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2.1 FUNCTIONS AND EVALUATION OF HUMAN RESOURCE MANAGEMENT (HR functions…
2.1 FUNCTIONS AND EVALUATION OF HUMAN RESOURCE MANAGEMENT
Human resource management is the strategic approach to the effective management of an organisation's workers so that they help the business achieve its objectives and gain a competitive advantage
Human resource planning
Forecasting the number of employees required
Forecasting the skills required
Labour turnover
Formula: No of employees leaving in one year per average number of people employed, times hundred
Drawback of higher turnover
Costs of recruiting
Difficult to establish team spirit and loyalty
Measures the rate at which employees are leaving an organisation
Benefits of higher turnover
Replace with more skillful workers
New ideas and practices can be brought in
Demographic factors that influence human resource planning
Net migration
Opportunities
More qualified employees might be recruited from other countries
Constrains
Immigrants need more training
Ageing population
Opportunities
Older employees are more loyal
Constrains
Older employees may be less flexible and adaptable
Natural population growth
Opportunities
Easier to recruit effective employees
Constrains
Take years to have impacts on working population
Changes in labour mobilitiy
In emerging market, mobility could be higher
High in geographical mobility can lead to overcrowding and poor living condition
In developed economies, labour tends to be immobile
Recruitement
Prepare a job advertisement reflecting the requirements of the job and the personal qualities looked for
Draw up a shortlist of applicants
Draw up a person specification
Conduct interviews
Establish the exact nature of the job vacancy and draw up job description
Training
Off-the-job training
Cognitive training
On-the-job training
Behavioural skills training
Appraisal of employees
The process of assessing the effectiveness of an employee judged against preset objectives
Types of appraisal
Formative
Summative
360-degree feedback
Self-appraisal
Dismissal of employees
Being removed from a job due to incompetence or breach of discipline
Redundancies
When a job is no longer required so the employee doing this job becomes redundant through no fault of his or her own
Employment patterns and practices
Traditionally
Regular working hours each week
Permanent employment contracts for most workers
Full-time employment contracts
Large proportion of the working population
Portfolio working
Teleworking from home
Part-time and temporary employment contracts
Reasons for changes
Need for greater labour flexibility
Greater opportunities for outsourcing
Focus on competitiveness driven by competitive pressure
Consequences of changing work pattern and practice
Recruiting 20 part time staff on flexi-time
Offering outsourcing contracts
Employing workers on temporary contracts
Part time and flexible contracts
Workers
Advantage
Able to combine two jobs with different firms
Contract could be ideal for certain type of workers
Drawback
Less job security than full-time workers
Earning less than full-time workers
Business
Advantage
Employees can be required to work at particularly busy periods of the day
More employees are available to be called
Drawback
More employees need to be managed
Reduce in communication effectiveness
HR functions that are usually non-core and can be outsourced
Core activities that should not be outsourced
Factors influence HR practices and strategies
Ethics
Pay
Lack of cultural awareness
Bribe
Cultures
National cultures
Culture of the organisation
Innovation
In HRM
Higher productivity
Attraction of high-quality employees
Through HRM
Create new culture within organisation