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
- Vacancy arises
- Job analysis: Identifies and records the responsibilities and tasks relating to a job.
- Job description: Outlines the responsibilities and duties to be carried out by someone employed to do a specific job.
- Job specification: A document which outlines the requirements, qualifications, expertise, physical characteristics, etc. for a specified job.
- Job advertised in appropriate media
- Application forms and shortlisting
- Interviews and selection
- 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 Type | Advantages | Disadvantages |
|---|---|---|
| Internal | Cheaper and quicker, candidate already knows culture, motivates current staff because there is a chance for promotion | No new ideas brought in, creates another vacancy, can cause jealousy/conflict |
| External | Brings in new skills, fresh perspectives, insights, avoids internal conflicts, more applicants to choose from | High advertising and recruitment agency fees, longer induction/training period needed, risk of hiring someone who doesn’t fit in the culture |
Employment contracts and legal controls
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.
Legal controls over employment issues
- 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
| Type | Desc. | Advantages | Disadvantages |
|---|---|---|---|
| Induction | Intro 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 & safety | Takes up time on day one, workers are paid while not yet producing anything |
| On-the-job | Watching a more experienced worker doing the job | Very cheap (no ext. fees), directly relevant to the exact machinery/tasks, remains productive | Bad habits can be passed down, trainee slows down the trainer’s output |
| Off-the-job | Being trained away from the workplace, usually by specialist trainers. | Taught by true experts, multi-skilled training with no distractions, high-quality development | Very expensive course fees, worker is away ∴ output drops to zero during training, employee might leave for a better job once trained |