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Human Resource Management


Human Resource Management Content Human Resource Management Workforce Planning Recruitment Selection Training Methods of remuneration Measurements of personnel ... – PowerPoint PPT presentation

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Title: Human Resource Management

Human Resource Management
  • Human Resource Management
  • Workforce Planning
  • Recruitment
  • Selection
  • Training
  • Methods of remuneration
  • Measurements of personnel effectiveness

Human Resource Management
  • Human resource management looks at the best way
    to use a businesses personnel
  • HRM covers
  • Workforce planning
  • Recruitment and selection
  • Training
  • Appraisal
  • Motivation and employee rewards

Hard and Soft HRM
  • Hard HRM employees are treated as a resource,
    aim to pay them as low as possible, they need to
    be controlled
  • Soft HRM Employees are the most valuable asset
    of the business and they need to be developed to
    ensure they are being used optimally

Workforce Planning
  • Businesses need to look at future labour needs
  • They have to ensure they have the right amount of
    workers with the right skills and experience
  • Managers draw up plans looking at the number and
    type of workers who they want to recruit
  • Also conduct a skills audit so they are able to
    establish skills and experience of current workers

Workforce planning
  • When planning the workforce managers need to
  • Sales forecasts for at least the next year
  • Employee turnover figures
  • Projected wage levels
  • Technological developments
  • Changes to laws impacting the working week

Recruitment and Selection
  • This is the process of filling an organisations
    job vacancies by appointing new staff
  • Job descriptions and person specifications are
    drawn up at the beginning of the process

Person specifications
  • These set out the qualifications and qualities
    required in an employee
  • These refer to the person and not the post
  • They include
  • Educational and professional qualifications
  • Character and personality needed
  • Skills and experience wanted

Job descriptions
  • These relate to the position available
  • They list the duties and responsibilities
    associated with a specific job
  • They include
  • The title of the post
  • Employment conditions
  • Some idea of tasks and duties

Internal Recruitment
  • Internal recruitment where a business looks to
    fill a vacancy from existing staff
  • Advantages
  • Employee has awareness of a firms culture
  • Candidates may not need induction training
  • Provides promotion for workers
  • Avoids expensive advertising
  • Selection can be easier as know about candidates
  • Advantages
  • Limited skill base
  • May not be as high quality as external candidates
    especially for senior jobs

External recruitment
  • External recruitment where a business looks to
    fill a vacancy from individuals outside the
  • Advantages
  • Can attract a more diverse group of candidates
    who bring fresh ideas to the business
  • Increase in variety of skills
  • Disadvantages
  • Can be very expensive
  • Know less about the candidates

Methods of external recruitment
  • There are a number of methods
  • External advertising the business advertises
    for the employee directly
  • Headhunting firms these firms identify suitable
    candidates from competitors for a fee
  • Job centres
  • Employment agencies match jobs and candidates
    for a fee
  • Training schemes (government) this is lower risk
    and cheaper

Recruitment Process
  • Position is advertised externally / internally
  • Send out application packs
  • Receive candidate applications by closing date
  • Candidates applications are compared against the
    person specification those with the best fit are
    invited for interview
  • At interview the job description is used to form
    the basis of the questions

  • These are the techniques used to decide who is
    right for the job
  • They include
  • Interviews
  • Psychometric tests
  • Assessment centres which can include
  • Role plays
  • Simulated work environments

  • Interviews are the most popular form of selection
  • They can involve one or more interviewer
  • They are a relatively cheap method
  • They can be unreliable as they dont give a valid
    picture of how someone will perform on the job

  • The provision of work-related education, either
    on-the-job or off-the-job, involving employees
    being taught new skills or improving skills they
    already have

Training Needs
  • Training is often a response to an internal or
    external change e.g
  • The development and introduction of new products
  • Restructuring of the firm
  • The development and introduction of new
  • Changes to procedures
  • High labour turnover
  • Low morale
  • Changes in legislation

Induction training
  • Education for new employees which involves
    learning about the way the business works
  • It helps to
  • Reduce turnover
  • Increase understanding of culture
  • Increase motivation
  • Mean employees contribute to organisation more

External Training
  • Outside the organisation
  • Appropriate if only a few employees with a
    specific training need
  • Or if training needs are not specifically linked
    to organisation
  • Meet with employees from other companies and
    exchange ideas
  • Can make employees feel valued and increase

Internal Training
  • Occurs inside the organisation
  • Appropriate if training needs are specific to the
    individual organisation

On / Off the job training
  • On the job learn on the job usually by sitting
    next to an experienced employee
  • Off the job all forms of employee education
    apart from that at the immediate workplace

Methods of Renumeration
  • Remuneration pay wages, salaries, bonus, PRP,
    commission, piece work
  • Non Financial praise, training, additional
  • Share Options Opportunity to buy shares in the
    company at an agreed price

Measurements of personnel effectiveness Labour
  • Labour productivity looks at how much work each
    worker does (output)
  • Labour productivity output per period / number
    of employees at work
  • Need to remember that this can also be influenced
    by other factors such as efficiency of capital
    that is being used.
  • This can be used as a basis for performance
    related pay
  • Labour productivity may be difficult to calculate
    for some businesses

  • Absenteeism the amount of time employees are
    having off work
  • Number of staff absent (on one day) x100 / total
    number of staff
  • Helps to measure the morale and motivation of the
  • If this is high it will cost the business money
    and decrease their profits

Labour Turnover
  • Labour turnover how many people are leaving
    each year
  • Turnover Number of staff leaving per year x 100
    / average number of staff
  • If this is high may be due to low wages and
    insufficient training causing poor morale
  • Can also be due to problems with the recruitment
    process where the wrong staff are appointed

Health and Safety
  • Health and safety Number of working days left
    per year due to health and safety x 100 / total
    number of possible working days
  • This is a measure of safety
  • Need to ensure this stays as low as possible

  • Human Resource Management looks at the people who
    work in a business
  • Hard models look at people as a financial
    resource, soft models look at the development of
  • Workforce Planning is the process taken to look
    at future labour needs
  • Recruitment starts with a job description and
    person specification and allows the business to
    find the right person
  • Internal and external recruitment internal
    recruitment from inside the business, external
    recruitment recruit staff from outside the
  • Selection methods of choosing the right person
    for the job
  • Interviews are the most common method of
  • Training how you educate staff to increase
    their skills and experience
  • Training can be on the job or off the job
  • Methods of remuneration staff can be
    renumerated with financial and non financial
  • Measurements of personnel effectiveness these
    are ways to measure the performance of the
    business and include labour productivity, labour
    turnover, absenteeism and health and safety