Human Resource

Management
Unit 2
1.1 Functions and evolution of human resource management
HR Planning
Labour Turnover

Dissatisfaction / motivation
Expensive
Productivity

Stability
Innovation

*lack of progress
Labour Turnover

The acceptable level will vary depending on

the industry, skills and experience requirements.

Booming economy

Tracking is important to correct internal factors

or mitigate against external factors.
External factors that influence the pool of labour available for work

Technological changes
External factors that influence the pool of labour available for work

Law - government regulations

External factors that influence the pool of labour available for work

Demographic change
External factors that influence the pool of labour available for work

Social Trends
External factors that influence the pool of labour available for work

State of economy
External factors that influence the pool of labour available for work

Education changes
External factors that influence the pool of labour available for work

Labour mobility
Internal factors that influence HR planning

Business organization
changes
Internal factors that influence HR planning

Changes in business
strategy
Internal factors that influence HR planning

Changes in business
finance
Internal factors that influence HR planning

Changes in labour
relations
The HR plan 1. Recruitment

Identification Selection
Application

● Job description ● Job advert ● Shortlisting

● Person specification ● CV / application form ● Testing
● Internal / external ● Internal / external ● Interviews
recruitment
agency
 New skills Motivation
The HR plan

2. Training

Less turnover Productivity

 On- the-job
The HR plan 2. Training

Off-the-job
Induction
The HR plan 2. Types of training

Skills - performance Cognitive Behavioral

The HR plan
Employee Benefits:

3. Appraisal

Motivational

Instructive Career Growth

The HR plan
Business Benefits:

3. Appraisal

New initiatives

Performance Check Document performance

 Characteristics
The HR plan
Not linked to payment or
3. Appraisal Separated from
promotion
disciplinary systems

Honest exchange of views Minimal paperwork

 Methods
The HR plan

3. Appraisal Formative 360 degree

Summative Self appraisal

The HR plan 4. Termination or Dismissal - Ways

Business decides employee should Employee and business agree

Employee chooses to leave
no longer work there to separate
The HR plan 4. Termination or Dismissal - Not too often

Costs of replacement Redemployment Legal actions - damages payment

The HR plan 4. Termination or Dismissal - Termination

● Change of career
● Professional
development
● Promotion
● Retirement
● Lifestyle choice
● Family reasons.
The HR plan 4. Termination or Dismissal - Dismissal
● Continually missing
work
● Poor discipline
● Drug or alcohol abuse
● Theft or dishonesty.
● A conviction for an
offence or
imprisonment
● An unresolvable
personality clash with
a co-worker
● Refusal to accept a
company
reorganization that
changes the terms of
employment.
The HR plan 4. Termination or Dismissal - Redundancy

● A drop in demand or the businesses

products
● Changing market circumstances
● A recession
● Restructuring of the industry
● The business becoming insolvent or
bankrupt
● The job someone has been doing being
replaced by mechanization
When the employer introducies new technology
(i.e. the job can be done by a machine)
● Relocation of the business
● Restructure or reorganization of the
business
● A merger or takeover.
The HR plan 4. Termination or Dismissal - Redundancy
Be a thinker
Changes in work environment
Changes in work environment
Changes in work environment
Changes in work patterns
Changes in work patterns
Work practices in decline
Work practices on the increase
Work practices on the increase
Changes in work preferences

Career breaks (1 sabbatical year)

Changes in work preferences

Job share
Changes in work preferences
Changes in work preferences

Study Leave
Outsourcing and offshoring as HR strategies
Outsourcing

When a business cuts back on its operations to focus on its core activities and save money.
Outsourcing
Offshoring

when a business outsources outside its home country.

The impact of innovation, ethical considerations and cultural differences
Innovation

The business will not be successfully innovative unless it recruits and retains the right
people.
Ethical Considerations

Businesses have to be careful to act in an ethical manner or at the least to create that appearance.
Ethical Considerations
Cultural differences
Businesses that adapt their HR plan to suit a more varied cultural workforce are more
likely to be successful with a diverse workforce, especially if their markets are as diverse
as their workforce. (innovation and creativity)
Cultural Differences
Power Distance Index (PDI9

Employees from a society with a high level of power distance would not expect to be
consulted and included in decision making. They are more accepting of authority.
Employees from countries with a low score would expect the opposite
Power Distance Index (PDI)
Practice

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