UNIT 8: HUMAN

RESOURCES

Unit 8: Human Resources

Level: 3
Unit type: Internal
Guided learning hours: 60

Unit in brief
Learners develop knowledge and skills in human resource planning and
management.

Unit introduction
Effective human resource management, including recruitment and selection,
is essential to the success of a business. It is important that the processes
and procedures involved in human resource management meet the needs of
the business and comply with current regulations. This will include
understanding the importance of motivating employees and gaining their
cooperation and commitment to the business.
In this unit, you will learn the importance of human resource management
and planning, the relationship between a motivated workforce and business
success, and the processes and procedures involved in recruiting, training
and appraising the performance of employees.
This unit will give you a foundation for progression to employment, for
example in a human resources role, or to higher education. You will have
an opportunity to review the human resource practices in a large
organisation, which will enable you to better understand how performance
is managed.

Learning aims
In this unit you will:
A Explore factors that can impact human resource planning in business
B Examine methods of managing employee performance and how
motivation impacts on business performance
C Examine how effective recruitment and selection contribute to business
success.
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Summary of unit
Learning aim Key content areas Assessment approach
A Explore factors that A1 Human resources (HR)
can impact human A2 Human resource
resource planning in planning
business

B Examine methods B1 Motivation in the Learners research and

of managing workplace report on human
employee B2 Training and resource planning and
performance and development workforce motivation
how motivation to improve business
B3 Performance
impacts on performance, for a
appraisal
business given business scenario
performance and the recruitment
process in a large
C Examine how C1 Recruitment of staff
business.
effective C2 Recruitment and
recruitment and selection
selection C3 processes
contribute to
Ethical and legal
business success
considerations in
the recruitment
process

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Content
Learning aim A: Explore factors that can impact human resource planning
in business
A1 Human resources (HR)
Definition, function and features of the human resources process.
 Human resources as a factor of production.
 Features of the human resources process including:
o labour market analyses
o forecasting labour demand.
 Sources of information available to conduct labour market analyses.
 The link between business planning and human resources.
 The impact of globalisation on human resource planning.
A2 Human resource planning
Features and characteristics of the human resource planning process.
 Factors involved in human resource planning, including:
o nature of the work, demand for products or services, skills
requirements and shortages, location, labour market competition
o workforce profiles, e.g. skills level, ability, educational level,
aptitude, need for flexibility in the workforce, core versus peripheral
workers, skills transferability
o types of contract, e.g. full-time versus part-time, subcontracting,
zero-hours contracts, temporary staff, agency staff
o labour turnover (expressed in words and numbers), productivity.
 Management actions to address human resource issues at an
operational level, including workplace stress, absenteeism
(expressed in words and numbers), motivation, engagement with
business culture, employee satisfaction.
 Techniques to meet skills requirements, including:
o recruitment
o upskilling/reskilling/training
o outsourcing
o changing job roles
o restructuring.
 Purpose of induction to integrate new employees into role, including:
o internships
o work experience
o internal recruitment
o secondments.
 Using exit interviews to improve employee retention and reduce turnover.
 Reviewing effectiveness of human resource practices.

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Learning aim B: Examine methods of managing employee performance and

how motivation impacts on business performance
B1 Motivation in the workplace
Key principles and theories of motivation and how these impact on business
performance.
 Theories of motivation, e.g. Maslow, F Herzberg, F W Taylor, E Mayo, et al.
 Impact of motivation on business performance.
 Reward systems, including financial and non-financial motivators,
e.g. performance-related pay, pension schemes, company
vehicles, flexible working, healthcare, career breaks.
B2 Training and development
 The purpose of training needs analysis.
 Types of training including:
o internal/external
o on-the-job/off-the-job
o mentoring
o coaching.
 Effectiveness of training, e.g. quality of work, customer
satisfaction, employee motivation.
B3 Performance appraisal
Features of managing employee performance and the importance of
meeting expected standards.
 Purpose of performance appraisal:
o to set individual and group targets
o to assess individual and group performance
o to provide employee feedback
o to identify training needs.
 Types of appraisal:
o self-assessment
o management by objectives
o ratings scales
o 360° appraisal.
 Impact of performance appraisal:
o on the individual
o on the business.

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Learning aim C: Examine how effective recruitment and selection

contribute to business success
C1 Recruitment of staff
Workforce planning for large 250+ staff business organisations, e.g. retail, a
production company or financial business.
 Reasons for recruiting new staff:
o growth of the business– locally, nationally, globally
o changing job roles
o systems change
o filling new vacancies created by more space or product development
o vacancies caused by leavers/turnover of staff
o internal promotions
o new office or branch and need for additional staff
o seasonal fluctuations leading to the requirement for temporary staff.
 Use of government agencies, internal advertisements versus
external advertisements, online recruitment and
traditional methods.
 Link between recruitment processes and business success.
 Link between professional recruitment processes and efficient staff
integration.
C2 Recruitment and selection processes
 Recruitment process – the purpose and characteristics of
documents for internal and external recruitment:
o job advertisement – placing of the advertisement,
internal/external, journal/website
o job analysis
o job description – the content of the tasks and responsibilities of the job
o person specification and skills the position requires – are they
essential or desirable?
o CV versus application forms
o letter of application
o online recruitment.
 Cost effectiveness of different application approaches, e.g. paper-based,
online.
 Selection, including assessment centres and psychometric testing,
group/team activity interviews (by telephone, face to face, group
and panel), presentations in interviews, short tests at interviews:
o interview protocol, type of selection and how it contributes to
the process – advantages and disadvantages
o initial selection processes with telephone screening interviews or
short, online tests, appreciation that different processes are
appropriate for different roles in a business
o use of technology in the process, online applications, uploaded
CVs or use of post
o communication with prospective employees: are the channels easy
to access, can the process be monitored?
o quality of the process and the documents
o linking the process to efficiency and business success.
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C3 Ethical and legal considerations in the recruitment process

Importance of adhering to local employment legislation and ethical practices.
 Ethical considerations, including:
o being honest in an advertisement
o the maintenance of confidentiality
o fairness through standard questions asked to all candidates interviewed
o same criteria used for all applicants
o disclosure if family or friends work for the same business.
 Legislation including:
o current right-to-work legislation, document check
o other employment legislation, e.g. UK Equality Act (2010), equal
opportunities regardless of gender, age, race, disability; wage-
related legislation,
e.g. minimum wage
o problems associated with non-compliance.

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Assessment criteria
Pass Merit Distinction
Learning aim A: Explore factors that can
impact human resource planning in business
A.P1 Explain the A.M1 Analyse the
processes involved importance to A.D1 Evaluate the
when a large business success effectiveness of
business of effective different human
organisation plans human resource resource
its human processes and methods and
resources. planning. processes in
A.P2 Explain methods relation to
used to review business
human resource success.
practices
in a business
organisation and
the importance
to business
planning.
Learning aim B: Examine methods of managing
employee performance and how motivation impacts
on business performance
B.D2 Evaluate the
B.P3 Explain the links B.M2 Assess ways to link between
between motivation increase effective
and business motivation and strategies for
performance. improve motivation
B.P4 Explain the ways a business and business
business performance. performance.
organisation can
motivate its
employees.
Learning aim C: Examine how effective recruitment
and selection contribute to business success
C.P5 Explain how a C.M3 Analyse the
large business importanc C.D3 Evaluate the
recruits and e to recruitment and
selects human business selection
resources giving performance of processes used in
reasons for their different a large business
processes. recruitment and organisation and
C.P6 Explain how selection
how they
and why a methods and
contribute to the
business processes used in
success of the
organisation a large
business.
adheres to business
recruitment organisation.
processes that are
ethical and
comply with
current
employment law.
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Essential information for assignments

The recommended structure of assessment is shown in the unit summary,
along with suitable forms of evidence. Section 6 Internal assessment gives
information on setting assignments and there is also further information on
our website.
There is a maximum number of two summative assignments for
this unit. The relationship of the learning aims and criteria is:
Learning aims: A and B (A.P1, A.P2, B.P3, B.P4, A.M1, B.M2, A.D1,
B.D2) Learning aim: C (C.P5, C.P6, C.M3, C.D3)

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Further information for teachers and assessors

Resource requirements
For this unit, learners must have access to a range of current business
information from websites and printed resources.

Essential information for assessment decisions

Learning aims A and B
For Distinction standard, learners will be expected to prepare a critical
evaluation of the importance of human resource management for business
improvement, making appropriate judgements and presenting fully justified
recommendations. They will demonstrate an in-depth understanding of
theories and concepts of motivation,
and ways employers can motivate staff to ensure business success.
For Merit standard, learners will demonstrate knowledge and understanding
of a broad range of factors that influence human resource planning and
increase motivation in a business scenario. The learner will apply motivation
theory, making justified recommendations for improving business
performance.
For Pass standard, learners will demonstrate knowledge and
understanding of the concepts of the challenges faced by businesses and
how these have influenced the management of human resources. They
will apply motivational theories, and show understanding of the factors
influencing management and performance of the workforce and their
application in the workplace. They will show an understanding of the link
between staff motivation and business success.

Learning aim C
Learners will write a report that includes information about how a business
recruits employees. A large business of 250+ employees will be used as not
all small businesses have a transparent, easily-accessible recruitment
system. To ensure the material they require is available, learners could
research a few businesses before they select one for study.
Recent and relevant ethical and legal considerations must be stated in
the report. The individual report must be written in appropriate
business language.
For Distinction standard, learners will evaluate the recruitment processes,
reach a reasoned conclusion and make insightful reference to how it is linked
to the success of a selected business. The report will consider the problems
that can impact on a business if there are staff shortages or if unsuitable
employees are selected due to ineffective recruitment systems.
For Merit standard, learners will analyse the different recruitment methods,
looking at the strengths and weaknesses of the systems in place.
For Pass standard, learners will examine the factors for workforce planning
and the reasons why businesses need to recruit additional employees.
The report must demonstrate an understanding of the recruitment
methods and why the different processes are used. Learners will
indicate whether external bodies and/or agencies contribute to the
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process of assessment or interviewing, highlighting their specific
contribution to the practice. The report will show a clear
understanding of the importance of sequencing in the recruitment
process and the use of technology/ new technologies in this field.

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Links to other units

This unit links to:
 Unit 1: Exploring Business
 Unit 6: Principles of Management
 Unit 9: Team Building in Business
 Unit 21: Training and Development.

Employer involvement
This unit would benefit from employer involvement in the form of:
 guest speakers
 participation in audience assessment of presentations
 design/ideas to contribute to unit assignment/case study/project
materials
 work experience
 business materials as exemplars
 support from local business staff as mentors.

Opportunities to develop transferable employability skills

In completing this unit, learners will have the opportunity to develop
human resource management skills.

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