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Human Resource Management Overview

Human Resource Management (HRM) focuses on recruiting, managing, and developing employees to gain a competitive advantage. Key functions include workforce planning, recruitment, training, performance management, and employee welfare, all aligned with organizational goals. The document also discusses the implications of labor turnover and the recruitment process, highlighting the differences between internal and external recruitment methods.

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30 views3 pages

Human Resource Management Overview

Human Resource Management (HRM) focuses on recruiting, managing, and developing employees to gain a competitive advantage. Key functions include workforce planning, recruitment, training, performance management, and employee welfare, all aligned with organizational goals. The document also discusses the implications of labor turnover and the recruitment process, highlighting the differences between internal and external recruitment methods.

Uploaded by

dakshaanita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

HUMAN RESOURCE MANAGEMENT NOTES

Human Resource Management (HRM): Focuses on recruiting, managing, and developing people in
an organization.

Primary Aim: Help the business gain a competitive advantage through effective workforce utilization.

Functions of HRM:

 Workforce planning

 Recruitment and selection

 Training and development

 Appraisal and performance management

 Employee motivation and welfare

Strategic Role: HRM contributes to achieving long-term goals by aligning workforce capabilities with
organizational objectives.

Workforce Planning

Definition: The process of forecasting future human resource needs and developing plans to meet
those needs.

Stages:

1. Audit: Assess current workforce in terms of skills and performance.

2. Forecast Needs: Estimate future demand for workers.

3. Plan: Decide how to recruit, train or redeploy workers.

Factors Influencing Workforce Planning:

Forecast demand for product

Productivity levels

Business objectives

Workers’ rights and laws

Labour turnover and absenteeism

Skills Required: Based on technological change, need for multi-skilled workers, and industry
requirements.

Labour Turnover

Definition: The rate at which employees leave an organization.

Formula: [Link] employees leaving in 1 year/average number of people employed * 100


1
Cost of high labour turnover

 Recruitment and training expenses

 Poor productivity

 Difficulty in estalish customer loyalty

 Disruption in teamwork

Benefits of High Turnover:

 Opportunity to bring in new ideas

 Replace low-performing staff

 Cost-saving if replacements are needed

Recruiting and Selecting Employees

Recruitment Process:

1. Job analysis

2. Job description

3. Person specification

4. Job advertisement

Key Terms:

Job Description: Details of job roles and responsibilities.

Person Specification: Qualifications and qualities needed.

Sources of Recruitment:

Internal: Promoting existing employees.

External: Hiring new people from outside.

Selection Methods:

Application forms

CV/Resumé

Interviews

Aptitude and psychometric tests

Assessment centres

Internal vs External Recruitment

Internal Recruitment:

Cheaper and quicker

Applicants already known

No need of induction training

2
Limits fresh ideas

There is a chance to progress for the internal staff

External Recruitment:

Brings in new talent and ideas

Broader pool of applicants

More expensive and time-consuming

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