Human
Resource
Management
Unit 4
Human Resource Management (HRM)
Def: A system of recruiting employees to the business. They are then
trained, developed and rewarded for their efforts. The responsibility of
HRM lies with the human resource manager.
Human resources (HR) are the staff that work for a company. They help
the business to run effectively and achieve it’s goals.
Businesses want to attract the best people for their available positions.
Need to be able to
Functions of a HR Manager list these in an exam
#1 Human Resource Planning
• Involves forecasting the future staffing needs of the business
(manpower planning)
• The business should have the correct number of staff, with
necessary skills and qualifications to fill all vacancies
• Businesses may also need to plan for job losses in economic
downturns
• Carried out by the HR manager through the following steps…
#1 Human Resource Planning
Step 1: Review Current • The HR manager reviews the current staff numbers and each
Staff staff member’s qualifications, skills and experience.
Step 2: Forecast Human • The HR manager estimates the number of employees and the
Resource Needs types of skill that will be needed to fill all future roles.
Step 3: Estimate Labour • The HR manager estimates the number of employees who will
Turnover leave the business.
• The HR manager makes a plan ensuring the firm has the right
Step 4: Create an HR Plan number of employees with the required skills when needed.
• The HR plan should be reviewed regularly. If the plan does not
Step 5: Review the Plan meet the needs of the business, changes can be made.
#1 Human Resource Planning
Labour Turnover - the proportion of employees who leave the
workforce. Some labour turnover is healthy (brings new ideas
& skills)
High labour turnover is has a negative impact on businesses
• High training costs to train new staff often
• Low productivity while new staff settle in
• High recruitment costs – advertising, interviewing etc.
#1 Human Resource Planning : Benefits
• Training needs: HR can identify training needs and provide
training for these staff. This will ensure jobs are completed
efficiently and effectively
• Enough staff: Having enough staff with the right skills means
high quality work should be completed resulting in high
quality goods and services produced
• Labour turnover: If there is high labour turnover HR can
work to reduce this, reducing businesses costs and improving
efficiency
#2 Recruitment and Selection: Recruitment
Responsibility of the HR manager
Def: Recruitment involves attracting suitable
candidates with the relevant skills, qualities
and experience to apply for job vacancies in
the business. It includes preparing a job
specification, creating and placing a job
advertisement
#2 Recruitment and Selection: Selection
It is the responsibility of the HR manager
Def: Selection involves deciding who is
the best applicant for a job vacancy. It
involves screening applicants,
interviewing, making job offers,
formulating contracts and notifying
unsuccessful applicants
#2 Recruitment and Selection
A. Job Description
A written outline of
the job title, duties
and responsibilities
associated with the
role.
It may include pay
details and to whom
the employee will
report. https://www.monster.ie/
#2 Recruitment and Selection
B. Person Specification
Sets out the ideal
job candidate for
the vacancy
Outlines
characteristics,
skills, experience
etc. desired
#2 Recruitment and Selection
C. Job Advertisement Usually contains following
• Created by HR based on info:
the job description and
person specification • Main duties of the role
• Qualifications and skills
• Should be advertised needed
using a medium that will • Pay & benefits
reach the largest potential • Job location
group of candidates e.g. • How to apply
online, radio, newspapers
#2 Recruitment and Selection (see pg. 178)
#2 Recruitment and Selection
D. Screening Candidates Different ways to apply for
• HR manager compares jobs:
job applications
received to the job • CV
description and person • Cover letter
specification • Application forms
• Those that best match
are ‘shortlisted’
• Those that don’t match
https://www.youtube.com/watch?v=I8uqffV8zmw
are rejected
#2 Recruitment and Selection
E. Selection Tests Different types of tests:
• Further tests can be
done to shortlist • Intelligence
candidates
• Personality
• Not all workplaces use
these. Some that do: • Work samples
Microsoft, KPMG, Ford
#2 Recruitment and Selection
F. Interview Different types of tests:
• Those that pass the
selection stage will be • 1 on 1: Candidate and
called to interview business representative e.g.
manager
• Panel: Candidate and a
• Candidates are asked number of interviewers
information about the
• Group: A number of
role, the company, their
candidates and a
qualification,
representative or panel
experience etc.
#2 Recruitment and Selection
G. Reference Check
• Done for applicants
that performed best at 60% of managers don’t
interview offer jobs based on a
• Referees can confirm poor reference
qualifications,
experience, work ethic
etc.
• Done by former
employers/educators
#2 Recruitment and Selection
H. Job Offer
• For successful applicant Probationary period:
• Usually by phone A trial period for the
• Formal offer then sent employer to see if they are
in writing with all job happy with the employee
details – pay, start date, fit, and vice versa. IF either
entitlements etc. is unhappy, the contract
• Unsuccessful can be ended
candidates should be
informed
#2 Recruitment and Selection
Internal Recruitment
The business fills vacancies with existing staff, by promotions or
redeployment (a move from one section of the business/branch
to another)
Advantages
• Quicker
• Cheaper
• Motivating for staff
• Familiarity
#2 Recruitment and Selection
External Recruitment
The business fills vacancies from the external labour market
Can be done through:
• Advertising
• Recruitment agencies
• Headhunting
#2 Recruitment and Selection
External Recruitment
Advantages Disadvantages
Best candidates Lower staff motivation
New ideas Costs
Introduce change Slower settling-in time
More skills May be unsuitable for the
company/role
#3 Training and Development
Def: Training is the process of ensuring staff have the skills, knowledge
and attitudes needed to carry out their jobs effectively.
When someone starts a new job they should have induction training or
work shadowing to help them familiarise themselves with the
workplace, culture, rules, staff, business goals etc.
Sometimes this can even involve going for lunch/social events to get to
know others
#3 Training and Development
There are 2 types of training: On-the-job and off-the-job
• Observing a more experienced staff
Work shadowing member.
On the job:
• Showing a new employee how to
Demonstration carry out their role.
• The new employee moves around
Job rotation the firm doing different jobs.
#3 Training and Development
On-the-job advantages: On-the-job disadvantages:
• Cheaper (no external • Quality (depends on the
courses) trainers abilities/time given)
• Faster integration (learn
quicker) • Staff resentment (some staff
don’t feel it’s their job to
• Increased productivity train new staff)
(reduces time away from the
workplace)
• Bad habits (staff pass on bad
habits/loopholes)
#3 Training and Development
There are 2 types of training: On-the-job and off-the-job
Lectures Workshops
Off the job:
Courses Demonstration
#3 Training and Development
Off-the-job advantages: Off-the-job disadvantages:
• High quality (specialists • Expensive
provide the training
• Lack of relevancy (sometimes not
• Exchanging idea relevant to all staff)
• Lower workplace • Reduced productivity (if staff are
absenteeism (sometimes missing work)
done during staff’s free time
e.g. CPD training)
• Timetabling may be inconvenient
#3 Training and Development
Def: Development is a long term approach used for existing
staff to encourage them to take on new challenges and
develop their careers. It improves skills and professional
development
Development can include:
• Educational workshops
• Developing career plans
#3 Training and Development
Increased productivity
Employees have the correct skills and knowledge
to complete their duties effectively.
Industrial relations
Training and development ensures that employees
understand the quality standards expected by management.
This reduces industrial relations problems in the firm.
Future managers
Training and development prepares staff for
management roles in the firm.
#4 Rewards
Rewards packages are made by the HR manager
• They can be financial and non-financial
• They motivate staff
• Result in lower absenteeism and turn-over
https://www.independent.co.uk/news/business/news/google-asos-airbnb-20-best-perks-benefits-
uk-employers-a6938716.html
Financial rewards are monetary (€/£/$) payments received by
staff for their workplace effort
#4 Rewards (Financial)
Reward Explanation Advantages Disadvantages
Time rate A fixed rate per hour and Easy for employer Employees work
fixed no. of hours to to calculate slowly to get
work e.g. €9/hr @ 35hrs overtime pay
Piece Employee paid per item Motivates staff Can lead to poor
work completed quality products
as staff rush
Salary A fixed sum payment Easy to calculate No incentives to
regardless of number of businesses costs work harder
hours worked
#4 Rewards (Financial)
Reward Explanation Advantages Disadvantages
Commission Staff earn a % of total Motivates staff to Staff may be too
sales they make reach targets pushy & drive
away customers
Bonus An extra payment for Motivates staff & Expensive for
teaching targets/at creates good firms, especially if
specific times e.g. impression of profits fall
Xmas employer
#4 Rewards (Financial)
Reward Explanation Advantages Disadvantages
Employee % of firms annual Encourages team Hard working
profit- profits shared with work and staff may be
sharing staff motivation angry that lazy
staff share in
their hard work -
dissatisfaction
Employee Employees can buy Makes employees Expensive – legal
share shares in the business feel important & and admin costs
purchase at a discount involved and
plan (ESPP) motivate them
#4 Rewards (Financial)
ESB uses ESPP- current
and former staff own
5% of company shares
#4 Rewards (Non-Financial)
Reward Explanation Advantages Disadvantages
Benefit in Discounted/free Helps attract & Difficult to please
Kin (BIK)/ products or services retain staff all staff
Perks e.g. meal during your
shift/ company car
Job Staff given extra Reduces If not happy, staff
enlargement duties boredom, can be
increases uncooperative
satisfaction
#4 Rewards (Non-Financial)
Reward Explanation Advantages Disadvantages
Job More responsibilities Prepares staff for Repercussions if
enrichment and decision making future they make a bad
power promotions decision
Job sharing Staff work one day Can retain staff Poor
on/one day off, or split who may leave communication
weeks otherwise can make
tasks/decisions
slow
#4 Rewards (Non-Financial)
Reward Explanation Advantages Disadvantages
Extra Employees given more Helps retain staff, Difficult to
holidays annual leave e.g 3 they are manage so many
extra days/year appreciative days off – need to
have enough staff
Flexitime Employees choose Can reduce Difficult to plan
working hours within a commute meetings etc with
set time frame time/improve different time
work-life balance, tables
keeps staff happy
#4 Rewards (Non-Financial)
BIK can be a financial
reward (if the item can
be taxed e.g. company
car) or non-financial e.g.
a €50 voucher
#4 Rewards
#4 Rewards
Business that offer staff unlimited holidays:
https://www.youtube.com/watch?v=EhE4ECnscBk
#4 Rewards
Benefits of Rewards:
• Employee motivation: rewards motivate staff to work harder
and better. This can increase quality, sales and profits
• Employee recruitment and retention: good rewards can
attract and retain high-quality staff
• Increased job satisfaction: rewarding staff improves job
satisfaction and staff loyalty to the business
#5 Performance Appraisal
Def: a review/assessment of an employee’s performance, usually
carried out by the employee’s direct manager or HR manager
• Often carried out through face-to-face meetings and are also
used to set future targets to measure future performance against
• Targets can sometimes be linked to pay/bonuses
• At the end of the time period, they meet again and review the
targets.
#5 Performance Appraisal
Steps of the performance appraisal process:
Step 1 – Set performance
targets
Step 2 – Measure employee
performance
Step 3 – Performance appraisal meeting
#5 Performance Appraisal
Step 1 Set targets: Employees and the HR manager meet and set
goals for a time frame
Step 2 Measure employee performance: HR manager meets with
staff regularly to measure and review their progress. Training and
resources may be given to help
Step 3 Performance appraisal meetings: HR manager and
employee meet for the formal appraisal. Targets are compares to
actual performance. Pay increases/bonuses may be given in line
with this
#5 Performance Appraisal: Benefits
#6 Employer-Employee Relationships
Positive HR relationships can increase staff productivity, less
industrial action and improved recruitment and retention of
staff
Grievance procedures: a formal method of resolving
workplace problems and complaints
#6 Employer-Employee Relationships
How to achieve a good employer-employee relationship:
#6 Employer-Employee Relationships
Benefits of good employer-employee relationship:
Need to be able to list
and explain these in
Benefits of Effective HRM an exam
• The business has the right staff at the right time
• Motivated staff are more productive
• Reduced conflict will reduce staff turnover
• Positive attitudes toward staff training and development
Exam Questions – Higher Level
Exam Questions – Higher Level
Exam Questions – Ordinary Level
Exam Questions – Ordinary Level
