Human Resource Management (HRM) (Cambridge (CIE) A Level Business): Flashcards

Workforce planning helps a business fill skill gaps by making sure staff with the digital or technical skills it will need are trained or hired in time.

It helps the business avoid overstaffing, which is expensive, and understaffing, which reduces productivity and service quality.

False.

If demand is expected to fall, workforce planning is used to plan a reduction in the workforce. It also helps a business handle retirements, resignations and technological change.

Labour turnover measures the proportion of employees leaving a business during a specific time period, expressed as a percentage.

Labour turnover = Number of staff leaving ÷ Total number of staff × 100

The business's labour turnover is 30 ÷ 200 × 100 = 15%.

Poor management, a poor recruitment and selection approach and low wage levels compared with other employers can all cause staff to leave.

A buoyant local economy and improved transport links can increase labour turnover by giving workers access to jobs across a wider geographical area.

High labour turnover increases recruitment, selection and training costs, and productivity falls while new staff settle in. The business also loses experienced employees and their knowledge.

True.

New employees can bring fresh ideas, energy and different skills, and leavers create internal promotion opportunities for existing staff.

Low labour turnover reduces recruitment and training costs over time. Experienced staff know the business well, and long-term relationships improve teamwork and customer service.

False.

It may limit new ideas, make the business slow to adapt to change and leave younger staff feeling blocked from promotion.

Recruitment is the process of attracting and identifying potential job candidates who are suitable for a particular role.

False.

These are selection activities, which choose the best candidate. Recruitment activities include job advertising, job fairs, social media outreach and employee referrals.

A job description outlines the duties, responsibilities and requirements of the job. A job specification outlines the qualifications, skills, experience and personal qualities required from the candidate.

The stages are to define the role, determine the best source of candidates, advertise, receive applications and then carry out selection.

From the applications received, a business draws up a shortlist of candidates whose applications closely match the job description and job specification.

Internal recruitment is the process of hiring employees from within the organisation, for example through promotion or redeployment.

Internal candidates are already familiar with the business's culture and processes, so they need little induction. It is cheaper and quicker than recruiting externally, and progression opportunities can motivate existing employees.

False.

Promoting or redeploying an employee creates a further vacancy in the role they leave behind.

External recruits can bring fresh ideas, experiences and perspectives. However, it is often more expensive and more uncertain, as the candidates are unknown to the business.

External firms that specialise in recruiting staff for other businesses are called employment agencies.

It can attract large numbers of irrelevant applications and might exclude applicants with limited internet access. There may also be security and privacy concerns over handling data online.

True.

Newspaper adverts reach many potential applicants, but sorting through the unsuitable responses can be time-consuming.

All applicants provide identical information in the same format, so comparisons are easier. Decisions are based on consistent criteria, which reduces the risk of bias.

False.

There is no single acceptable format for a CV, although it should be clear and well laid-out.

Comparing varied CV formats is time-consuming, which lengthens the recruitment process. Applicants may also leave out important details, making comparisons less thorough.

Once received, applications are sifted to identify the most suitable applicants for the role.

Using a set of relevant questions for all candidates ensures the interview is conducted in a fair and consistent manner.

Tests such as psychometric tests, group exercises and presentations let candidates show their skills, aptitude and suitability. They typically assess problem-solving and critical thinking, giving an idea of a candidate's potential.

True.

Referees, who should know the candidate in a professional capacity, are typically contacted once a job offer has been made.

An employment contract is an agreement between an employer and an employee that outlines the terms and conditions of their working relationship.

It usually sets out the working hours and work pattern, the contract period, entitlement to paid leave and notice periods for both the employee and the employer.

False.

In most countries a contract comes into force as soon as the employee accepts the job offer. In some countries, a verbal agreement has the same legal status as a written contract.

A fixed-term contract provides employment for a set period with clear start and end dates, often to cover staff absences such as parental leave.

A casual contract suits irregular, on-demand work with no guaranteed hours, such as in busy seasons. It is used when specific skills are needed but long-term commitment is not.

A permanent contract offers ongoing employment with no end date. It provides job security for employees and stability for employers.

Redundancy occurs when a job is no longer available and the business reduces the size of its workforce.

In voluntary redundancy, the employee chooses to leave, usually in return for a financial package. In involuntary redundancy, the employer selects employees to leave, for example due to cost-cutting, closures or restructuring.

Reducing the size of the workforce can cut costs significantly, which improves the viability of the business.

Dismissal is the termination of employment by an employer against the will of the employee.

True.

A dismissal is fair when it is for a valid reason, such as misconduct, incapability or redundancy, and follows a fair process.

A dismissal is unfair when the process is flawed, discriminatory or without just cause.

False.

The employer may dismiss the employee immediately, without notice or compensation, or it may choose to provide a notice period.

Workers can take legal action against their employer if they believe their dismissal was unfair.

Morale is the overall attitude and satisfaction that employees feel towards their workplace.

Morale is boosted by fair pay and financial incentives, opportunities for career advancement, recognition of good performance and positive relationships between staff and management.

Employee welfare relates to the measures a business takes to ensure the health, safety and wellbeing of its staff.

True.

Businesses that look after welfare often see higher productivity, lower staff turnover and fewer days lost due to illness.

It gives employees access to necessary medical care, which improves their wellbeing and reduces absenteeism.

Offering mental health support and counselling helps employees manage stress and anxiety, improving their resilience.

Work-life balance is employees' ability to balance their work responsibilities with their personal life.

A business can offer flexible or remote working, paid parental leave and employee assistance programmes. It can also encourage staff to take holidays and breaks.

False.

Diversity means recognising, valuing and respecting differences such as gender, race, ethnicity, religion, age, disability and sexual orientation.

Equality means treating all employees fairly and ensuring everyone has the same opportunities, regardless of personal characteristics, in a workplace free from discrimination.

Equality ensures that all employees can progress their careers based on skills and merit, rather than background or identity.

A wider range of ideas and perspectives improves creativity and problem-solving. Diversity can also enhance reputation, improve understanding of diverse customer groups and reduce legal risks.

One risk of diversity policies is tokenism, where diversity efforts feel superficial rather than genuine.

Cultural differences can lead to conflict or misunderstandings if they are not managed effectively.

Training is the teaching of new skills, while development is the improvement of existing skills.

Induction training is training that new employees receive when they start working for a business, introducing its culture, policies and procedures and their job role.

Induction training reduces the time it takes for new employees to become productive.

False.

On-the-job training takes place while employees are working, learning from colleagues. Off-the-job training takes place outside the workplace, for example in workshops, seminars or online courses.

Mistakes made while learning can affect productivity and quality. It can also disrupt the workplace, as the trainer must devote time to training.

It can bring fresh ideas and perspectives into the workplace and can be tailored to the employee's needs. It can also be used as a reward for high-performing employees.

Coaching, mentoring or feedback helps employees practise new skills and gain confidence. Without it, employees may forget what they learnt or not apply it properly.

True.

Training works best when employees are willing to learn and see it as a chance for personal growth. If they see it as a waste of time, its impact will be much smaller.

Some employees may leave after receiving training, taking their skills elsewhere.

Intrapreneurship is when employees act like entrepreneurs within a business, taking initiative and developing new ideas while still employed by the company.

It can provide training in creativity and problem-solving, encourage idea sharing with rewards and use job rotation and project work. Creating a culture of trust and experimentation also helps.

Multi-skilling means employees are trained to carry out a variety of tasks, not just one specific job.

In cross training, employees are trained in tasks outside their usual role so that they can step in when needed.

They can be moved to busier departments or roles when needed, so the business can handle busy periods without hiring more staff.

Workplace relations refers to the interactions between managers and workers in a business, such as how change is communicated and how grievances are handled.

Change is more likely to be welcomed rather than feared, and employees look to play their part in implementing it.

Industrial action is where workers in dispute with management protest or take action, such as strikes, to achieve their aims.

Workers are less likely to be absent and more focused on maximising output. They are also more likely to contribute ideas that improve performance.

With compressed hours, workers complete the hours of a standard working week in fewer days.

False.

Two people share the work and pay of a single full-time job, so the business gains the input of two individuals for the cost of one employee.

Businesses no longer need large premises to accommodate staff. However, they may need to provide equipment, such as computers, for staff working from home.

True.

A sabbatical is an extended period of leave during which the job is kept open. Sabbaticals are generally unpaid, although paid ones are sometimes used to attract the best talent.

A trade union is an organisation whose members come together to achieve common goals. Members pay a membership fee and elect representatives in the workplace.

Collective bargaining is the process where trade unions negotiate with employers to reach agreements on terms and conditions of employment.

Trade unions have greater negotiating power than individual employees. This helps members win improved pay, holidays, rest breaks and working conditions.

A collective bargaining agreement is a legally binding document that both parties must follow for a specified period.

Work-to-rule is industrial action where workers complete only the tasks explicitly stated in their contract of employment, such as refusing to cover for absent colleagues.

False.

Workers are not paid when they take strike action. A ballot of trade union members must also find a majority in favour before a strike can take place.