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Human Resource Management (HRM)

Recruiting and selecting employees

  • Recruitment is the process from identifying that the business needs to employ someone up to the point at which applications have arrived at the business.
    • Internal recruitment is when a vacancy is filled by someone who is an existing employee of the business.
    • External recruitment is whena vacancy is filled by someone who is not an existing employee and will be new to the business.
  • Employee selection is the process of evaluating candidates for a specific job and selecting an individual for employment based on the needs of the organization.

Stages

  1. Vacancy arises
  2. Job analysis: Identifies and records the responsibilities and tasks relating to a job.
  3. Job description: Outlines the responsibilities and duties to be carried out by someone employed to do a specific job.
  4. Job specification: A document which outlines the requirements, qualifications, expertise, physical characteristics, etc. for a specified job.
  5. Job advertised in appropriate media
  6. Application forms and shortlisting
  7. Interviews and selection
  8. Vacancy filled

Selection methods

  • Curriculum vitae (CV), resumés, application forms: A summary of a person’s qualifications, experience and qualities, written in a standard format.
  • Interviews: A series of questions asked to someone face-to-face or virtually. Used to assess personality, communication skills, and cultural fit.
  • Testing/assessment centers: Aptitude tests, or practical skills tasks to prove capabilities under pressure.
  • References: Statements from previous employers confirming reliability and performance history.

Internal and external recruitment

Recruitment TypeAdvantagesDisadvantages
InternalCheaper and quicker, candidate already knows culture, motivates current staff because there is a chance for promotionNo new ideas brought in, creates another vacancy, can cause jealousy/conflict
ExternalBrings in new skills, fresh perspectives, insights, avoids internal conflicts, more applicants to choose fromHigh advertising and recruitment agency fees, longer induction/training period needed, risk of hiring someone who doesn’t fit in the culture

Contents of an employment contract

  • A contract of employment is a legal agreement between an employer and employee, listing the rights and responsibilities of workers.
  • The content:
    • name of employer and employee
    • job title
    • date of the start of employment
    • working hrs.
    • rate of pay + other benefits (e.g. bonus, sick pay, pension)
    • date of payment
    • holiday entitlement
    • amt. of notice that the employer or employee must give to end the employment

Benefits

  • For the employer:
    • Reduces labor turnover because expectations are legally set.
    • Protects trade secrets.
    • Gives a clear framework if they need to dismiss an employee for poor performance.
  • For the employee:
    • Provides job security.
    • Ensures they cannot be forced to work extra hrs. without clear pay structures.
    • Serves as legal proof if they need to sue for unfair treatment.
  • Unfair dismissal is when an employer ends a worker’s contract of employment for a reason that is not covered by the contract.
  • Discrimination at work is when the employer makes decisions that are based on ‘unfair’ reasons (e.g. skin color/race, different religion, opposite sex, age, disabled).
  • Health and safety is required for businesses. Businesses should provide clean water, proper ventilation, safety gear, and adequate training.
  • Legal minimum wage is the lowest hourly rate an employer can legally pay a worker.

Training

  • The importance of training to:
    • the business is that it increases productivity, reduces mistakes, improves customer service and makes the business more adaptable to technology changes.
    • the employee is that it boosts job satisfaction, increases safety, reduces stress, and opens up promotion opportunities.

Types of training and advantages & disadvantages

TypeDesc.AdvantagesDisadvantages
InductionIntro given to a new employee, explaining the activities, customs, and procedures and introducing them to their fellow workers.Workers settle in faster, prevents costly initial mistakes, understands company health & safetyTakes up time on day one, workers are paid while not yet producing anything
On-the-jobWatching a more experienced worker doing the jobVery cheap (no ext. fees), directly relevant to the exact machinery/tasks, remains productiveBad habits can be passed down, trainee slows down the trainer’s output
Off-the-jobBeing trained away from the workplace, usually by specialist trainers.Taught by true experts, multi-skilled training with no distractions, high-quality developmentVery expensive course fees, worker is away ∴ output drops to zero during training, employee might leave for a better job once trained