2.1 Human resource management (HRM)
- Syllabus
- 9609–2026–2027
- Topic
- 2.1
- Level
- AS
Learning objectives
2.1.1HRM purpose and roles• Purpose and roles of HRM- the role of HRM in meeting organisational objectives2.1.2Workforce planning• Workforce planning- the reasons for and role of a workforce plan- measurement of labour turnover- the implications of high and low labour turnover for a business2.1.3Recruitment and selection• Recruitment and selection- recruitment of employees: process (job descriptions and person specifications) and recruitment methods (job advertisements, employment agencies, online recruitment)- internal and external recruitment- selection methods: curriculum vitae, résumé, application forms, interviews, references, testing, assessment centres- employment contracts2.1.4Redundancy and dismissal• Redundancy and dismissal- the difference between redundancy (voluntary and involuntary) and dismissal (fair, unfair)2.1.5Morale and welfare• Morale and welfare- the relationship between HRM, employee morale and welfare in a business including the concept of work-life balance- the impact of diversity and equality in the workplace on a business2.1.6Training and development• Training and development- different types of training: induction, on-the-job, off-the-job- the impact of training and development on a business- employee development to encourage intrapreneurship- employee development to encourage multi-skilling and flexibility2.1.7Management and workforce relations• Management and workforce relations- how cooperation between management and the workforce can be of benefit to both- the impact on employers and employees of trade union involvement in the workplace including their role in collective bargaining
HRM aligns people, capability and organisational goals
Human resource management plans, recruits, develops, rewards and supports people so the organisation has the capability to achieve its objectives.
HR decisions affect cost, productivity, skills, morale and legal risk. HRM is therefore a strategic function, not only an administrative payroll task.
If a firm plans a new digital service, HRM may forecast skills, recruit or train staff and redesign roles before launch.
A “people-first” policy is not automatically effective; its value depends on fit with work, resources and objectives.
Workforce planning closes capability gaps; turnover is a signal
Workforce planning forecasts the number and skills of employees needed, audits the current workforce, identifies gaps, chooses actions and reviews results. Demand, technology, expansion, seasonality, labour supply, budgets and employee departures can change the plan; responses include recruitment, training, redeployment, flexible contracts, retention or job redesign.
Labour turnover (%)=average number employed during the periodemployees leaving during the period×100
If 18 employees leave and the average workforce is 90, labour turnover = 18 ÷ 90 × 100 = 20%. Compare the same period and similar roles or divisions before diagnosing the cause.
| Pattern | Possible benefit | Possible cost/risk |
|---|---|---|
| High turnover | Removes poor fit; brings new ideas/skills; may lower senior wage cost | Recruitment/training cost, lost experience, disruption, weaker quality/service and morale |
| Low turnover | Retains skills, relationships and culture; lowers replacement cost | Stale ideas, blocked promotion, high senior wages, skill mismatch or retained poor performers |
A turnover rate is not a verdict. Interpret who left, why, replacement difficulty, business growth, industry norms and short- versus long-run consequences.
Recruitment attracts candidates; selection tests job fit
Recruitment attracts a suitable pool; selection chooses against job-related criteria. A defensible pipeline is: identify vacancy → write job description and person specification → choose internal/external channel → advertise → receive applications/CVs or résumés → shortlist → assess → check references → offer and agree an employment contract.
| Item | Main purpose |
|---|---|
| Job description | Duties, responsibilities, reporting, hours/location and role conditions |
| Person specification | Required or desirable skills, qualifications, experience and attributes |
| Employment contract | Agreed terms such as job, pay, hours, benefits, notice, duties and rights |
| Route | Strength | Limitation |
|---|---|---|
| Internal | Faster/cheaper; known performance; motivates promotion | Smaller pool; creates another vacancy; fewer new ideas |
| External advertisement/online | Wide, fast reach and searchable applications | High volume/poor fit; platform and screening cost |
| Agency | Specialist pool and screening support | Fee and less direct control/knowledge |
| Method | Evidence supplied | Main caution |
|---|---|---|
| Application/CV or résumé | History, qualifications and written claims | Self-reported and inconsistently presented |
| Structured interview | Comparable responses, communication and motivation | Bias/rehearsal; weak predictor alone |
| Test/work sample | Knowledge, aptitude, personality or actual task skill | Must be relevant, valid and fair |
| Assessment centre | Several exercises/observers reveal behaviour and teamwork | Expensive and time-consuming |
| References | Past role/conduct confirmation | May be brief, selective or restricted |
Use more than one relevant source of evidence, apply the same criteria fairly, protect equality and diversity, and weigh quality of hire, speed and cost. A larger applicant pool or a confident interview does not guarantee performance.
Redundancy removes a role; dismissal ends an individual's employment
| Route | Meaning | Choice and basis |
|---|---|---|
| Voluntary redundancy | The role is no longer needed and employees are invited to agree to leave, usually with a package | Employee chooses whether to accept; may reduce conflict but the business can lose valued skills |
| Involuntary redundancy | Employer selects employees because their jobs are no longer required | Employee has no choice; selection criteria and procedure should be objective and lawful |
| Fair dismissal | Employer terminates an individual for a valid reason such as misconduct or capability, using a fair procedure | Evidence, warnings/hearing where appropriate, consistency and right to respond matter |
| Unfair dismissal | Termination lacks a valid reason or fair/legal procedure | Can cause claims, compensation, reputation damage and lower morale |
Ask first: has the job disappeared, or is the issue the employee's conduct/capability? Automation may make a good worker's role redundant; repeated unsafe conduct after a fair process may justify dismissal. Both choices can affect cost, skills, morale, workload and employer reputation.
Redundancy is not a label for removing an unwanted person. Dismissal is not automatically fair merely because the employer states a reason; the reason and procedure must withstand scrutiny in the relevant legal context.
Morale and welfare connect fairness, wellbeing and performance
Employee morale is the level of satisfaction, enthusiasm, confidence and commitment felt toward work. Welfare protects physical and emotional wellbeing through safe conditions, reasonable support and access to help. Work-life balance is a sustainable allocation of time and energy between work and life outside work.
HRM influences morale and welfare through workload and shifts, pay and fairness, leadership and voice, safety, counselling/support, leave and flexibility. Better fit can reduce stress, absence, errors and labour turnover → preserve skills and service quality → lower replacement cost and strengthen productivity/reputation. Provision costs money and may be difficult in some operating contexts, so diagnose the binding problem.
| Concept | Meaning | Possible business impact |
|---|---|---|
| Diversity | A mixed workforce whose differences and perspectives are positively valued | Wider labour pool, skills, ideas, customer insight and reputation; may require inclusive culture/training |
| Equality | Fair opportunity and treatment without unjust discrimination | Motivation, retention, legal-risk control and access to best applicants; change may create short-run cost |
Long evening and weekend hours may tire specialist engineers → more mistakes and longer lead times → damaged quality/reputation and higher turnover. Redesigning schedules can help, but staffing cost, customer demand and employee preferences determine feasibility.
A wellness perk does not prove healthy work, diversity does not guarantee inclusion, and equality is not blindly treating unlike needs identically. Judge short- and long-run effects in the business context.
Training closes current gaps; development builds future flexibility and innovation
| Type | What it is | Strength | Limitation |
|---|---|---|---|
| Induction | Introduction for new employees to people, role, culture, systems, safety and terms | Faster settling, fewer mistakes, confidence and retention | Uses time/cost and may overload new starters |
| On-the-job | Learning at work while doing/shadowing/coaching/rotating | Relevant, lower direct cost, productive output and colleague knowledge | Trainer quality varies; errors/disruption and inherited bad habits |
| Off-the-job | Learning away from the normal workplace, e.g. specialist course | Expert input, focus, safe practice and possible qualification/new ideas | Fees, travel/time and lost output; transfer may be weak |
Effective training can improve skill, consistency, quality, safety, productivity, customer service, motivation and retention → raise revenue or lower waste, absence, turnover and unit cost. Against this, include fees, trainer time, lost output and the risk that trained staff leave. Evaluate by performance transfer, not course completion.
| Development aim | HRM actions | Business effect |
|---|---|---|
| Intrapreneurship | Give skills, autonomy, time/resources, cross-functional teams, leadership opportunities and rewards for ideas | More experimentation, process/product innovation and possible competitive advantage; includes project cost/risk |
| Multi-skilling and flexibility | Cross-train, rotate/enlarge/enrich jobs, map skill gaps and reward new skills | Employees cover tasks/absence/demand changes, improve teamwork and redeployment; may raise workload/pay expectations |
Choose the method by learner, task risk, specificity, scale, urgency, cost and need for external expertise. Training improves current capability; development is broader and future-facing, though they can overlap.
Cooperation and collective bargaining reshape workplace outcomes
Cooperation means management and employees share information, consult, negotiate and work toward compatible goals. Trust and credible voice can improve ideas, safety, quality, productivity, morale and retention while reducing conflict and management time; management gains smoother change and employees gain influence, clarity and fairer treatment. Training, consultation time and compromise can add cost.
A trade union represents members' employment interests. Collective bargaining is negotiation between employer representatives and employee/union representatives over collective terms such as pay, hours, safety, welfare, job security and procedures.
| Stakeholder | Possible benefits | Possible costs/risks |
|---|---|---|
| Employees | Greater bargaining power, pay/conditions, safety, information, support, job security and decision voice | Membership fees, lost pay during action, conflict or possible victimisation |
| Employer | One communication/negotiation channel, stable agreements, better coordination, morale and retention | Higher wages/welfare cost, slower decisions, restrictive agreements or industrial action/lost output |
Issue → representatives gather member/management evidence → collective negotiation and trade-offs → agreement and implementation, or unresolved dispute/industrial action. For a shift change, consultation and compensation may protect continuity; imposition can trigger resistance, absenteeism, work-to-rule or strike, reducing output and revenue.
Good relations do not mean no disagreement, and unions do not only cause strikes. Judge union density, trust, legal setting, urgency, alternatives, affordability and whether long-run cooperation outweighs short-run concessions or disruption.