mobility: workers are able to take on a new job with different skill sets

3. gig economy: companies that hire workers for a specified period of time

   • they don’t have the same job protection + social security as permanent workers

cons:

• labor mobility can be affected by costs of relocating, the strength of social ties, and the willingness to take risks

The reasons for resistance to change

1. self-interest: employee believes own interest is different from organization’s

2. low tolerance & inertia: employees might like stability + might resist as it needs adaption and new rules

3. misinformation: reasons behind the change aren’t explained clearly

4. interpretations of circumstances: people have diff. perceptions of diff. situations

The HR reasons for dealing with resistance

1. participation: employee participation in decision making + asking questions

2. planning: change is planned + managed carefully. employees need to feel ownership + by implementing, there will be a inner feedback loop

3. communication: change needs to be continuously communicated so employees know problems are being solved and shareholder know that it is going good

4. negotiation: carrot approach = limiting restriction by offering incentives before, during, or after change / early retirement / redundancy incentives

5. manipulation: they convince employee representative which will convince employees

6. coercion: bully or threaten employees with dismissal, redeployment, redundancies, etc… controversial because it is unethical + illegal