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A2 People
Human Resource Management
HRM Vs Personnel ManagementHuman Resource Management - the management of people at work in
order to assist the organisation to achieve its strategic objectives
HRM is an all embracing integrated approach aiming to make the most effective use of staff
Personnel management considers the elements of managing people as separate
Since 1980s HRM has tended to replace personnel management in describing the function that deals with:
Recruitment and selectionAppraisalTraining and developmentReward of people
Hard HRM
HRM that takes the view employees are essential for a business to
function but need to be controlled.
Employees treated as just another resource to get the best from,
monitor and controlling costs
Centralised decision-making
Autocratic/authoritarian leadership
Soft HRM
HRM that views employees as valuable assets to be developed, skills
and expertise of employees can be a major competitive advantage for
achieving strategic objectives
Developing motivation and culture important
Democratic leadership
Delegation
Decentralisation
High levels of employee participation
Which approach?
Depends on:
History of firm
Culture
Leadership style
Relationship with unions
Skills and attitudes of staff
Level of employee participation
Today, employees are likely to respond best to soft HRM
Effective HRM is vital for communication, motivation, commitment, higher productivity, lower absenteeism and labour turnover
Workforce planning (or human resource planning)
The method by which a business forecasts how many and what type of employees it needs now and in the future, and matches the right type of employee to the needs of the business.
One of the central activities of HRM
Workforce planning cycle task
Put the following stages in order to complete the workforce cycle:
Develop strategies to fill gaps or reduce oversupply of labour Right people, right place, right time Identify the gaps or areas of over supply of labour Assess the current workforce Assess the workforce needed in the future
Workforce planning
Stages
Convert corporate objectives of the firm into HRM requirements
Consider short, medium and long term
Estimate future demand of staff and skills required
Look at current and future state of labour market
Develop an appropriate workforce plan for short, medium and long term
Workforce Plan
Construction - Factors that influence the number and type of staff required include:
Corporate plan, marketing and production plan, financial position of business, external factors such as state of the market and economy
Review - a workforce plan may be inaccurate because of:
Changing corporate objectives - crisis, ownership change
Changing market conditions - demand changes
Changing labour market - required skills and worker may not be readily available
Workforce planning therefore needs constant review and updating
Benefits of workforce planning task
Produce a spider diagram listing as many benefits as you can of a firm using workforce planning
Benefits of workforce planning
Ensures the right number of staff and skills are present at all times
in the organisation
Account for future trends and ensure adequately staffed
Avoid morale and motivation problems from being understaffed therefore limiting
labour turnover and absenteeism
Makes the firm proactive rather than reactive to events meaning quality decisions are
made when it comes to staffing
Ensures continuous production and high quality products produced
Student Activity
Complete Alliance direct case study
Student activity
Read the case and answer the question
Pg. 146 Surridge and Gillespie