CHAPTER 12 – HUMAN

RESOURCE MANAGEMENT
AIMS & OBJECTIVES
Aim (s)
To develop an understanding of the human resource management.

Objectives
Assess the role and purpose of HR managers and the importance of employee
recruitment and selection to an organisation.
Analyse the importance of employee training and development in increasing the
efficiency and motivation of the workforce.
Evaluate the need for dismissal and redundancies.
Assess the importance of E&D, employee morale and welfare.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

HRM
What is human resource management?

The strategic approach to the effective management of an

organisation’s workers so that they help the business gain a
competitive advantage.

Human resource management – purpose and role: Produce

a mind map on purpose and role of HRM in your
booklets.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

HUMAN RESOURCE MANAGEMENT –

PURPOSE AND ROLE
Workforce planning
Recruitment and selection
Developing employees
Employment contracts
Ensuring HRM operates across the business
Employee morale and welfare
Incentive systems
Monitoring
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

Answers
• Demographic change. Age distribution of the population will impact the
number of students due to start school and therefore the number of teachers
required.
• Labour turnover in the school. This is the average number of teachers that
change jobs and therefore leave the school and need replacing.
• Competition. A new school opening would affect the number of pupils
attending and teachers required.
• State of the economy. This could affect the number of students deciding to
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

RECRUITING AND SELECTING

STAFF
What is Recruitment?
The process of identifying the need for a new employee, defining
the job, and the type of person needed and attracting suitable
candidates.

What is Selection?
It involves the step by step by which candidates are interviewed,
screened and tested in order to choose the most suitable person.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

RECRUITMENT & SELECTION

– STEPS
How does it work? – booklet activity
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

RECRUITING AND SELECTING

STAFF
Establishing the exact nature of job and job description - job analysis and a detailed lists of
the key tasks and responsibilities.
Person specification – a detailed list of the skills, qualities and qualifications needed.
Preparing a job advertisement – internal recruitment (intranet/business’s IT system or
notice board), external recruitment (newspapers, internet, job centre and agencies).
Drawing up a shortlist – chosen based on CV & application form, references to be
obtained.
Interviews and selection – may include role plays, problem solving situations etc.

Remember: no discrimination throughout the recruitment and selection process.

LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

PRESENTATIONS HRM Group A: Pernod Ricard, Diagio

Scenari You are a newly appointed HR Assistant Job Roles: Regional sales manager
o Manager in the human resources department
of the business and are responsible for
preparing recruitment and training Group B: Vietnam Australia International
documentation. School, Vin School
Job Roles: Cambridge Teacher for Business
Your manager has just informed you that
Studies/any Secondary subject
there are one vacancies in the business which
need to be filled within a month.
This is your first project in your new job role.
Group C: Hilton Hotel and Grand Hyatt,
You have been asked to prepare a Hotel/any big hotel
presentation. You will then present this to Job Roles: Hotel Manager
your manager and the new HR Assistants in
your department.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

PRESENTATI
ONS HRM
 Research and find a job advertisement for the 2 jobs. Critically analyse
there messaging and selection of advertisement location.
 Research and find a detailed job description, covering the roles and
responsibilities of the job. Critically analyse a competitor’s job description
compared to yours. (3 slides / top 4-5 main bullet points)
 Research and find a detailed person specification, identifying the skills,
qualities and qualifications needed. Critically analyse competitor’s
compared to yours
 Research and find/design a job application form. Critically analyse
competitor’s compared to yours.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

Labour turnover:
Measures the rate at which employees are leaving an organisation.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

Some jobs may even have a labor

turnover that is higher than 100%!!!
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

PROGRESS
CHECK/HOMEWORK
Briefly do the following activities in your
notebooks:

Activity 10.2 question 1 & 2

Activity 10.3 question 2
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

.Activity 10.2
1
• Competition
• Economic recession

2 Without a workforce plan problems may arise:

• Incorrect employee numbers. This may result in insufficient output to meet
demand. This could lead to a loss of goodwill and market share.
• If there are too many employees, it may lead to an increase in costs, making
the product less price competitive or reducing the profit margin.
• Skill shortages. For example, research and development employees are
required to innovate new technologies for which demand will rise in the future.
• Workers need to be recruited in time for future demand. Training may take
several years. Specific skills may be in short supply so planning is needed to
prevent shortages.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

.
2 Arguments for: lower recruitment and training costs, established teams,
maintains skills and experience leading to better customer service.

Arguments against: no fresh ideas, increases complacency, may expect

higher wages.

Evaluation: there may be an optimal level of labour turnover to allow new

ideas to come into the business without disrupting customer service. Labour
turnover of 69% may be too high to allow maintenance of customer service
standards.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

RECRUITING AND SELECTING

STAFF
Establishing the exact nature of job and job description - job analysis and a detailed lists of
the key tasks and responsibilities.
Person specification – a detailed list of the skills, qualities and qualifications needed.
Preparing a job advertisement – internal recruitment (intranet/business’s IT system or
notice board), external recruitment (newspapers, internet, job centre and agencies).
Drawing up a shortlist – chosen based on CV & application form, references to be
obtained.
Interviews and selection – may include role plays, problem solving situations etc.

Remember: no discrimination throughout the recruitment and selection process.

LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

Vacant post in Mauritius SugarCo in Mauritius plans to appoint a

new operations manager to replace Loic, who is retiring.

This is an important post as new computer-controlled machinery

will be introduced over the coming year.

The company’s small HR department has decided to use an external

recruitment agency. This form of outsourcing will mean that the
advertising of the post and the selection of the shortlist candidates
will be undertaken by the agency.

The agency received 365 applications and produced a shortlist of

10. SugarCo reduced this to three.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

1 Analyse one
Activity 10.4 advantage and
one disadvantage
to SugarCo of
outsourcing
recruitment for
this post to an
external agency.

2 Recommend,
using the
information
provided, which
candidate should
be selected. Justify
your
recommendation.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

CONTRACT OF EMPLOYMENT
Legally binding document to set out terms and conditions.

What should it include?

Responsibilities and main tasks

Permanent/temporary job
Working hours – full time/part time
Holiday entitlement
Notice period
LO3: Evaluate the need for dismissal and redundancies.

DISCIPLINE, DISMISSAL AND

REDUNDANCIES
Downsizing situations
Dismissals
Being dismissed or sacked from a job due to incompetence or
breach of discipline.
 Immediate dismissal if it is a gross misconduct, stealing or other serious
offence.
 Verbal followed by written warnings are used if it is not a gross misconduct.

Redundancies
When a job is no longer required, an employee loses job through no
fault of their own.
Set procedures are followed, often ‘last in first out’.
Sometimes voluntary redundancies are also offered.
LO3: Evaluate the need for dismissal and redundancies.

DISCIPLINE, DISMISSAL AND

REDUNDANCIES
Unfair dismissal
Dismissal based on discrimination i.e.
pregnancy, race, religion, gender, disability or
sexuality etc.
The employee can go to the
employment/industrial tribunal usually with the
help of trade union.
LO1: Assess the role and purpose of HR managers and the importance of employee recruitment and selection to an organisation.

PRESENTATIONS HRM – NOW ARE

WORKING FOR HRM
Continuing with your businesses. You will now include:
 How will you shortlist the applicants and at what stage will you
take up the references?
 5 interview questions.
 The key points that should be included in the contracts.
(book)Critically analyse competitor’s compared to yours
(salary, benefits, working hours etc.)
 Whether you will recruit internally or externally and why?
• Research and find the guidelines/policies of your business on
discipline, dismissal and redundancies.
LO2: Analyse the importance of employee training and development in increasing the efficiency and motivation of the workforce.

TRAINING AND DEVELOPING

EMPLOYEES
Training: work related education to develop employees’ skills and efficiency.

What is induction training?

Introductory training program for new recruits and includes organisation structure,
health and safety procedures, introduction to people that they will be working with.
What is on the job training?
Watching or working closely with the experienced staff. Cheaper than external training.
What is off the job training?
Training undertaken away from the business i.e. College, specialist training centre or
outside body.
LO2: Analyse the importance of employee training and development in increasing the efficiency and motivation of the workforce.

TRAINING AND DEVELOPING

EMPLOYEES
Development & appraisal of employees

Development
Providing a career plan, might include promotion or job
enrichment.

Appraisal
Assessing the effectiveness of an employee against pre-set
objectives. Undertaken quarterly or annually.
LO2: Analyse the importance of employee training and development in increasing the efficiency and motivation of the workforce.

PROGRESS
CHECK/HOMEWORK
Briefly do the following activities in your notebooks:

Activity 10.6
LO2: Analyse the importance of employee training and development in increasing the efficiency and motivation of the workforce.

DEVELOPING
INTRAPRENEURSHIP
Encouraging Independent Thinking and Creativity: This involves creating an environment where
employees feel free to think out of the box and propose innovative solutions. Workshops, brainstorming
sessions, and encouraging a questioning culture can help in this regard.
Cross-Departmental Collaboration: Allowing employees to work with peers from different departments
can spark new ideas and perspectives. This multidisciplinary approach leads to a richer pool of knowledge
and experience, enhancing the potential for innovative solutions.
Empowerment with Authority and Resources: Intrapreneurship thrives when employees have the
necessary resources and the authority to act on their ideas. This might include budget allocations, access to
company tools and data, or decision-making power.
Acceptance of Failure: Cultivating a culture where failure is seen as a stepping stone to success is crucial.
This approach removes the fear of taking risks, encouraging employees to experiment and learn from their
failures.
Starting Small: Encouraging employees to initiate small-scale innovations can lead to significant
improvements and pave the way for tackling larger issues. This gradual approach allows for learning and
refinement of ideas.
LO4: Assess the importance of E&D, employee morale and welfare.

EMPLOYEE MORALE AND

WELFARE
HR will offer advice, counseling and other support to employees who
are facing family, financial or other personal problems.

This leads to higher employee morale and sense of loyalty.

Work life balance:

When employees are able to give the right amount of time and effort to
work and personal life.
Some methods used by businesses are flexible working, working
LO4: Assess the importance of E&D, employee morale and welfare.

EQUALITY AND DIVERSITY

Equality policy
Practices and processes aimed at treating everyone equally in the
business.

Diversity policy
Practices and processes aimed at creating a mixed workforce and
giving importance to diversity in the work place.

Advantages of E&D for the business:

Employees feel motivated and valued, greater consumer market,
multi lingual skills and creativity.
LO4: Assess the importance of E&D, employee morale and welfare.

MANAGEMENT AND
WORKFORCE
Cooperation can result in real RELATIONS
benefits to managers and workers:
• Fewer days are lost through strikes and other forms of industrial action.
• It will be much easier for management to introduce change in the
workplace. For example, a decision to automate part of a factory could be
made with the cooperation of the workforce.
• The contribution of the workforce is likely to be recognised by
management, and pay levels and other benefits might reflect this.
• Agreement on more efficient operations will increase the competitiveness
of the business.
• Workers’ practical insight into the way the business operates can contribute
to more successful decisions
 IMPACT OF TRADE UNION
LO4: Assess the importance of E&D, employee morale and welfare.

INVOLVEMENT IN THE
WORKPLACE
The basis of trade union influence has been ‘power through solidarity’.
This is best illustrated by the unions’ ability to engage in collective
bargaining, negotiating on behalf of all of their members within a business.
– This can also save the business time in negotiating

Unions provide legal support to employees who claim unfair dismissal or

poor working conditions.
 DISPUTES BETWEEN TRADE
LO4: Assess the importance of E&D, employee morale and welfare.

UNION AND MANAGEMENT AND

ACTIONS
• Go slow – a form ofTHAT MAY
industrial action FOLLOW
in which workers keep working but at
the minimum pace demanded by their contract of employment.
• Work-to-rule – a form of industrial action in which employees refuse to
do any work outside the precise terms of the employment contract. Overtime
will not be worked and all non-contractual cooperation will be withdrawn.
• Overtime bans – industrial action in which workers refuse to work more
than the contracted number of hours each week. During busy periods, this
could lead to lost output for the employer.
• Strike action – the most extreme form of industrial action in which
employees totally withdraw their labour for a period of time. Strike action
leads to production stopping and the business shutting down during the
industrial action.
LO4: Assess the importance of E&D, employee morale and welfare.

PRESENTATI
ONS HRM
Continuing with your businesses. You will now:

• Research and find/Create an induction program for the first day.

• What on and off the job training would you use/your business
uses? And why?

• Research and find the E & D policy of your business.

• Also find out: What are protected characteristics?

• What does/should your company do to ensure employee morale and welfare?

DISCUSS THE IMPORTANCE OF ‘WORK-
LIFE’ BALANCE FOR EMPLOYEE WELFARE
IN A TERTIARY SECTOR BUSINESS. [12]

Which assessment objective is this question assessing you on?

This will assess you on A01 A02 A03 and A04

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