2. Human resource management
- Syllabus
- 9609–2026–2027
- Section
- 2
- Level
- AS

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 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 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.
| 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.
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.
| 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 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.
Motivation is the willingness to direct effort toward work. It is shaped by intrinsic factors such as achievement and responsibility and extrinsic factors such as pay, recognition and security.
A reward changes behaviour only if employees value it, believe performance can earn it and see the process as fair. Different people respond to different combinations.
A sales bonus may increase effort when targets are controllable, but can damage teamwork if staff compete for an unfairly allocated reward.
Motivation is not identical to satisfaction or productivity; an enthusiastic worker may still lack training or resources.
A human need is a basic requirement or valued psychological state an individual seeks to satisfy. At work, needs can involve income and physical conditions, safety/security, belonging, esteem/recognition and growth, challenge or fulfilment.
| Need | How work may satisfy it | Why it may remain unsatisfied |
|---|---|---|
| Physical/material | Sufficient pay, breaks, canteen/toilets and comfortable conditions | Low pay, excessive hours or poor facilities |
| Safety/security | Contract, stable job, clear authority and safe systems | Zero/short hours, unsafe work, recession or weak protection |
| Belonging | Teams, communication and inclusion | Isolation, exclusion, conflict or discriminatory culture |
| Esteem/status | Recognition, responsibility, promotion and fair treatment | No acknowledgement, unfairness or blocked progression |
| Growth/fulfilment | Challenge, creativity, development and autonomy | Repetitive work, strict control or no learning opportunity |
The same practice can matter differently by experience, role, life stage and ambition. A carer may value flexible hours; a developer may value challenge; a low-paid worker may prioritise reliable income. Business finance, job design, leadership and objectives limit what can be offered.
Needs models identify possibilities, not a rigid universal sequence. Ask which need is salient, what workplace evidence shows, and whether the proposed action genuinely addresses the barrier.
| Theory | Core idea | Management implication and caution |
|---|---|---|
| Taylor | Economic reward and scientific task design can raise output; workers are treated mainly as rational economic people | Standardise work and link pay to output, e.g. piece rate; may ignore social/intrinsic needs and encourage quantity over quality |
| Mayo | Social relations, attention, communication and group belonging affect motivation | Use teams, consultation and supportive supervision; group norms can also restrict output |
| Maslow | Physiological, safety, social, esteem and self-actualisation needs may become salient | Diagnose the unmet need and match pay/security/team/recognition/challenge; order and responses are not universal |
| Herzberg | Hygiene factors prevent dissatisfaction; motivators create satisfaction | Fix pay, policy, conditions and security, then enrich jobs with achievement, recognition, responsibility and growth; categories can overlap |
| McClelland | People differ in learned needs for achievement, power and affiliation | Give realistic challenge/feedback, influence/leadership or teamwork; needs mix varies and can be difficult to measure |
| Vroom | Motivation depends on expectancy (effort→performance), instrumentality (performance→reward) and valence (reward value) | Make targets achievable, links credible and rewards valued/fair; if any link is near zero, incentive effect collapses |
Diagnose evidence before choosing a lens: repetitive isolated work may suggest Herzberg/Mayo; unreachable targets or broken promises suggest Vroom; a creative software employee may need McClelland achievement or Maslow self-actualisation. Then propose an action, trace its effect and test cost, fairness, task and employee differences.
Content theories ask what needs or factors motivate; Vroom is a process theory explaining how expectations produce effort. Naming a theorist is not analysis, and no theory is best for every worker.
| Payment method | Basis | Main incentive and risk |
|---|---|---|
| Time based | Amount per hour | Income tracks hours; may not reward output |
| Salary | Fixed annual amount, usually monthly | Security/status; weak direct output link |
| Piece rate | Amount per item produced | Raises quantity; quality/safety/teamwork may suffer |
| Commission | Amount or percentage of sales | Raises selling effort; aggressive selling, volatility and revenue-not-profit focus |
| Bonus | Extra payment for a target/event | Focuses effort; target gaming or unfairness |
| Profit sharing | Employees receive a share of business profit | Aligns with total success; individual effort link may feel weak and profit varies |
| Performance-related pay | Pay linked to assessed agreed criteria | Rewards contribution; measurement, bias, stress and administration issues |
| Fringe benefits | Non-cash financial-value perks, e.g. insurance/car/discount | Retention/status; cost and unequal value to employees |
Commission example: weekly salary 250forfourweeks=1,000; direct sales 10,500at5525; total February payment = $1,525. Always identify whether commission is additional to basic pay and whether it is based on sales value, volume or another measure.
| Non-financial method | Mechanism | Caution |
|---|---|---|
| Training/development/promotion/status | Skill, growth, recognition and career path | Cost; opportunity may be limited or staff may leave |
| Job rotation/enlargement/redesign | Variety or wider tasks | Wider is not necessarily deeper; training/disruption |
| Job enrichment | More challenge, complexity, responsibility and achievement | Stress or errors without capability/resources |
| Team working | Belonging, support and shared problem-solving | Conflict, free-riding or restrictive norms |
| Empowerment | More authority/control over work | Poor decisions, stress or loss of management control |
| Participation | Voice and influence over decisions | Slower decisions and managers may ignore input |
Participation can use meetings/consultation, quality circles, works councils, worker directors, autonomous work groups, democratic leadership or employee share ownership. The degree of influence differs: giving information is weaker than voting, board representation or control over task decisions.
Apply theory and context: worker needs, measurability, fairness, skill, trust, cost, job role, business objective and short-/long-run side effects. Financial methods are not universally motivating; non-financial methods are not automatically free or effective.
| Traditional function | Management work |
|---|---|
| Planning | Set objectives, forecast and choose actions/resources/timing |
| Organising | Arrange tasks, people, authority and other resources |
| Directing | Lead, communicate and motivate action toward objectives |
| Controlling | Set standards, measure actual performance, compare and correct |
| Lens | Main roles | What it adds |
|---|---|---|
| Fayol | Planning, organising, commanding/directing, coordinating and controlling | A functional cycle for turning objectives into organised action and correction |
| Mintzberg interpersonal | Figurehead, leader, liaison | Relationships, representation and motivation |
| Mintzberg informational | Monitor, disseminator, spokesperson | Gather, share and communicate information |
| Mintzberg decisional | Entrepreneur, disturbance handler, resource allocator, negotiator | Change, crisis response, priorities and bargaining |
| Style | Decision/authority pattern | Likely strength | Likely limitation / suitable condition |
|---|---|---|---|
| Autocratic | Manager decides and closely directs | Fast, clear, useful in crisis/inexperience/high risk | Low voice/trust, stress, weak creativity and morale |
| Democratic | Employees contribute before decisions | Better information, ownership, motivation and retention | Slower; conflict or diluted accountability; useful with experienced staff |
| Laissez-faire | Skilled employees receive wide autonomy | Creativity, speed near expertise and ownership | Drift, inconsistent standards or poor coordination without capable teams |
| Paternalistic | Manager decides while seeking employees' welfare, like a parent | Security, loyalty and coordinated direction | Dependency, limited genuine voice and manager may misjudge needs |
| Assumption | Manager response | Conditional consequence |
|---|---|---|
| Theory X: employees may dislike work, avoid responsibility and need external control/reward | Close supervision, clear rules/targets and often autocratic direction | Clarity can help new/inexperienced staff or crises and reduce decision stress; can create mistrust, low creativity and dependence |
| Theory Y: employees can find work natural, self-direct, seek responsibility and be creative when committed | Participation, delegation, empowerment and development | Can unlock ideas and intrinsic motivation; fails if capability, information, desire or controls are insufficient |
Managers contribute by setting direction, designing structures/processes, allocating scarce resources, recruiting/developing people, creating culture, coordinating specialists, controlling finance/quality and communicating with stakeholders. These can improve productivity, service, customer/patient satisfaction, cost control, innovation and sustainability—or damage them when decisions are bureaucratic, uninformed or incompetent.
No style or assumption is universally best. Judge urgency, risk, workforce skill/experience, task complexity, information location, organisational culture and need for consistency or creativity. In a hospital, managers and medical specialists are interdependent: resources and systems enable clinical expertise, while management without professional evidence can obstruct care.