2.1 Functions and evolution of human resource management

Common steps in the processes of dismissal and redundancy. (AO1)

Dismissal is fair if an employee loses their job due to incompetence or gross misconduct. There has to be very definitive and comprehensive reasons for dismissing a worker in order to avoid legal challenges. Dismissals go through a three stage process: issuing an initial verbal warning, a formal written warning, termination of contract if the employee fails to reach the targets. Redundancy occurs when a firm can no longer afford to employee a worker, when a job ceases to exist due to the completion of a project, or a lack of available work. Redundancies can be voluntary or compulsory. Voluntary redundancies are generally associated with generous compensation packages. Involuntary redundancies happen as a last resort, often causing low staff morale and instability in the organisation. Decisions made by the last in, first out system.

How innovation, ethical considerations and cultural differences may influence human resource practices and strategies in an organisation. (AO3)

Innovation: HR managers are increasingly relying on the use of information technologies in workforce planning. E.G. video conferences. Social media and networks such as Facebook and LinkedIn are used as part of the recruitment process. Ethics: The use of part time and flexitime workers has raised some concerns about employers who take advantage of these employees yet gain from having lower operation costs. The unethical treatment of employees in the workplace has huge consequences. Unethical business practices of some offshore firms, such as the use of child labour, mean that more businesses are choosing to re-shore their operations. Culture: Firms with high rates of labour turnover may suffer from poor HR management and a wee or fragmented corporate culture. The culture of some firms is such that human resources are viewed as a long term investment so training and development become integral to their business strategy. Although 360-degree feedback is used in some countries, the act of subordinates praising their senior colleagues in an organisation is unacceptable in other countries.

Human resource planning (workforce planning) (AO1)

Workforce planning involves analysing and forecasting the numbers of workers and the skills of those that will be needed by the organisation. Human resource planning aims for the effective management of an organisation's workforce in order to achieve its objectives. Human resource planning functions include recruitment, induction, retention, dismissal, redundancies, training and performance appraisals. Also involves monitoring and maintaining professional relations between employees and employers. Workforce planning involves an analysis of historical data relating to the size of the workforce, the workload and mobility of employees, labour turnover rates, and demographic trends in society. HR planning is also needed to deal with instances of absenteeism. This refers to the number of staff as a percentage of the firm's total workforce, per time period. Successful workforce planning helps a firm to develop a competitive advantage by matching human resource needs to the organisation's strategic direction. It enables workers to be properly trained and highly motivated so they perform at their best.

Internal and external factors that influence human resource planning (AO3)

1. Demographic change Demographic change refers to developments and trends in the population that influence the workforce planning. An increased average age in some countries has lead to several implications on workforce planning: reduced labour mobility, lower labour productivity levels, changing consumption patterns. Also consider the increase in women in the workforce. 2. Change in labour mobility Occupational mobility refers to the ease and flexibility of workers in moving from one job to another due to their ability and willingness to switch. There is also immobility - just the opposite. Geographical mobility refers to the extent to which workers are able and willing to relocate. There is also immobility - just the opposite. Labour mobility can be improved by the business offering training and development programmes. 3. New communications technologies New communications technologies make it easier for larger businesses to recruit globally through their websites and video conferencing facilities, resulting in reduced costs of online advertising, recruiting. Improved computer and mobile technologies also mean that flexitime, home working and teleworking become more attractive and accessible to workers. Make it possible to train and develop employees in a more efficient manner. Reduce the costs of business meetings and seminars due to the growth of high quality video and audio.

Types of Appraisal (AO2)

Appraisals are conducted for several reasons, including: 1. assessing an employee's performance against predetermined targets. 2. Identifying training needs of the individual employee. 3. Helping the management to reward high achieving employees. Target setting is an integral part of appraisals. Targets should be SMART: specific, measurable, achievable, realistic and time bound. If an employee's performance is deemed to be less than satisfactory, it should be followed by providing relevant training or counselling. Such appraisals to not result in severe or demotivating measures such as warning letters or dismissal. Formative appraisal: Takes place on an on-going basis to enable employees to improve their job performance. It helps to identify an employee's strengths and weaknesses in a specific role or the progress made in a particular task or project. Helps the organisation to identify the training needs of an individual employee. Summative appraisal: Take place periodically, such as quarterly or annually. Conducted by the line manager who summarises the personal performance and achievements of the appraised. The appraised is held accountable for the outcome of their work, including identifying any areas for improvement. 360-degree feedback: An appraisal system that involves getting comments, opinions and information about an appraised from various groups of people who work with that individual. Usually attained by using interviews, questionnaires or surveys. Is not suitable in some instances where there is potential for the feedback to be unreliable. Self Appraisal: Employees evaluate themselves against a predetermined criteria. They reflect on their strengths and weaknesses in order to set new targets. Often used in conjunction with an appraisal conducted by a manager in order to avoid bias.

Common steps in the process of recruitment (AO2)

Job analysis - the process of identifying what a particular job entails. From the analysis, the job description and person specification can be created. Job description - a document that provides details of a specific job. Person specification - a document that gives the ideal profile of the candidate for the job. This is used for part of the selection process. Job advertisements are typically released after the job has been completed. Candidates generally have to submit a resume and application form for the job. Shortlisting - the systematic process of identifying and selecting the most suitable candidates from all applicants for an interview. It eliminates unsuitable candidates. Suitable candidates are then invited for interviews and in some cases testing in order to see skills for the job. Testing is used for some jobs to ensure the best candidate is recruited. Examples include aptitude training and intelligence tests. Background checks are made with referees to ensure that information stated by the applicant is truthful. A job offer is made to the most suitable candidate prior to issuing a contract of employment. Internal recruitment: Internal recruitment - hiring of people from within the organisation to fill a job vacancy. Commonly used for targeting suitable employees for supervisory or management purposes. Advantages include: faster than normal recruitment, lower costs, strengthens the loyalty of employees. Disadvantages include: lower number of applicants to choose from, can create unnecessary internal competition and a vacancy is again created when the person selected leaves their position. External recruitment: External recruitment - the hiring of people from outside the organisation. It requires placing job advertisements using a wide range of media to attract potential applicants. Interviews are the main method of selection for recruitment. In some cases, specialist recruitment agencies do the work and charge the business for their work. The advantages and disadvantages for external recruitment are the opposite of those for internal recruitment.

Labour turnover (AO2)

Labour turnover is calculated using the following formula: (number of staff leaving per year)/(average number of staff)x100. It is inevitable in an organisation as some employees leave for personal or professional reasons. Retaining staff in the organisation is important as significant money and time is used when recruiting new staff. Causes of high labour turnover include: 1. Better pay and working conditions offered by rival firms. 2. Unhappy and discontented workforce. 3. Staff being inadequately trained so feel incompetent and demotivated. A large number of new workers means there is greater down time as employees are less productive when just starting out. High labour turnover also raises concerns about stability and continuity in the business.

Outsourcing, offshoring and re-shoring as human resource strategies. (AO3)

Outsourcing is the use of external providers for certain non core business activities, e.g. security. 3rd party firms used to reduce costs and focus on main business functions which they have incompetencies in. The outsourced firm provides specialist services on a contract basis and at highly competitive prices. Also used due to the improve quality standards provided. Offshoring is the practice of relocating business functions or activities abroad. Lower production costs by using cheaper labour in less economically developed countries. Lower operational costs. Vietnam, Phillipenes and India have seen large increases in multinational firms choosing to offshore their operations. Re-shoring is the transferring of a firm's overseas operations back to its country of origin due to cost or competitive advantages. Has been a surge in re-shoring in the UK and the US due to incentives offered by domestic governments for relocating operations back to the home country. Also occurs when offshoring no longer offers cost savings. Unethical labour practices in many offshore countries have given firms an incentive to re-shore. Increased case of product recalls and low quality output from offshore production units has damaged the reputation of multinational companies - forcing re-shoring.

How work patterns, practices and preferences change and how they affect the employer and employees. (AO2)

Teleworking: Employees working away from the office by using electronic forms of communication. Home working is an example. Advancements in telecommunications and internet technologies as well as rising rents have provoked the increase in this. Teleworkers can benefit from autonomy in decision making and the absence of strict company policies such as dress codes. Productivity can be an issue due to the distractions at home. Flexitime: A variable work schedule allowing employees to work a set number of hours and choosing when to work. There is normally a core period during the day where employees must be at work. This has led to a fall in the number of full-time workers. Help employee morale and productivity by improving the way they operate. Managers need to supervise and monitor the hours worked by flexitime employees. Migration for work: Migrants usually move to other countries in search of employment opportunities. Can help employers to fill short term gaps during peak trading periods. Highly skilled workers are more likely to migrate as more chance of securing a job. Has increased due to globalisation and internet technologies allowing better flows of information to the migrants. Part Time: Employment practice that hires workers for fewer hours a week than a part time job. Work in shifts but remain on call while off duty to full time staff who might be absent. Give employers greater flexibility in their operational hours. Employment perks are not as good as full time employees.

Types of training (AO2)

Training is the process of teaching a particular new skill or knowledge in order to develop a person's competence in the workplace. The purpose is to match the skills of employees with the needs of the organisation. It is important as it improves the productivity of workers, boosts motivation and reduces labour turnover. Training can also help to improve customer service and customer relations. A business that invests in its people can benefit from improved reputation, which helps to attract good quality candidates in the recruitment process. The main types of training are on the job, off the job, cognitive and behavioural. On the job: Induction - This type of training is intended for employees who are new to the organisation. It aims to support new staff in getting acquainted with the people, plans, policies and processes of the firm. It can help new workers to avoid costly mistakes by familiarising themselves with standard procedures, formalities and codes of conduct. Induction training can be costly as it uses up valuable management time to set up and run the training for new staff. Mentoring - This is the process of an adviser or trainer providing support to less experienced colleagues in various aspects of their job role. For example, a head of department providing advice and training to employees. Off the Job: Day release - Employees take time off work to attend a training at a local college. Distance learning - Employees undertake self study courses to improve their skills and qualifications, perhaps by attending evening classes or following an online training course. Seminars - Staff attend a lecture or a meeting as part of their professional learning and training. Cognitive Training: Cognitive training refers to exercising and developing the mental skills of employees so as to improve their performance and productivity. Cognition is the brain's ability to learn and think, so cognitive thinking helps to develop the learning and thinking capabilities of employees. It focuses in improving memory, attention, perception, reasoning, judgement and general learning skills. Research has shown that cognitive training can lead to improvements in the self esteem, self confidence and emotional stability of employees. Behavioural training: Behavioural training seeks to change or improve the patterns of behaviour at work based on the desired outcomes. Examples of such behaviours include: team building, conflict resolution training, anger management. An important aspect of behaviour training is to identify the functional issues that could be hindering performance. Behavioural training strives to improve both personal and professional effectiveness.