Unit 2 definitions

Human resource management

1) Human resource management (HRM) aims to recruit capable, flexible and committed people. It
manages and rewards their performance and develops their key skills to the benefit of the
organisation.
2) Workforce planning is a process in which we identify the required number of workers at the
required time with the required skill so shortages of workers are avoided.
3) Workforce audit: it is a process in which the workforce of the business is evaluated, to identify
that the business has right workers with right skills or not
4) Labour turnover the total number of employees leaving an organization in a year.

5) Absenteeism rate is when the workers deliberately are not coming on their job therefore the
output of that day is wasted. The formula is number of employees absent divided by total
employees times 100.
6) Recruitment is a process of identifying the need for a particular employee and then attracting
suitable candidates for that particular job.
7) Selection is a process in which from the employees who have applied for the job, the best
candidate can be chosen.
8) Job description: it is the document containing the job title, duties and responsibilities a person
will perform prepared by the business to help in recruitment and selection
9) Person specification: it is a document containing the skill set, experience and knowledge a
person should have for the job.
10) Employment contract is legal document between an employer and an employee stating the
terms and conditions both will follow such as pay and working conditions.
11) Redundancy is when the services of the workers are no longer required therefore they are asked
to leave the organization. In some cases a redundancy payment is paid
12) Dismissal is when the worker has done something illegal or criminal therefore they are asked to
leave the organization.
13) Disciplinary procedures are taken in situation when employees are not complying with the
contract and are creating problems for the business. They are the warnings given before the
employee is dismissed from the organization.
14) Employee morale refers to the workers willingness to work in an organization and perform a
particular task
15) Welfare refers to the scenario that how well the worker is being taken care of in the
organization, as his necessities are being considered or he is being overburdened
16) Work-life balance it is when the worker is able to give time to both his work as well as his
personal life so he is not stressed (burn out) and the health is not effected.
17) Equality policy it is when the business provides employment opportunities to every individual
who is skilled and can perform the job, there is no discrimination.
18) Diversity policy it is when the business hires workers from different ethnic and cultural
backgrounds to ensure an inclusive environment.
19) Training is the work related education provided to the employees so they may perform more
effectively.
20) Induction training: it is the initial training in which the workers are told about the dos and don’t
of the organization such as the fire exit, internal organizational structure
21) On the job training: it is when a worker follows a senior worker or manager to learn how to do a
particular job.
22) Off the job training: it is when the worker is sent to an external third party to learn a new skill,
the training is expensive and time consuming
23) Poaching: when an external organization or competitor offers a higher pay and greater benefits
and attracts an organizations worker towards their business.
24) Development is when the employees are trained and given exposure to learn new skills so their
portfolio may improve.
25) Appraisal is when the performance of the employee is evaluated against pre-set targets and
objectives and their remuneration and benefits are decided according to it. It is done on annual
basis while in some cases their might be biasness and discrimination
26) Trade union is a group of workers who have joined together to protect their rights and interest
such as pay and working conditions.
27) Collective bargaining is a measure undertaken to resolve industrial disputes in which workers
and employers jointly come together and come up with a solution of the current conflict.

Motivation

1. Motivation is the driving force which encourages or moves workers to achieve a particular
objective or target without using formal authority.
2. Piece rate system: it is when the workers are paid according to the output they produce, the
greater the output the more the pay would be.
3. Scientific management: it is when the business identifies and observes different ways of
performing a particular task and from which the most efficient method is chosen and
implemented.
4. A time-based wage rate means that a payment per hour is set. The total wage level is
determined by multiplying this by the number of hours worked. This total wage is often paid
weekly.
5. A salary is the most common form of payment for professional, supervisory and management
staff. The salary level is fixed each year. It is not dependent on the number of hours worked or
the number of units produced
6. Commission payments can make up 100% of the total income or they can be in addition to a
base salary. They are usually paid to salespeople, not just in retail but also in industry (e.g.
machines and equipment for businesses). They provide an effective financial incentive to sell
more but they might reduce income security. Also, they might encourage sales staff to put too
much pressure on customers to buy.
7. A bonus payment is one that is made to employees in addition to their contracted wage or
salary. While the base salary is usually a fixed amount per month, bonus payments may be
based on criteria agreed between managers and workers, such as an increase in output,
productivity or sales.
 8. Performance-related pay is usually a bonus payable in addition to the basic salary. It is widely
used for those workers whose output is not measurable in quantitative terms, such as
management, supervisory and clerical posts.
9. Profit sharing: The essential idea behind profit-sharing arrangements is that employees will feel
more committed to the success of the business and will strive to achieve higher performances
and cost savings.
10. Share-ownership schemes: This financial incentive gives workers shares - or the chance to buy
discounted shares - in the company they work for. It is claimed that these share-ownership
schemes reduce the division between business owners and workers. This helps to make workers
more involved in the success of the organisation that employs them. As shareholders,
employees will be able to participate at the company’s annual general meeting.
11. Fringe benefits are also known as perks of the job. They are non-cash forms of reward and there
are many alternatives that can be used. These include company cars, free insurance and pension
schemes, private health insurance, discounts on company products, and low interest rate loans.
12. Job rotation allows workers to do several different jobs, increasing their skills and the range of
work they can do. There are various benefits and limitations of job rotation.
13. Job enlargement refers to increasing the loading of tasks on existing workers, perhaps as a result
of a shortage of employees or redundancies. It is unlikely to lead to long-term job satisfaction,
unless the tasks given to employees are made more interesting or challenging
14. Job enrichment the process of job enrichment often involves a reduction of direct supervision as
workers take more responsibility for their own work and are allowed some degree of decision-
making authority.
15. Job redesign: To bring in changes in the job description and ensuring employees learn new skills
become multi skilled and perform different task.
16. Training is the work related education provided to the employees so they may perform more
effectively.
17. Empowerment is to give authority to the workers so they may take some decisions on their own,
feel valued and motivated.
18. A quality circle (QC) is a group of five to ten employees who have experience in a particular work
area. They meet regularly to identify, analyse and solve the problems arising in their area of
operation. Quality circles are used to identify problem areas in business processes and members
work on these to improve product quality and productivity.

Management and leadership

1. Management is the process of planning, organizing resources, coordinating and controlling the
business activity.
2. Manager is the person responsible for planning, organizing resources, coordinating and
controlling the business activity without using formal authority.
3. Leadership is the art of motivating and influencing individuals to achieve a particular objective or
target
4. Autocratic leadership style is such in which there is one way communication and the workers are
not involved in the decision making process, the approach is also known as top down approach.
5. Democratic leadership style is such in which there is two way communication and the workers
are involved in the decision making process as participation is encouraged.
6. Paternalistic leadership style is such in which workers are listened to however the decision is
made by the management on its own as the managers want workers to be happy in their own
job.
7. Laissez fare leadership style is a hands off approach in which workers are given targets and then
they decide how to achieve it as the decision making power is given to workers.