Chapter 11: Human resource management

11 Human resource
management

Functions of Human Resource Management

Recruitment and selection of employees
Performance appraisal
Employee rewards
 Chapter 11: Human resource management

Human resource management (HRM)

Definition:

• strategic and ongoing approach to staff management to ensure excellent

management and employee relationships

• Quality of employees = success of a business

• HRM motivates employees (achieve success for success of the business)

 Chapter 11: Human resource management

Functions of human resource management (part 1)

Manpower (or personnel) planning

 Future needs, retirement of staff, ongoing training requirements

Recruitment and selection of staff

 Job description required to fill vacancies, advertise vacancies,
contracts of employment and checking references

Staff development and training

 On-the-job training and induction training
 Chapter 11: Human resource management

Functions of human resource management (part 1)

Performance appraisal of employees

 Yearly meeting with employees to discuss promotion
opportunities, wage increases, training required,
extension of contract

Rewarding employees
 Monetary rewards (e.g. wages and bonuses) and
non-monetary rewards (e.g. benefits and holidays)
= remuneration package
 Chapter 11: Human resource management

Functions of human resource management (part 2)

Industrial relations
 Trade unions roles (e.g. shop steward) and collective bargaining

Employee services and welfare facilities

 Health and safety, social club, canteen facilities

Teamwork
 Five stages of team building
(forming, storming, norming, performing and transforming)
 TEAM = Together Each Achieves More

Managing employer–employee relationships

 Trust, communication, conflict resolution and respect
 Chapter 11: Human resource management

Recruitment and selection of employees

• Job description:
outline skills and experience required, salary, benefits
and terms of employment

• Internal recruitment or external recruitment: both have advantages

• Criteria used for assessing applicants

 Chapter 11: Human resource management

Performance appraisal

• Assess employee’s work performance

• Identify successes and areas for improvement

• Feedback from employees to understand employee viewpoint

• Is an extension of contract, wage increase or promotion needed?

• Is any further training required?

 Chapter 11: Human resource management

Employee rewards

Rewards
• Motivation is vital: people not always motivated by money

Two types of reward

• Monetary
 Wages, commission, bonus, profit-share and performance-related pay
• Non-monetary
 Fringe benefits (lunch vouchers, company cars, health insurance payments),
employee share ownership and holidays

Combination of both types of reward is a remuneration package

Chapter 11: Human resource management
Chapter 11: Human resource management