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TSR Wiki > Study Help > Subjects and Revision > Revision Notes > Business Studies > AQA A2 Business Studies Unit 4 - Human Resource Management

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Contents 1 The Human resource cycle 2 Population Time bomb 3 Recruitment and Selection 4 Training and Development 4.1 What are the purposes of training and development? 4.2 What are the costs of not training? 4.3 Investment in People 4.4 Training and Market Failure 5 What is the purpose of appraisal? 6 What rewards systems are there? 7 HR strategy 7.1 Problems 8 Also See 9 Comments

The Human resource cycle

• Selection – deciding which person to employ from a shortlist.
• Performance – measure how way they are doing. Probationary periods etc.
• Appraisal – Internal appraisal of people
• Development – training, promotions, developing skills. Then move on to selection for next job via promotion therefore completing the cycle.

Population Time bomb

This is making the selection and recruitment even more important. This is where there is Zero Population Growth. Natural growth rate become zero whereby more people die than are being born.

However, we have net immigration therefore this slightly counteracts ZPG. Net immigration creates a multiplier effect positive for the UK economy whereas emigration has a negative multiplier effect as it removes money from the UK economy.

Recruitment and Selection

Workforce planning is getting the right number of people, with the right skills, in the right place, at the right time.

Need to determine H.R. requirements. This involves workforce management. A business needs to recognise when more employees might be needed, when some may need to be laid off (this is hard HR planning). Also need to look ahead to the future needs of employees with regard to skills, i.e. training of employees for new technology (soft planning). Also need to recognise whether or not they need a more flexible workforce.

Demand for labour is derived from the product which the business produces./ If there is a downturn in the economy and a product is income elastic then demand will go down meaning less people will be needed in that industry. Demand for labour can also be determined by the success of competition, the success of overseas markets, the amount of labour turnover in the business, the age of employees of the business, the advent of new technology that makes people redundant.

Attract suitable candidates for the job

Strategic selection is important because it is important that the person fits in well to the business. They need to be correct for the business. This becomes more and more important as you move higher up the business because the importance of decisions made and the repercussions increase in size.

Training and Development

What are the purposes of training and development?

• Makes the company more efficient if they are better at their jobs.
• Work needs to be of a particular standard therefore training and development is important.
• IIP (investment in people) is important as it improves the business and gives a selling point.
• If people are trained they are more motivated therefore work better.
• Gives a career path if they are trained and therefore can apply for higher jobs.
• Is important for health and safety particularly if working with machines is involved.
• Develop knowledgeable and committed workforce.
• Develop a pool of scales for each employee and within the workforce as a whole.
• Helps to improve the quality of the product/service.

What are the costs of not training?

• High levels of wastage, hence increased costs and lower productivity
• Reduces levels of competitiveness
• More accidents and skills
• Lack of integration and coordination of jobs
• Lack of multi-skilled and flexible workforce.
• Poor customer satisfaction if employees not trained.

Investment in People

Encourages firms to develop a strategic approach to training and development by meeting a set of criteria set by the government. Gives the business something to sell itself to potential employees. Similar to a kite mark for quality just for human resource management.

Training and Market Failure

Market failure is when the free market system has failed; when the prices of goods and services do not reflect the cost of producing the goods or when an unregulated market fails to deliver as a result of imperfections in the market. It is to do with a lack of planning for the market.

Can be related to training whereby companies who have strong training systems have employees headhunted. This discourages them from training therefore reduces the skill level of employees reducing productivity and causing market failure. Government encourages training through intervention, tax breaks, incentives, IIP etc.

What is the purpose of appraisal?

• For the mutual benefit of both employee and the employer.
• Highlights what you are good at and what areas you need to work on to improve.
• Self appraisal is a good way of highlighting areas that need improving.
• Set targets for improvement of employee (self or management set).
• Motivating as it fulfils needs according to Maslow’s hierarchy.
• With improved employees the employer gets a higher level productivity from better trained and better motivated staff.
• Appraisals are not inspections and they should not be threatening.

What rewards systems are there?

• Performance related bonuses/pay
• Overtime
• Piece rate
• Commission
• Shares in company
• Profit sharing
• Holiday, sick leave, pensions schemes
• Extra benefits such as membership of country clubs, health schemes, company cars.

HR strategy

Need a mix of employees, part time and full time to create flexibility. Need to transfer the business culture or business ethos to the employees. Help to develop the employees which benefits both he individual in his or her career and the business in performance. Provide targets for the employees to work towards.

Problems

Must be adapted towards changing circumstances. Now need labour flexibility. Estimates of future demands have to be accurate as possible and be worked out depending on external factors such as the impact of a change in the economy.

Also See

Read these other AQA A2 Business Studies Unit 4 revision notes:

• Privatisation
• SWOT Analysis of the UK
• Balance Sheets
• Limitations of Accounts
• Profit and Loss Accounts
• Revenue and Capital Expenditure
• Market Analysis and Decision Making
• Marketing Maths
• Marketing Objectives and Decision Making
• Marketing Budgets
• Corporate Planning
• Management of Change
• Invention, Innovation and Design
• Network and Critical Path Analysis
• Business and the Law
• Employee Participation
• Human Resource Management
• Performance Measurement

Comments

These notes are aimed at people studying for AQA A2 Business Studies Unit 4, but will also be suitable for other courses and exam boards.

Originally submitted by eksman on TSR Forums.