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Human resource management

A-Level Business · Topic 2

Train
2.1

What human resource management does

Syllabus
  1. explain the purpose and roles of human resource management (HRM): workforce planning, recruitment and selection, training and development
  2. explain redundancy and dismissal, employer/employee rights and the management of change in HR
  3. calculate and interpret labour turnover and labour productivity

Source: Cambridge International syllabus

Human resource management 人力资源管理 (HRM) is the part of a business that looks after its people. Good HRM makes sure the firm has enough staff, with the right skills, who are well trained and motivated.

Managers in a business meeting around a table Managers plan and organise the workforce — the core of human resource management.

The main roles of HRM are:

  • workforce planning 人力规划 — working out how many staff, and what skills, the business will need in the future.
  • recruitment 招聘 and selection 甄选 — finding people to apply for jobs, then choosing the best.
  • training 培训 and development 培养 — improving staff skills now and helping them grow for the future.
Explore

Human resources decision lab

Classify HR actions by the job they do inside the workforce.

Vocabulary Train
English Chinese Pinyin
human resource management 人力资源管理 rén lì zī yuán guǎn lǐ
workforce planning 人力规划 rén lì guī huà
recruitment 招聘 zhāo pìn
selection 甄选 zhēn xuǎn
training 培训 péi xùn
development 培养 péi yǎng
2.1

Workforce planning, recruitment and selection

Workforce planning looks at the firm's plans, then at the staff it already has, to find the gap. The gap may be filled by hiring, training, or moving staff.

Recruitment: write a job description and person specification, recruit internally or externally, then select the best applicant Recruitment: describe the job, advertise, then select the best applicant

To recruit, the firm first writes:

  • a job description 职位描述 — the title, duties and tasks of the job.
  • a person specification 人员规格 — the skills, qualifications 资格 and qualities the right person should have.

The firm can recruit from inside or outside:

  • internal recruitment 内部招聘 — filling the job with someone who already works there. It is cheaper and faster, and the person is known, but no new ideas come in.
  • external recruitment 外部招聘 — hiring someone from outside. It brings new skills and ideas, but costs more and is slower.

Selection methods include reading application forms and CVs, interviews 面试, tests, and group tasks.

Vocabulary Train
English Chinese Pinyin
job description 职位描述 zhí wèi miáo shù
person specification 人员规格 rén yuán guī gé
qualifications 资格 zī gé
internal recruitment 内部招聘 nèi bù zhāo pìn
external recruitment 外部招聘 wài bù zhāo pìn
interviews 面试 miàn shì
2.1

Training and development

Training improves the skills staff need to do their jobs well. Common types are:

Three kinds of training: induction for new staff, on-the-job while working, and off-the-job away from work Three kinds of training: induction, on-the-job and off-the-job

  • induction training 入职培训 — given to new staff so they learn how the firm works.
  • on-the-job training 在岗培训 — learning while doing the real job.
  • off-the-job training 脱产培训 — learning away from the workplace, such as a course.

Training costs time and money, but it raises quality, productivity 生产率 and motivation, and helps keep staff.

Vocabulary Train
English Chinese Pinyin
induction training 入职培训 rù zhí péi xùn
on-the-job training 在岗培训 zài gǎng péi xùn
off-the-job training 脱产培训 tuō chǎn péi xùn
productivity 生产率 shēng chǎn lǜ
2.1

Ending employment

Sometimes a worker has to leave.

  • redundancy 裁员 happens when the job itself is no longer needed — for example, when a machine replaces it. It is not the worker's fault.
  • dismissal 解雇 happens when a worker is made to leave because of poor work or bad behaviour.
Vocabulary Train
English Chinese Pinyin
redundancy 裁员 cái yuán
dismissal 解雇 jiě gù
2.1

Rights and managing change

Both sides have rights and duties. The employer 雇主 must follow the law on pay, safety, working hours and unfair dismissal. The employee 雇员 must work as agreed and follow safe, fair rules. These rights 权利 protect both sides.

Businesses change often — new technology, new markets, or restructuring 重组. The management of change 变革管理 in HR means planning the change, explaining it clearly, training staff for new roles, and listening to worries, so staff accept the change instead of resisting it.

Vocabulary Train
English Chinese Pinyin
employer 雇主 gù zhǔ
employee 雇员 gù yuán
rights 权利 quán lì
restructuring 重组 chóng zǔ
management of change 变革管理 biàn gé guǎn lǐ
2.1

Measuring the workforce

Two simple measures help managers judge how the workforce is doing.

Labour turnover 员工流失率 shows the percentage of staff who leave in a year:

$$\text{labour turnover} = \frac{\text{number of staff leaving}}{\text{average number employed}} \times 100\%$$

High labour turnover can mean low pay, poor motivation or weak management. It raises the cost of recruiting and training.

Worked example. A firm employs $200$ people on average, and $30$ leave during the year. Find its labour turnover.

$$\text{labour turnover} = \frac{30}{200} \times 100\% = 15\%.$$

Labour productivity 劳动生产率 shows the output made by each worker:

$$\text{labour productivity} = \frac{\text{total output}}{\text{number of employees}}$$

Higher labour productivity lowers the cost of each unit, so the firm can compete better.

Worked example. A team of $8$ workers makes $2400$ units in a week. Find the labour productivity.

$$\text{labour productivity} = \frac{2400}{8} = 300 \text{ units per worker per week}.$$
Vocabulary Train
English Chinese Pinyin
labour turnover 员工流失率 yuán gōng liú shī lǜ
labour productivity 劳动生产率 láo dòng shēng chǎn lǜ
2.2

Why motivation matters

Syllabus
  1. explain the importance of motivation and the main motivation theories (Taylor, Mayo, Maslow, Herzberg, McClelland, Vroom)
  2. explain financial motivators (wages, salary, piece rate, commission, bonus, profit sharing, performance-related pay, fringe benefits)
  3. explain non-financial motivators (job enrichment, job rotation, job enlargement, empowerment, teamworking)

Source: Cambridge International syllabus

Motivation 激励 is the desire to work hard and do a good job. Motivated staff produce more and better work, take fewer days off, stay longer, and give better service. So motivation lowers costs and raises quality.

Vocabulary Train
English Chinese Pinyin
motivation 激励 jī lì
2.2

Theories of motivation

Maslow's hierarchy of needs drawn as a five-level pyramid Maslow's hierarchy of needs, with workplace examples at each level.

Several thinkers tried to explain what motivates people. You should know the main idea of each.

Thinker Main idea
Taylor scientific management 科学管理 — workers are mainly motivated by money. Pay them per unit made (piece rate 计件工资) and they work harder.
Mayo human relations 人际关系 — workers are also motivated by attention, teamwork and feeling part of a group.
Maslow hierarchy of needs 需求层次 — people meet needs in order, from low to high (see below).
Herzberg two-factor theory 双因素理论 — some things cause unhappiness if missing, others truly motivate (see below).
McClelland people are driven by three needs in different amounts: achievement 成就, power and affiliation (belonging).
Vroom expectancy theory 期望理论 — people work hard only if they believe the effort will lead to a reward they want.

Maslow's hierarchy of needs

Maslow said people try to meet lower needs first, then move up:

  1. physiological needs 生理需求 — food, water, rest (met by pay).
  2. safety needs — a safe job and workplace.
  3. social needs — friendship and being part of a team.
  4. esteem needs 尊重需求 — respect and recognition 认可.
  5. self-actualisation 自我实现 — reaching your full potential.

Five-level pyramid of Maslow's needs, widest at the bottom (physiological) up to the apex (self-actualisation), with an arrow showing lower needs are met first Maslow's hierarchy: people meet lower needs before higher ones

Herzberg's two factors

  • hygiene factors 保健因素 — things like pay, conditions and rules. If they are poor, staff are unhappy; but fixing them does not truly motivate.
  • motivators 激励因素 — things like achievement, responsibility and recognition. These give real, lasting motivation.

Herzberg diagram: hygiene factors (pay, conditions) only stop staff being unhappy, while motivators (achievement, recognition) give real lasting motivation Hygiene factors stop unhappiness; only motivators give real, lasting motivation

Explore

Maslow's hierarchy of needs

Maslow said people are motivated by needs in order — satisfy the lower ones first, then they aim higher.

Vocabulary Train
English Chinese Pinyin
scientific management 科学管理 kē xué guǎn lǐ
piece rate 计件工资 jì jiàn gōng zī
human relations 人际关系 rén jì guān xì
hierarchy of needs 需求层次 xū qiú céng cì
two-factor theory 双因素理论 shuāng yīn sù lǐ lùn
achievement 成就 chéng jiù
expectancy theory 期望理论 qī wàng lǐ lùn
physiological needs 生理需求 shēng lǐ xū qiú
esteem needs 尊重需求 zūn zhòng xū qiú
recognition 认可 rèn kě
self-actualisation 自我实现 zì wǒ shí xiàn
hygiene factors 保健因素 bǎo jiàn yīn sù
motivators 激励因素 jī lì yīn sù
2.2

Financial motivators

Financial motivators 经济激励 are rewards paid in money:

  • wages 工资 — pay by the hour or week, often for manual work 体力劳动.
  • salary 薪水 — a fixed yearly amount, paid monthly.
  • piece rate — pay for each unit made.
  • commission 佣金 — pay based on how much you sell.
  • bonus 奖金 — an extra payment for good results.
  • profit sharing 利润分享 — staff get a share of the firm's profit.
  • performance-related pay 绩效工资 — extra pay for those who meet targets.
  • fringe benefits 附加福利 — non-cash extras, such as a company car or health care.
Explore

Motivation methods lab

Compare financial and non-financial ways to raise effort.

Vocabulary Train
English Chinese Pinyin
financial motivators 经济激励 jīng jì jī lì
wages 工资 gōng zī
manual work 体力劳动 tǐ lì láo dòng
salary 薪水 xīn shuǐ
commission 佣金 yòng jīn
bonus 奖金 jiǎng jīn
profit sharing 利润分享 lì rùn fēn xiǎng
performance-related pay 绩效工资 jì xiào gōng zī
fringe benefits 附加福利 fù jiā fú lì
2.2

Non-financial motivators

Non-financial motivators 非经济激励 reward staff without extra money, by making work more interesting and giving more control:

  • job enrichment 工作丰富化 — giving more challenging tasks and responsibility.
  • job rotation 工作轮换 — moving between different tasks to reduce boredom.
  • job enlargement 工作扩大化 — adding more tasks at the same level.
  • empowerment 授权 — letting staff make their own decisions about their work.
  • teamworking 团队合作 — organising staff into teams that share goals.

Mind-map splitting ways to motivate staff into financial rewards (wages, piece rate, bonus) and non-financial methods (job enrichment, rotation, empowerment, teamworking) Motivators are either financial (money) or non-financial (better, fuller work)

Vocabulary Train
English Chinese Pinyin
non-financial motivators 非经济激励 fēi jīng jì jī lì
job enrichment 工作丰富化 gōng zuò fēng fù huà
job rotation 工作轮换 gōng zuò lún huàn
job enlargement 工作扩大化 gōng zuò kuò dà huà
empowerment 授权 shòu quán
teamworking 团队合作 tuán duì hé zuò
2.3

Management and its functions

Syllabus
  1. explain the role and functions of management (Fayol, Mintzberg)
  2. explain leadership versus management and the importance of effective management

Source: Cambridge International syllabus

Management 管理 means getting work done through other people to reach the firm's objectives.

Fayol said managers carry out five functions:

Function What the manager does
planning 计划 set objectives and decide how to reach them
organising 组织 arrange people and resources
commanding 指挥 give clear instructions and guidance
coordinating 协调 make sure all parts work together
controlling 控制 check results against the plan and correct problems

Cycle of Fayol's five management functions — planning, organising, commanding, coordinating, controlling — arranged in a ring around the word management Fayol's five functions of management form a repeating cycle

Mintzberg said managers also play ten roles 角色 in three groups: interpersonal (working with people), informational (sharing information), and decisional (making decisions). This shows that real management is busy and varied, not just the five neat functions.

Explore

Leadership style lab

Pick the management style that fits each situation.

Vocabulary Train
English Chinese Pinyin
management 管理 guǎn lǐ
planning 计划 jì huà
organising 组织 zǔ zhī
commanding 指挥 zhǐ huī
coordinating 协调 xié tiáo
controlling 控制 kòng zhì
roles 角色 jué sè
2.3

Leadership versus management

Leadership 领导 and management are not the same.

  • a manager plans, organises and controls the day-to-day work.
  • a leader sets a vision 愿景, inspires people, and guides change.

Two boxes: a manager who plans, organises and controls the day-to-day work, and a leader who sets a vision, inspires people and guides change A manager runs the day-to-day work; a leader sets direction and inspires — the best people do both

The best managers are also good leaders. Effective management matters because it raises productivity, keeps good staff, helps the firm adapt to change, and turns plans into real results.

Vocabulary Train
English Chinese Pinyin
leadership 领导 lǐng dǎo
vision 愿景 yuàn jǐng
2.3

Exam tips

  • Calculate and interpret labour turnover and labour productivity; high turnover raises recruitment and training costs.
  • Link a motivation theory to a method: Maslow (needs), Herzberg (hygiene vs motivators), Taylor (pay).
  • Distinguish financial (piece rate, bonus) from non-financial (job enrichment, empowerment) motivators.
  • Distinguish leadership from management and match a style (autocratic, democratic, laissez-faire) to the situation.

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