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HUMAN RESOURCE MANAGEMENT (HRM) is the management function of using and developing

people within a business to meet its organizational objectives.

Workforce planning (Human Resource Planning)


Analyzing and forecasting the number of workers and the skills of those workers
that will be required by the organization to achieve its objectives.

Labour Turnover
The percentage of the workforce that leaves the organization in a given time
period, usually one year.
Labour turnover = (Number of staff Leaving / Total number of staff) * 100

RECRUITMENT is the process of finding candidates for the vacant position and
encouraging them to apply for it. SELECTION means choosing the best candidate from
the pool of applicants and offering them the job.

A JOB DESCRIPTION is a document that outlines the details/nature (roles, tasks,


and responsibilities) of a particular job.
JOB ANALYSIS is a part of the recruitment process that involves scrutinizing the
different components of a job (such as the routine tasks and responsibilities of
the post holder) to determine what it entails.
A PERSON/JOB SPECIFICATION is a document that gives the profile of the ideal
candidate for a job, such as their skills, qualifications, and experience.

4 main types of testing:


Psychometric tests – assess a candidate’s personality. The tests help to gauge the
attitude of potential recruits and their level of motivation.
Aptitude tests – examine the ability and skills of potential employees (ie. Typing,
problem-solving, and reasoning tests).
Intelligence tests – calculate the mental ability of an applicant such as their
skills of numeracy, literacy, and general knowledge.
Trade tests – are used to examine a candidate’s specific skills (ie. Voice tests
when recruiting for television newsreaders).

INTERNAL RECRUITMENT involves hiring people who are already working for the
business to fill a vacant spot.

EXTERNAL RECRUITMENT is the process of hiring people from outside the business.

An APPRAISAL is the format assessment of an employee’s performance in fulfilling


his/her job based on tasks and responsibilities set out in their job description.

The main reasons for an appraisal are:


Assess and record an employee’s performance with his/her job description and
targets.
Assist staff in reflection on their performance at work.
Provide an opportunity to praise staff for their good work.
Identify appropriate training and development needs.
To set new targets and goals for continuous improvement.

Types of Appraisal:

A FORMATIVE appraisal is a planned and ongoing process in which appraisal evidence


is used by employees to inform them about what to do to improve their performance
and work practices. The goals of formative appraisal are:
Monitor the performance of employees learning
Helps employee to identify their strengths and weaknesses
Helps managers to recognize areas where the staff is struggling so that they can
address the problem promptly.
An SUMMARATIVE appraisal is a written document of an employee’s performance at
work, summarising personal performance and achievements during the year.

360 DEGREE FEEDBACK appraisal involves collecting evidence about the appraisal’s
job performance from peers, subordinates, line managers, or other parties who have
direct contact with the employee.

SELF-APPRAISALinvolves employees appraising themselves based on predetermined


criteria. Appraisees are expected to be honest about their strengths and
weaknesses.

DISMISSAL means the termination of employee employment due to incompetence


(unsatisfactory performance) or a breach of contract. Dismissal is seen as being
fair in the following situations:
Incompetence - a lack of ability, usefulness, or effectiveness to carry out the
job.
Misconduct - unacceptable behavior.
Gross misconduct - major misdemeanors (wrongdoing).
Legal requirements - if the employee does not have the necessary skill or
requirements to perform their job.

UNFAIR DISMISSAL occurs when an employee is dismissed without a valid or legal


reason. The two main causes of unfair dismissal are Discrimination and Constructive
dismissal.

REDUNDANCIES (also known as retrenchment or lay-offs) occur when a business can no


longer afford to employ the worker or when the job ceases to exist. When a business
has retrenched workers, there are two main options.
Voluntary redundancy takes place when the employer asks for volunteers to leave.
Compulsory redundancy (or involuntary redundancy) occurs when the employer has to
choose which workers to make redundant.

TELEWORKING refers to working away from the office by using electronic forms of
communication.

HOMEWORKING is a category of teleworking whereby people work from their own homes.

A PORTFOLIO WORKER is a person employed in a number of different jobs carried out


simultaneously, usually on a part-time or temporary basis.

PART-TIME EMPLOYMENT is a form of employment that carries fewer hours per week than
a full-time job.

FLEXITTIME is a work arrangement that allows employees to choose their workday's


starting and finishing time.

OUTSOURCING is the practice of transferring internal business activities


(functions) to an external firm as a method of reducing costs. The reason for
outsourcing are:
When activities do not core to the business.
When the business lacks specific skill or expertise.
To cut the cost of production.

OFFSHORING is an extension of outsourcing that involves relocating business


activities and processes abroad.
RESHORING is the reversal of offshore outsourcing, i.e- the transfer of business
operations back to their country of origin.

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