Exam code: 7132
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Define human resource (HR) planning.
HR planning identifies how many and what kind of employees a business needs, and how they will be recruited, deployed, developed and managed.

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Why is HR planning important for financial control?
Staff costs are a large proportion of a business's costs, so careful planning supports financial and operational control.
Name the five stages of the HR flow.
HR plan → recruitment → training → redeployment → redundancy.
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Define human resource (HR) planning.
HR planning identifies how many and what kind of employees a business needs, and how they will be recruited, deployed, developed and managed.
Why is HR planning important for financial control?
Staff costs are a large proportion of a business's costs, so careful planning supports financial and operational control.
Name the five stages of the HR flow.
HR plan → recruitment → training → redeployment → redundancy.
Name two HR metrics that help guide planning.
Labour turnover and labour productivity (also employee costs as % of turnover, and labour cost per unit).
Give two internal factors that influence HR planning.
Business objectives/strategy and financial situation (also organisational structure, labour relations and culture).
How can business objectives affect HR planning?
New goals — such as entering a new market — change the number and type of employees required.
How do labour relations influence HR planning?
Where worker organisation (e.g. trade unions) is strong, HR must do more to meet employee demands on pay and conditions.
Give two external factors that influence HR planning.
Economic conditions and the labour market (also technology, legal, social, political, industry and competition).
How do economic conditions affect HR planning?
Growth means attracting and retaining staff; downturns bring cost-cutting such as redundancies or hiring freezes.
How can technological advances affect HR planning?
Automation and AI change job requirements and skills needed, so planning must include reskilling or upskilling.
What does the Flexible Working Act (2023) give employees?
The right to request flexible work from day one.
HR planning identifies how many and what of employees are needed.
HR planning identifies how many and what kind of employees are needed.
True or False?
HR planning only considers how many employees are needed, not what kind.
False.
HR planning identifies both how many AND what kind of employees are needed.
True or False?
Economic conditions are an internal factor influencing HR planning.
False.
Economic conditions are an external factor — they are beyond the business's control.
Define recruitment.
Recruitment is the process of attracting and identifying potential job candidates suitable for a role.
Define selection.
Selection is the process of choosing the best candidate for the job.
What is the goal of recruitment?
To create a pool of qualified candidates who can be considered for the role.
Define a job description.
A job description outlines the duties, responsibilities and requirements of a particular job.
Define a job specification.
A job specification outlines the qualifications, skills, experience and personal qualities required from a candidate.
Name the five stages of the recruitment and selection process.
Define the role → source candidates → advertise → receive applications → selection.
Define internal recruitment.
Internal recruitment is hiring employees from within the organisation.
Define external recruitment.
External recruitment is hiring employees from outside the organisation.
Give two advantages of internal recruitment.
Candidates already know the culture and processes (adapting quickly), and it is cheaper, quicker and less risky.
Give one disadvantage of internal recruitment.
It creates a further vacancy (and can cause resentment or miss out on new ideas).
Give one advantage of external recruitment.
It brings new skills, experiences and ideas into the business.
What is headhunting?
A headhunting agency approaches highly-qualified specialists; a significant fee is paid once a candidate is appointed.
What is a cover letter?
A letter accompanying an application/CV that gives reasons for applying and highlights the candidate's suitability.
Name two common selection methods.
Interviews and testing (also portfolios and references).
When is a portfolio commonly used in selection?
For creative or artistic roles, where candidates submit a selection of their best work.
An application is a standardised document designed by the recruiter to collect the same details from each candidate.
An application form is a standardised document designed by the recruiter to collect the same details from each candidate.
True or False?
Internal recruitment always brings fresh ideas and new perspectives into a business.
False.
Bringing fresh ideas is a benefit of external recruitment; internal recruitment risks missing new ideas.
Define training.
Training is the teaching of new skills.
Define development (of staff).
Development is the improvement of existing skills.
Give two ways a well-trained workforce benefits a business.
Staff are more productive, feel more valued, and are more flexible and resilient to change.
How can training improve labour retention?
Employees who feel they are improving at their job are more likely to stay, even if offered higher pay elsewhere.
Define induction training.
Induction training is the training new employees receive when they start, introducing them to the company's culture, policies and their role.
Give one advantage of induction training.
It helps new employees understand their roles and reduces the time taken to become productive.
Give one disadvantage of induction training.
It can be time-consuming and expensive to organise, and may not cover all aspects of the job.
Define on-the-job training.
On-the-job training takes place while employees are working in their job roles, learning from colleagues.
Give one advantage of on-the-job training.
It is practical and tailored to the job, and cost-effective as it happens during working hours.
Give one disadvantage of on-the-job training.
Employees may make mistakes that affect productivity/quality, and it takes up the trainer's time.
Define off-the-job training.
Off-the-job training takes place outside the workplace — e.g. workshops, seminars, conferences or online courses.
Give one advantage of off-the-job training.
It can bring fresh ideas and perspectives, be used as a reward, and be cost-effective if delivered online.
Give one disadvantage of off-the-job training.
It can be expensive (travel/accommodation), employees miss work, and it may not be directly applicable to the job.
Motivation theory suggests employees work more enthusiastically at the things they are at.
Motivation theory suggests employees work more enthusiastically at the things they are good at.
True or False?
Training teaches new skills, whereas development improves existing skills.
True.
Training is the teaching of new skills; development is the improvement of existing skills.
Define redeployment.
Redeployment is moving an employee from one role or department to another within the same organisation, rather than making them redundant.
Give two situations where redeployment is used.
A job/department is closing but skills can be used elsewhere, or the business restructures and wants to retain talent (also balancing staff levels across regions).
Give two benefits of redeployment.
It retains experienced staff (cutting recruitment/training costs) and maintains morale (also increases flexibility and reduces redundancy costs).
Define dismissal.
Dismissal is the termination of employment by an employer against the employee's will, usually for misconduct or poor performance.
Define redundancy.
Redundancy is when an employee's job no longer exists and the business reduces its workforce, through no fault of the employee.
What is the key difference between dismissal and redundancy?
Dismissal is due to the employee's misconduct or poor performance; redundancy is not the employee's fault — the job disappears.
What must an employer do when making staff redundant?
Follow legal procedures, including giving notice and paying redundancy compensation.
Can an employer dismiss an employee without notice?
Yes — for misconduct they may dismiss immediately without notice or compensation, or instead give a notice period.
An employee made redundant loses their job through no of their own.
An employee made redundant loses their job through no fault of their own.
True or False?
Redundancy happens because of an employee's poor performance or misconduct.
False.
That describes dismissal; redundancy is not the employee's fault — their job no longer exists.
True or False?
Redeployment can reduce a business's recruitment and training costs.
True.
It retains experienced staff, cutting the cost of recruiting and training replacements.
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